Alibaba To Sell Its Entire Stake In Chinese TV Network Mango Excellent Amid Beijing Scrutiny: Report

Alibaba Group Holding BABA is looking to shed its entire stake in a local television network as Beijing wants the Jack Ma-founded company to sell some of its media assets, Bloomberg News reported on Thursday.

What Happened: Alibaba’s investment arm is looking to sell its 5.01% stake in Mango Excellent Media Co, a TV shopping and entertainment network, just nine months after it picked up the stake.

The e-commerce giant is seeking a waiver from a one-year lock-up agreement, Bloomberg noted. 

See Also: Alibaba-Backed Ant To Share Consumer Credit Data With Chinese Central Bank

Why It Matters: Beijing has been tightening its scrutiny on Chinese tech firms over fears of their growing influence of public opinion in the communist country. As per the report, China wants Alibaba to sell some of its media assets, including the stake in the South China Morning Post.

Price Action: BABA shares, which have sunk 33.6% so far this year,  closed 0.46% lower at $151.19 on Thursday.

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Photo: Courtesy of Alibaba