Market Overview

Weibo Responds To Chinese Regulator Crackdown: User Content Will Be Unaffected

Share:
Weibo Responds To Chinese Regulator Crackdown: User Content Will Be Unaffected

On Thursday, China's media regulators ordered Weibo Corp (ADR) (NASDAQ: WB), AcFun and iFeng to shut down their audio-video services, saying they were operating without the proper license, publishing content not in-line with government rules, and promoting negative comments.

The news sent Weibo, the Chinese equivalent to Twitter, shares tumbling over 10 percent at the open, bottoming at $69 before pulling up to the $72 handle.

It was quickly followed by two other Chinese social media sites: SINA Corp (NASDAQ: SINA) and Momo Inc (ADR) (NASDAQ: MOMO).

Weibo Responds

Weibo issued a press release later in the day saying it would cooperate with the State Administration of Press, Publication, Radio, Film and Television.

Of greater significance, Weibo issued a statement early Friday morning in the United States to New Tang Dynasty Television saying (roughly) that “non-programmed categories” of audio-visual would be unaffected, while “programmed categories” will be more strictly managed moving forward.

The context and wording implies that "programmed categories" refers to commercially produced content, such as news media, advertisements and political messaging.

Non-programmed categories would then refer to content uploaded by normal, consumer users.

Weibo shares were briefly up 1.4 percent to $73.60 at Friday’s open, and were bouncing around the high-$72/low-$73 range at time of writing.

Stone Zhang contributed to this article.

Related Links:

5 Stocks To Watch For June 23, 2017

Weibo Blows Away Former All-Time High After Q1 Beat
________
Image Credit: By Julien GONG Min (http://www.flickr.com/photos/bfishadow/5963790078/) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Posted-In: AcFun iFengNews Futures Politics Markets Tech General Best of Benzinga

 

Related Articles (BABA + MOMO)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Earth To Elon: Musk Wants To Conquer Music And The Ways It's Delivered

Top Stock Reports for Oracle, Allergan & Abbott