SoftBank founded by Masayoshi Son had invested $20m in 2000 in the Jack Ma founded e-commerce company.
Group suspends category under which Alibaba admitted following concerns raised by members.
Alibaba used to sell a Mickey Mouse-shaped device through which the DisneyLife service could be availed of.
Tencent and Baidu have also shown increased interest in such start-ups that operate in the O2O services space.
Apart from the newspaper, Alibaba said it will acquire other media assets of the SCMP Group.
The sales that Alibaba generated today in 8 hours is about $2bn more than Netflix's annual sales last year.
'China's YouTube' will give ecommerce giant a share of the online video market in world's most populous nation.
Chinese e-commerce giant is seen as a bellwether stock for China's middle-class consumer spending.
Shares closed 3.04% down at $68.18, taking the stock to a new 52-week low, amid a rout in US stock markets.