NEW YORK (TheStreet) -- Shares of SINA Corp. (SINA) are lower -6.01% to $50.07 on Thursday after the online media company servicing China and Chinese communities around the world had its internet publishing license revoked.
China's National Anti-Pornography Office announced SINA's license was taken after pornography was found on its online video and literature platforms.
The office announced SINA is now banned "from engaging in the online publishing and online audio visual content industries, and will face a fine valued at 5 to 10 times the value of revenues taken in from illicit content on the company's online properties."
SINA has the right to appeal this decision. Pornography is illegal in China and the government has been working to remove such content from their Internet.
TheStreet Ratings team rates SINA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINA CORP (SINA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."