News this week: China’s largest e-commerce company, the Alibaba
Group, has acquired an 18% interest in Weibo,
Sina’s microblogging service. Alibaba
will pay US$586 million for the stake, valuing Weibo at more than US$3.2
billion.
According to the two companies, the deal will help Weibo to
generate US$380 million in advertising and social commerce services revenue
over the next three years. Currently, there are reportedly more than 500
million registered users on Weibo with close to 50 million active users. Alibaba
expects the deal will help drive traffic from Weibo to its e-commerce sites.
Under the agreement, Alibaba will have the right to increase
its ownership in Weibo to 30% at a mutually agreed valuation “within a certain
period of time in the future”, however, no further details were provided.
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1 comment:
Very interesting! I’ll wait for your next postings.
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