A consortium led by Chinese internet major SINA Corporation is in advanced talks to acquire at least an 18% stake in YOOZOO Interactive Co., Ltd. (SZSE:002174) (Yoozoo Games), two people with direct knowledge of the matter told Reuters. Sina is teaming up with Chinese microblog operator Weibo Corporation (NasdaqGS:WB) and a Shanghai-based state investment firm, according to the people who declined to be identified because of confidential constraints. The consortium is in final talks with Yoozoo Chairwoman Xu Fenfen to initially buy at least 18% of the company, the people said.

An 18% stake in Yoozoo is worth about CNY 2.86 billion ($447 million) based on the Shenzhen-listed company's market value of $2.5 billion on June 04, 2021. Yoozoo declined to comment. Sina, which one source said would set up a special-purpose vehicle for the deal, and Weibo did not immediately respond to requests for comment.

The Sina-led consortium is also looking to buy the remainder of the 24 per cent stake in the coming months, said the people. The consortium is seeking to finalise the deal in the coming weeks, the sources said. In addition to the stake purchase, the consortium has also stepped in to help solve the debt problem that Lin left, said the two people.