Alibaba agrees to pay $266 mln for South China Morning Post

Great Wall Pan Asia Holdings

14/12/2015 24:56

SHANGHAI, Dec 14 (Reuters) - Alibaba Group Holding Ltd 
 BABA.N  has agreed to pay HK$2.06 billion ($265.8 million) to 
acquire Hong Kong's flagship English-language newspaper the 
South China Morning Post (SCMP), the newspaper group said in a 
statement on Monday. 
    Alibaba and SCMP Group Ltd  0583.HK  announced on Friday the 
Hangzhou-based company would buy the 112-year-old newspaper and 
other media properties, but did not put a value on the deal. 
    The purchase, which follows a string of media deals by 
Alibaba, is likely to raise concerns in Hong Kong where the 
South China Morning Post occupies an important position and is 
seen as a barometer for press freedom under Chinese rule. 
    In a filing to the Hong Kong stock exchange, SCMP cited an 
"uncertain" future for traditional publishing as a key reason 
behind the sale, adding Alibaba would likely be able to "unlock 
greater value" from the business. 
    SCMP Group had a turnover of around HK$1.2 billion in 2014, 
up slightly from 2013, it said. Net profit for the year was 
HK$122.6 million.  
    Alibaba has acquired or invested in a growing portfolio of 
media and content companies in recent years. In June, the 
company agreed to pay $194 million for an undisclosed stake in 
domestic financial media firm China Business News.  urn:newsml:reuters.com:*:nASB09QP5 
($1 = 7.7501 Hong Kong dollars) 
 
 (Reporting by Adam Jourdan; Editing by Ryan Woo) 
 ((adam.jourdan@thomsonreuters.com; +86 21 6104 1778; Reuters 
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) 
 
Keywords: SCMP GROUP ALIBABA/