Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'SINA CORP |
Entity Central Index Key | '0001094005 |
Document Type | '20-F |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 66,022,379 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $916,276 | $199,826 |
Short-term investments | 951,963 | 513,772 |
Accounts receivable, net of allowances for doubtful accounts of $16,307 and $11,054, respectively (include due from related parties of $38,663 and $7,684 as of December 31, 2013 and 2012, respectively) | 193,381 | 135,251 |
Prepaid expenses and other current assets | 57,182 | 36,498 |
Total current assets | 2,118,802 | 885,347 |
Property and equipment, net | 80,920 | 76,640 |
Long-term investments, net | 526,587 | 466,875 |
Intangible assets, net | 10,846 | 681 |
Goodwill | 47,343 | 15,159 |
Other assets | 113,345 | 38,204 |
Total assets | 2,897,843 | 1,482,906 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of $131,110 and $96,327 as of December 31, 2013 and 2012, respectively. Note 2): | ' | ' |
Accounts payable | 6,988 | 7,994 |
Accrued liabilities | 220,837 | 168,677 |
Income taxes payable | 21,577 | 13,466 |
Deferred revenues | 49,200 | 36,892 |
Investor option liability (Note 7) | 29,504 | ' |
Total current liabilities | 328,106 | 227,029 |
Long-term liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of $3,522 and $2,184 as of December 31, 2013 and 2012, respectively. Note 2): | ' | ' |
Convertible debt (Note 18) | 800,000 | ' |
Deferred revenues | 89,039 | 107,784 |
Other liabilities | 5,080 | 2,220 |
Total long-term liabilities | 894,119 | 110,004 |
Total liabilities | 1,222,225 | 337,033 |
Commitments and contingencies (Note 19) | ' | ' |
SINA shareholders' equity: | ' | ' |
Ordinary shares: $0.133 par value; 150,000 and150,000 shares authorized; and 67,194 share issued and 66,022 share outstanding as of December 31, 2013 and 66,639 shares issued and outstanding as of December 31, 2012, respectively | 8,937 | 8,863 |
Treasury stock (1,172 and nil shares as of December 31, 2013 and 2012, respectively) | -99,975 | ' |
Additional paid-in capital | 777,907 | 736,249 |
Accumulated other comprehensive income | 158,193 | 90,542 |
Retained earnings | 346,148 | 301,016 |
Total SINA shareholders' equity | 1,191,210 | 1,136,670 |
Non-controlling interests | 484,408 | 9,203 |
Total shareholders' equity | 1,675,618 | 1,145,873 |
Total liabilities and shareholders' equity | $2,897,843 | $1,482,906 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $16,307 | $11,054 |
Accounts receivable, net of allowances for doubtful accounts, due from related parties (in dollars) | 38,663 | 7,684 |
Ordinary shares, par value (in dollars per share) | $0.13 | $0.13 |
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 |
Ordinary shares, shares issued | 67,194,000 | 66,639,000 |
Ordinary shares, shares outstanding | 66,022,000 | 66,639,000 |
Treasury stock, shares | 1,172,000 | 0 |
Current liabilities | ' | ' |
Current liabilities | 328,106 | 227,029 |
Long-term liabilities | ' | ' |
Long-term liabilities | 894,119 | 110,004 |
Consolidated VIEs without recourse to the primary beneficiaries | ' | ' |
Current liabilities | ' | ' |
Current liabilities | 131,110 | 96,327 |
Long-term liabilities | ' | ' |
Long-term liabilities | $3,522 | $2,184 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advertising | ' | ' | ' |
Third parties | $439,911 | $399,007 | $361,866 |
Related parties | 86,583 | 13,921 | 6,939 |
Total advertising revenue | 526,494 | 412,928 | 368,805 |
Non-advertising (include amortization of deferred revenues from E-House\CRIC of $18,745, $18,745 and $18,745 for 2013, 2012 and 2011, respectively) | 138,612 | 116,401 | 114,024 |
Total net revenues | 665,106 | 529,329 | 482,829 |
Costs of revenues: | ' | ' | ' |
Advertising | 216,513 | 195,324 | 157,458 |
Non-advertising | 54,551 | 52,608 | 57,890 |
Total costs of revenue | 271,064 | 247,932 | 215,348 |
Gross profit | 394,042 | 281,397 | 267,481 |
Operating expenses: | ' | ' | ' |
Sales and marketing | 160,411 | 142,342 | 135,867 |
Product development | 146,332 | 108,206 | 66,264 |
General and administrative | 64,727 | 39,397 | 30,121 |
Goodwill impairment | ' | ' | 68,891 |
Total operating expenses | 371,470 | 289,945 | 301,143 |
Income (loss) from operations | 22,572 | -8,548 | -33,662 |
Interest and other income, net | 18,792 | 16,798 | 16,327 |
Change in fair value of investor option liability (Note 17) | 21,064 | ' | ' |
Income (loss) from equity method investments, net | 9,525 | -10,730 | 1,466 |
Realized gain (loss) on long-term investments | -7,387 | 55,563 | ' |
Investment impairment | -6,134 | -18,498 | -281,548 |
Income (loss) before income tax expense | 58,432 | 34,585 | -297,417 |
Income tax expense | -14,602 | -2,730 | -5,001 |
Net income (loss) | 43,830 | 31,855 | -302,418 |
Less: Net income (loss) attributable to the non-controlling interests | -1,302 | 117 | -326 |
Net income (loss) attributable to SINA | 45,132 | 31,738 | -302,092 |
Other comprehensive income (loss) | ' | ' | ' |
Unrealized gain (loss) on available-for-sale securities, net | 46,787 | 30,373 | -23,257 |
Currency translation adjustments | 21,307 | -2,293 | 22,227 |
Total other comprehensive income (loss) | 68,094 | 28,080 | -1,030 |
Total comprehensive income (loss) | 111,924 | 59,935 | -303,448 |
Less: Comprehensive income (loss) attributable to non-controlling interests | -859 | 152 | -241 |
Comprehensive income (loss) attributable to SINA | $112,783 | $59,783 | ($303,207) |
Basic net income (loss) per share attributable to SINA (in dollars per share) | $0.68 | $0.48 | ($4.64) |
Shares used in computing basic net income (loss) per share attributable to SINA (in shares) | 66,741 | 66,401 | 65,121 |
Diluted net income (loss) per share attributable to SINA (in dollars per share) | $0.66 | $0.47 | ($4.64) |
Shares used in computing diluted net income (loss) per share attributable to SINA (in shares) | 67,087 | 66,849 | 65,121 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Non-advertising, amortization of deferred revenues from CRIC | $18,745 | $18,745 | $18,745 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balances at Dec. 31, 2010 | $1,240,526 | $8,216 | ' | $596,110 | $63,612 | $571,370 | $1,218 |
Balances (in shares) at Dec. 31, 2010 | ' | 61,775,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans | 6,164 | 82 | ' | 6,082 | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans (in shares) | ' | 615,000 | ' | ' | ' | ' | ' |
Issuance of ordinary shares pursuant to convertible bond conversion | 96,798 | 499 | ' | 96,299 | ' | ' | ' |
Issuance of ordinary shares pursuant to convertible bond conversion (in shares) | ' | 3,753,000 | ' | ' | ' | ' | ' |
Repurchase of ordinary shares ( Note 18) | 0 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expenses | 16,607 | ' | ' | 16,607 | ' | ' | ' |
Sale of subsidiaries' shares to non-controlling interest | 5,702 | ' | ' | ' | ' | ' | 5,702 |
Net income (loss) | -302,418 | ' | ' | ' | ' | -302,092 | -326 |
Unrealized gain (loss) on available-for-sale securities, net | -23,257 | ' | ' | ' | -23,257 | ' | ' |
Currency translation adjustments | 22,227 | ' | ' | ' | 22,142 | ' | 85 |
Balances at Dec. 31, 2011 | 1,062,349 | 8,797 | ' | 715,098 | 62,497 | 269,278 | 6,679 |
Balances (in shares) at Dec. 31, 2011 | ' | 66,143,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans | 4,458 | 56 | ' | 4,402 | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans (in shares) | ' | 418,000 | ' | ' | ' | ' | ' |
Issuance of ordinary shares pursuant to convertible bond conversion | 2,000 | 10 | ' | 1,990 | ' | ' | ' |
Issuance of ordinary shares pursuant to convertible bond conversion (in shares) | ' | 78,000 | ' | ' | ' | ' | ' |
Repurchase of ordinary shares ( Note 18) | 0 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expenses | 19,358 | ' | ' | 16,252 | ' | ' | 3,106 |
