Why did Jack Ma need to acquire SCMP?

Tsang Ho Wah Eric
Feb 23, 2017 · 2 min read

Introduction

On 11 December back in 2015, Jack Ma, the owner of ALIBABA, spent 2 billion Hong Kong dollars on acquiring SCMP. This article aims at analyzing the reasons behind his acquisition of SCMP.

Business aspect

On the business side, it was clearly seen that Jack Ma bought SCMP because he wanted to explore the big data era we were facing right now. Alibaba had one of the best and most completed data analysis team in China, and now with the acquisition of this newspaper, Jack Ma could use this channel to promote his brand as well as seeking for any potential business values. With SCMP, Jack Ma could easily use the financial section to promote his business such as TaoBao and build his own empire.

Political aspect

Newspapers can easily influence the general public by simply choosing what to inform and what not to inform. By acquiring SCMP, Jack Ma could have his own channel of media and ingratiate the Chinese government. I used the word ‘ingratiate ‘ here was because Jack Ma once said ‘fall in love with the government but don’t marry them’. We can see Jack Ma’s attitude towards the government from his words. He wanted to share the common interests with the government so that they can benefit each other. By acquiring SCMP, Jack Ma can influence the way how China-related affairs are reported privately which serves in the interest of the Chinese government. In return, Jack Ma may have easier access in China for his expansion in business. If Jack Ma could make good use of this channel to promote his brand as well as helping promote the core values of the Chinese government, he could gain benefits from the Chinese government to a certain extent which drives him to the decision of acquiring the SCMP.

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