China is requesting Alibaba (BABA) to divest some of its media assets according to Reuters, citing the Wall Street Journal (WSJ). China is increasingly concerned about Alibaba’s growing influence over public opinion according to a report carried by Benzinga citing Dow Jones.
Chinese officials are also reported to have reviewed Alibaba’s entertainment businesses but getting rid of some of those business areas may not be necessary, again according to Reuters, citing the WSJ.
Benzinga reports that Alibaba owns the South China Morning Post as well as stakes in Weibo and other popular social media sites.
Alibaba has been the subject of much scrutiny since its founder Jack Ma appeared to criticize the Chinese leadership late in 2020. The episode resulted in the planned IPO of Ant Group being cancelled and Jack Ma stepping away from the public spotlight.
Market Reaction
Shares in Alibaba (BABA) are down nearly 2% in Monday’s pre-market, trading at $227.75.
