(Reuters) – China’s Weibo Corp said on Wednesday it was raising its stake in Shanghai-listed media marketing firm Inmyshow Digital Technology Group Co Ltd through the acquisition of ShowWorld Hong Kong Ltd for 2.16 billion yuan ($314.7 million).
ShowWorld Hong Kong, a subsidiary of Chinese technology company SINA Corp, holds an 18.4% stake in Inmyshow Digital Technology.
On completion of the deal, Weibo will own a cumulative 26.57% stake in Inmyshow, becoming its biggest shareholder.
Inmyshow Digital Technology provides its clients with marketing strategies and social media operations. It also assists with maintenance and technical support. Weibo’s Chief Financial Officer Fei Cao is currently a board member at Inmyshow.
Earlier in the day, Weibo said its quarterly revenue fell 27% to $448 million, adding that its monthly active users rose to 586 million in December. It reported a drop in adjusted profit for the quarter.
($1 = 6.8640 Chinese yuan renminbi)
(Reporting by Archishma Iyer in Bengaluru; Editing by Shailesh Kuber and Sohini Goswami)
