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Sina Dispute Settlement Hinges on Share Transfer
Internet portal Sina.com is working to resolve a dispute with ousted chief Wang Zhidong, with both agreeing he should transfer shares in a content provider, according to a top company official Wednesday.
But more discussions were needed to effect the transfer of the 70 per cent stake in the Chinese-registered ICP, which supplies Nasdaq-listed Sina with its content in China, said Hurst Lin, United States general manager and vice-president of business development at Sina.com.
"He is obliged to transfer his shares to a company designee after he leaves the company," Mr Lin said.
"Initially he disputed that. But I think right now both parties have agreed that decision is final. Now we are in the process of having him transfer his shares to company designees."
Mr Wang could not be reached for comment Wednesday.
Sina announced last month that Mr Wang had resigned, but later said the company's board had decided unanimously to remove him as chief executive officer and from other positions.
Mr Wang said he was dumped in an illegal boardroom putsch and has waged a war of words with the company he helped found.
Mr Lin defended the board, saying it had done what was necessary for the company to develop.
"The board decided that Mr Wang Zhidong had made a lot of contributions, taking the company public," he said.
"But a stage has come, just like it has come for many other Internet companies around the world, that it's time for someone who has more experience to lead this team."
Sina listed on Nasdaq in April last year.
Pinched by tough times, Sina was looking for new direction and would start with a round of lay-offs and moves to remake itself into a media company, Mr Lin said.
Sina has already announced it will cut 15 per cent of its staff, or roughly 90 jobs.
"We definitely see ourselves in a couple of years time in becoming a much more integrated media company and not just a pure online play," Mr Lin said.
Possibilities might include moves into print, such as magazines or newspapers, and later television or video, he said.
"We're definitely looking at those type of strategic initiatives where we can work with off-line partners where the advertisers will have an array of choices, either online (or) offline from Sina," he said.
Rumours that Sina was considering a merger or acquisitions have circulated in the market for months, but Mr Lin said the company was not ready to announce anything.
"The China Internet sector is plagued with oversupply. The only way you can address this kind of situation is through some sort of industry consolidation," he said.
However, Mr Lin added: "We're not at a stage where we are doing anything of a serious nature."
Sina closed up 5 per cent at US$1.68 in Nasdaq trading on Tuesday, recovering from falls caused by the dispute.
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