Sale (purchase) of subsidiaries' shares from non-controlling interest | -3,457 | ' | ' | -7,477 | ' | ' | 4,020 |
Settlement of share-based awards in subsidiary | 1,230 | ' | ' | 5,984 | ' | ' | -4,754 |
Net income (loss) | 31,855 | ' | ' | ' | ' | 31,738 | 117 |
Unrealized gain (loss) on available-for-sale securities, net | 30,373 | ' | ' | ' | 30,373 | ' | ' |
Currency translation adjustments | -2,293 | ' | ' | ' | -2,328 | ' | 35 |
Balances at Dec. 31, 2012 | 1,145,873 | 8,863 | ' | 736,249 | 90,542 | 301,016 | 9,203 |
Balances (in shares) at Dec. 31, 2012 | 66,639,000 | 66,639,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans | 11,610 | 74 | ' | 11,536 | ' | ' | ' |
Issuance of ordinary shares pursuant to stock plans (in shares) | ' | 555,000 | ' | ' | ' | ' | ' |
Repurchase of ordinary shares ( Note 18) | -99,975 | ' | -99,975 | ' | ' | ' | ' |
Repurchase of ordinary shares ( Note 18) | -1,171,900 | ' | -1,172,000 | ' | ' | ' | ' |
Stock-based compensation expenses | 19,964 | ' | ' | 15,859 | ' | ' | 4,105 |
Sale (purchase) of subsidiaries' shares from non-controlling interest | 3,733 | ' | ' | -539 | ' | ' | 4,272 |
Sale of subsidiaries' shares to non-controlling interest | 479,612 | ' | ' | ' | ' | ' | 479,612 |
Settlement of share-based awards in subsidiary | 2,877 | ' | ' | 14,802 | ' | ' | -11,925 |
Net income (loss) | 43,830 | ' | ' | ' | ' | 45,132 | -1,302 |
Unrealized gain (loss) on available-for-sale securities, net | 46,787 | ' | ' | ' | 46,787 | ' | ' |
Currency translation adjustments | 21,307 | ' | ' | ' | 20,864 | ' | 443 |
Balances at Dec. 31, 2013 | $1,675,618 | $8,937 | ($99,975) | $777,907 | $158,193 | $346,148 | $484,408 |
Balances (in shares) at Dec. 31, 2013 | 66,022,000 | 67,194,000 | -1,172,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $43,830 | $31,855 | ($302,418) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 34,433 | 29,548 | 20,968 |
Amortization of intangible assets | 604 | 144 | 731 |
Amortization of convertible debt issuance cost | 699 | ' | ' |
Stock-based compensation | 19,964 | 19,358 | 16,607 |
Provision for allowance for doubtful accounts | 10,385 | 3,869 | 2,530 |
Deferred income taxes | 1,782 | -3,515 | -929 |
Loss (income) from equity method investments, net | -9,525 | 10,730 | -1,466 |
Realized loss (gain) on long-term investments | 7,387 | -55,563 | ' |
Investment impairment (Note 4) | 6,134 | 18,498 | 281,548 |
Goodwill impairment | ' | ' | 68,891 |
Foreign exchange loss (gains) | 96 | -14 | -2,979 |
Gain on disposal of property and equipment | -41 | -254 | -64 |
Change in fair value of investor option liability (Note 17) | -21,064 | ' | ' |
Changes in assets and liabilities, net of acquisitions: | ' | ' | ' |
Accounts receivable | -61,787 | -26,222 | -19,819 |
Prepaid expenses and other current assets | 9,593 | -6,940 | -7,600 |
Other assets | -4,380 | 3,555 | -6,348 |
Accounts payable | 42 | 32 | -109 |
Accrued liabilities | 35,238 | 25,223 | 36,786 |
Income taxes payable | 7,686 | -1,290 | -2,990 |
Deferred revenues | -7,449 | -16,400 | -16,815 |
Others | 86 | ' | ' |
Net cash provided by operating activities | 73,713 | 32,614 | 66,524 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of short-term investments | -1,661,286 | -1,219,910 | -631,718 |
Maturities of short-term investments | 1,225,993 | 871,378 | 719,867 |
Cash paid for business combination, net of cash acquired | -3,355 | ' | ' |
Purchases of property and equipment | -97,685 | -53,235 | -54,913 |
Cash paid (including prepayments) on long-term investments | -63,066 | -45,180 | -251,450 |
Proceeds from disposal of CRIC | ' | 85,472 | ' |
Proceeds from disposal of Tudou | ' | 9,528 | ' |
Net cash used in investing activities | -599,399 | -351,947 | -218,214 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of ordinary shares pursuant to stock plans | 11,331 | 4,405 | 6,191 |
Proceeds from sales of non-controlling interests in subsidiaries | 588,392 | 91 | 5,702 |
Cash paid for purchase of non controlling interests in subsidiary | -45,876 | ' | ' |
Proceeds from issuance of senior convertible notes, net of issuance costs (Note 18) | 783,227 | ' | ' |
Repurchase of ordinary shares ( Note 18) | -99,975 | ' | ' |
Other financing activities | ' | -200 | 1,641 |
Net cash provided by financing activities | 1,237,099 | 4,296 | 13,534 |
Effect of exchange rate change on cash and cash equivalents | 5,037 | 883 | 8,517 |
Net increase (decrease) in cash and cash equivalents | 716,450 | -314,154 | -129,639 |
Cash and cash equivalents at the beginning of the year | 199,826 | 513,980 | 643,619 |
Cash and cash equivalents at the end of the year | 916,276 | 199,826 | 513,980 |
Supplemental disclosures: | ' | ' | ' |
Cash paid for income taxes | 5,407 | -7,707 | -9,093 |
Cash paid for interest | 0 | 0 | 0 |
Conversion of convertible debts into ordinary shares | ' | 2,000 | 96,798 |
Exchanges of long-term investments in Tudou and CRIC for the investments in Tudou Youku and E-house, respectively | ' | $258,094 | ' |
Operations
Operations | 12 Months Ended |
Dec. 31, 2013 | |
Operations | ' |
Operations | ' |
1. Operations | |
SINA Corporation (“SINA,” “we” or the “Company”) is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables Internet users to access professional media and user generated content (UGC) in multi media formats from desktop personal computers and mobile devices and share their interests to friends and acquaintances. SINA.com offers distinct and targeted professional content on each of its region specific websites and a full range of complementary offerings. SINA mobile provides news information and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) format, SINA.cn and mobile application format. Weibo is a leading social media platform for people to create, distribute and discover Chinese-based content. Based on an open platform architecture, Weibo allows users to create and post feeds up to 140 Chinese characters and attach multi-media content, as well as access a wide range of organically and third-party developed applications , such as online games.. Through these properties and other product lines, the Company offers an array of online media and social media services to users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences. The Company generates the majority of its revenues from online advertising and marketing services, and, to a lesser degree, from fee-based services. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Significant Accounting Policies | ' | ||||||||||
2. Significant Accounting Policies | |||||||||||
Basis of presentation and use of estimates | |||||||||||
The preparation of the Company’s consolidated financial statements is in conformity with Generally Accepted Accounting Principles in the United States (“US GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods reported. Actual results may differ materially from such estimates. The Company believes the basis of consolidation, fair value, the recognition of non-controlling interests, revenue recognition, taxation, business combination, net income (loss) per share, goodwill and other long-lived assets, allowances for doubtful accounts, long-term investments, stock-based compensation and foreign currency represent critical accounting policies that reflect the more significant judgments and estimates used in the preparation of its consolidated financial statements. | |||||||||||
Consolidation | |||||||||||
The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and its variable interest entities (“VIEs”), in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated. | |||||||||||
To comply with PRC laws and regulations, the Company provides substantially all of its Internet content and MVAS services in China via its VIEs, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIEs. The Company has signed various agreements with its VIEs to allow the transfer of economic benefits from the VIEs to the Company. | |||||||||||
