Rumor: Sina to Spin off Microblog Business
China Economic Times, 9/02/10
An industry source claims that Chinese internet company Sina (Nasdaq: SINA) is preparing to spin off its microblog service for independent operations, and is actively seeking external funding for the move.
The source says that in order to ensure a better incentives system and faster development for the microblogging service, Sina is moving to split the service off for independent development. The company is also seeking to acquire a company that will be able to help the overall development of the service, and could bring on VCs for a minority investment; Sina would then continue to operate the service through a JV in which it held a controlling share.
A spokesperson for Sina Microblog declined to comment on the rumor.
Keywords: IPO spin-off Internet funding JV Sina microblogging VC
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