Once considered the world’s most profitable newspaper, the SCMP has been in a state of decline for over a decade, thanks primarily to competition from online news sources.
The Hong Kong Stock Exchange’s relaxation of announcement rules in 2006 was a heavy blow to advertising revenue. Approximately 20 per cent of the SCMP’s revenue is believed to stem from corporate announcements.
The Hong Kong Stock Exchange’s relaxation of announcement rules in 2006 was a heavy blow to advertising revenue. Approximately 20 per cent of the SCMP’s revenue is believed to stem from corporate announcements.
Sources noted that the decision to take the paper private would offer an effective means of removing scrutiny into poor stock market performance. While some observers argue that this move is the work of a savvy speculator looking to turn around a solid brand in the wake of a stock market slump, others claim that the privatisation demonstrates Chinese dynastic politics at work. No replacement for publisher Nancy Valiente - who departed earlier this year - has been announced. Sources suggest that Hui Kuok, Kuok’s daughter by his second marriage, is being groomed to run the paper.
“When it comes to media planning for English-language newspapers in Hong Kong, we don’t have all that much choice, so I don’t think that the SCMP going private will significantly change the media landscape,” said Jackson Kwok, managing director, OMD in Hong Kong.