The Company’s VIEs are wholly or partially owned by certain employees of the Company. The capital for the VIEs are funded by the Company and recorded as interest-free loans to these PRC employees. These loans were eliminated with the capital of the VIEs during consolidation. Under various contractual agreements, employee shareholders of the VIEs are required to transfer their ownership in these entities to the Company’s subsidiaries in China when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to the Company and the Company has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive technical service agreements with the VIEs, under which the Company provided technical and other services to the VIEs. In addition, employee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to the Company. As of December 31, 2013 and 2012, the total amount of interest-free loans to these PRC employees was $35.9 million and $34.2 million, respectively, and the aggregate accumulated losses of all VIEs were approximately $13.0 million and $14.4 million, respectively, which have been included in the consolidated financial statements. | |||||||||||
The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Total assets | $ | 214,984 | $ | 133,077 | |||||||
Total liabilities | $ | 134,632 | $ | 98,511 | |||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net revenues | $ | 455,097 | $ | 314,504 | $ | 244,274 | |||||
Net income (loss) | $ | 1,415 | $ | (6,322 | ) | $ | (1,556 | ) | |||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net increase in cash and cash equivalents | $ | 60,171 | $ | 2,285 | $ | 13,960 | |||||
As of December 31, 2013, the total assets for the consolidated VIEs were $215.0 million, which mainly comprised of $135.1 million in cash, cash equivalents and short-term investments, the remaining balances include goodwill, intangible assets, accounts receivables, long-term investments and property and equipment. As of December 31, 2013, total liabilities for the consolidated VIEs were $134.6 million, which mainly included $95.4 million in accrued liabilities and $20.5 million in deferred revenues. | |||||||||||
As of December 31, 2012, the total assets for the consolidated VIEs were $133.1 million, which mainly comprising $92.3 million cash, cash equivalents and short-term investments, and the remaining balance mainly include accounts receivables and property and | |||||||||||
equipment. As of December 31, 2012, total liabilities for the consolidated VIEs were $98.5 million, which included $77.3 million in accrued liabilities, $10.1 million in income tax payable and $11.1 million in deferred revenues. | |||||||||||
Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs amounting to a total of $58.4 million as of December 31, 2013. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through its VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. | |||||||||||
The following is a summary of the Company’s major VIEs and subsidiary of VIEs as of December 31, 2013: | |||||||||||
· Beijing SINA Internet Information Service Co., Ltd. (the “ICP Company”), a Chinese company controlled through business agreements, is responsible for operating www.sina.com and www.sina.cn in connection with its Internet content company license, sell online advertising and provide MVAS with its Value-Added Telecommunication Services Operating License via third-party operators in China. The register capital of the ICP Company is $19.0 million and its register shareholders include Hong Du, a Company executive officer, holding 27.1% equity interest, Tong Chen, a Company executive officer, holding 22.8% equity interest, and Yan Wang, a director of the Company, holding 0.2% equity interest. The remaining equity interests are 22.8% held by a non-executive PRC employee of the Company and 27.1% held by a former employee. | |||||||||||
· Guangzhou Media Message Technologies, Inc. (“Xunlong”), a Chinese company controlled through business agreements, is responsible for providing MVAS via third-party operators in China under its Value-Added Telecommunication Services Operating License. It is owned by two non-executive PRC employees of the Company. The registered capital of the Xunlong is $1.2 million. | |||||||||||
· Beijing Star-Village Online Cultural Development Co., Ltd. (“StarVI”), formerly Beijing Star-Village.com Cultural Development Co., Ltd, a Chinese company controlled through business agreements, is responsible for providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three non-executive PRC employees of the Company. The registered capital of the StarVI is $1.2 million. | |||||||||||
· Shenzhen Wang Xing Technology Co., Ltd. (“Wangxing”), a Chinese company controlled through business agreements, is responsible for providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by two non-executive PRC employees of the Company. The registered capital of Wangxing is $1.2 million. | |||||||||||
· Jinzhuo Hengbang Technology (Beijing) Co., Ltd. (“the IAD Company”), formerly Beijing SINA Infinity Advertising Co., Ltd., is an advertising agency in China controlled through business agreements and approved for the design, production, issuance and serving as an agency of advertisements. It is owned by two non-executive PRC employees of the Company. The registered capital of the IAD Company is $7.3 million. | |||||||||||
· Beijing Weimeng Technology Co., Ltd (“Weimeng”), a Chinese company controlled through business agreement, is responsible for operating www.weibo.com and www.weibo.cn in connection with its Internet content company license and providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three non-executive PRC employees of the Company. The registered capital of Weimeng is $1.5 million. | |||||||||||
· Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’), an online-game platform company, was acquired by the IAD Company in May 2013. All of the equity interest in Weibo Interactive was transferred to Weimeng in December 2013 (see Note 5). The registered capital of Weibo Interactive is $5.5 million. | |||||||||||
The Company began to consolidate the ICP Company in October 2001. Xunlong and StarVI were acquired from Memestar Limited in January 2003 and the operating results for these two companies have been consolidated by the Company since January 2003. Wangxing was acquired from Crillion Corporation in March 2004 and the operating results for Wangxing have been consolidated by the Company since March 2004. The operating results of the IAD Company and Weimeng have been consolidated since its establishment in 2004 and 2010, respectively. | |||||||||||
Unrecognized revenue-producing assets held by the VIEs include the Internet Content Provision License, the Online Culture Operating Permit, License for Online Transmission of Audio-visual Programs, trademark and the domain names of sina.com, sina.cn, sina.com.cn, weibo.com, weibo.cn and weibo.com.cn. Recognized revenue-producing assets held by the VIEs include core technology, trademark and domain names arising from the acquisition of All Sure, customer lists relating to game-related services, game platform technology and the non-compete agreement arising from the acquisition of Weibo Interactive. Unrecognized revenue-producing assets, including customer lists relating to advertising and marketing services, game-related services, Weibo VIP memberships and data licensing, as well as trademarks, are held by the WFOEs. | |||||||||||
The following is a summary of the VIE agreements: | |||||||||||
