China Urges "Sell Alibaba Media Shares"... Another Pressure on Ma Yun

[Image source=Yonhap News]

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Reports have emerged that Chinese authorities have instructed Alibaba to sell its stakes in media companies, including the Hong Kong-based South China Morning Post (SCMP). Analysts interpret this as continued pressure from Chinese authorities following Alibaba founder Jack Ma's public criticism of China's financial regulators. The move is also seen as a measure considering Alibaba's significant influence on public opinion through its ownership of multiple media companies.

The Wall Street Journal (WSJ) reported on the 15th (local time) that Chinese authorities have issued directives for Alibaba to prepare a detailed plan to significantly divest its media holdings. Bloomberg News also cited informed sources on the same day, reporting that Chinese authorities demanded Alibaba sell its media assets.

According to WSJ, Alibaba owns 100% of SCMP shares and holds a 37% stake in the Chinese economic newspaper Zaijia Zaijing Ribao. Additionally, Alibaba owns 30% of Weibo, known as the Chinese version of Twitter, and 6.7% of Bilibili, a popular video platform among Chinese youth. Alibaba has also established a joint venture with Xinhua News Agency. Alibaba’s mobile finance subsidiary, Ant Group, holds a 16.2% stake in 36kr, a specialized IT media outlet.

WSJ quoted sources saying that after reviewing Alibaba’s media stakes, Chinese authorities confirmed Alibaba’s extensive influence in the media sector and were reportedly taken aback. This could pose an obstacle to the Chinese Communist Party’s absolute control over the media. The sources noted that the authorities have not specified which stakes Alibaba must sell.

Chinese authorities intensified pressure on Jack Ma after his public criticism of China’s financial regulatory bodies. Earlier, WSJ reported that antitrust regulators are considering imposing the largest fine in Chinese corporate history on Alibaba.

Furthermore, Ant Group, led by Jack Ma alongside Alibaba, faced delays in its listings on the Shanghai and Hong Kong stock exchanges, and its plan to transform into an IT company to maximize corporate value was also scrapped.

Notably, Ant Group CEO Hu Xiaoming (胡曉明) recently announced his sudden resignation for personal reasons.

Meanwhile, Alibaba issued a statement saying that its media stakes are merely simple investments that do not affect editorial rights, but it did not comment on the Chinese authorities’ order to sell.

This content was produced with the assistance of AI translation services.