﹛﹛Highlights SINA＊s Strong Stock Performance over the Past Three Years
﹛﹛Questions Aristeia＊s Short-Term Focus and Self-Serving Agenda Demonstrated by Trading Record and Fund Performance
﹛﹛BEIJING, Oct. 18, 2017 每 SINA Corporation (※SINA§ or ※the Company§) (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced that the SINA Board of Directors has sent a letter to shareholders in connection with the Company＊s upcoming 2017 Annual General Meeting of Shareholders (the ※Annual General Meeting§) to be held on November 3, 2017. SINA shareholders of record at the close of business on September 20, 2017 are entitled to attend and vote at the Annual General Meeting.
﹛﹛For shareholders owning shares in ※street name§ or through a broker-dealer, to ensure your shares are represented at the meeting, please vote by telephone or Internet before 11:59 p.m., Eastern Daylight Time, on Tuesday, October 31, 2017, or 11:59 a.m., Hong Kong time, on Wednesday, November 1, 2017.
﹛﹛The SINA Board of Directors unanimously recommends that shareholders vote ※FOR§ Yichen Zhang and vote ※AGAINST§ each of Aristeia＊s nominees by signing, dating and returning the WHITE proxy card today. The proxy statement and other important information related to the Annual General Meeting can be found on the Company＊s website at http://corp.sina.com.cn/eng/AGM/.
﹛﹛The full text of the letter to shareholders follows:
﹛﹛SINA URGES SHAREHOLDERS TO VOTE ※FOR§ SINA DIRECTOR, YICHEN ZHANG, AND
﹛﹛※AGAINST§ ARISTEIA＊S NOMINEES, BRETT KRAUSE AND THOMAS MANNING,
﹛﹛ON THE WHITE PROXY CARD TODAY
﹛﹛October 18, 2017
﹛﹛Dear Fellow Shareholders,
﹛﹛SINA＊s 2017 Annual General Meeting will be held on November 3, 2017. Time is short to cast your vote ※FOR§ the reelection of Yichen Zhang on the WHITE proxy card. If your shares are held in ※street name§ or through a broker-dealer, to ensure your shares are represented at the meeting, please vote by telephone or internet. The voting deadline is 11:59 p.m., Eastern Daylight Time, on Tuesday, October 31, 2017, or 11:59 a.m., Hong Kong time, on Wednesday, November 1, 2017.
﹛﹛SINA＊S STRATEGY HARNESSES THE SYNERGIES BETWEEN SINA AND WEIBO
﹛﹛TO DELIVER SIGNIFICANT VALUE TO SHAREHOLDERS
﹛﹛The collective experience and expertise of your Board of Directors and management team are driving innovation and creating significant value. Your Board is highly engaged and actively overseeing the strategy of the Company. This is evident in the proactive strategic shift that began several years ago under which SINA embarked on a strategy that capitalizes on expanding and enhancing our mobile advertising platform. Online advertising has been a main source of SINA＊s revenues since its inceptionㄛ and our strategy leverages the power of Weibo 每 a business that was 100% incubated under the guidance of your Board 每 to achieve cross-platform financial and operational synergies to grow revenues and deliver value. For instanceㄛ the shared services across dataㄛ leadershipㄛ capital resources and intellectual properties between Weibo and SINA have enabled SINA to accelerate the growth of its mobile news platform and implement new initiativesㄛ such as online finance businessesㄛ through the strong synergies that the two platforms could achieve.
﹛﹛Our successful execution of this strategy 每 as well as the significant upside still available to shareholders 每 is recognized by the Street and evident in our recent earnings performance. In the second quarter of 2017ㄛ we achieved record high 235% year-over-year non-GAAP income from operations growth and record high 48% year-over-year net revenue growth.1 Bank of America Merrill Lynch noted in a recent report that SINA ※sees synergies between news app and Weibo in news feed and video content sourcing and distribution. Sina has been gradually adding financial products on its platform including Weiboㄛ leveraging its capabilities as a user channel and data source for partners.§2 Goldman Sachs also noted in a recent reportㄛ ※Online finance bore fruit after cultivation of this business over the past years.§3
﹛﹛Ahead of taking Weibo public in 2014ㄛ your Board and management team also provided Weibo with meaningful strategic direction and support on talentㄛ technologyㄛ resources and capital that positioned Weibo for the significant growth and outperformance it has achieved since its IPO.
