Trouble for Weibo as China Tightens Censorship Rules
Shares of Weibo (NASDAQ: WB) rallied nearly 140% this year, but the company now faces major headwinds as Chinese regulators tighten their control over the country's top social networking platforms. The latest crackdowns started in June, with regulators ordering Weibo and two other platforms to halt their live video and audio broadcasts until they obtained new government-backed licenses.
It accelerated in September as regulators fined Weibo's parent company SINA (NASDAQ: SINA), Baidu, and Tencent (NASDAQOTH: TCEHY) for allegedly allowing its users to "spread information of violence and terror, false rumors, pornography, and other information that jeopardizes national security, public safety, and social order."
Weibo's international app. Image source: Google Play.
Source: Fool.com
