The Alibaba Group has announced that will acquire the South China Morning Post, one of Hong Kong’s most influential English language newspapers, and other media assets of SCMP Group Limited.
The move is reportedly part of an effort to improve China’s image in the West and combat what company executives call the “negative” portrayal of China in the Western media.
“The South China Morning Post is unique because it focuses on coverage of China in the English language. This is a proposition that is in high demand by readers around the world who care to understand the world’s second largest economy,” said Joseph Tsai, executive vice chairman of Alibaba Group.
The South China Morning Post has long reported on subjects that state-run publications have been forbidden to cover, such as political scandals and human-rights violations. The paper has a relatively small circulation (at about 100,000). Despite the paper’s size, it has significant influence in the West because of its proximity to China and English language format. However, critics have recently taken aim at the paper, claiming that it has become increasingly pro-Beijing.
The acquisition is an ambitious move that sees Alibaba taking a significant stake in print journalism, with an eye to developing its digital potential.
“Like many print media the SCMP faces challenges amid the dramatic changes in the way news is reported and distributed. But these changes play to Alibaba’s strengths, which is why we believe the two companies complement each other well,” said Tsai in an open letter to the readers of the South China Morning Post.
As part of the changes, Alibaba will remove the pay wall on SCMP.com, allowing readers to access content for free on the internet and mobile.
Other assets included in the acquisition are SCMP’s magazine, recruitment, outdoor media, events and conferences, education and digital media businesses. Besides the flagship South China Morning Post, other titles include SCMP.com and related apps, and Nanzao.com and Nanzaohinan.com, as well as the Hong Kong editions of Esquire, Elle, Cosmopolitan, The PEAK and Harper’s Bazaar.
The acquisition represents a relatively minor investment on the part of Alibaba, with SCMP valued at an estimated US$100 million, a drop in the ocean compared with Alibaba’s multi-billion yearly revenue.
It’s unclear at this point what degree of editorial control Alibaba will exercise over the controversial publication. While Hong Kong operates with a relatively free press, at least compared with mainland China, some are concerned that Alibaba will seek to water down the paper’s political stance to curry favour with Chinese leadership and advance its (Alibaba’s) own agenda, which is reportedly closely aligned with the Communist Party.
Willy Lam, a political commentator and former editor at the South China Morning Post, said an Alibaba takeover would most likely exacerbate a trend at the paper toward self-censorship on sensitive political issues, reported the New York Times.
The company has been quick to address this. “Some have suggested that ownership by Alibaba will compromise the SCMP’s editorial independence,” said Tsai. “This criticism reflects a bias of its own, as if to say newspaper owners must espouse certain views, while those that hold opposing views are ‘unfit’.
“In fact, that is exactly why we think the world needs a plurality of views when it comes to China coverage. China’s rise as an economic power and its importance to world stability is too important for there to be a singular thesis.
“In reporting the news, the SCMP will be objective, accurate and fair. This means having the courage to go against conventional wisdom, and taking care to verify stories, check sources and seek all viewpoints. These day-to-day editorial decisions will be driven by editors in the newsroom, not in the corporate boardroom,” said Tsai.
“Alibaba and Jack Ma have done a good job maintaining good relations with the power structure and not getting involved in politics,” Orville Schell, a director at the Asia Society, told the New York Times.
“But buying a newspaper, particularly in Hong Kong, could be hazardous,” he said, adding, “China is always tempted when things go wrong to take control.”