Loan Agreements. One of the Company’s wholly owned subsidiaries, Sina.com Technology (China) Co., Ltd. (“STC”), or Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology”) in the case of Weimeng, has granted interest-free loans to the shareholders of the VIEs with the sole purpose of providing funds necessary for the capital injection of the VIEs. The terms of the loans in general are for 10 years, except for the loans relating to the ICP Company in which case may be 5 years. STC or Weibo Technology in the case of Weimeng, at its own discretion, has the right to shorten or extend the terms of the loans if necessary. These loans were eliminated with the capital of the VIEs during consolidation. | |||||||||||
Share Transfer Agreements. Each shareholder of the VIEs has granted STC, or Weibo Technology in the case of Weimeng, an option to purchase his/her shares in the respective VIEs at a purchase price equal to the amount of capital injection. STC, or Weibo Technology in the case of Weimeng, may exercise such option at any time until it has acquired all shares of such VIE, subject to applicable PRC laws. The options will be effective until the earlier of (i) the shareholders of the VIEs and STC, or Weibo Technology in the case of Weimeng, have fully performed their obligations under this agreement, or (ii) the respective shareholders of the VIEs and STC, or Weibo Technology in the case of Weimeng, agree to terminate the share transfer agreement in writing. | |||||||||||
Loan Repayment Agreements. Each shareholder of the VIEs and STC, or Weibo Technology in the case of Weimeng, has agreed that the interest-free loans under the loan agreements shall only be repaid through share transfer. Once the share transfers are completed, the purchase price for the share transfer will be offset against the loan repayment. | |||||||||||
Agreements on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of the VIEs has authorized STC, or Weibo Technology in the case of Weimeng, to exercise all of his/her voting power as a shareholder of the respective VIE. The authorizations are irrevocable and will not expire until the respective VIE dissolves. | |||||||||||
Share Pledge Agreements. Each shareholder of the VIEs has pledged all of his/her shares in the VIEs and all other rights relevant to the share rights to STC, or Weibo Technology in the case of Weimeng, as a collateral security for his/her obligation to pay off all debt to STC, or Weibo Technology in the case of Weimeng, under the loan agreement and for the payment obligation of the VIEs under the trademark license agreement and the technical services agreement. In the event of default of any payment obligation, STC, or Weibo Technology in the case of Weimeng, will be entitled to certain rights, including transferring the pledged shares to itself and disposing the pledged shares through a sale or auction. During the term of each agreement, STC, or Weibo Technology in the case of Weimeng, is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of (i) the VIEs and the shareholders of the VIEs have fully performed their obligations under the above-referred agreements, or (ii) STC, or Weibo Technology in the case of Weimeng, has unilaterally consented to terminate the respective share pledge agreement. | |||||||||||
Exclusive Technical Services Agreements. Each of the VIEs below has entered into an exclusive technical services agreement with STC, or Weibo Technology in the case of Weimeng, pursuant to which STC, or Weibo Technology in the case of Weimeng, is engaged to provide certain technical services to the VIEs, depending on the licenses obtained and held by the VIE. These exclusive technical services agreements will not expire until the respective VIE dissolves, and the service fees are adjusted annually through written agreements. Due to its control over the respective VIEs, the Company’s wholly owned subsidiaries have the right to determine the service fees to be charged to the respective VIEs by considering, among others, the technical complexity of the services, the actual costs that may be incurred for providing the services, the operations of each VIE, applicable tax rates, planned capital expenditures and business strategies. The service fees that the Company’s wholly owned subsidiaries charged to the major VIEs amounted to $186.3 million, $85.2 million, and $49.2 million, respectively, for the fiscal year ended December 31, 2013, 2012 and 2011. | |||||||||||
Xunlong, one of our VIEs, has engaged STC to provide technical services for its Internet information service and MVAS businesses, and STC has the sole right to appoint any company or companies at its discretion to perform such technical services. Beijing New Media Information Technology Co., Ltd., our wholly owned subsidiary, has been appointed by STC to perform technical services for Xunlong. | |||||||||||
Wangxing, one of our VIEs, has also entered into a technical services agreement with STC with terms and rights substantially identical to the technical services agreement entered into between Xunlong and STC for the Internet information service and MVAS businesses described above. | |||||||||||
The ICP Company, one of our VIEs, has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value added telecommunication and other related businesses. The ICP Company is obligated to pay service fees to STC. | |||||||||||
The IAD Company, one of our VIEs, has also entered into a technical services agreement with STC with terms substantially identical to the technical services agreement entered into between the ICP Company and STC for the online advertising and other related businesses described above. Pursuant to changes in applicable PRC laws in 2008, SINA established two wholly owned subsidiaries to engage directly in online advertising and related businesses. | |||||||||||
StarVI, one of our VIEs, has also entered into a technical services agreement with STC with terms substantially identical to the technical services agreement entered into between Xunlong and STC for the value added telecommunication and other related businesses described above. | |||||||||||
Weimeng, one of our VIEs, has engaged Weibo Technology to provide technical services for its online advertising and other related businesses. | |||||||||||
Exclusive Sales Agency Agreements. Each of the VIEs has granted STC, or Weibo Technology in case of Weimeng, the exclusive right to distribute, sell and provide agency services for all the products and services provided by the VIEs. These exclusive sale agency agreements will not expire until the respective VIEs dissolve. We have entered into the Exclusive Sales Agency Agreements to allow us to generate revenues from the VIEs in the form of sales agency fees if we decide to enter into sales agency arrangements with the VIEs in the future (when permitted under PRC laws). | |||||||||||
Trademark License Agreements. STC, or Weibo Technology in case of Weimeng, has granted each of the VIEs trademark licenses to use the trademarks held by STC, or Weibo Technology in case of Weimeng, in specific areas, and each of the licensed VIEs is obligated to pay license fees to STC, or Weibo Technology in case of Weimeng. The term of these agreements is for one year and is automatically renewed provided that there is no objection from STC, or Weibo Technology in case of Weimeng. We have entered into the Trademark License Agreements to provide other potential revenue-generating channels from the VIEs. | |||||||||||
The Company believes that the contractual arrangements among its VIEs, subsidiaries and certain employees of the Company are in compliance with the current PRC laws and are legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the powers of attorney provided by the shareholders of the VIEs are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, its subsidiaries or VIEs. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs or that a loss will occur as a result of the aforementioned risks and uncertainties is remote. | |||||||||||
Non-controlling interests | |||||||||||
