Alibaba: China ordered Jack Ma’s company to discard its media assets

Alibaba was hit with a new setback after it was reported that Beijing asked the company to get rid of its media assets. It was said that the issue has been examined since the start of this year and the China government decided to order Jack Ma’s company to discard the said media files.

As per Reuters, Beijing was shocked to learn the extent of Alibaba Group Holding Ltd’s media interests, so it immediately asked for their disposal. It was suggested that the Chinese administration views these media assets as serious challenges to the country’s Communist Party and its strong propaganda machinery.

Alibaba’s media assets

Jack Ma’s company has stakes in various social media platforms such as Weibo and some news publications, including the South China Morning Post. It was reported that with these resources, it is thought that Alibaba can easily impose great influence on the public. Thus, the government is trying to scrap them.

Moreover, the Chinese officials are also said to have become more concerned about Alibaba’s ability to rock or change public opinion in the country. The tech company’s media resources came to light after the country’s regulators started checking the list of the media assets it owns.

The Wall Street Journal disclosed sources shared that the officials were really horrified at the discovery of Alibaba’s extensive media interests. As a result, they have requested for the firm to devise a plan to substantially cut its media holdings. Then again, the officials did not exactly state which of the assets that Alibaba needs to get rid of.

The crackdown on Alibaba

This is the latest blow to Alibaba after its sister subsidiary, Ant Group, recently lost its chance for IPO. Jack Ma founded the company, but he was recently sort of blacklisted in China after he criticized the government last year.

Beijing turned cold on the billionaire, and his name was even removed from the list of China’s best businessmen. He has built the company slowly and, over the years, managed to expand his company’s portfolio and acquired many assets including in the media sector.

Alibaba has a wide array of resources, including online and print news outlets, TV production firms, advertising businesses, and social media platforms. Finally, it is yet to see which of these media assets that China is targeting to eliminate.