The Beijing-based firm is being taken private by its chairman and chief executive, Charles Chao, in a deal that values the company at $2.6 billion, Sina said in a statement on Monday.
Sina's deal comes as tensions rise between the United States and China. In recent weeks, the two countries have clashed over US threats and restrictions against Chinese tech firms that have ensnared apps like TikTok and WeChat and chipmaker SMIC. In May, the US Senate unanimously passed a bill that would prevent companies that refuse to open their books from listing on Wall Street. The bill's bipartisan co-sponsors said the goal is to"kick deceitful Chinese companies off US exchanges." The bill still needs to pass the US House of Representatives.
Fearful of potential regulatory trouble in the United States, as well as wanting to be closer to investors who actually use their products, several marquee Chinese tech firms have in recent months offered secondary listings in Hong Kong and Shanghai — among them e-commerce companies Alibaba and JD.