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New Alibaba-Backed Alliance Hints At Sina Acquisition

Summary

The major headline is an announcement that SNS giant Weibo, online video leader Youku Tudou and popular web browser UCWeb will combine in a new alliance.

UCWeb and Youku Tudou are both owned by Alibaba, which also owns 30 percent of Weibo.

If we look at all these developments from a larger perspective, we could easily imagine a plan that would see Alibaba buy Sina.

Bottom line: A new alliance between Youku Tudou (NYSE:YOKU), Weibo (NASDAQ:WB) and UCWeb, combined with reports of the imminent resignation of Youku's CEO, point to a sale of Weibo parent Sina (NASDAQ:SINA) to Alibaba (NYSE:BABA) within the next six months.

Two new developments involving several Alibaba-backed assets are hinting at a major new shakeup in the firm's online video and social networking (SNS) division, which could include an acquisition of stalwart web portal Sina that I've been predicting for a while. This particular series of corporate shuffles is quite complex, but does seem to hint that Alibaba is trying to rationalize and synergize some of its major web-based entertainment and SNS assets outside its core e-commerce business.

The major headline hinting at big change is a new announcement that SNS giant Weibo, online video leader Youku Tudou and popular web browser UCWeb will combine in a new alliance to find synergies for their businesses. UCWeb and Youku Tudou are both owned by Alibaba...


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