China’s Sina Reportedly Stops Hiring, Prepares for Alibaba Buyout

5 Nov

Chinese media company Sina has reportedly stopped hiring in order to improve its earnings report in an attempt to get a better acquisition offer from Chinese e-commerce giant Alibaba.

Sources from Sina revealed that the human resource department has verbally confirmed to an internal manager that the company has halted all hiring process.

Neither Sina nor Alibaba have commented on the rumored merger plan.

In addition to buy a stake in Sina Weibo in 2013, Alibaba has also invested in other Chinese media to expand its business presence.

According to Sina’s Q2 earnings report, the company had net revenue of US$213.6 million, up from the US$187 million in the same quarter in 2014. Its Q2 net profit was US$11.7 million, down 30 percent from the US$16.6 million in Q2 last year.

Sina Corp. was listed on Nasdaq on April 13, 2000 with an issue price of US$17 apiece. The company’s market value is now at US$3.18 billion. Alibaba can reportedly obtain a controlling stake in Sina for US$2.1 billion.