Sina’s Weibo: Growth Engine or Growing Burden? 新浪微博：动力or负担？
After months of seeing its shares and prospects soar on non-stop hype about its phenomenally successful Weibo microblogging service, Sina (Nasdaq: SINA) is quickly learning that what goes up often comes down, and that great chances for growth also carry equally great risk. In a rare setback for Weibo, which boasts 200 million users, Hong Kong media reported over the weekend that China is considering new regulations for the unruly microblogging sector, which has become an increasingly fertile ground for fanning public discontent and spreading rumors by people often using fictitious names. (English article) According to the report, the biggest change being considered would require all microbloggers to register accounts using their real names — a development that would instantly probably wipe out about 90 percent of the accounts now in use. Such a move is certainly consistent with previous measures taken by Beijing, which is trying to limit things like rumor mongering and spam, even as some criticize such moves as also limiting free speech. Even if less drastic measures are ultimately taken, the increased regulation doesn’t look good for Weibo and microblogging in general. Investors, recognizing that fact, have been dumping Sina shares en masse, sending the stock down by a third in the last 3 weeks. Making the situation worse, in my opinion, is the steady stream of reports about new social networking services (SNS) that Sina is now rolling out to try and leverage Weibo’s popularity. In the latest of those, local media are reporting that Sina is launching a new SNS product called Kandian (English article), after launching another related product called Qing back in July. (previous post) I understand that Sina is looking for ways to turn Weibo into a profit center, but this pattern of launching so many new businesses in such a short time looks very rushed and lacking in long-term vision, and could very well backfire by leaving Sina and Weibo with a new group of lackluster performers rather than the next new Internet sensation.
Bottom line: Looming new government regulations and an increasingly chaotic growth strategy both look like bad developments for Sina’s popular Weibo microblogging site.
Related postings 相关文章:
◙ Sina, Tencent Pose Threat in SNS, E-Commerce 新浪腾讯攻城掠地
◙ Sina Gets Serious on SNS With New “Blogging Light” 新浪推出轻博客 大力进军社交网络业务
◙ Sina’s Weibo Steps Outside China 新浪微博进军日本市场