For the Company’s majority-owned subsidiaries and VIEs, non-controlling interests are recognized to reflect the portion of their equity that are not attributable, directly or indirectly, to the Company as the controlling shareholder. The majority of the Company’s non-controlling interests relate to the operations of Weibo. To reflect the economic interest in Weibo held by non-controlling shareholders, Weibo’s net income (loss) attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income (loss). Pursuant to the liquidation terms and redemption terms of the preferred shares, any net income or loss by Weibo are not allocated to the non-controlling preferred shareholders. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. | |||||||||||
Fair value | |||||||||||
All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||
The Company measures certain financial assets, including the investments under the cost method and equity method on an other-than —temporary basis, and intangible assets, goodwill and fixed assets are marked to fair value when an impairment charge is recognized. | |||||||||||
Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: | |||||||||||
· Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||
· Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model- derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||
· Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||
The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximates fair value. The fair values of the preferred shares and ordinary shares granted to Alibaba were derived from the income approach by applying the discounted cash flow method based on the Company’s best estimate of projected cash flow as of the Transaction date. The Company utilized the Binominal option pricing model to determine the fair value of the option liability, which was measured using significant unobservable input (level 3) and required an assessment of the probability weight for each exercise scenario. | |||||||||||
Net income (loss) per share | |||||||||||
Basic net income (loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Restricted share units are not considered outstanding in computation of basic earnings per share. Diluted net income (loss) per share is computed using the weighted average number of ordinary share and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units, and conversion of the convertible debt. The computation of diluted net income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income per share. Additionally, the Company takes into account the effect on consolidated net income per share of dilutive shares of entities in which the Company holds equity interests, including long-term investments accounted for using the equity method and the consolidated subsidiaries, such as Weibo. | |||||||||||
Cash equivalents | |||||||||||
The Company considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash equivalents are comprised of investments in time deposits that mature within three months, which are stated at cost plus accrued interest, and money market funds are stated at fair market value. | |||||||||||
Business combination | |||||||||||
Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). | |||||||||||
In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. | |||||||||||
Goodwill and other long-lived assets | |||||||||||
Goodwill. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. The Company tests goodwill for impairment at the reporting unit level on an annual basis as of December 31, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. US GAAP provides the option to apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The qualitative approach starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If so, the quantitative impairment test is performed; otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of goodwill with its carrying value. For reporting units directly applying a quantitative assessment, the goodwill impairment test is quantitatively performed by comparing the fair values of those reporting units to their carrying amounts. Commencing in January 2012, the Company adopted the option to apply the qualitative approach to assess its goodwill on the relevant reporting units. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. | |||||||||||
Long-live assets other than goodwill. Intangible assets arising from acquisitions are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from two to ten years. | |||||||||||
Long-lived assets and certain identifiable intangible assets other than goodwill to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold or use is based on the amount by which the carrying value exceeds the fair value of the asset. | |||||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three to four years for computers and equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Depreciation expenses were $34.4 million, $29.5 million and $21.0 million for 2013, 2012 and 2011, respectively. | |||||||||||
Long-term investments | |||||||||||
Long-term investments are comprised of investments in publicly traded companies, privately-held companies and limited partnerships. For long-term investments over which the Company does not have significant influence, the cost method accounting is used. For long-term investments in shares that are not ordinary shares or in-substance ordinary shares and that do not have readily determinable fair value, the cost method accounting is used. Investments in limited partnerships over whose operating and financing policies the Company has virtually no influence are accounted for using the cost method. The Company uses the equity method to account for ordinary-share-equivalent equity investments and limited-partnership investments in entities over which it has significant influence but does not own a majority equity interest or otherwise control. The Company accounts for its investment in E-House (China) Holdings Limited (“E-House”)/China Real Estate Information Corporation (“CRIC”) using the equity method of accounting. The Company has recorded its share of results of E-House/CRIC one quarter in arrears within income (loss) from long-term investments. ( See Note 4 for further discussion on the long-term investment in E-House/CRIC). | |||||||||||
The Company assesses its long-term investments accounted for under the cost method and equity method for other-than-temporary impairment by considering factors including, but not limited to, stock prices of public companies in which the Company has an equity investment, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately-held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and the determination of whether any identified impairment is other-than-temporary. If any impairment is considered other-than-temporary, the Company will write down the asset to its fair value and take the corresponding charge to the consolidated statements of comprehensive income (loss). | |||||||||||
The Company invests in marketable equity securities to meet business objectives and intends to hold the securities for more than a year from the balance sheet date. These marketable securities are reported at fair value, classified and accounted for as available-for-sale securities under Long-term Investments. The treatment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Company assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders’ equity. If the Company determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss charged to income. The fair value of the investment would then become the new cost basis of the investment and are not be adjusted for subsequent recoveries in fair value. | |||||||||||
Convertible debt | |||||||||||
The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to the conversion feature, call and put option, and beneficial conversion feature. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. | |||||||||||
