Alibaba seems interested in buying another newspaper company, Ming Pao, just after a week of buying South China Morning Post.
Alibaba Group Holding is on a buying spree these days. The company recently completed the acquisition of South China Morning Post for $226 million in order to improvise its position in the media and advertising industry. The Hong Kong based newspaper was the leading paper in the country and it certainly raised many questions during the time of acquisition. However, the deal is now done and dusted but Alibaba has not.
According to sources, it is believed that the Chinese company is now interested in buying another newspaper. Australian Financial Review reported that the Chinese tech giant has held talks to discuss about a potential buy of another Hong Kong based newspaper, Ming Pao. Alibaba Group reacted quickly and it came just a week after it finalized the purchase of Hong Kong’s English language newspaper.
The spokesperson of the company, Rico Ngai, denied that his company held talks over a potential move. However, a person familiar to the matter told AFR that it is indeed interested in buying the Chinese language newspaper and the negotiation between both parties started in July.
The source further mentioned that he was informed then that the executives of both parties, Alibaba and Ming Pao, are under negotiation to discuss over a potential deal. He stated that this deal would be more complicated and time-consuming than that of South China Morning Post deal. Moreover, so far it is believed that the deal might not go through successfully considering the situation now.
Other sources have stated that it is not Alibaba but a subsidiary of the Chinese company or another related company that is trying to push for a potential move. It is believed that Alibaba has shares in the parent company of Ming Pao, Media China International.
When this news broke down, the shares of Media China International surged significantly in the market and this amused analysts. However, the company said in a statement given to the Hong Kong Stock Exchange that ‘it was not aware of any reasons for such price and trading volume movements.’ The stocks jumped by 19.3% before the market closed that day.
Ming Pao is still considered as one of the most influential organization chosen by the intellectuals in Hong Kong. If the deal goes through in the coming times, same questions would come in front once again which the company is currently dealing after purchasing South China Morning Post lately.
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