China buys Alibaba shares
2023.01.14 02:10
China buys Alibaba shares
By Ray Johnson
Budrigannews.com – China has obtained special rights for minority stakes in two domestic Alibaba units (NYSE:). Business registration records showed Group Holding Ltd., as Beijing continues its campaign to tighten control over online content.
For more than five years, Beijing has been buying “golden shares” in private online media and content companies, and in recent years, it has expanded these deals to include companies that have a lot of data.
The first things that the e-commerce company has learned about are the stakes it has taken in the units over the past four months. One of China’s most prominent targets in its two-year regulatory crackdown on tech giants has been Alibaba.
Companies or government-backed funds acquire these golden shares, which typically represent about 1% of a company, and receive board representation and/or veto rights over important business decisions.
According to public business registration records, a state-owned Zhejiang Media Group investment vehicle acquired a 1% stake in Alibaba’s Shanghai-based Youku Film and Television unit in September of last year.
According to the records, Zhejiang Media Group also added Jin Jun, the general manager of one of its subsidiaries, to the board of the Alibaba unit.
According to separate business registration records, Alibaba unit Guangzhou Lujiao, whose primary focus is “research and experimentation,” was acquired in December by WangTouSuiCheng (Beijing), a subsidiary of the China Internet Investment Fund (CIIF) established by the Cyberspace Administration of China ().
The goal of the WangTouSuiCheng investment, according to the Financial Times, which first reported it on Friday, is for Beijing to tighten control over content at the e-commerce giant’s streaming video unit Youku and web browser UCWeb.
The Financial Times also said, citing unidentified sources, that the government was talking about taking golden shares in gaming giant Tencent Holdings (OTC:). which would entail a stake in one of the main subsidiaries of the group. Tencent did not respond.
Full Truck Alliance Co., Kuaishou Technology, and Weibo (NASDAQ:), as well as mainland subsidiaries of TikTok owner ByteDance, are among the other businesses with such golden share arrangements. Reuters reported previously.
When companies try to obtain licenses to distribute online news and show online video and audio programs, having such golden shares can be helpful.
More Default may occur by June in the U. S.
