Jul 7, 2020 - Economy

Weibo parent company Sina gets $2.6 billion buyout offer from CEO's company

A gif shows an ambition of several cursor-like hands, moving in and out, pointing at the stars from the Chinese flag

Illustration: Rebecca Zisser/Axios

Sina Corp. (Nasdaq: SINA), parent company of Chinese social media platform Weibo (Nasdaq: WB), received a $2.68 billion takeover offer led by company chairman and CEO Charles Chao.

Why it matters: This comes in the context of the White House talking about strengthening rules on foreign tech companies listed on U.S. exchanges, and a new threat from Secretary of State Pompeo to ban Chinese social media apps like TikTok from operating in the United States.

Details: The offer, officially made by a holding company called New Wave, is for $41 per Sina Corp. share in cash, which would represent a 12% premium over last Thursday's closing price. New Wave already holds a 13% stake in Sina Corp., which has a 45% equity stake and 71% voting rights stake in Weibo.

The bottom line: "The interest in Chinese take-private deals has been rising following tensions between China and the United States, with several companies considering whether to keep a New York listing or move instead to Shanghai, Shenzhen or Hong Kong." ⁠— Ayanti Bera, Reuters

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