Under terms of the deal, Shanghai, China-based Sina will pay roughly $15m in cash and shares as the first installment, and an additional contingent payment of up to $21m in cash and shares in the next year based on growth performance levels.
Launched in 2002, the UC instant messaging service allows users to communicate in real time over the internet and mobile phone networks, via text messages, images and voice. UC also provides community services such as chat rooms, online games, online karaoke and other entertainment services. The UC instant messaging service has approximately 80 million registered user accounts and approximately 200,000 peak simultaneous online user accounts.
The addition of UC’s instant messaging service to Sina’s service offerings will enhance our users’ community experience, said Wang Yan, CEO of Sina. With this acquisition, Sina aims to extend its existing portfolio of web-based and mobile services to users who use instant messaging as their primary online activity. In addition, UC’s instant messaging platform is ideal for providing value-added services such as online casual games, dating and avatar-based communities.
The transaction is subject to the usual closing conditions including regulatory approvals, and is expected to close in the third quarter.
