Will Sina Corp. Break its Slump with This Partnership?
Shares of SINA Corporation (NASDAQ:SINA) chased Tuesday’s gain of 4.38 percent with additional gains of 3.9 percent Wednesday. The Chinese online media company has been scraping along 52-week lows since early December, but has pulled some investor confidence back with the announcement of a strategic partnership with AutoNavi Holdings Limited (NASDAQ:AMAP), a provider of digital maps and location-based navigation services.
“As a result of this partnership, AMAP, AutoNavi’s mobile map application, users will be able to sign on using Weibo Connect and access content directly from SINA Weibo. SINA Weibo users will also have access to the content and functionality of AMAP. The companies expect such content and product integration will enhance the social networking and navigational aspects of each other’s mobile offerings,” reads a statement released by Sina.
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Sina is the controlling partner in this relationship, bringing 400 million users to the table compared to AutoNavi’s 100 million. With their powers combined, the two will try to lure more users into the fold by offering a robust “SoLoMo” — Social, Location, Mobile — service, in which both companies see a huge growth opportunity…