Alibaba Obligated By The Chinese Government To Sell The Media Assets
Alibaba Group Holding Limited is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Last year, Forbes Global named Alibaba as the 31st-largest public company in the world in Forbes Global 2020 list. Alibaba created a new live entertainment business unit under its Digital Media and Entertainment Group that emphasized content creation and live experiences, bringing its entertainment ticketing platform Damai and its content creation and technology units under one roof cupola. It intends to provide a platform for live events as such concerts, plays, eSports, and sports events as well as supporting content partners and leveraging Alibaba's data capability for offline shows. It also provides the online digital distribution service 9Apps, which hosts downloadable content and applications.
The Chinese government seeks to crack down on the relentless public influence held by the country’s extensive tech conglomerates. To attain that, Beijing has ordered Alibaba multinational technology company to sell off media assets including Hong Kong’s South China Morning Post.
Jack Ma, founder of Alibaba and one of the most successful entrepreneurs, delivered a blunt speech last year criticizing national regulators that reportedly infuriated the president, Xi Jinping. Following the comments, Chinese regulators blocked the $34bn stock market flotation of Alibaba online payments subsidiary Ant Group and Ma went sidelines for three months. Last week, it emerged that regulators are reportedly preparing to hit Alibaba with a record fine in excess of $975m over anti-competitive practices.
China’s protectionist business regime enabled a group of homegrown agglomerates to flourish since China looks to introduce the next wave of global tech champions to challenge Silicon Valley. The regime has previously banned foreign companies such as Google and Netflix.
“What is interesting here is that the Chinese Communist Party has done a good job of cultivating huge tech giants, national champions,” said Jamie MacEwan, a senior media analyst at Enders Analysis. “But there has always been a split under the surface between those who want to encourage the great tech leap forward and a growing unease among those worried about these huge companies and the big public figures at the head of them, like Ma, outgrowing the patronage of the Chinese communist party,” he added.
Alibaba said in a statement “The purpose of our investments in these companies is to provide technical support for their business upgrade and drive commercial synergies with core commerce businesses".
In 2020, it was also rated as the fifth-largest artificial intelligence company. “We do not intervene or get involved in the companies’ day-to-day operations or editorial decisions.” reckons Alibaba.