Sources: Alibaba to invest in Sina Weibo

Chinese e-commerce giant Alibaba Group intends to invest in Sina’s (SINA.Nasdaq) Weibo microblogging service, Reuters reported, citing local media. Alibaba, the operator of Taobao and Tmall e-commerce websites, is in final negotiations to buy a 15-20% stake in Sina Weibo, according to a report in China Business News that cites unnamed sources within Alibaba. The e-commerce company has not commented on the report. The deal would reportedly give Sina Weibo a US$3 billion valuation. “We see the potential deal is synergetic to both parties,” Credit Suisse analysts wrote in a research note. Through the investment, Alibaba could direct Sina Weibo users to its consumer-focused site Taobao, while also bringing advertising revenue to Sina Weibo, the note said. Credit Suisse values Sina Weibo at US$4.4 billion.