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SCMP confirms receiving offer for its media business

By Dai Tian (chinadaily.com.cn) Updated: 2015-11-26 11:01

SCMP confirms receiving offer for its media business

Journalists film outside the headquarters of South China Morning Post in Hong Kong, Jun 13, 2013, after the newspaper?published an exclusive interview with Edward Snowden during his stay in the city. [Photo/IC]

SCMP Group, which publishes the South China Morning Post, confirmed on Wednesday evening that it has received a preliminary approach from an interested party in acquiring its media assets.

The announcement didn't specify whether the offer comes from Alibaba Group Holding, while adding that potential transaction remains subject to discussions and regulatory review.

Discussions are at an advance stage, according to Bloomberg citing two sources close to the matter. The acquisition could make Jack Ma Yun, Alibaba's executive chairman, the latest Internet tycoon to pursue a renovation of a traditional newspaper.

The 112-year-old SCMP was once the world's most profitable newspaper before witnessing fall in print media as readers shift online. The group posted three years of earnings declines and has been suspended from trading since 2013 after it failed to meet a minimum portion of minority investors as required in Hong Kong.

Besides the newspaper, the SCMP Group also owns magazines, outdoor media, contract printing and marketing businesses, according to the company's homepage.

The move comes as Alibaba aims to build a Chinese version of Bloomberg. In June, the e-commerce giant announced a 1.2 billion yuan ($188 million) investment in Shanghai-based financial media outlet China Business Network to create a data-oriented financial information provider.

Earlier this month, Alibaba upped its stake in the media sector by acquiring Youku Tudou Inc, the country's most popular online video streaming platform seen as China's YouTube. The transaction, capped at $4.35 billion, is expected to close in the first quarter of 2016.

Alibaba closed up 1.1 percent to $81.71 per American depositary share on Wednesday.

 

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