Alibaba Exploring Options for Weibo Stake With State Firm
$Alibaba(BABA.US$ Alibaba Group Holding Ltd. is in talks with a state-owned conglomerate about a potential deal involving its stake in Weibo Corp., as Beijing moves to curb the influence of China's tech giants in the sensitive media sphere.
China's e-commerce leader is exploring options for its roughly 30% slice of the Twitter-like social media service, according to people familiar with the matter. The discussions between the technology giant and Shanghai Media Group could lead to the latter purchasing all of Alibaba's stake in Weibo, the people said, asking not to be identified as the information is private.
China's e-commerce leader is exploring options for its roughly 30% slice of the Twitter-like social media service, according to people familiar with the matter. The discussions between the technology giant and Shanghai Media Group could lead to the latter purchasing all of Alibaba's stake in Weibo, the people said, asking not to be identified as the information is private.
Regulators are taking a closer look at the enormous reach that tech companies like Alibaba enjoy in online media, part of a broader campaign to curtail the growing power of its largest corporations. Alibaba and its affiliates have over the years built a sprawling portfolio of media assets that include newspapers, television-production companies, social media and advertising assets. Concerned about the company’s influence on public opinion, the government wants Alibaba to offload some of those holdings, Bloomberg News reported in March.
Alibaba's shares slid as much as 2.3% Wednesday to the lowest since Dec. 3, while Weibo dropped 1.5%. The Nasdaq Golden Dragon China Index slumped 2.4%.
Deliberations are at an early stage and there's no certainty they will result in a transaction.
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JustinA_ : What is the implication of the sale of Weibo stake? Loss in potential future earning??
BlurNoob : It seems similar to tencent reducing it's stake in JD
Ken-Opulence : After disposal of weibo, Ant Group will be granted for listing
脸盲的阿强 : Alibaba only has 3.8% slice of Weibo in total. Where is your 30% come from?