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Bloomberg
China is pressuring Alibaba to sell media assets, including SCMP
(Bloomberg) – The Chinese government wants Alibaba Group Holding Ltd. is selling some of its media assets, including the South China Morning Post, amid growing concerns about the tech giant’s influence on public opinion in the country, according to a familiar person. Beijing has expressed doubts about Alibaba’s media holdings in several meetings dating back to last year, the person said, asking not to be identified as the talks are private. Government officials are particularly unhappy with 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, has been at the center of ‘a government crackdown that began last year. targeting e-commerce giant and its financial affiliate Ant Group Co. The Wall Street Journal earlier reported that the Chinese government is asking Alibaba to get rid of media properties. Ma and Alibaba have quietly built a large portfolio of media assets in over the years, spanning BuzzFeed- style online outlets, newspapers, TV production companies, social media and advertising resources Alibaba has a major stake in Weibo and Youku, one of the largest departments in streaming from China, such as Twitter, as well as other online and print media, including SCMP, the main English-language newspaper in Hong Kong. newspaper started last year, the person said. Although no specific buyer has been identified, it should be a Chinese entity. “Please be assured that Alibaba’s commitment to SCMP remains unchanged and continues to support our mission and business goals,” said Gary Liu, managing director of the news company. in an internal memo reviewed by Bloomberg News. Alibaba representatives in China and the United States did not respond to requests for comment. Bloomberg News reported in February that Beijing had become alarmed by Alibaba’s media holdings after a scandal involving Jiang Fan, then the e-commerce company’s youngest partner. Posts about the scandal began to disappear from social media, including Weibo, drawing the ire of government officials. The Chinese internet watchdog has penalized the microblogging site for interfering with the dissemination of opinions. The extent and speed with which the website removed posts shocked government officials, who saw it as a line crossing, a person familiar with the matter said at the time. capital can be used by us, but also by the enemy, ”wrote Chinese commentator Song Qinghui, who writes for publications, including state-supported media. with a plan to drastically reduce interest, the Journal reported, citing people familiar with the discussions. Beijing is concerned that Alibaba may use its media assets as a tool to control public opinion, creating a “vicious cycle,” the person said. Already, the company’s media have played a role in influencing the general public’s opinion of the emerging fintech industry, the person said. Online media 36kr Holdings Inc. slipped 1.5% in New York City. The expansive influence of Alibaba-backed media services is seen as posing serious challenges to the Chinese Communist Party and its powerful propaganda apparatus. is revered in China as one of the countries in the country. most successful entrepreneurs. But his fortunes have weakened since he spoke out against China’s regulatory approach to the financial sector. probe in Alibaba. Its media assets could prove even more problematic. China’s campaign to reduce the influence of its tech moguls spread last week with fines against Pony Ma conglomerate Tencent Holdings Ltd. It is not clear whether Alibaba will have to sell all of its media assets, the Journal reported. Any plan proposed by Alibaba will require approval from senior Chinese management, the newspaper said. (Updates with comment from SCMP CEO in sixth paragraph) For more articles like this, please visit us at bloomberg.com, a trusted business information source. © 2021 Bloomberg LP
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