The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Convertible debts are classified as a current liability if their due date is or will be within one year from the balance sheet date. | |||||||||||
Treasury stock | |||||||||||
The Company accounted for those shares repurchased and no longer outstanding as treasury stock at cost. | |||||||||||
Revenue recognition | |||||||||||
Advertising | |||||||||||
Advertising revenues are derived principally from online advertising and marketing, including display advertising and promoted marketing, and, to a lesser extent, sponsorship arrangements. | |||||||||||
Display advertising arrangements allow advertisers to place advertisements on particular areas of the Company’s websites or platform, in particular formats and over particular periods of time. Advertising revenues from display advertising arrangements are recognized ratably over the contract period of display, when the collectability is reasonably assured. The Company enters into cost per day (“CPD”) advertising arrangements with customers, under which the Company recognizes revenues ratably over the contract period. The Company also enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Company recognizes revenues based on the number of times that the advertisement has been displayed. | |||||||||||
Promoted marketing arrangements are primarily priced based on CPM or cost per engagement (“CPE”). An engagement may include when a user clicks on a link, becomes a follower of the marketing customer account, shares the promoted feed or marks the feed as a favorite. Under the CPM model, customers are obligated to pay when the advertisement is displayed, while under the CPE model, customers are obligated to pay based on the number of engagements with the marketing feed. | |||||||||||
Sponsorship arrangements allow advertisers to sponsor a particular area on its websites in exchange for a fixed payment over the contract period. Advertising revenues from sponsorship are recognized ratably over the contract period. Advertising revenues derived from the design, coordination and integration of online advertising and sponsorship arrangements to be placed on the Company’s websites are recognized ratably over the term of such arrangements. | |||||||||||
Revenues are recognized only when the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) the price is fixed or determinable; (3) the service is performed; and (4) collectability of the related fee is reasonably assured. The majority of the Company’s revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. Advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their relative selling price for revenue recognition purposes. The Company adopted the new revenue recognition policy on multiple-deliverable revenue arrangements, which required the arrangement consideration be allocated to all deliverables at the inception of the arrangement on the following basis (a) vendor-specific objective evidence (“VSOE”) of selling price, if it exists, otherwise, (b) third-party evidence (“TPE”) of the selling price. If neither (a) nor (b) exists, then use (c) management’s best estimate of the selling price of the deliverable. The Company primarily uses VSOE to allocate the arrangement consideration if such selling price is available. For the deliverables that have not been sold separately, the best estimate of the selling price has taken into consideration of the pricing of advertising areas of the Company’s platform with similar popularities and advertisements with similar formats and quoted prices from competitors and other market conditions. Revenues recognized with reference to best estimation of selling price were immaterial for all periods presented. The Company recognizes revenue on the elements delivered and defers the recognition of revenue for the undelivered elements until the remaining obligations have been satisfied. | |||||||||||
Revenues from barter transactions are recognized during the period in which the advertisements are displayed on the Company’s properties. Barter transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods or services received. Revenues from barter transactions were immaterial for all periods presented. | |||||||||||
Fee-based revenues | |||||||||||
MVAS. | |||||||||||
MVAS revenues are derived principally from providing mobile phone users with SMS, MMS, CRBT, WAP, IVR and KJAVA games. These services include news and other content subscriptions, picture and logo download, ring tones, ring back tones, mobile games and access to music files. Revenues from MVAS are charged on a monthly or per-usage basis. Such revenues are recognized in the period in which the service is performed, provided that no significant obligations remain, collection of the receivables is reasonably assured and the amounts can be accurately estimated. | |||||||||||
The Company contracts with China Mobile and its subsidiaries, China Unicom and its subsidiaries, and China Telecom Corporation and its subsidiaries for billing, collection and transmission services related to the MVAS offered to its users. The Company also contracts with other service providers to provide content and to distribute MVAS or other services for us. Revenues are recorded on a gross basis when most of the gross indicators are met, such as the Company is considered the primary obligor in the arrangement, designs and develops (in some cases with the assistance of third-parties) the MVAS, has reasonable latitude to establish price, has discretion in selecting the operators to offer its MVAS, provides customer services related to the MVAS and takes on the credit risks associated with the transmission fees. Conversely, revenues are recorded on a net basis when most of the gross indicators are not met. | |||||||||||
The Company purchases certain contents from third-party content providers for its MVAS. In most of these arrangements, the fees payable to the third-party content providers are calculated based on certain percentages of the revenue earned by their contents after deducting the fees paid to the third-party operators. The Company’s MVAS revenues are inclusive of such fees when the Company acts as the principal in these arrangements by having the ability to determine the fees charged to end users and being the primary obligor to the end users with respect to providing such services. | |||||||||||
Due to the time lag between when the services are rendered and when the operator billing statements are received, MVAS revenues are estimated based on the Company’s internal billing records and transmissions for the month, adjusting for prior periods’ confirmation rates with operators and prior periods’ discrepancies between internally estimated revenues and actual revenues confirmed by operators. The confirmation rate applied to the estimation of revenues is determined at the lower of the latest confirmation rate available and the average of six-month historical rates if such historical average is available. If the Company has not yet received confirmation rates for six months, revenues would be deferred until billing statements are received from the operators. Historically, there have been no significant adjustments to the revenue estimates. | |||||||||||
Historically, due to the time lag of receiving billing statements from operators and the lack of adequate information to make estimates, the Company has adopted a one-month lag reporting policy for MVAS revenues. For the years ended December 31, 2013, 2012 and 2011, the Company recorded MVAS revenues in the amount of $60.3 million, $69.0 million and$83.5 million, respectively. The impact of reporting in one-month lag for MVAS revenues was immaterial. | |||||||||||
Other fee-based services. | |||||||||||
