Alibaba Buys 18% Stake In Sina Weibo For $586 Million

Chinese e-commerce company Alibaba has acquired an 18% stake in Sina’s Weibo.  Weibo is a Chinese microblogging service that is similar to Twitter.  The 18% stake will cost Alibaba $586 million.  Alibaba will have the option to increase their shares in Weibo up to about 30%.

Alibaba chairman Jack Ma said that the company is planning to integrate e-commerce into Weibo.  Ma is also planning to see Weibo bring their mobile expertise to Alibaba.  Weibo may see about $380 million in new revenue sources as a result of the partnership.

Last month, Alibaba announced that Jonathan Lu is the new CEO of the company.  The company reported $157 billion in gross merchandise volume in 2012.  Alibaba has plans to go public in 2014 and is going to be launching a mobile operating system soon.  Alibaba bought back $7.6 billion worth of shares back from Yahoo! in September 2012.

Leave a Comment