Weibo, a solid system to take China’s Twitter secret: Report | Business and Economic Affairs

The chairman of Weibo Corp, a Nasdaq-based Chinese business and retailer, wants to take China’s response to Twitter secretly, sources told Reuters news agency, sending Weibo shares about 50% on Tuesday.

The deal could use Weibo for more than $ 20bn, to help Alibaba partners and see Weibo eventually relocate to China to benefit from higher prices, sources said.

The chairman of New Wave, New Wave, chief executive of Weibo, Cha Chaga, is agreeing with the Shanghai state-owned company to form a joint venture, three sources said without elaborating.

Consortium intends to offer about $ 90- $ 100 per share to take Weibo privately, two journalists told Reuters news agency, representing 80% to 100% of the average price of $ 50 last month.

The group wants to end the deal this year, he said.

Weibo said in a statement that it was not true for Chao and that a public money broker was negotiating for the company to keep the secret. He told Chao that he had not discussed it with anyone about removing the company.

Weibo and Alibaba did not respond to a request from Reuters for comment. Chao did not respond to a request for comment through Weibo’s parent Sina.

The share on Weibo, which uses the same platform as Twitter, achieved more than 50% in sales in a previous Reuters report. The profits dropped to more than 6 percent after the first bell.

Driving Beijing

Three well-informed officials told Reuters that the plans stemmed from Beijing’s move to have Alibaba Group Holding Ltd and Ant collaborate to release their publications to participate in Chinese ideology.

All Reuters news sources declined to be named because of the secrecy.

Reuters news agency announced in February that Weibo had hired banks to do a second job in Hong Kong at the end of 2021. Sources say this was no longer a plan.

Alibaba has retained 30% of Weibo since October, the latest annual report showed – $ 3.7bn at the end of Friday.

Correctional control

Beijing has sought to control Jack Ma’s Chinese business in Alibaba by writing new research and regulations since last year.

The split followed Ma’s criticism of the ruling elite in a speech in October last year and has spread across an Internet-based network in China in recent months.

Alibaba, a business giant, has invested in nearly 30 media and entertainment companies, including the popular Hong Kong newspaper South China Morning Post, according to Refinitiv.

Chao’s deal could probably get them out of Weibo, two journalists told Reuters.

The plan also reflects China’s efforts to increase power over television and the Internet, Reuters reporters added.

Chinese companies mentioned in the United States are also closely monitored and closely monitored by U.S. regulators, amid political tensions between Beijing and Washington.

Several Chinese companies have already decided to leave the US markets, by hiding or returning to the retail market near the house through the second list.

There were 16 announced announcements to be removed from Chinese companies listed in the US for $ 19bn last year, Dealogic data showed, compared to only 5 million dollars worth of $ 8bn in 2019.

A Chinese court on Tuesday will help oversee listed companies at sea, citing the need to improve border control and security.

Dangerous competition

Weibo has grown rapidly since its launch in 2009 on the market when Twitter was shut down by the government. More than 500 million Chinese people use Weibo to show everything from Korean drama to Chinese political crisis.

Alibaba earned an 18% stake in Weibo in 2013 through a $ 586m investment as its first share to sell ads on social media sites in China. Since then it has increased its price.

Weibo, which became known on the Nasdaq in 2014, earns a lot of money from online advertising campaigns.

This has worsened the economy as China’s online advertising growth is declining and Weibo has lost momentum in competition with other talented giants such as ByteDance and Tencent.

Beijing company’s advertising and marketing fell 3% last year to $ 1.5bn.

Shares rose by 33% this year, a fall of 12% in 2020.