Media conglomerates to merge in Shanghai
Further reforms are anticipated as Shanghai aims to encourage media organisations to adapt to a new media age
A proposal to merge Shanghai’s two leading newspaper conglomerates, Wenhuixinmin United Press Group (WUPG) and Jiefang Daily Group (JDG), has been approved by the country’s regulators, Chinese media reported.
Experts say they anticipate more reforms as the city takes its first steps towards encouraging its media organisations to adapt and ultimately thrive in a booming new media age.
The merger was announced after both groups,each publishing some of the most reputable and profitable newspapers in Shanghai and the country, saw a drop in their newspaper and magazine revenues, said Wei Wuhui, a Shanghai-based media researcher and columnist at TMT Post, an independent website focusing on technology and media.
The merger of the two giants would reduce costs and improve efficiency, said Wei. But he said it could take months for the two groups, both burdened by the bureaucracy of state-owned firms, to find common ground and hash out HR and operational details for the new entity.
Besides printing five daily papers, including the English language Shanghai Daily, WUPG publishes six weekly papers and six news magazines while JDG runs 10 newspapers, four magazines, one website and one publishing company, according to their websites.
Both groups have invested in high-growth industries such as real estate and finance. As a major stock holder of Hong Kong-listed Haitong Securities and the currently unlisted Oriental Securities, WUPG reportedly holds securities worth billions of yuan.