Scratch another big tech company off the list of Chinese stocks traded in the U.S. Online media conglomerate Sina (SINA) announced today that it is being taken private by companies affiliated with its CEO, Charles Chao. That group will pay roughly $2.59 billion for Sina's outstanding ordinary shares.

Under the terms of the deal, the investors are handing over $43.30 per share in cash for the Nasdaq-listed stock of the company. That represents a premium of nearly 8% on Sina's closing stock price on Friday.

Man using a smartphone.

Image source: Getty Images.

The company pointed out in the press release trumpeting the deal that the premium climbs to 18% if applied to the share price on July 2. That was the first trading day following its announcement that Chao and his fellow investors were making a play for it. At the time, the proposed share price was $41.

In its announcement, Sina said that the funding for the go-private transaction would come from term loans provided by China Minsheng Bank (CGMBF -9.44%), in combination with cash from the buyers.

Sina expects the deal to be completed in Q1 of next year. It must be approved by two-thirds of the company's shareholders; according to Sina, the potential buyers hold roughly 61% of all the stock.

The company owns a portfolio of digital assets. Perhaps the most popular brand in its stable is the short-messaging service provider Weibo (WB 0.11%), which has been called the Chinese Twitter.

News of the deal was greeted positively by investors, although they might still be a bit skeptical about it. Sina's shares closed Monday nearly 6% higher, but at $42.55 per share were still some distance from that buyout price.