Chinese e-commerce giant Alibaba Group is acquiring Hong Kong’s English language newspaper South China Morning Post (SCMP) and the publication's other media assets.
It said the agreement will see Alibaba’s digital expertise being merged with SCMP’s heritage and editorial excellence.
“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. "Our vision is to expand the SCMP's readership globally through digital distribution and easier access to content."
Robin Hu, Chief Executive Officer of SCMP, said in a news release that the company welcomes Alibaba's commitment to invest additional resources in its editorial and business operations to make the SCMP even stronger.
Apart from the flagship SCMP newspaper, the agreement also includes the acquisition of the magazine, recruitment, outdoor media, events & conferences, education and digital media businesses of SCMP Group Limited.
Other SCMP titles include the Sunday Morning Post, its digital platforms SCMP.com and related mobile apps, and the two Chinese websites Nanzao.com and Nanzaozhinan.com.
The acquisition also includes a portfolio of magazine titles, including the Hong Kong editions of Esquire, Elle, Cosmopolitan, The PEAK and Harper’s Bazaar.
In a letter addressed to SCMP readers, penned by Tsai, the company sought to answer questions on why the e-commerce company is buying into traditional media which many consider as a sunset industry.
“The simple answer is that we don’t see it that way,” the letter read. “We see a compelling business case for the acquisition because we believe that Alibaba is best positioned to take the SCMP to the next level. The foundation for this work must be the quality of the content. And what underpins this will be editorial excellence: a clear pre-requisite to maintaining readers' trust and, ultimately, achieving commercial success. Be assured, we get that.”
The letter also addressed issues on the possible compromise that SCMP’s editorial independence may be compromised by the acquisition and the commercial interest of the new owners.
“In reporting the news, the SCMP will be objective, accurate and fair,” Tsai assured. “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.”