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Sina Restructures Business into Portal and Microblog Divisions

iFeng Tech, 12/28/12

In an internal email, Charles Chao, CEO of Chinese internet company Sina (Nasdaq: SINA), has outlined the company's "mobile first" strategic focus for the coming year. According to Chao, Sina will divide its operations into two major business units in 2013, a portal division and a microblog division. Each division will include various elements of Sina's PC and Mobile businesses, and will maintain control over its own products, technology, and operations.

Sina's portal business division will be run by COO Du Hong, who will report directly to Chao. Chao will spend the majority of his time overseeing the company's microblogging business division.

According to the email, Sina's new business and organizational structure will be as follows:

Portal division:

1. The company will establish a portal technology department responsible for Sina portal product development and technical support. Sina VP Ji Xu will be in charge of the new department. The portal portion of Sina's former wireless division, as well as management of news and other related apps, will be merged into the portal technology department. Ji will report to Du, the head of the portal division.

2. The video, blogging, and technical support units of Sina's former products division will be merged into the portal division.

3. Executive VP Chen Tong will continue to hold responsibility for operation of Sina's portal operations. He will also report to Du.

Microblogging division:

1. The microblogging product and technical support teams from Sina's former wireless department, as well as the microblogging product and technical support teams from Sina's former microblog commercialization department, will be merged into the company's new microblogging division. VP Wang Gaofei will serve as GM of the new division. Wang will be responsible for the operation of Sina microblogging products and technical support, as well as the commercialization of Sina's microblogging services. Wang will report to CEO Charles Chao.

2. Sina's music and related microblogging business units will be merged into the new microblogging division.

3. Sina's former open microblogging platform and microblogging commercial development groups will combine to form an independent open microblogging platform. Sina VP of Strategy Chu Dachen will jointly serve as GM of the new group. The new open microblogging platform will look to established itself as a vertically integrated service.

Other:

1. Sina's sales department will be managed by newly appointed VP Zhang Chenyang. The company's business operations unit will be managed by VP Wang Yajuan. The company's business market, local, automotive, and travel channels will continue to be managed by Sina GM Ge Jingdong. All three will report to Du Hong.

2. Sina will establish an independent product innovation department responsible for new product innovation. Sina VP Peng Shaobin will be responsible for the department and report directly to Chao.

3. Sina GM Liu Yunli will continue to manage the company's gaming department, responsible for Sina's cross-platform gaming, lottery, and e-reading value-added services. Liu will report to Chao.

4. Sina CFO Herman Yu will continue to be responsible for the company's finance and information systems. Human Resources VP Kang Yingtao will continue in her role as head of Sina HR. Fu Qingming will carry on as GM of Sina R&D operations, providing company-wide technical support. All three will continue to report to Chao.

Keywords: Ji Xu Zhang Chenyang Wang Yajuan corporate restructuring Kang Yingtao Fu Qingming Chen Tong Du Hong Ge Jingdong Wang Gaofei Charles Chao Internet portal wireless Sina microblogging Peng Shaobin Chu Dachen Liu Yunli Herman Yu

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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