﹛﹛The success of our transformation is evident in SINA＊s strong share price performance over the past three years and our ability to proactively distribute Weibo shares to SINA shareholdersㄛ includingㄩ
﹛﹛• 181% appreciation of SINA＊s share price since Charles Chaoㄛ Chairman and CEO of SINAㄛ made a significant investment in SINA and became the Company＊s largest shareholder 4˙
﹛﹛• 193% three-year growth in SINA＊s share priceㄛ outperforming the NASDAQ Composite Index and a diversified peer set 5˙
﹛﹛• 115% appreciation of SINA＊s share price since Weibo＊s IPO6 ˙ and
﹛﹛• Approximately US$1.7 billion in value created through US$311 million of SINA share repurchases on the US$500 million Share Repurchase Plan announced in 2014ㄛ an additional US$26 million of share repurchases under a new US$500 million authorization by the Board in 2016 and distributions of 14.2 million Weibo shares to SINA shareholdersㄛ representing more than 12% of SINA＊s total holdings in Weibo.7
﹛﹛The market recognizes the value your Board has created and continues to create. Aristeia uses an inappropriate and biased sample group to mislead investors on a normal level of Holdco net asset value discount for the Company. SINA trades at a P/E ratio of 42xㄛ which is in line with the 34x mean P/E ratio of a reasonable comparable group of Chinese Internet companies.8
﹛﹛ARISTEIA＊S TRADING RECORD AND FUND PERFORMANCE DEMONSTRATE A SHORT-TERM FOCUS
﹛﹛AND SELF-SERVING AGENDA THAT WE BELIEVE WOULD DESTROY VALUE
﹛﹛AT THE EXPENSE OF ALL OTHER SHAREHOLDERS
﹛﹛Aristeia is seeking to implement a riskyㄛ short-term interest driven and value destructive process for SINA and Weibo that focuses on achieving terminal value to support Aristeia＊s own funding needs. A closer look at Aristeia＊s trading habits in SINA stock and recent fund redemptions underscore our belief that Aristeia is not a long-term shareholder.
﹛﹛Aristeia traded in and out of SINA＊s stock in 2015 and 2016 while keeping significant derivative positions in SINAㄛ which minimized its return when SINA＊s share price increased approximately 61% from 2015 to 2016. 9As a result of this short-sighted investment strategyㄛ Aristeia missed the opportunity to benefit from SINA＊s outperformance. SINA shareholders should not be accountable for Aristeia＊s short-term trading strategy that caused it to miss out on millions of dollars in gains.
﹛﹛During this same periodㄛ Aristeia＊s fund has lost significant valueㄛ with assets under management ㄗ※AUM§ㄘ dropping 48.4% as reported on July 1ㄛ 2016 and dropping 11.5% as reported on January 1ㄛ 2017. 10We believe this is the real reason Aristeia initiated this unnecessary proxy contest.
﹛﹛ARISTEIA＊S NOMINEES ARE NOT ADDITIVE AND ARE BEHOLDEN TO ARISTEIA
﹛﹛Aristeia has put forth two nominees who have collectively been paid approximately US$160ㄛ000 for their participation in Aristeia＊s proxy contest. We believe Aristeia＊s nomineesㄛ Brett Krause and Thomas Manningㄛ are therefore beholden to Aristeia. Such financial compensation represents a significant incentive for Aristeia＊s nominees to seek nothing other than to implement disruptive and potentially value-destructive alternatives for SINA at the behest of a single shareholderㄛ Aristeia 每 and to the detriment of all other shareholders. Are Mr. Krause and Mr. Manningㄛ as paid nominees of Aristeiaㄛ truly independentˋ
﹛﹛Further questioning the true independence of the Aristeia nomineesㄛ we urge shareholders to consider that Aristeia nomineeㄛ Brett Krauseㄛ has a conflict of interest as an investor in SINA＊s competitorㄛ Inke ㄗ茬諦ㄘ. In additionㄛ Thomas Manning is over-boarded with commitments to eight other Boards and organizations. How can these nominees be trusted to serve the interests of all shareholders and devote appropriate attention to SINAˋ
﹛﹛PROTECT YOUR INVESTMENT AND FUTURE UPSIDE 每 VOTE ※FOR§ SINA NOMINEEㄛ YICHEN ZHANGㄛ ON THE WHITE PROXY CARD TODAY
﹛﹛The SINA Board unanimously urges you to vote ※AGAINST§ each of Aristeia＊s nominees on the WHITE proxy card and to discard any blue proxy card or other proxy materials you may receive from Aristeia. If you have already returned a blue proxy cardㄛ you can change your vote by signingㄛ dating and returning a WHITE proxy card TODAY. Only your latest dated proxy card will be counted.
﹛﹛We thank you for your continued support.
﹛﹛Chairman of the Board and CEO
﹛﹛Ter Fung Tsao
﹛﹛We are an online media company serving China and the global Chinese communities. Our digital media network of SINA.com ㄗportalㄘㄛ SINA.cn ㄗmobile portalㄘㄛ SINA Mobile Apps and Weibo.com ㄗsocial mediaㄘ enable Internet users to access professional media and user generated content in multi-media formats from the web and mobile devices and share their interests to friends and acquaintances.
