This translation has been automatically generated and has not been verified for accuracy.
Weibo Corp chairman Charles Chao and a state investor are in talks to take the Chinese company private in a deal which would value the Twitter-like firm at at least $20-billion and facilitate major shareholder Alibaba Group Holding Ltd’sChao, whose holding company New Wave is the largest shareholder of Weibo, is teaming up with a Shanghai-based state firm to form a consortium for the deal, said the sources and a separate person, who have direct knowledge of the matter.
New Wave held a 45 per cent stake in Weibo as of February valued at $5.6-billion as per the stock’s Friday price, followed by Alibaba with 30 per cent worth $3.7-billion, according to the company’s 2020 annual report. The consortium looks to offer about $90-$100 per share to take Weibo private, two of the sources told Reuters, representing a premium of 80 per cent-100 per cent to the share’s $50 average price over the past month.
Privatizing China’s largest microblogging platform would pave the way for second largest shareholder and top customer Alibaba to sell out, disposing of one of its key media assets, the sources noted.Chao did not respond to a Reuters request for comment made via Weibo’s parent Sina.Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.
globebusiness The time to invest in Chinese index funds is now. We are lucky we can do that.