SHANGHAI Nov 19 China's largest e-commerce
company Alibaba Group is planning to buy a stake in
Sina Corp's Weibo, the nation's most popular
microblogging service, China Business News reported on Monday.
Alibaba declined to comment on the report.
Sources in Alibaba told the official newspaper, which is
owned by the Shanghai municipal government, that investment
negotiations between Alibaba and Sina have entered the final
Alibaba has valued Sina Weibo at around $3 billion, the
sources said. The report quoted other domestic media sources who
reported that Alibaba plans to buy a 15-20 percent stake in Sina
Alibaba, which runs Taobao Marketplace, China's largest
e-commerce website with a consumer focus, and Alibaba.com,
China's largest business-to-business commerce platform, has a
business model that revolves around online advertising and
"We see the potential deal is synergetic to both parties,"
Credit Suisse said a research note, published in reaction to the
Alibaba's investment in Weibo will help drive web traffic to
Taobao, while providing incremental advertising revenue to Sina
Weibo, the note said.
Credit Suisse said that the reported valuation was lower
than its internal valuation of $4.4 billion but higher than the
implied valuation of $1.8 billion based on Friday's closing