China Seeks Small Stakes in, and More Sway Over, Online Firms
- 7 years ago
China Seeks Small Stakes in, and More Sway Over, Online Firms
Two small companies — a military news site called Tiexue
and a news aggregator called Zaker — have recently offered stakes to affiliates of the Chinese government or the Communist Party, according to company documents and official media.
" he said, "that model is no longer comfortable for the authorities." The Wall Street Journal, citing anonymous sources, reported this week
that Chinese internet regulators have discussed taking 1 percent stakes in Tencent Holdings, maker of the popular WeChat messaging service, and Youku Tudou, a video platform owned by the Alibaba Group, the e-commerce giant. that As these companies have grown both in size and influence,
The article described the deal as a "trial" of the special management share structure, though it did
not state how or whether Shenzhen Press Group would influence Zaker’s management and news content.
The Chinese authorities traditionally have issued guidelines
and outright orders to major internet companies about what they would like to see and not see online, said Mark Natkin, managing director of Marbridge Consulting, a tech advisory firm in Beijing.
Experts said that if the deals work, the authorities could eventually ask for stakes at some of the country’s largest
and most innovative companies in order to solidify influence over their services.
According to government statistics, more than four-fifths of China’s more than 730 million internet users obtained some news online last year.
Two small companies — a military news site called Tiexue
and a news aggregator called Zaker — have recently offered stakes to affiliates of the Chinese government or the Communist Party, according to company documents and official media.
" he said, "that model is no longer comfortable for the authorities." The Wall Street Journal, citing anonymous sources, reported this week
that Chinese internet regulators have discussed taking 1 percent stakes in Tencent Holdings, maker of the popular WeChat messaging service, and Youku Tudou, a video platform owned by the Alibaba Group, the e-commerce giant. that As these companies have grown both in size and influence,
The article described the deal as a "trial" of the special management share structure, though it did
not state how or whether Shenzhen Press Group would influence Zaker’s management and news content.
The Chinese authorities traditionally have issued guidelines
and outright orders to major internet companies about what they would like to see and not see online, said Mark Natkin, managing director of Marbridge Consulting, a tech advisory firm in Beijing.
Experts said that if the deals work, the authorities could eventually ask for stakes at some of the country’s largest
and most innovative companies in order to solidify influence over their services.
According to government statistics, more than four-fifths of China’s more than 730 million internet users obtained some news online last year.