Other fee-based services allow the Company’s users to subscribe to services on its websites or platform, including game-related service, Weibo VIP membership, e-reading and paid personal/corporate email services and data licensing. Revenues from these services are recognized over the periods in which the services are performed, provided that no significant obligations remain, collection of the receivables is reasonably assured and the amounts can be accurately estimated. | |||||||||||
Game related service revenues are generated from purchasing of virtual items through its game platform. The Company collects payments from the game players in connection with the sale of virtual currency, which are converted into in-game credits (game tokens) that can be used to purchase virtual items in the third party developed games. The Company remits certain predetermined percentages of the proceeds to the game developers when the virtual currency is converted into in-game credits. | |||||||||||
The Company has determined that the game developers are the primary obligors for the web game services given that the game developers are responsible for developing, maintaining and updating the online games and have reasonable latitude to establish the prices of virtual items for which in-game credits are used. The Company views the game developers to be its customers, and the Company’s primary responsibility is to promote the games of the developers, provide virtual currency exchange services, maintain the platform for game players to easily access the games and offer customer support to resolve registration, log on, currency exchange and other related issue. Accordingly, the Company records game related revenues, net of predetermined revenue sharing with the game developers. | |||||||||||
Virtual currencies in general are not refundable once they have been sold unless there are unused in-game credits at the time a game is discontinued. Sale of virtual items net of the game developer proceeds are recognized as revenues over the estimated consumption period of in-game virtual items, which is typically from a few days to one month after the purchase of in-game credits. | |||||||||||
Deferred revenues. Deferred revenues are mostly derived from the amended and restated advertising agency agreement, the domain name and content license agreement, the trademark license agreement and the software license and support services agreement (“License Agreements”) the Company entered into with China Online Housing Technology Corporation (“COHT”) in September 2009 as part of the Company’s consideration for the interest in E-House\CRIC. The amount allocated to the fair value of the License Agreements was $187.4 million, which represents the difference between the total consideration and the fair value of equity interests of COHT disposed. This amount was recorded as deferred revenues and amortized over the contract period of ten years. Deferred revenues also consist of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are mainly from the customer advance of advertising and marketing services. | |||||||||||
Allowances for doubtful accounts | |||||||||||
The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts based on a historical, rolling average, bad debt rate in the prior year and other factors, such as credit-worthiness of the customers and the age of the receivable balances. The Company also provides specific provisions for bad debts when facts and circumstances indicate that the receivable is unlikely to be collected. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, or if the operators incur more bad debt than their original estimates, additional allowances may be required that could materially impact the Company’s financial position and results of operations. | |||||||||||
Cost of revenues | |||||||||||
Advertising. Cost of advertising revenues consist mainly of costs associated with the production of websites, which includes fees paid to third parties for Internet connection, content and services, payroll-related expenses, and equipment depreciation associated with the website production. | |||||||||||
The Company presents taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction on a gross basis in the financial statements. In November 2011, the Ministry of Finance and the State Administration of Taxation promulgated the Pilot Program for Imposition of Value-Added Tax (“VAT”) to Replace Business Tax (“Pilot Program”). Pursuant to the Pilot Program, a VAT was initially imposed in Shanghai starting from January 1, 2012, to replace the business tax in the transport and shipping industry and some of the modern service industries. Effective September 1, 2012, the Pilot Program was expanded to eight other cities and provinces in China, including Beijing. Beginning from August 1, 2013, the Pilot Program was expanded to all regions in PRC. With the implementation of the Pilot Program, the Company is subject to 6.7% VAT and surcharges and 3% cultural business construction fees for certain parts of its advertising revenues. Prior to the Pilot Program, the Company was subject to 5.6% business tax and surcharges and 3% cultural business construction fees. The total amount of such taxes for 2013, 2012 and 2011 were $50.9 million, $39.5 million and $32.5 million, respectively. | |||||||||||
Non-advertising. Cost of non-advertising revenues consist mainly of fees paid to or retained by the third-party operators for their services relating to the billing and collection of the Company’s MVAS revenues and for using their transmission gateways. Costs of non-advertising revenues also consist of fees or royalties paid to third-party content and service providers associated with the MVAS, costs for providing the enterprise services and turnover taxes levied on non-advertising revenues in China. Business taxes and surcharges levied on MVAS are approximately 3.4%. For other non-advertising revenues, before the implementation of the Pilot Program the business tax and surcharges levied was 5.6% and became 6.7% after switching over to the VAT. | |||||||||||
Advertising expenses | |||||||||||
Advertising expenses consist primarily of costs for the promotion of corporate image, product marketing and direct marketing. The Company expenses all advertising costs as incurred and classify these costs under sales and marketing expense. The nature of the Company’s direct marketing activities is such that they are intended to acquire subscribers for subscription-based and usage-based MVAS. The Company expenses all such direct marketing expenses. Advertising expenses for 2013, 2012 and 2011 were $78.7 million, $72.4 million and $87.2 million, respectively. | |||||||||||
Product development expenses | |||||||||||
Product development expenses consist primarily of payroll-related expenses incurred for enhancement to and maintenance of the Company’s websites as well as costs associated with new product development and product enhancements. The Company expenses all costs incurred for the planning and post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of website content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred. | |||||||||||
Operating leases | |||||||||||
The Company leases office space under operating lease agreements with initial lease term up to four years. Rental expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease. Certain lease agreements contain rent holidays, which are recognized on a straight-line basis over the lease term. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the initial lease terms. | |||||||||||
Stock-based compensation | |||||||||||
All stock-based awards to employees and directors, including stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Options granted generally vest over four years. | |||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends. Shares of the Company’s subsidiaries, which do not have quoted market prices, were valued based on the income approach, if a revenue model had been established, the market approach, if information from comparable companies had been available or a weighted blend of these approaches if more than one is applicable. | |||||||||||
