Seeking Alpha

Sina assumes full ownership of lottery site Aicai

  • Aicai, a Chinese lottery ticket site established in '07, is now fully owned by Sina (SINA -2.4%). Aicai's founding team will remain with the company.
  • Aicai was established in '07, with Sina holding a majority stake. The site raised funding in '09.
  • Research firm Analysys estimates Aicai had a 4.9% share of the Chinese online lottery market in Q1. 500.com (WBAI +3.2%) had a 5.8% share, Alibaba's Taibao site an 11.3% share.
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Comments (7)
  • IamHopeful2
    , contributor
    Comments (159) | Send Message
     
    Great..I guess this profit making venture will somehow take sina down..what..another 10%??
    19 Jun 2014, 02:23 PM Reply Like
  • student23
    , contributor
    Comments (88) | Send Message
     
    so... is it expected to add anything to bottom line?
    19 Jun 2014, 04:50 PM Reply Like
  • Man Chiang
    , contributor
    Comments (25) | Send Message
     
    What is important is Aicai is probably worth 1 billion and Sina owns 100% of it.
    Tiange is going IPO soon and Sina stake is going to be worth another 1 billion. Sina has 1 billion in cash and a 58% Stake in Weibo.
    Some basic math tells me
    2.32 billion in Weibo equity+ 1 Billion in cash+ 1 billion in equity in Aicai+ 1 billion in Tiange equity= 5.32 billion or (~$80 per share). This does not factor in Sina's core business which is the portal itself.
    19 Jun 2014, 05:06 PM Reply Like
  • HCube
    , contributor
    Comments (64) | Send Message
     
    Just curious, how did you get the 1B figure for Aicai?
    20 Jun 2014, 01:02 AM Reply Like
  • student23
    , contributor
    Comments (88) | Send Message
     
    Don't you think $5.32B is a bit too much ? Then why is it trading at 3B ? Is it really all worries about the government taking some licenses ?
    20 Jun 2014, 05:02 AM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1403) | Send Message
     
    Man chiang understands. This company without the extra 1 billion is under valued big time. If you have a strong stomach this may be a good play.
    20 Jun 2014, 02:41 PM Reply Like
  • jmatkowsky
    , contributor
    Comments (2) | Send Message
     
    in millions ($)

     

    Sina
    Net CASH 1500
    loan to WB 250
    WB 2,347
    Aicai 1000
    Ehouse 342
    Alibaba 300
    Yoku 73
    Tiange 234
    other 100

     

    SinaBiz 600
    ----------------------...
    SOTP Value $6,747
    ----------------------...
    Per Share $103
    21 Aug 2014, 10:11 PM Reply Like
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