Weibo Chairman Charles Chao Refutes Privatization Rumors

(RTTNews) - Chinese social media platform Weibo Corp. (WB) on Tuesday said in a statement that news reports of Chairman Charles Chao being in talks with a state investor to take the company private are false and there has been no discussion with anyone regarding privatization of the company. Earlier reports had suggested that Chao was in talks with a state investor to take the company private in a deal that could be worth more than $20 billion. Reports also said that Chao's holding company, New Wave, was working with Shanghai-based state company to form a consortium for the deal. This move would also pave the way for major shareholder Alibaba to exit the company. Currently, New Wave is the largest shareholder in the social media platform. According to sources, the planned consortium had plans to finalize the privatization deal by the end of the year with the final aim of re-listing Weibo in China to draw benefits from higher valuations.

Weibo shares are currently trading 7 percent higher at $58.03 on the NYSE.