Weibo is coupling some of its gains, rising to 12% after a report by Bloomberg that the initial reports of Weibo going private are false, according to a report released by SeekingAlpha on Tuesday.
- Initially, Weibo had gained over 40% after a Reuters report that Charles Chao, Chairman of Weibo and China state investors were in discussion to take the company private in a deal worth over $20 billion.
- Reuters had mentioned that Weibo chairman and state investor were to make a $90 to $100 per share offer for the company.
- As of February, Chao’s holding firm, New Wave, became the largest holder of Weibo with a 45% ownership stake.
Taking Weibo private would lead to the exit of Alibaba from its investment. Weibo has a short interest of 23% of float. WB gains +9.03%