Alibaba buys $586 mn stake in China's Sina Weibo

Apr 29, 2013
The Alibaba headquarters is pictured in Hangzhou, in eastern China's Zhejiang province on May 21, 2012. Alibaba has struck a deal to buy a $586 million stake in popular Chinese social network site Sina Weibo amid rumours that it is preparing for a stock market listing.

Chinese online retail giant Alibaba has struck a deal to buy a $586 million stake in popular Chinese social network site Sina Weibo amid rumours that it is preparing for a stock market listing.

It also comes as Alibaba, China's biggest online retail company, gets set for a handover of power from founder Jack Ma to executive vice president Lu Zhaoxi.

Alibaba will pay Sina Corp. for an 18 percent stake in Weibo, a Twitter-like site that claims to have more than 500 million members in China, valuing it at about $3.0 billion.

The deal also enables Alibaba to "increase its ownership in Weibo to 30 percent... within a certain period of time in the future", Sina Corp. said on its website, adding that the two sides would cooperate on e-commerce projects.

The deal comes as analysts expect Alibaba to announce an initial public offering this year, with some suggesting the company could be valued at more than $100 billion.

Monday's deal would strengthen Alibaba relative to Chinese rival Tencent Holdings, which in the past year has unveiled ambitious plans in the Alibaba-dominated e-commerce business, Dow Jones Newswires said.

Alibaba's businesses include Taobao, China's most popular online shopping destination, which had more than 800 million product listings and more than 500 million registered users as of 2012.

Ma announced in March that he would step down as chief executive on May 10 in favour of Lu, a 13-year veteran of the firm, but retain his post as chairman to provide strategic direction.

Stocks in US-traded Sina jumped 10 percent after the deal was announced on Monday.

Explore further: Sony founder nephew starts as head of PlayStation unit

add to favorites email to friend print save as pdf

Related Stories

China fund may help Alibaba in Yahoo! bid: report

May 25, 2012

China Investment Corporation is in advanced talks to add up to $2 billion to the Alibaba Internet Group's efforts to buy back a stake from struggling Internet pioneer Yahoo!, the New York Times reported.

China e-commerce firm Alibaba in privatization bid

Feb 21, 2012

(AP) -- Alibaba.com's parent company wants to take the Chinese e-commerce company private for $2.5 billion, the firms said Tuesday, part of a shift in business strategy that also includes plans to buy back a stake from Yahoo ...

Alibaba.com shares surge on privatization bid

Feb 22, 2012

(AP) -- Shares of Alibaba.com rocketed on Wednesday after the Chinese e-commerce site said its parent company made a $2.5 billion privatization bid as part of a shift in business strategy that also includes plans to buy ...

China grants Alibaba payment system license

May 26, 2011

(AP) -- An online payment system founded by Chinese e-commerce giant Alibaba Group was granted a government license, the company said Thursday, following an ownership change that rattled investors in partner Yahoo Inc.

Yahoo to sell half of its Alibaba stake for $7.1B (Update)

May 21, 2012

(AP) -- Struggling Internet company Yahoo Inc. has secured a lifeline after agreeing to sell half of its prized stake in Chinese e-commerce group Alibaba for about $7.1 billion, with most of the cash going to shareholders.

Recommended for you

Alibaba IPO comes with unusual structure

3 hours ago

Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant's U.S. public offering will need to get comfortable with an unusual business structure.

China's Alibaba plans IPO for week of September 8

Aug 30, 2014

Chinese e-commerce giant Alibaba plans to hold its initial public offering on the US stock market the week of September 8, the Wall Street Journal reported Saturday, citing a person familiar with the matter.

Tablet sales slow as PCs find footing

Aug 30, 2014

Tablets won't eclipse personal computers as fast as once thought, according to studies by market tracker International Data Corporation (IDC).

User comments : 0