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Sina, Weibo Parent, to Go Private in $2.59 Billion Deal

Sina is among a group of Chinese companies moving away from U.S. listings, as U.S.-China tension heightens.
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Sina  (SINA) , shares rose Monday after the Chinese social-media titan said it had agreed to go private in a deal that values the company at $2.59 billion.

A group led by Sina Chairman Charles Chao is paying $43.30 a share in cash for the owner of Weibo, which is known as China’s version of Twitter.  (TWTR)

Sina shares recently traded at $42.71, up 6.3%. They have climbed 7% so far this year. 

In a statement Sina said the deal price is 18% above the stock's closing price on July 2, 2020, the last trading day before July 6, when it said it had received a preliminary nonbinding going-private proposal from the investor group.

And it's 28% above the volume-weighted average of the stock in the past three months.

Sina, which trades on Nasdaq, is among a group of Chinese companies moving away from exclusive U.S. listings, as tension between the U.S. and China heightens. 

These include Alibaba  (BABA) , which has added a listing on the Hong Kong Stock Exchange to its listing on Nasdaq.

Sina went public in 2000 during the dotcom boom.

As for Alibaba, it began an investor event Monday. “We focus our key takeaways from the first day of Alibaba’s three-day investor event on the China commerce retail segment, which accounted for 66% of revenue in the quarter ended June,” Morningstar analyst Chelsey Tam wrote in a commentary.

“The main takeaway is that the Taobao app’s first page will be transformed into a more feed-driven format, which we think will enhance delivery of more customized content to users and increase monetization potentially in the longer term.”

Still, “despite the rapid growth of Taobao Live, we estimate the livestreaming product's contribution to China retail marketplace gross merchandise volume to be small at this stage.” she said. “Taobao Live is still in the early stage of monetization, and there is no plan on aggressive monetization in the near term.”