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China Portal Sina.com Discussing Possible Mergers
Internet portal Sina.com is talking to several Chinese startups about possible mergers or acquisitions, Sina's chief operating officer Daniel Mao said on Thursday.
"We've been talking to several companies in the last few months, including on this trip," said Mao, who is visiting from the company's offices in Sunnyvale, California.
"We're exploring strategic alliances, investments and some M&A opportunities," he told Reuters in an interview. "We can't disclose the specifics of who, but we are looking at candidates."
Sina was interested in niche content providers, such as entertainment and sports portals, as well as technology firms which package Internet content for delivery to televisions and mobile phones, he said.
The company was also looking into tie-ups with narrowly focused electronic commerce firms, such as an online sellers of books or home appliances, he said. Sina has a strategic alliance with Eachnet.com, an online auction firm in China.
Analysts say they expect a raft of mergers and acquisitions among Chinese dotcoms this year as well-capitalised firms like Sina seek to cherry-pick startups with good ideas and talented staff, but almost no money.
Internet portal tom.com, part of the business empire of Hong Kong tycoon Li Ka-shing, announced this month it would buy a Chinese sports advertising agency and a sports Web site in deals worth $53 million.
Tom.com said it would take 70 percent control of ad firm Yang Cheng Press Advertising Ltd and 100 percent of Sharkwave Asia Pacific Ltd, which operates the Chinese sports site shawei.com.
Mao poured cold water on rumours in Chinese media that Sina was considering joining forces with either of its main competitors, Sohu.com and Netease.com.
"Never say never, but there is nothing from our end in terms of talking or exploration," he said. "It's at the early stage of the market -- let's give competition a shot."
Sina was the first mainland Chinese portal company to list overseas, raising $68 million in its Nasdaq listing in April.
Its shares have hovered roughly 20 percent above their $17 listing price -- higher than the valuations of Sohu.com and Netease, which came to the market later and have watched their shares slip about 50 percent since their public offerings.
Sina also has more cash on hand than its rivals: $130 million at the end of June, according to Mao. He declined to give a timeline for the acquisitions.
"When a melon is ripe, it falls off the stem," he said. "It's a natural process. We're not going to force it."
Sina, majority owned by non-Chinese investors, runs Chinese-language Web sites in mainland China, Taiwan, Hong Kong and North America.
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