TEMPO.CO, Hong Kong - Chinese e-commerce giant Alibaba is in talks to buy Hong Kong's leading English language newspaper, the South China Morning Post, a person with knowledge of the potential deal said Thursday, November 26.
The person, who spoke on condition of anonymity because the talks were ongoing, said Alibaba is interested in acquiring the newspaper and its related businesses.
The Post's publisher, SCMP Group, said in a stock exchange filing late Wednesday that it was considering an offer, but did not name the possible buyer. It said it has received a "preliminary approach from a third party" for a possible purchase of its media assets.
The company said the discussions are at a "very early stage" and terms of a deal are subject to "regulatory review."
The person with knowledge of the talks said it was Alibaba Group Holdings Ltd. who would be the buyer. The acquisition would fit into the company's strategy of expanding its media interests, the person said.
Alibaba has been buying stakes in media companies in order to tap Chinese consumers' growing demand for online content as it diversifies outside of its mainstay business of online shopping. In October it bought the remaining shares in video streaming site Youku Tudou it didn't already own for $3.6 billion.
Acquisition of the Post would also give Alibaba greater exposure to a global audience. The 112-year-old newspaper is Hong Kong's biggest and most influential English-language newspaper and followed internationally for its reporting on China.
The South China Morning Post was once reputed to be the world's most profitable newspaper but its fortunes have dwindled along with the traditional newsprint industry as the Internet changed news consumption habits.
SCMP Group's net profit has declined for the past four years, falling last year to 137 million Hong Kong dollars ($17.7 million) on HK$1.2 billion in revenue, according to its latest annual report.
AP
