Jack Ma's Ant Group was the next big thing. Now it may become just a boring bank

Alibaba (BABA) plans to promote its 5% stake in Mango Excellent Media, in response to a press release from the media firm on Thursday. It owns Mango TV, which is massively in style for its selection exhibits in China. China’s second largest state-owned tv community, Hunan Broadcasting System, controls Mango with a stake of 56%.

The assertion additionally stated that Alibaba is searching for a waiver from an settlement to not promote the shares for a 12 months. The e-commerce big purchased them solely 9 months in the past for six.2 billion yuan ($960 million).

Based on Mango Excellent’s inventory worth on Friday, Alibaba has already suffered a notional lack of about 2 billion yuan ($320 million) from the funding.

The assertion did not present any motive for Alibaba’s plans to exit Mango. Alibaba did not instantly reply to a request for remark.

The deliberate sale comes as Alibaba, based in 1999 by Jack Ma, faces monumental political and regulatory stress from Beijing, which has intensified a crackdown on the web trade since late final 12 months.

Beijing has turn into more and more involved concerning the clout that huge, personal tech companies have over media, finance, knowledge, and different delicate sectors, and the way entrenched they’ve turn into to on a regular basis life in China via information, digital funds apps and different providers.

While Alibaba’s mainstay enterprise is e-commerce, the corporate has expanded into a wide range of industries through the years. It has assembled an enormous media empire, proudly owning main stakes in the nation’s hottest social media or on-line video platforms, equivalent to Weibo (WB), Youku, Bilibili (BILI), Xiaohongshu, and Qutoutiao (QTT), in addition to in China Business Network, a state-owned monetary media outlet.

Alibaba additionally owns the South China Morning Post, Hong Kong’s main English-language newspaper, which it purchased in 2015.

Earlier this 12 months, the Wall Street Journal reported that Beijing had requested Alibaba to get rid of its media property, as officers have been involved about its sway over public opinion.
Jack Ma's Ant Group was the next big thing. Now it may become just a boring bankJack Ma's Ant Group was the next big thing. Now it may become just a boring bank
Last November, regulators shelved a highly anticipated IPO by Alibaba’s monetary affiliate, Ant Group. In December, President Xi Jinping stated that stronger anti-monopoly guidelines in opposition to web companies could be one among his most vital targets for 2021. Days later, regulators introduced an antitrust investigation into Alibaba.
In April, Alibaba was fined a record $2.8 billion by the anti-trust watchdog. Ant Group was additionally cut down to size and ordered by the banking regulators to overtake its operations.
Ma — who retired from the company in 2019 — has largely remained out of sight via all of this. He vanished from public view for months earlier than briefly emerging in a video earlier this 12 months to talk to academics at a philanthropic occasion.

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