Alibaba, Tencent eye WPP stake

The rapid convergence of marketing services and digital technology is in the spotlight again, as a result of a potential stake-buying plan in the world's largest advertising house by major Chinese internet companies.

Alibaba Group Holding Ltd and Tencent Holdings Ltd, the two biggest names in China's technology industry, are in talks to buy a stake in the roughly $2.5 billion Chinese operations of London-based WPP Plc, Sky News reported over the weekend.

The tech duo, along with China Media Capital Holdings, whose founder Li Ruigang serves as a non-executive director of WPP, are in early-phase discussions with the communications tycoon to purchase around 20 percent of its China operations, the report said. It is still unclear whether all three parties will end up participating.