Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

1

Alibaba Buys 18% Stake in SINA's Weibo Platform

In an effort to enable marketers to reach users of its Weibo platform, Chinese online media company SINA (NASDAQ: SINA  ) will be working with Chinese e-commerce specialist Alibaba to develop a platform to connect the two.

Alibaba will also be investing $586 million in Weibo, giving it an 18% ownership stake in the company, SINA announced today.

Weibo is China's version of Twitter and the two companies will cooperate in user account connectivity, data exchange, and online payments and marketing as they seek to "explore new business models for social commerce based on the interactions of the hundreds of millions of users on Weibo and on Alibaba's e-commerce platforms."

SINA chairman and CEO Charles Chao was quoted as saying, "We are excited to partner with the largest e-commerce platform in China to develop social commerce. We believe e-commerce will play a vital role in building an eco-system around Weibo's open platform."

The collaboration is expected to generate approximately $380 million in advertising and social commerce services revenues for Weibo over the next three years.

In regards to Alibaba's investment in Weibo, SINA granted an option for Alibaba to increase its ownership to as much as 30%.

SINA is an online media company comprising Internet portal SINA.com, mobile portal SINA.cn, and social media platform Weibo.com. It generates the majority of its revenues from online advertising, mobile value-added services, and fee-based services.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2394060, ~/Articles/ArticleHandler.aspx, 9/4/2015 8:37:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Duprey
TMFCop

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.

Google+

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:59 PM
SINA $38.05 Down +0.00 +0.00%
Sina CAPS Rating: ***