Chinese messaging group Weibo chairman Charles Chao has denied reports the group is in talks to become a private company. Chao said he has had no discussions with anyone regarding privatizing the firm. A report by Reuters said the company’s founder was planning to take Weibo private at a premium of at least 80 percent, or for over USD 20 billion, sources said.
Under the deal, Chao, whose holding company New Wave is Weibo's largest shareholder, would make the bid with a state company from Shanghai. Sources added that the consortium of two could also make it easy for shareholder Alibaba to exit Weibo, by offering USD 90-100 per share to take Weibo private. The idea was to finalise the deal by year-end, with the goal of eventually listing Weibo in China to take advantage of higher valuations, the sources added. Others said the plans for Weibo came about amid the Chinese government’s push to get Alibaba and affiliate Ant to divest their media holdings.
New Wave had a 45 percent stake in Weibo in February, with Alibaba holding 30 percent, according to the company's annual report.
