Alibaba is looking to reinvest its interest in buying The South China Morning Post, an influential English newspaper based in Hong Kong. Alibaba Group Holding, reportedly, is under negotiations to purchase a major newspaper company in the near future. The news came out from a person who has direct knowledge of the discussion between both parties.
In 2013, Amazon purchased The Washington Post. This deal would be quite similar to the Amazon one, as Jeff Bezos wanted to buy the newspaper company in order to support it at a turbulent time of its business. It is obvious that The Washington Post and The South China Morning Post are facing difficulties to keep their business going and adapt to the major changes within the media space.
In both situations, the buyout does not result in a clear business benefit for the buyer. The source familiar with the matter stated that it is still unclear whether Alibaba or Jack Ma, himself, would buy the Hong Kong based newspaper.
Any agreement regarding the newspaper will result in a lot of political interference. New York Times reported, “The prospective takeover is raising concerns that the newspaper’s editorial independence could be compromised by a corporate owner whose market position depends in large part on the good will of the Chinese government.”
Jack Ma is currently dominating the tech industry and the internet world of China. Andrew Collier, a former reporter for the newspaper, suggested that the founder of Alibaba Group wants Beijing to support him in this decision as it might help him in continuing the dominance in the sector. Mr. Andrew Collier is currently in a financial research firm.
It is still not confirmed whether the deal would be agreed within the next few weeks or in the coming months. According to the person familiar with the matter, he also stated that there is a slight chance that the deal would not go through at all.
So far, both companies have declined to comment on these rumors and speculations. The South China Morning Post stated that the company does not comment on the market rumors.
The Chinese tech giant has once again made the headlines in the sector with another big acquisition if the deal is successful. Alibaba is determined to continue its dominance in the internet space and stay ahead in the competitive market among its rivals. Experts also view this decision in favor of the organization.
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