Slug: Weibo I.P.O.
Source: NY Times – I.P.O. Planned for Chinese Microblogging Service
Summary: In the US, Sina Corporation preps for an I.P.O. (initial public offering) of its “Twitter-like microblogging service” Weibo by hiring Goldman Sachs and Credit Suisse as underwriters. The source mentions “Weibo … could be worth $5 billion,” more than its Nasdaq-listed parent company and that this move “could raise up to $500 million later this year.”
- Investor Relations (primary)
- Media Relations (secondary)
Good or Bad PR? Good PR
Harmony or Discord? Harmony
In China, government censorship prevails and Weibo being able to publicly sell shares right now is a bold move. Being a publicly traded enterprise, Weibo (and likely, Sina) will have more freedoms granted to them, in terms of publishing and content, because ownership will then be allocated to various foreign investors. As business owners, it is likely for the latter to secure their investments and maximize profits by attracting users who are free to publish what they want without fear of censorship. Because of this IPO announcement, Sina and Weibo are currently getting a lot of media coverage on both news media and social media sites; in fact, on the NY Times website, the linked article above is one of the most viewed today, considering this information was just released at 8am earlier. On LinkedIn Pulse, it is also one of the top recommended news of the day.