﹛﹛SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA.cn and SINA Mobile Apps provide news informationㄛ professional and entertainment content from SINA.com customized for mobile users in WAP ㄗmobile browserㄘ and mobile application format. Weibo is a leading social media platform for people to createㄛ distribute and discover Chinese-language content. Based on an open platform architectureㄛ Weibo allows users to create and post feeds and attach multi-media contentㄛ as well as access a wide range of organically and third-party developed applicationsㄛ such as online games.
﹛﹛Through these properties and other product linesㄛ we offer an array of online media and social media services to our users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.
﹛﹛Safe Harbor Statement
﹛﹛This communication contains forward-looking statements that relate toㄛ among other thingsㄛ SINA＊s expected performance and SINA＊s strategic and operational plans. SINA may also make forward-looking statements in the Company＊s periodic reports to the U.S. Securities and Exchange Commission ㄗthe ※SEC§ㄘㄛ in its annual report to shareholdersㄛ in press releases and other written materials and in oral statements made by its officersㄛ directors or employees to third parties. Statements that are not historical factsㄛ including statements about the Company＊s beliefs and expectationsㄛ are forward-looking statements. These forward-looking statements can be identified by terminology such as ※willㄛ§ ※expectsㄛ§ ※anticipatesㄛ§ ※futureㄛ§ ※intendsㄛ§ ※plansㄛ§ ※believesㄛ§ ※confidenceㄛ§ ※estimates§ and similar statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties includeㄛ but are not limited toㄛ failure to meet internal or external expectations of future performance given the rapidly evolving markets˙ condition of the global financial and credit market˙ the uncertain regulatory landscape in China˙ fluctuations in the Company＊s quarterly operating results˙ the Company＊s reliance on online advertising sales and value-added services for a majority of its revenues˙ failure to successfully developㄛ introduceㄛ drive adoption of or monetize new features and products˙ failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties˙ failure to successfully integrate acquired businesses˙ risks associated with the Company＊s investmentsㄛ including equity pick-up and impairment˙ and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA＊s annual report on Form 20-F for the year ended December 31ㄛ 2016 and its other filings with the SEC. Past performance is not necessarily indicative of future results. Given these uncertaintiesㄛ you should not place undue reliance on these forward-looking statements. The information in this communication is provided only as of the date hereofㄛ and SINA assumes no obligation to update its forward-looking statements in this communication or elsewhereㄛ except as required by law.
﹛﹛Phoneㄩ 8610-5898 3336
﹛﹛Larry Miller / Scott Winter
﹛﹛Innisfree M&A Incorporated
﹛﹛Ed Trissel / Nick Lamplough
﹛﹛Joele Frankㄛ Wilkinson Brimmer Katcher
﹛﹛1.Non-GAAP financial measures used in this communication are reconciled to their most directly comparable GAAP financial measures in the appendix to SINA＊s Investor Presentationㄛ filed with the SEC on October 12ㄛ 2017ㄛ and included on SINA＊s website.
﹛﹛2.Bank of America Merrill Lynch. ※Expect some improvements in non-Weibo businesses off a low base.§ October 5ㄛ 2017. Permission to use neither sought nor obtained.
﹛﹛3.Goldman Sachs. ※Above expectationsㄩ Fintech to be a key driver for ex-Weibo.§ August 10ㄛ 2017. Permission to use neither sought nor obtained.
﹛﹛4.Based on SINA＊s closing share price on May 29ㄛ 2015 and October 17ㄛ 2017. Sourceㄩ Nasdaq.
﹛﹛5.All metrics are based on market data as of October 17ㄛ 2017. Peer set based on equal-weighted mean of peersㄩ AMZNㄛ AMZNㄛ BABAㄛ CTRPㄛ WUBAㄛ GOOGㄛ ATHMㄛ JDㄛ SOHUㄛ BIDUㄛ FENGㄛ VIPSㄛ and SFUN. Sourceㄩ Nasdaq.
﹛﹛6.Based on SINA＊s closing share price on April 15ㄛ 2014 and October 17ㄛ 2017. Sourceㄩ Nasdaq.
﹛﹛7.Value based on Weibo closing share price as of October 17ㄛ 2017. Sourceㄩ Nasdaq.
﹛﹛8.P/E ratio is calculated as share price divided by EPS. Companies included in the mean are 700-HK ㄗTencentㄘㄛ BABAㄛ BIDUㄛ NTESㄛ CTRPㄛ WUBAㄛ ATHMㄛ BITAㄛ YYㄛ MOMOㄛ VIPSㄛ and SINA. Company share prices as of October 9ㄛ 2017. Sourceㄩ Bloomberg.
﹛﹛9.Based on SINA closing share price on January 2ㄛ 2015 and December 30ㄛ 2016. Sourceㄩ Nasdaq.
﹛﹛10.Sourceㄩ Absolute Return.