Alibaba, the media, e-commerce and fintech company owned by Jack Ma and based in China, is under regulatory pressure from the Chinese government to divest some media properties. The strategic impetus for the range and breadth of media interests that the company holds, both in China and beyond, lies in the potential jumping off points for readers into e-commerce activity.
The company owns the South China Morning Post (SCMP), 30% of Weibo, a Twitter comparable, and 37% of news company Yicai Media, along with stakes in many entertainment companies. The Beijing authorities are said to have become alarmed at the concentration of media ownership.
The Hong Kong-based SCMP was owned by News Corp until sold to Robert Kuok in 1993. Alibaba acquired it in 2016.
Alibaba has come under regulatory pressure following a speech that Jack Ma gave ahead of a potential IPO of his fintech company Ant, which encouraged greater freedom for companies. The IPO was subsequently pulled and Alibaba may also now face fines of almost $1bn for anti-competitive practices in e-commerce.
Alibaba maintains that the news and media companies retain editorial independence. Any buyers are likely to be other Chinese companies as western companies are deterred from owning Chinese media companies.
