SINA Corporation (NASDAQ
GS: SINA) ("SINA" or the "Company"), a leading online media company
serving China and the global Chinese communities, announced today
that it has reached an agreement on a strategic alliance between
several entities affiliated with SINA, including PRC subsidiaries of
Weibo Corporation ("Weibo"), and several entities affiliated with
Alibaba Group ("Alibaba"), including Taobao (China) Software Co.,
Ltd. and Zhejiang Tmall.com Technology Co., Ltd., to jointly explore
social commerce and develop innovative marketing solutions to enable
merchants on Alibaba e-commerce platforms to better connect and
build relationships with Weibo users.
The two companies will cooperate in the areas of user account connectivity, data exchange, online payment and online marketing, among other things, and will explore new business models for social commerce based on the interactions of the hundreds of millions of users on Weibo and on Alibaba's e-commerce platforms. The strategic alliance is expected to generate approximately $380 million in advertising and social commerce services revenues in aggregate for Weibo over the next three years.
Separately, the Company announced that Alibaba, through a wholly owned subsidiary, has invested $586 million to purchase preferred and ordinary shares representing approximately 18% of Weibo on a fully-diluted basis. SINA has also granted an option to Alibaba to enable Alibaba to increase its ownership in Weibo to 30% on a fully- diluted basis at a mutually agreed valuation within a certain period of time in the future.
"We are excited to partner with the largest e-commerce platform in China to develop social commerce. We believe e-commerce will play a vital role in building an eco-system around Weibo's open platform," said Charles Chao, Chairman and CEO of SINA. "Weibo and Alibaba's e-commerce platforms are natural partners. Together we provide a unique proposition not only to existing online merchants, but also to individuals or businesses, who wish to offer products and services on social networking platform to take advantage of the traffic shift toward social and mobile Internet."
"We believe that this strategic alliance helps to create a stronger Weibo. It affirms our view of the vitality and importance of social media in unleashing value in e-commerce activities. We believe that the cooperation of our two robust platforms will bring unique and valuable services to Weibo users, as well as making the mobile Internet a core part of Alibaba's strategy," said Jack Ma, Chairman of Alibaba.
SOURCE SINA Corporation
Originally published by SINA Corporation.
(c) 2013 PRNewswire. Provided by ProQuest LLC. All rights Reserved.
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