Update: Sina Retracts Denial of Alibaba Investment Rumor
Shanghai Morning Post, 12/28/12
Following reports yesterday that Chinese internet company Sina (Nasdaq: SINA) has denied rumors that e-commerce conglomerate Alibaba Group would invest in its Sina Weibo microblogging service, Sina spokesperson Liu Qi has retracted his denial of the investment. According to Liu, his statement regarding a possible Alibaba Group investment was misunderstood. He clarified, saying, "What I meant to say is that I was not fully informed on the matter. Sina is a listed company and all financial information related to the company is disclosed."
Alibaba Group is rumored to be in talks with Sina to purchase a 15%-20% stake in its Sina Weibo microblogging service, valuing the service at USD 2-3 bln. The talks later reached an impasse due to the pricing of the agreement. Alibaba Group has reportedly since increased its original asking price by 50% for the same 15%-20% stake.
Editor's Note: For more information on this topic, please see "Sina Denies Alibaba Investment Rumor," MD 12/27/12 issue.
Keywords: Internet M&A Sina microblogging Liu Qi Alibaba Group
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