Rumor: Alibaba Invests in Sina Microblog

China Business News, 11/19/12

According to a source close to the company, Chinese e-commerce conglomerate Alibaba Group has reached an agreement with Chinese internet company Sina (Nasdaq: SINA) to invest USD 300 mln to USD 400 mln in the company's Sina Weibo microblogging platform. Alibaba Group will not take a controlling share in the platform. According to Cheng Lingfeng, the former head of Tencent's (0700.HK) Technology Center and a current columnist for the Financial Times China, Alibaba Group will take a 15%-20% share in Sina Weibo. Alibaba's investment in Sina Weibo would value the platform at around USD 3 bln.

Alibaba Group and Sina have yet to comment on the story. A mid-level Sina employee has stated that the two companies are indeed in talks about a possible investment.

Keywords: Internet investment Sina microblogging Alibaba Group

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