Sina Corporation, one in every of the first Chinese net firms to IPO in the U.S. in 2000, delisted from Nasdaq the day before this day.
Sina, which began lifestyles as a “portal” identical to Yahoo!, runs a diversity of online media properties nonetheless is likely to be most good known for starting up the social media platform Weibo (usually glossed as “China’s Twitter”).
- Sina launched China’s first blog platform in 2005 and soon turned one in every of the country’s most stylish social media platforms, earlier than the company equipped the more trendy Weibo in 2009.
Sina’s shareholders agreed for the company to be privatized by Recent Wave Holdings Restricted in September 2020, at a mark of $2.6 billion, or $43.30 per fragment. The company will be renamed Sina Community Holdings.
- Recent Wave is an organization registered in the British Virgin Islands and controlled by Sina’s chairman, Charles Chao (曹国伟 Cáo Guówěi). Chao, a Chinese-American businessman born in Shanghai, joined Sina in 1999 after receiving a grasp’s stage in journalism and an M.B.A. in the U.S., and labored in replace consulting for six years. He led the commence after which the Recent York IPO of Weibo, Sina’s most winning social media product to this level.
- The privatisation deal used to be controversial, and analysts contain identified the provide “gave the impact to vastly undervalue its stake in Weibo.”
Sina Community inherits a 44.9% equity stake in Weibo and 71% vote casting alter, and intends to dwell Weibo’s fundamental shareholder, based mostly totally totally on an internal memo written by Chao (in Chinese).
- “The privatization of Sina is no longer the discontinue of an expertise, nonetheless we expend a recent constructing to larger effect our future,” mentioned Chao in the memo.
- Weibo remains listed on Nasdaq (WB).
- Weibo is one in every of China’s greatest social media platforms, with 523 million active users (as of December 2020).
Sina’s privatization comes at a time of rising U.S.-China tensions, with many Chinese firms brooding about picks to U.S. capital markets.
Megan Cattel is a NYC-based mostly totally mostly writer and journalist. She has written for NeoCha, Goldthread, and NüVoices and used to be a summer fellow on the Center for Public Integrity in 2020. A graduate of Columbia Journalism Faculty, Megan covered immigration for Uptown Radio, Columbia’s weekly radio indicate. Learn more