Sina Weibo in Talks with Alibaba, But Not About Equity: Insider
Sina Corp's (Nasdaq: SINA) popular weibo microblogging service is in talks with Alibaba Group, China's largest e-commerce service provider, for in-depth cooperation but the talks are not about equity deals, an unnamed Sina executive said, in response to news earlier this week that Alibaba may purchase 15% to 20% of Sina Weibo. The move is understood to take on Tencent Holding Ltd's (HKG: 0700) WeChat and its own weibo service, which is snaring market share from Sina Weibo. Sina Weibo, the Chinese version of Facebook and Twitter combined, contributed about 10% to Sina's total advertising revenue in Q2 and had 368 million accounts at the end of June. It is said Sina is likely to spin off its weibo division for a separate listing.