There have been reports of Alibaba in talks to buy controlling stake in Hong Kong based South China Morning Post. While none of the parties have confirmed this deal, we believe it will not have any significant impact on Alibaba?s valuation. SCMP’s revenues for FY2014 were $161 million and its net income stood at $21 million. These numbers are not significant when compared to our estimate of Alibaba’s revenues for FY 2015 which stands at $94.6 billion and the net income figure of $50.6 billion. Alibaba’s potential inflow from SCMP will not be significant enough to make any impact on its valuation.

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