Weibo paring gains after Bloomberg denies earlier report of $20B take private offer (update)
Jul. 06, 2021 7:57 AM ETWeibo Corporation (WB), BABABABA, WBBy: Joshua Fineman, SA News Editor14 Comments
- Update 8:45am: Updates shares, adds denial report.
- Weibo (NASDAQ:WB) is paring some of its gains, now up 12%, after Bloomberg reported that a report that Weibo is going private is "not true."
- Earlier, Weibo gained more than 40% on a Reuters report that the company's chairman Charles Chao and a Chinese state investor are in talks to take the Twitter-like company private in a deal for at least $20B.
- The Weibo chairman and state investor are expected to offer $90-$100/share for the company, according to a Reuters report, which cited sources familiar. Chao's holding company New Wave is the largest holder of Weibo, which had a 45% stake as of February.
- New Wave is joining up with an unidentified Shanghai-based state firm for a consortium for a take private deal for Weibo, according to the report.
- A take private of Weibo would let the company's second largest holder Alibaba (NYSE:BABA) and top customer exit its investment.
- Weibo short interest 23% of float.
- In February, Weibo gained on report it was preparing to list in Hong Kong.
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Comments (14)
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mwa111
07 Jul. 2021
Sell the news. I was in calls for past month that expired next week. Nothing wrong with waking up to a 10X play once in a while. On to the next! 🙂

InvestingIdeas
06 Jul. 2021
Odd timing, 23% short interest followed by going private talks.

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estellaxtw
06 Jul. 2021
Come get some shorties!
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AverageInvestorAtBest
06 Jul. 2021
Bloomberg is the mouth of the CCP, so hard to trust them. They just write what they're told to.
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Jay Peng
06 Jul. 2021
@AverageInvestorAtBest WTF media company should write what they are told to, not to make up shit
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Tosh123
06 Jul. 2021
CEO Charles Chao is a scammer. He just screws Western investors. AVOID. He'll try to do a "take-under" before he pays a premium to shareholders.
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ATX
06 Jul. 2021
You seem to know so much about the CEO, why don't you short it and bring the short interest to 150% so that wallstreetbets can pump it up to $5000?
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Tosh123
06 Jul. 2021
@ATX why waste my attention on manipulated stocks? I'd get run over. Charles Chao is very, very anti-shareholder friendly. SINA was a take-under. If you don't understand his history, I suggest you read up. see SINA/Net Asset Value/Aristea/ Super Voting shares. Feel free to comment after you educate yourself on the management team here.
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Luculus
06 Jul. 2021
likely another CCP scam

Leandro_Santos
06 Jul. 2021
90 to 100? That's such an high price for the stock imo
Maybe it's just to squeeze the shorts?
Maybe it's just to squeeze the shorts?
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AverageInvestorAtBest
06 Jul. 2021
@Leandro_Santos why is that high? Did you assess a fair value much lower? Or just saying it's too much because you don't own the stock or shorted it?

Leandro_Santos
06 Jul. 2021
@AverageInvestorAtBest Yes I did. Just do a multiple comparison between $FB and $WB....