BABA - How the Antitrust Crackdown on Alibaba Could Affect SINA and Weibo
Alibaba (NYSE: BABA) could be forced to divest its media assets as part of the Chinese government's sweeping antitrust actions against the company, according to The Wall Street Journal .
Alibaba reportedly won't be forced to divest its direct subsidiaries, which include its streaming video platform Youku Tudou, its film production unit Alibaba Pictures, its video game publisher Lingxi Games, and its software division UCWeb. But the antitrust regulators could force Alibaba to divest its passive stakes in several news outlets and the social media platform Weibo (NASDAQ: WB) .
The Chinese government's crackdown on Alibaba's media assets isn't surprising, since it's likely concerned about the tech giant's growing influence. However, a forced divestment of Weibo, which Alibaba owns a 30% stake in, could cause unforeseen challenges for Weibo and its top stakeholder SINA (NASDAQ: SINA) , which is currently on the cusp of going private in a controversial deal.
For further details see:
How the Antitrust Crackdown on Alibaba Could Affect SINA and Weibo