Is Alibaba Set to Take Over Zhao Lusi’s Contract? Here’s an Explanation of the Structure Behind It

Timotius Ario

LayarHijau – Over the past week, several posts on social media platforms such as Twitter and Threads have been buzzing with rumors that Zhao Lusi’s contract might be taken over by Alibaba. This speculation has stirred widespread discussion among fans, especially since Zhao Lusi is currently in a dispute with her agency, Galaxy Cool Entertainment (银河酷娱). LayarHijau has been covering this conflict from the start, including Zhao Lusi’s complaints regarding finances, team management, and questionable work decisions.

To investigate further, LayarHijau conducted searches on Baidu. According to the latest reports from the platform, Galaxy Cool does have affiliations with Alibaba through Beijing Dayu Happy Culture (北京大鱼快乐文化), but Alibaba is not directly taking over Zhao Lusi’s contract or managing her affairs. No official statements or contract details regarding a potential takeover have been released.

A March article on Sohu provides a more detailed look at Zhao Lusi’s connection to the “Ali system.” Galaxy Cool, though seemingly small on the surface, has a shareholder structure that shows direct links to Alibaba. For instance, one of the main shareholders is Beijing Dayu Happy Culture, which is part of the Alibaba Pictures, Youku, and Taopiaopiao ecosystem. This relationship explains why Zhao Lusi, with her strong popularity and market appeal, easily gains access to major projects: dramas like Love Like the Galaxy (星汉灿烂) and Who Rules the World (且试天下) were released exclusively on Youku, demonstrating that platform and financial support from Alibaba’s network is tangible.

However, the Sohu article emphasizes that this support is structural and strategic, not personal or directly controlling her contract. For example, when Zhao Lusi suffered a serious illness on set that temporarily affected her ability to speak, Galaxy Cool did not immediately respond publicly. Zhao Lusi herself had to explain her condition through social media. This shows that large-scale capital support from Alibaba’s network does not automatically translate into direct oversight or personal protection at the contract level.

In theory, Alibaba could take over Galaxy Cool and automatically gain control of Zhao Lusi’s contract if the contract dispute continues or internal restructuring occurs. This scenario could happen through increased shareholding or strategic reorganization.

Imagine Galaxy Cool is a house with many keys (the keys here represent shares or ownership). Right now, Alibaba only holds a few keys (minority ownership), so it cannot fully control Galaxy Cool. Increasing shareholding means Alibaba buys more keys until it becomes the majority owner—the main boss of the house. This would change the structure and rules inside Galaxy Cool to align with Alibaba’s strategy (what is called internal restructuring). Since Galaxy Cool holds Zhao Lusi’s contract, her contract would automatically fall under Alibaba’s control. This scenario is possible, but so far, there are no signs of a direct takeover. Galaxy Cool still manages Zhao Lusi’s contract, even though internal issues and contract disputes continue.

Common Practice of Contract Acquisition in China

It should be understood that acquiring an artist’s contract through agency acquisition is not unusual—it is a very common business practice in the Chinese entertainment industry. Tech giants like Alibaba (through Youku) and Tencent (through Tencent Video) constantly seek to control the entire entertainment supply chain, from production to distribution. Top artist contracts are considered highly strategic assets. By acquiring affiliated agencies, parent companies ensure exclusive talent works for their platforms. From a business perspective, the possibility of Alibaba taking such steps—especially amid contract disputes—is always open.

In short, Zhao Lusi does benefit from Alibaba’s network, which provides access and funding for major projects and platforms based on her popularity. However, Alibaba does not directly manage her contract, and all management decisions remain with Galaxy Cool. The support is structural—ensuring access to exclusive projects—not personal protection for the artist. In other words, the rumor of a contract takeover remains speculative, though at a corporate level, it remains a possibility if there is a change in ownership or restructuring.

 

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