YY - Chinese 'Hostile' Takeovers: Weibo Could Be Next Among Many

• In the case of a hostile takeover, minority shareholders will one way or another lose money.
• The case of Sina Corp. is of particular interest, because it can educate us on how bad things can play out for retail investors.
• Privatizations are more likely if: (a) Controlling voting power among a few entities is evident, (b) a major market value deterioration takes place, (c) the company maintains positive cash flows.
• According to Reuters, Weibo (China’s equivalent of Twitter) is in the process of being taken private.
• Huya and DouYu (China’s equivalents of Twitch) cover all of the baseline requirements that make a buy-out bid more likely.

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