Chinese microblogging stock Weibo (NASDAQ: WB), known as "China's Twitter," saw its shares jump more than 15% in early trading on Tuesday, before retreating to a 6.4% gain by noon. The reason for the jump: According to Reuters, Weibo is going private. This morning, Reuters cited sources saying that Weibo's chairman is working with an unidentified Chinese state investor to take the company private in a deal valuing it at more than $20 billion.
HONG KONG (Reuters) -Nasdaq-listed Weibo Corp's chairman and a Chinese state investor plan to take China's answer to Twitter private, sources told Reuters, sending its shares as much as 50% higher on Tuesday. A deal could value Weibo at more than $20 billion, facilitate shareholder Alibaba's exit and see Weibo eventually relist in China to capitalise on higher valuations, the sources said.
By Dhirendra Tripathi