China's Twitter-like Sina Weibo files for $500M US IPO

The short-form messaging service is facing stiff competition in China

One of China's most popular social media services, Sina Weibo, filed papers on Friday for an initial public offering in the U.S. with the target of raising US$500 million.

The service, often likened to China's version of Twitter for its 140-character posts, is popular in the world's most populous country and attracted 129 million users per month at the end of 2013, but there are signs of slowing user growth.

In a conference call last month, Sina CEO Charles Chao conceded that competition is tough, with about 20 similar services operating. One of the biggest competitors to Weibo is China-based WeChat, which, like Weibo, claims about 300 million registered users.

Like Twitter, which listed its stock last year, Weibo is pushing mobile. The company already sees about 70 percent of its use from mobile devices, and mobile contributes about 28 percent to the company's advertising revenue, the company said.

Weibo recorded revenue of $188 million last year, of which about 79 percent came from advertising. A further 12 percent came from game services and 6 percent from the sale of premium memberships. The company isn't yet profitable, but its net loss of $38 million last year was much improved from the $102 million net loss in 2012, according to the company.

The U.S. IPO will be handled by Goldman Sachs and Credit Suisse. The filing, which was published by the U.S. Securities and Exchange Commission on Friday, does not list a proposed IPO date or share price. Those are usually determined much closer to the actual IPO.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...

Hans Jensen

Explainer: What marketers need to know about cryptocurrency

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Gartner: Digital isn't enough of a superpower for CMOs anymore

Read more

I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...

Dave Sigurd

CMO's top 8 martech stories for the week - 9 June 2022

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Creating a marketplace for wellness

Read more

A solution for an retail industry data extraction. https://e-scraper.com/usefu...

"e-Scraper" Data Extracting

​Catchoftheday launches fee-based online shopping club

Read more

Blog Posts

2 hidden ingredients for leadership success CMOs need to know

Your success as a senior marketing professional has much in common with your success as a leader. Both marketing, and leadership activities, depend on building trust, encouraging action, and reliably fulfilling promises that have been made.

Gerard Penna

Leadership advisor, coach

How shifting economic trends are impacting digital media

Between further interest rate rises, inflation​, empty shelves, extortionate lettuce prices, supply chain issues and the barely believable events in Eastern Europe, the past six months there’s been a cacophony of environmental factors.

Kieran Reed

Senior digital manager, Alpha Digital

5 ways to turn imposter syndrome into confidence and conviction

Imposter syndrome. That feeling others will discover you are actually not as good as they expect, and at any point you will be exposed and ridiculed as a fraud. If you can relate to this, then you are not alone.

Rowena Millward

Author, consultant

Sign in