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.