Alibaba buys 18 percent stake in Sina's Weibo

AP News
|
Posted: Apr 29, 2013 11:46 AM

NEW YORK (AP) — Alibaba Group, China's largest e-commerce company, has agreed to buy an 18 percent stake in Sina Corp.'s Weibo, the microblogging platform.

Alibaba, which is partly owned by Yahoo Inc., says it has paid $586 million for the stake in China's equivalent of Twitter. It has the option of increasing its ownership to 30 percent.

Sina's U.S.-listed shares jumped $6.69, or 13 percent, to $56.99 in morning trading. The day's high of $60.81 was the stock's highest level since October.

The companies also agreed to develop ways to let merchants on Alibaba connect with Weibo users. It expects the alliance to generate $380 million in advertising and commerce services for Weibo over the next three years.

Recommended
FBI, You Don’t Have That Right
Bruce Bialosky

Yahoo owns 24 percent of Alibaba. Yahoo shares fell 1 cent to $24.67.