Bloomberg
China presses Alibaba to sell media assets, including SCMP
(Bloomberg) – The Chinese government wants Alibaba Group Holding Ltd. Some of its media assets, including the South China Morning Post, have had to sell due to growing concerns about the influence of the technology giant over public opinion in the country, according to a well-known Beijinger, he has expressed concern about Alibaba’s media shareholding during several meetings dating back to last year said the person asked not to be identified because the discussions were private. Government officials are particularly upset about the company’s influence on social media in China and its role in an online scandal involving one of its executives. Jack Ma, co-founder of Alibaba, was at the center of a government repression that began last year. The Wall Street Journal previously reported that the Chinese government is asking Alibaba to dump media properties. Over the years, Ma and Alibaba have built up an extensive portfolio of media assets, including BuzzFeed-style online outlets, newspapers, television production companies, social media and advertising assets. Alibaba has a large stake in Twitter-like Weibo and Youku, one of China’s largest streaming services, as well as other online and print news outlets, including the SCMP, the leading English-language newspaper in Hong Kong. newspaper started last year, the person said. Although no specific buyer has been identified, it is expected that there will be a Chinese entity. “Be assured that Alibaba’s commitment to SCMP remains unchanged and supports our mission and business objectives,” Gary Liu, CEO of the newspaper, told employees. In an internal memorandum reviewed by Bloomberg News, representatives of Alibaba in China and the US did not respond to requests for comment. Bloomberg News reported in February that Beijing had become concerned about Alibaba’s media ownership following a scandal involving Jiang Fan, then the youngest. partner in the e-commerce business. Reports of the scandal began to disappear from social media, including Weibo, which angered government officials. China’s Internet watchdog has penalized the microblogging site for interfering in disseminating opinions. A person familiar with the matter said at the time that officials, who saw it as a streak, said the extent and speed with which the site had removed reports. capital can be used by us, but also by the enemy, ”writes Chinese commentator Song Qinghui, who makes editorial contributions to publications, including state-supported media. Regulators were shocked at the extent of the company’s media interests after reviewing its importance and asking for it to come to the fore. According to the Journal, referring to people familiar with the discussions, Beijing is concerned that Alibaba could use its media assets as a tool to control public opinion and create a “vicious circle”, the person said. The media has already played a role in the general view of the public about the emerging fintech sector, the person said. Weibo shares fell 2.4% in US trade, while Alibaba’s Hong Kong shares changed little. Online media 36kr Holdings Inc. decreased by 1.5% in New York. The expanding influence of Alibaba – supported media services is seen as a serious challenge for the Chinese Communist Party and its powerful propaganda apparatus. Mom is honored in China as one of the country’s most successful entrepreneurs. But his fortune has waned since he spoke out against China’s regulatory approach to the financial sector. Read more about Mom’s extensive media ownership. These comments sparked an unprecedented regulatory offensive, including plans for Ant’s initial $ 35 billion public offering and the opening of an antitrust investigation into Alibaba. His media ownership could prove to be even more problematic. China’s campaign to limit the influence of its technological powers expanded last week with fines against conglomerate Tencent Holdings Ltd. of Pony Ma. Top financial regulators see Tencent as the next target for greater oversight after fighting Ant According to Bloomberg, it is not clear whether Alibaba will have to sell all its media assets, reports the Journal. According to the newspaper, any plan that Alibaba comes up with must have approval from China’s senior leadership. (Updates with SCMP CEO in the sixth paragraph) Visit us at bloomberg.com for more articles like this. Sign up now to stay ahead of the most trusted business news source. © 2021 Bloomberg LP