Alibaba Group, China's largest e-commerce company, has agreed to buy an 18 percent stake in Sina Corp.'s Weibo, the microblogging platform.

Alibaba, which is partly owned by Yahoo Inc., says it has paid $586 million for the stake in China's equivalent of Twitter. It has the option of increasing its ownership to 30 percent.

Weibo poses a threat to censors

Alibaba now has a stake in Weibo

Sina's U.S.-listed shares jumped $6.69, or 13 percent, to $56.99 in morning trading. The day's high of $60.81 was the stock's highest level since October.

The companies also agreed to develop ways to let merchants on Alibaba connect with Weibo users. It expects the alliance to generate $380 million in advertising and commerce services for Weibo over the next three years.

Yahoo owns 24 percent of Alibaba. Yahoo shares fell 1 cent to $24.67.

Associated Press

Publish date: April 30, 2013 8:32 am| Modified date: December 19, 2013 11:17 am

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