Analysis: Juliana Liu, Hong Kong correspondent
A source familiar with the potential deal has told me that he is aware of concerns that the broadsheet, under the internet giant, would be used to please the Chinese government.
He dismissed those fears, saying the newspaper would not be useful to the new owner if it lacked credibility. He said any future agreement would be 'just business'.
But many people in Hong Kong, a politically polarised city, are deeply worried.
They fear their flagship English-language newspaper will be sold to a mainland Chinese company that will have no choice but to accommodate Beijing if it wants to stay in business.