Microblogging website Weibo chairman Charles Chao is in talks with a state investor to take the company private in a deal that would have the firm at at least $20 billion, paving way for the exit of Alibaba group, which is a major shareholder of the Twitter-like company, Reuters reported quoting two sources.

The sources, who have direct knowledge of the matter, told Reuters that Charles Chao is teaming up with a Shanghai-based firm, the identity of which could not be determined, to form a consortium for the deal. Charles Chao’s company New Wave is the largest shareholder of Weibo with a 45% stake.

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As of February, New Wave at 45% is valued at $5.6 billion as per the stock’s price on Friday while Alibaba with a 30% stake is worth $3.7 billion, according to the company’s 2020 annual report.

According to Reuters sources, who wished to remain anonymous due to confidentiality constraints, the consortium is looking to offer $90-$100 per share to take Weibo private and will represent a premium of 80%-100% to the share’s $50 average price over the past month.

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The move to privatise Weibo, China’s largest microblogging site, would clear the way for the exit of Aliababa, the firm’s second-largest shareholder and top customer. The privatisation would dispose Alibaba from Weibo as one of its key media assets, Reuters’s sources said.