July 6 news,media reported that Sina received a preliminary non-binding privatization proposal, the price of $41 per share. As a result of the news, Sina rose more than 10% in the first half of the market, the share price is very close to $41. It is understood that the company making the offer is New Wave MMXV Limited, controlled by Sina Chairman and CEO Cao Guowei.
As of March 31, 2020, Sina had 65,384,161 shares, with Sina Chairman and CEO Cao Guowei holding 13.5% and 58.6% of the voting rights, according to Reddynet. Of these, Cao Guowei owns 12.2% of the shares through New Wave MMXV Limited and has 58% of the voting rights.
Sina was founded in November 1998 and was the first Chinese Internet company to list on NASDAQ in April 2000 with a $17 issue price. In 2011, the company soared to $147 because of the rise of microblogging. At the close of trading on Thursday, it was trading at $36.67, giving it a market capitalisation of about $2.4 billion.
In 2019, Sina’s full-year net revenue was $1.77 billion, including $1.53 billion in advertising and marketing revenue, and $240 million in revenue from weibo value-added services. Full-year net profit was about $500 million.
On May 20th the U.S. Senate passed the Foreign Company Accountability Act, which requires U.S.-listed foreign companies to comply with the country’s regulatory standards. The senator made it clear that the bill was aimed primarily at Chinese companies listed in the United States. At this time, the stock is facing a return tide, many enterprises have chosen to list in Hong Kong or domestic.