SINA - Sina Corporation: Rare Arbitrage Opportunity With M&A Potential

Sina Corporation (SINA) indirectly owns one of the top social media platforms in the world - Sina Weibo - via its equity stake in Weibo (WB). In this article, I detail how Sina Corporation's share price should be trading at least 60% higher using a simple sum-of-parts valuation. The social media platform Sina Weibo also presents terrific potential as an acquisition target due to its strong subscriber growth rate, which has translated into robust revenue growth for Sina Corporation.

First, a snapshot of the social media platform Sina Weibo.

Sina Weibo,

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