According to various media reports, China’s largest e-commerce company, Alibaba Group, is planning to buy a stake in NASDAQ-listed Sina’s Weibo, one of China’s most popular microblogging services.
Weibo, China’s equivalent of Twitter, is reportedly valued at around US$2 billion to US$3 billion, where Alibaba is looking to buy a 15%-20% stake. According to financial services provider Credit Suisse, the valuation is lower than its internal valuation of US$4.4 billion, but higher than the implied valuation of US$1.8 billion based on Sina’s closing share price on 16th November. Alibaba and Sina both declined to comment on the deal.
Source: Business Strategies Group Hong Kong – www.bsgasia.com