The giant Chinese social network, Weibo, is making moves to gather $700M. The money will be used for “potential acquisitions of complementary businesses” in the next few years.
Since Weibo is such a large company in China with millions of users, the acquisitions are more likely within the homeland. Furthermore, from the previous history, Weibo will likely invest in media-related acquisitions such as video, entertainment, and advertisements.
The marketing side of Weibo has seen growth in the past quarters this year. This quarter’s profit record is around $101 million. It beat the record for the previous quarter of $73.5 million. Furthermore, the Twitter-like site is currently on a momentum and will increase in the next quarters possibly.
Grand Vision of Weibo in the Next Few Years
Weibo will offer an estimated $700 million in the form of convertible senior notes. These are due in 2022. However, the terms and the conversion rates are subject to change as the depending on the market conditions as well as other factors.
The $700M will be spent on potential acquisitions of other complementary businesses. This is in order for the site to advance as a social media giant and promote more services for its users. This will largely benefit both the company and the members as with Facebook’s latest actions.
China doesn’t allow Facebook and Twitter in their country, so most Chinese use their domestic equivalent as means of communication online. It’s also not new that the China government uses the website to drive forward their propaganda. In the recent turn of events, Xi Jinping’s party encouraged the users to participate in the China’s New Era online.
Weibo currently boasts a total of 361 million users monthly. Daily visitors of the microblogging social site is around 159 million. Weibo will definitely take advantage of this vast number of the members for more profit. What’s more, the profit may triple a few years from now if they become successful.