| Since the 21st century,many Internet companies have produced negative synergies caused by diversified operations.The organizational structure of companies has gradually become complex and redundant.At the same time,with decline of economies of scale,the management and execution efficiency of company have also severely declined,restricting the overall profits and development of companies.Therefore,as an important asset reorganization method,the spin-off and listing has been widely valued by different Internet companies.A lot of large Internet companies often have multiple businesses and subsidiaries.On the one hand,spin-off and listings of these companies will help Internet companies shift to shrinking operations and ease financing constraints.On the other hand,it will also help release the potential of subsidiaries and improve the performance of parent and subsidiary companies.What’ more,spin-off and listings of these companies can also improve the degree of professional operation of parent and subsidiary companies and detonate other potential profit points.At the same time,China’s capital market has also strived to integrate with foreign capital markets in recent years,and the exploration of spin-off and listing has also entered into the practical stage.Besides,the "Opinions on the establishment of a science and technology board on the Shanghai Stock Exchange and the implementation of the pilot registration system’ issued by the China Securities Regulatory Commission in January 2019 clearly states that a listed company that has reached a certain size can split its independent and qualified subsidiaries in accordance with the law.This regulation marks the official landing of the A-share spin-off and listing policy,which plays an important role in the maturity and internationalization of China’s capital market,and also makes it possible for Internet companies to spin-off and list in China.Chinese Internet companies have already established core advantages in one or two sub-sectors,and have the need to use spin-off and listing to raise funds and tap the value of core business.At present,the majority of Chinese Internet companies’ spin-offs and listings are in the U.S.capital market,for reason that the capital scale,institutional system,and listing rules of the U.S.capital market are much more mature than those in Chinese capital market.The capital market of China is more lenient than the US,leading to the wave of overseas spin-off and listings.Until now,there is also a huge need for spin-offs and listings of Internet companies.There are few domestic studies on the spin-off and listing of Chinese Internet companies.Most studies are focused on traditional companies,such as Tong Ren Tang and Tong Fang.On the one hand,there is a huge demand for spin-off and listing of Chinese Internet companies.On the other hand,the phenomenon of lack of policy practice and shortage of academic research are serious.Therefore,this article studies the case of Sina Weibo spin-off and listing,which is of great importance to summarize the experience of Internet companies’ spin-off and listing.What’s more,with the liberalization of the domestic spin-off and listing policy,a new wave of Internet companies will inevitably be listed.The research in this article can provide them with a reference.Based on the existing literature,this article uses the relevant theories of spin-off and listing to analyze the Sina Weibo spin-off and listing.This article mainly studies the current status of China’s Internet spin-off and listing,the whole process of Sina Weibo spin-off and listing,motivation for the listing of Weibo and the value effect of Sina Weibo spin-off and listing.The research conclusions of this article are as follows.Firstly,there are many reasons for Sina Weibo’s spin-off and listing,such as competing with similar social products,passing positive messages to investors,meeting financing needs,adjust business structure and motivating management staff.After three stages,Sina finally successfully split Weibo.Secondly,the spin-off of Weibo has had a positive short-term value effect on Sina and Weibo,and has improved the short-term performance of the share prices of the parent and subsidiary companies.Finally,the spin-off and listing also brought positive long-term value effects to Sina and Weibo.The financial performance,business development and corporate governance of Sina and Weibo have all been improved to a certain extent,and the long-term value of the companies has also been improved.However,because Weibo’s main business is more competitive than Sina in the mobile Internet era,its value improvement is significantly greater than Sina.In general,parent and subsidiary companies have generated positive value effects,but the parent company Sina have generated the marginal problem.Therefore,for Internet companies,spin-offs and listings are more important as an important means to meet financing needs and transform in the era of mobile Internet,which helps the parent company to use subsidiaries and cores to open new breakthroughs when the original business’s mobile transformation is difficult.The successful spin-off and listing has a positive effect on the financing,product expansion,and business operation of Internet companies.However,the impact on the long-term value of the company depends more on the respective main businesses of the parent and subsidiary companies.If the company’s main business is the mainstream application in the mobile Internet era,the spin-off and listing will bring it a more significant value effect. |
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