SCMP deal just another step for Alibaba

Alibaba Group Holding Ltd's headline-grabbing HK$2.06 billion ($266 million) deal to acquire the media assets of SCMP Group, including the South China Morning Post, is probably just another step in its quest to build a media empire, Hong Kong-based analysts said on Monday.

"The SCMP acquisition is just one of the building blocks, if not a vital one, for Alibaba's growing media empire and ecosystem," said Hanna Li Wai-han, a strategist at UOB Kay Hian (Hong Kong) Ltd. "(Alibaba founder-chairman) Jack Ma himself has long taken a keen personal interest in media assets, given the e-commerce behemoth's fruitful track record of buying media properties."

Statistics show that at least 24 media organizations, from mainland financial news outlet China Business Network to online video giant Youku Tudou Inc, are owned or invested in by Alibaba and its affiliate companies.