Sina announced on Monday that its subsidiary microblogging company signed a strategic cooperation agreement with Alibaba under which Alibaba’s wholly-owned subsidiary buys in Sina microblogging’s issued preference shares and ordinary shares with $ 586 million, after the transaction Alibaba will be accounting for approximately 18% of the total shares.
In addition, Sina granted an option to Alibaba to allow Alibaba in the future increase its share holding to 30% at a pre-agreed pricing. In accordance with the purchase price, Sina microblogging as a whole was valued by Alibaba at approximately $ 3.256 billion.
Sina said the two sides will rely on the respective leading social media and e-commerce advantages, to create a more active microblogging platform to explore and establish more imaginatively microblogging open ecosystem and business model.
The two sides will explore further cooperation in data exchange, online payment, Internet marketing and other fields, with the in-depth user account cooperation, the two will explore effective interaction based on the hundreds of millions of consumers and hundreds of millions of microblogging users and build a more social based e-commerce platform model.
Sina official made a preliminary estimate of this strategic cooperation that in the next three years, the deal will bring Sina microblogging about $ 380 million through marketing and social e-commerce.