In fact, around 2000, Sina was the largest portal website in China, which had great influence in the era of PC network. Later, in the mobile era, Sina transformed and launched Sina Weibo, which made it stand firm in the mobile era. This time, Cao Guowei privatized Sina Group to re-develop its vertical business. Driven by the Weibo platform, these vertical businesses are expected to achieve greater growth in the future.
In fact, for many years, Sina's main income still comes from its subsidiary Weibo, and the development of other businesses is not smooth. Moreover, after listing in Weibo, the share price of Sina Group has not improved, and it is easier for investors to buy shares in Weibo. Therefore, it is reasonable for Cao Guowei to delist Sina at this time. After all, this so-called parent company has been ignored and can develop better after delisting.
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According to the announcement, Sina has asked Nasdaq to submit a Form25 report to the US Securities and Exchange Commission, informing the SEC to delist its common stock from Nasdaq and cancel its registered securities.
Cao Guowei said in the company's internal letter that the privatization of Sina is not the end of an era, but a new framework for better exploring the future. Previously, due to historical reasons, Sina and Sina Weibo, as parent companies and subsidiaries, were both listed companies, forming an unreasonable capital structure. On the one hand, privatization will straighten out Sina's capital structure and provide more flexibility for the more diversified development of Sina Group in the future.