Alibaba Group Holding, the Chinese Ecommerce Giant has announced their plans of investing in the media outlet of the China Business Network. The deal is slated to be formally announced on Thursday, as reported by the Chinese media on Wednesday.
China Business Network is a part of Shanghai Media Group or SMG. Investment planned by Alibaba will be worth more than US$161 million, as reported by QQ.com and Sohu.com, citing sources from within Alibaba unwilling to disclose their names.
Sources from within Alibaba who are aware of the details of the deal but unauthorized to speak to media revealed Reuters the company is gearing up to announce an investment potentially on Thursday, however, the sources were not aware about the financial details of the deal.
When spokesperson from Alibaba was contacted to shed light on the news, she declined to divulge any information pertaining to the same. China Business Network and SMG were not immediately available for comment either outside the business hours.
According to industry experts the step taken by Alibaba to invest in the stake of the media outlet is a well thought after decision taken by founder and Executive Chairman of Alibaba Jack Ma to round up the company’s already extensive holding in the financial industry of China. Jack Ma is gearing up to build a chain of online services in China that will challenge the state-owned banks and financial institutions in the country.
Ma acquired holdings throughout the country through a network of his owned companies such as Ant Financial and affiliate Alibaba which has rolled out the country’s biggest online service. This is not the first time that Ma and SMG has partnered in the field of financial information services. Last November, SMG and Ant collaboratively invested in 390 million yuan in Shanghai Gikdata Inc.