Third-Party Commentary

  • “An examination of the arguments reveals compelling reasons for shareholders to seek change at the company.”
  • “There are a number of other governance issues at play…Each of these factors dilutes the board’s efficiency as a mechanism for aligning the interests of management with those of shareholders.”
  • “The dissident presents a compelling case for adding at least one new independent director to the board.”
  • “Manning, who brings experience relevant to the company’s expansion into online finance as well as a sizable record of public board service in China, seems well-suited to add value to the company.”
  • “A number of shareholders have expressed frustration with trying to understand the company’s smaller, but nevertheless significant and growing, portfolio of non-Weibo investments given the company’s relative opacity.”
  • “Investors should note that the company’s claim of having returned USD 1.7 billion to shareholders since 2014 is inflated at best and completely erroneous at worst."

10/19/2017 ISS Report

  • “Dissident Nominees Manning and Krause have considerable executive-level financial services experience, including experience investing in China and in Asia, that would likely be of value to the board…”
  • “We believe the Dissident presents a number of compelling ideas to address the Company’s NAV discount, including increasing share repurchases or distributing additional Weibo shares, among other potential strategic alternatives.”
  • “[T]he Company trades at a large discount to estimated NAV and the incumbent board and management appear generally unwilling to do all that is necessary to reduce or eliminate the discount…”
  • “The Company employs a number of corporate governance practices that are not in the best interests of shareholders, in our view, including maintaining or implementing entrenchment tactics such as a classified board and poison pill.”
  • “We find that the incumbent board is stale, with an average tenure of 14 years with all independent directors having served on the board for at least 13 years.”
  • “In reviewing Sina’s TSR performance over a longer term, we find that the Company underperformed relative to the peer group and the Nasdaq Composite Index over the five-year and 10-year periods. In particular, the Company significantly underperformed relative to the peer group over those periods…”

10/23/2017 Glass Lewis Report

We attribute the widening gap to: 1) investor concern over Sina’s corporate governance. 2) staggered growth of portal business. 3) low visibility of Sina’s investment strategy in Internet finance […] Sina stock price could go up by 15-45% if it potentially adopts the proposal raised by Aristeia Capital”

9/21/2017 Sell Side Report

Aristeia makes a convincing case for why new voices are needed at SINA. While the company has delivered returns for shareholders that exceed that of the NASDAQ, the discount to NAV that SINA trades at has widened dramatically since WB went public in 2014, and the actions of the current board do not suggest that there is a deep-seated desire to close the discount that SINA trades at.”

9/28/2017 Sell Side Report

“Sina’s board rejected Aristeia’s two director nominees, saying they lack relevant skills and experience. But if it came down to a proxy vote, the board might find itself outnumbered: Almost 70% of the company is in the hands of institutional investors, according to FactSet, who are possibly more sympathetic to Aristeia’s proposals.

Jacky Wong

“Aristeia launched a public campaign against the Beijing company, blasting it for “systemic governance shortcomings" and arguing shareholder value has suffered […] The interloper is right to demand a bigger and more diverse board. Chao, oddly, has a permanent seat. And none of the remaining four directors looks very independent. Each has a tenure of more than a decade.

Robyn Mak

The fact that both Sina, founded in 1999, and its Twitter-like Weibo platform are listed in the US provides a window for a foreign player to pressure a mainland Chinese company over corporate reforms.

Christian Pfrang

“Aristeia believes the company’s governance is a problem, according to people familiar with the matter, with Mr. Chao holding a permanent seat and the four other board members—of which only one comes up for re-election each year—having longstanding ties to the company.

Julie Steinberg