Recently, I have been talking with an investment bank analyst about Sina.  I asked how he valued Sina’s Weibo (its miniblog or microblog services).  He said he will give its portal business 30 times PE or about US$30 per share.  Its wireless business about US$2.  And another US$5-6 for its other business (apart from Weibo).  It has US$13 in cash per share.  That means excluding Weibo, Sina should worth about US$50.  Currently, Sina is trading at about US$117.  Therefore, investors are giving 57% of Sina’s valuation to its Weibo alone, or about US$ 4 billion dollar!!

Is it too much for something has yet to prove its business model?? Revenue from Weibo is still tiny at the moment.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...