SINA Hits 21 Week High on Buyout Proposal

The online media company is among the latest to receive a going-private proposal amid Sino-U.S. tensions.

Author: Anthony Russo   

Shares of SINA Corp. (Nasdaq: SINA) leaped to nearly a 21-week trading high by midday Monday on receiving a going-private proposal for $41 per share from New Wave MMXV Ltd.

To evaluate the proposal, the online media firm has set up a special committee including independent directors Songyi Zhang, Yichen Zhang, and Yan Wang, according to a statement today. The offer made by New Wave is a company led by SINA's chairman and chief executive officer, Charles Chao. The offer represents a 12% premium from Thursday's closing price of $36.67 per share.

"The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from New Wave and no decisions have been made with respect to the Company's response to the Proposed Transaction."

The last month has witnessed an explosion of Chinese companies listed in the U.S.  considering going private. Among the latest Chinese firms to consider such an option are Yintech Investment Holdings Ltd. (Nasdaq: YIN) and Fuling Global Inc. (Nasdaq: FORK). China's largest online marketplace for classifieds Inc. (NYSE: WUBA) and the auto solutions provider Bitauto Holding Ltd. (NYSE: BITA) have also both recently struck going-private deals.

Since becoming publicly-traded in 2000, SINA's stock price has been volatile. However, if you got in early in February 2018, you have seen SINA trade as high as $124.60 per share. The stock now trades at $40.51 per share with a market capitalization of $2.65 billion.


In the three months through March, SINA's Non-GAAP revenue was $432.4 million, down 8% year-over-year on adjusted earnings of 25 cents per share. However, the results crushed Wall Street estimates of $387.9 million in revenue on a profit of 7 cents per share. The company also owns a majority stake in Weibo (Nasdaq: WB), which is known as the Twitter of China.

Shares of SINA are down 3% year-to-date.