China’s Clampdown on Webcasting Sends Weibo, Sina Reeling

With an official edict barely longer than a tweet, China’s media regulator shaved about $1 billion off the value of Sina Corp. and Weibo Corp., the two companies that run the country’s version of Twitter.

On June 22, the State Administration of Press, Publication, Radio, Film and Television ordered services including Weibo to stop broadcasting what it said was negative commentary in violation of government regulations. While the regulator didn’t say in its one-line statement what precise actions should or would be taken, it was enough to send Weibo’s stock sliding 6.1 percent in New York June 22. Sina, which ...