What does Twitter IPO mean for SINA Corp (NASDAQ:SINA)

Posted In Markets - By Jason Adkins On Wednesday, October 30th, 2013 With 0 Comments

A lot has been talked and written about the forthcoming stock issue of Twitter’s (TWTR), which will be a large offer by one of the globes leading social networking services site and what it would mean for people in China. The early agreement is that Twitter won’t get much business in that country as it is blocked due to the sensitive material posted there.

At the same time the top Chinese site SINA Corp (NASDAQ:SINA) would be looking at the IPO as it could help increase the value of Weibo a service it operates and is very often called the Twitter of China.  The original Twitter has  not much hope of succeeding in the Chinese market as it is blocked in that country from 2009 onwards, for the reason being that the company has no local presence in China, a must as per the Chine authorities. Its social networking competitor Facebook (Nasdaq:FB) has also been blocked in China for the same period and the same reason, though that company insists that it will open an office in China sometime in the future.

To please the Chinese government both Facebook and Twitter will have to open companies in China, have offices and for m a local joint venture to follow the local rules. The rules say that internet companies must regulate themselves as to what content is being posted online and if the content is objectionable must delete it.

While Facebook seems to be ready to accept such rules, Twitter is leaving the Chinese market alone and concentrating on its main client base in the US and other western countries.

In the meantime it is said that the Twitter value is to be set at t $10 billion a value which will, appeal to Sina as its Weibo service valuation could also go up. In April it was valued at $3.3 billion after top ecommerce company Alibaba invested $586 million investment for 18 percent of its share. The Chinese press claims that the value of the company is much higher, even as high as $8 billion, when it was very popular.

About the Author

- Jason Adkins provides in-depth ground reports on round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. Jason has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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