Alibaba Group has agreed on a HK dollar 2.06 billion (USD 265.8 million) deal to acquire the South China Morning Post and other media assets of SCMP Group, the newspaper group said in a statement on Monday.
Alibaba and SCMP Group said on Friday that the Hangzhou-based company would buy the 112-year-old English language newspaper and other media properties, but did not put a value on the deal.
The all-cash 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 Group 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 dollar 1.2 billion in 2014, up slightly from 2013, it said. Net profit for the year was HK dollar 122.6 million.
The group said it expected to record a gain of around HK dollar 1.4 billion from the asset sale. It plans to use the proceeds for the payment of a special cash dividend.
Alibaba has acquired or invested in a growing portfolio of media and content companies in recent years. In June, the company agreed to pay USD 194 million for an undisclosed stake in domestic financial media firm China Business News.
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