Sina received a buyout bid at a 12% premium from New Wave, a company controlled by the Beijing online media company's chairman and CEO.
Under the terms, New Wave would buy the Sina shares it doesn’t already own in a transaction that would value Sina at about $2.68 billion.
The offer comes to $41 a share, a 12% premium above Thursday's close at $36.67.
Sina shares at last check traded at $40, up 9.1%. The stock has gained 12% over the past three months. The 52-week high on the shares is $46.85, set Sept. 11.
New Wave, incorporated in the British Virgin Islands, is controlled by Sina’s chairman and chief executive, Charles Chao.
Sina said the board has formed a special committee to evaluate the proposed deal.
“There can be no assurance that any definitive offer will be made, that any agreement will be entered into, or that this or any other transaction will be approved or consummated,” Sina said in a statement.
Sina Weibo is considered the Chinese version of Twitter.
Last week Indian Prime Minister Narendra Modi deleted China’s Weibo app account, as tension between the two countries over a border dispute escalated.
“According to the requirements of the other party and the relevant community rules, Weibo has now closed the Weibo account, which was previously certified as the “Prime Minister of the Republic of India," the company said.
The move came after 20 Indian soldiers were killed in a border clash with Chinese troops.