On March 15, 2014, Sina Weibo filed for a USD 500 million IPO on the Nasdaq. In April 2013, Alibaba purchased Sina Weibo’s 18% stake with USD 585.8 million, which brought USD 49.14 million advertising revenue in 2013. It accounted for 33% of advertising revenue. The deal also secured that Alibaba an option which allows increasing stake in Sina Weibo to 30% with a discount price after the IPO, and Alibaba could appoint 1 to 2 board directors.
Sina Weibo will also cooperate with Alibaba in 8 aspects.
Sina Weibo and Taobao Account Bundling
- Sina Weibo users could login to Taobao with Weibo account, similarly, Taobao users could login to Weibo using Taobao account. Sina Weibo will add another login option-login with Taobao account-on the login page of Weibo.
- When Taobao users login to Sina Weibo, it will check whether the users have Weibo accounts or not. If they have Weibo account, Weibo will automatically connect the two accounts. If not, Taobao users could set up a new Weibo account conveniently. Vice versa.
- For safety reason, when Weibo users login to Taobao account, Taobao will require the users to fill in information. Vice versa.
- The bundle of Weibo account and Taobao account is the first step, after Alibaba starts uniform account system, the Alibaba uniform account will be connected with Weibo account.
Products Cooperation
- Alibaba will display Sina Weibo sharing plug-in on multiple pages on Taobao, and encourage Taobao users to share on Weibo. If the user’s Taobao account has bundled with Weibo, the sharing content will be on both platforms. Alibaba plans to expand the sharing on Weibo plug-in on other websites.
- Sina Weibo plug-in will be integrated with Alibaba’s plug-ins. Alibaba will take advice from Sina Weibo on the design of the logo.
- Weibo users could like and share their favorite products on Taobao without login to Weibo account.
- Alibaba allows Weibo comments to display in Taobao product information, and Taobao users could decide on whether to show the comments from Weibo.
- Alibaba will add Weibo business card for each Taobao stores, and encourage these store owners to use Sina Weibo.
- Weibo users could share product links on Sina Weibo, after clicking the links, they will be redirected to Taobao websites.
- Weibo users personal page will include products and favorite items.
Taobao Stores and Sina Enterprises Weibo
- Sina Weibo is going to launch special Enterprise Weibo for Taobao store owners, distinguishing each other by different logos which show Taobao sellers, Tmall sellers or Taobao life.
- Alibaba will promote Taobao sellers to register Enterprise Weibo account and recommend those with three stars and above sellers and operate normally for over a year.
- Alibaba and Sina Weibo will both offer Taobao store and Enterprise Weibo to Taobao sellers, and they also encourage third-parties to develop apps.
- Alibaba requires Weibo posts to include image, title, like button, add to shopping cart button and interaction.
- Sina Weibo will add “Taobao Store Window” on Enterprise Weibo for Taobao, the plug-in is provided by Alibaba. Revenue made from this plug-in will be shared between Sina Weibo and Alibaba, Sina Weibo will obtain on less than 30%.
- They encourage Taobao Enterprise Weibo accounts to do marketing campaign on the Weibo, by offering special discount or coupons for users.
- Any activities on Weibo must obey the regulation rules of Sina, any violation will be punished by Sina Weibo. Alibaba will be informed of the punishment.
- Sina Weibo has right to regulate product information published on Enterprise Weibo.
Payment
- When Weibo users pay with Weibo Wallet, Sina Weibo will use Alipay as the top priority of third-party payment.
- They agreed to promote other payments for non-Taobao products transactions.
- Their payment departments will work closely.
Mobile Application
- When users click on Taobao product link and payment link on Weibo, mobile Weibo client will support Alipay security payment.
- They will promote each other’s mobile apps to a degree, Sina Weibo will promote Taobao mobile client and Alipay in its app store, and Alibaba will also promote Sina Weibo.
Marketing
- Sina and Sina Weibo will offer advertising places for Alibaba.
- They are to work together to develop Weibo advertising product. Sina Weibo will increase Alibaba’s advertising places and authorizes Alibaba to sell ads. They would share revenue from advertising, it’s expected that Sina Weibo will gain about 70%.
- Sina Weibo will provide social recommendation plug-ins, and Alibaba will use it on its marketing platforms.
- The two will talk more about marketing cooperation.
Other Business
- Sina and Alibaba plan to work together on Alibaba’s Juhuasuan platform, Sina Weibo is going to set up an official Juhuasuan Weibo platform and come up with marketing strategies.
- The two will work on local life services.
- The two will cooperate on search engines.
- The two will work closely on online shopping security, including information sharing, logistics as well as preventing counterfeit and shoddy products information spread.
Data
- The cooperation between Sina Weibo and Alibaba will not be going at the cost of user data security.
- The two could only not provide products and information to a third-party, and could not develop their own products without the permission of the other party.
- Based on the business cooperation requirement, the two are allowed to provide data base access to each other.