China’s Version of Twitter “Weibo” Files For $500 Million IPO.
Weibo a Chinese social media company, which is similar to that of Twitter, has managed to file plans on Friday for an initial offer or IPO with the Securities and Exchange Commission to raise an amount of $500 million in the US. Weibo will be using half of the $500 million to retire loans from its parent company Sina, which currently owns 78pc stake in Weibo, a investment remainder into the technology company.
The IPO will be a way for Weibo to try and separate themselves from Sina, but Sina would “continue to provide us with certain support services” after it has become independent, stated the filing IPO.
The microblogging services was launched four years ago by Sina. Weibo allows its users to post feeds of up to 140 Chinese characters to share with others, as well as embedding multimedia or other contents on their posts. The company receives over 61.4 million million on a daily average and around 129 million active monthly users, which is stated on the filing with the U,S, Securities and Exchange Commission.
Problems at Home.
The Micoblogging service has received a some heavy pressure from the Chinese government due to the platform becoming highly used b activists and highly influential speakers who have drawn attention to the corruption of their system and bring in trouble, Reports from the media have said that Weibo has lost a large percentage of its followers due to the shut downs caused by authorities,
Weibo has posted up their loss for the past three years, which has shorten gradually each year on the increasing revenue.
During the previous year, the social network reported its revenues of $188.3 million but also a loss of $38.1 million, which was lower then the previous $102.5 million loss last year.
Despite these losses, Weibo has been valued for an amount of $5.1 billion, making it to be around a sixth of the size of its US rival Twitter, which has a market capitalization of $30 billion.