Determination of estimated fair value of the Company’s subsidiaries requires complex and subjective judgments due to their limited financial and operating history, unique business risks and limited public information on companies in China similar to the Company’s subsidiaries. The Company, with the assistance of an independent valuation firm, evaluated the use of two generally accepted valuation approaches. The income approach is used if a revenue model had been established, the market approach is used if information from comparable companies had been available, or a weighted blend of these two approaches is used if more than one is applicable, to estimate the Company’s subsidiaries’ enterprise value for purposes of recording stock-based compensation in connection with employee stock options and recording fair value changes for option liability to Alibaba. Before April 2013, the market approach was primarily used to determine the fair value of the Company’s subsidiary’s ordinary shares. The Company selected guideline companies that engaged in a similar line of business with similar growth prospects and that were subject to similar financial and business risks. For periods beyond April 2013, the income approach was applied since the revenue model for the Company’s subsidiary had been established and projections of revenues, costs and expenses, incremental working capital and capital expenditures became available as the business developed. If different assumptions were used for estimating stock-based compensation expense or if a different valuation method were used, the change in stock-based compensation expense could adversely affect the Company’s gross profit, operating income, net income attributable to SINA and net income per share attributable to SINA. | |||||||||||
The Company recognizes the estimated compensation cost of service-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The Company recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years. | |||||||||||
The Company recognizes the estimated compensation cost of performance-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The rewards are earned upon attainment of identified performance goals. The Company recognizes the compensation cost, net of forfeitures, over the performance period. The Company also adjusts the compensation cost based on the probability of performance goal achievement at the end of each reporting period. | |||||||||||
Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option and restricted share units forfeitures and record stock-based compensation expense only for those awards that are expected to vest. See Note 15 for further discussion on stock-based compensation. | |||||||||||
Taxation | |||||||||||
Income taxes | |||||||||||
Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. | |||||||||||
Uncertain tax positions | |||||||||||
To assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. | |||||||||||
Foreign currency | |||||||||||
The Company’s reporting currency and functional currency are the U.S. dollar. The Company’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are remeasured into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated. | |||||||||||
Foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in interest and other income (expenses), net. | |||||||||||
Foreign currency translation adjustments to the Company’s comprehensive income (loss) for 2013, 2012 and 2011 were $21.3 million, $(2.3) million and$22.2 million, respectively. The Company recorded a net foreign currency transaction gain of $1.5 million in 2013, a net foreign currency transaction loss of $30,000 in 2012 and a net foreign currency transaction gain of $2.3 million in 2011. Gains in 2013 and 2011 resulted from the Chinese RMB appreciating against the U.S. dollar. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity. | |||||||||||
Comprehensive income (loss) | |||||||||||
Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), foreign currency translation adjustments, share of change in other comprehensive income of equity investments one quarter in arrears, which are foreign currency translation adjustments, and unrealized gains (losses) on marketable securities classified as available-for-sale. | |||||||||||
Recent accounting pronouncements | |||||||||||
In February 2013, the FASB issued revised guidance on “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The revised guidance does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the revised guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The revised guidance was effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The revised guidance did not have a significant impact on the consolidated financial position, results of operations or cash flows of the Company. | |||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which is an update to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward exists. The guidance requires an entity to present an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, except for when a net operating loss carryforward is not available as of the reporting date to settle taxes that would result from the disallowance of the tax position or when the entity does not intend to use the deferred tax asset for purposes of reducing the net operating loss carryforward. The guidance is effective for fiscal years beginning after December 15, 2013 and for interim periods within that fiscal year. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial position, results of operations or cash flows. | |||||||||||
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash, Cash Equivalents and Short-term Investments | ' | |||||||
Cash, Cash Equivalents and Short-term Investments | ' | |||||||
3.Cash, Cash Equivalents and Short-term Investments | ||||||||
Cash, cash equivalents and short-term investments consisted of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents: | ||||||||
Cash | 472,595 | $ | 144,200 | |||||
Cash equivalents: | ||||||||
Bank time deposits (matured within 3 months) | 433,201 | 45,621 | ||||||
Money market funds | 10,480 | 10,005 | ||||||
443,681 | 55,626 | |||||||
916,276 | 199,826 | |||||||
Short-term investments: | ||||||||
Bank time deposits | 951,963 | 513,772 | ||||||
Total cash, cash equivalents and short-term investments | $ | 1,868,239 | $ | 713,598 | ||||
The carrying amounts of cash, cash equivalents and short-term investments approximate fair values. Interest income for the years ended December 31, 2013, 2012 and 2011 were $17.3 million, $17.0 million and $13.7 million, respectively. The maturity dates of the bank time deposits were within one year. | ||||||||
Longterm_Investments
Long-term Investments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Long-term Investments | ' | |||||||||||||||||||
Long-term Investments | ' | |||||||||||||||||||
4. Long-term Investments | ||||||||||||||||||||
Long-term investments comprised of investments in publicly traded companies, privately held companies and limited partnerships. The following sets forth the changes in the Company’s long-term investments. | ||||||||||||||||||||
Available for | ||||||||||||||||||||
Cost | Equity Method | Sale | ||||||||||||||||||
Method | (CRIC) | (E-House) | (Others) | Securities | Total | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance at December 31, 2010 | $ | 31,368 | $ | 466,460 | $ | — | $ | 7,917 | $ | 2,368 | $ | 508,113 | ||||||||
Investments made | 96,829 | 2,068 | — | 18,702 | 135,657 | 253,256 | ||||||||||||||
Income (loss) from investment | — | 2,641 | — | (1,175 | ) | — | 1,466 | |||||||||||||
Investment impairment | (386 | ) | (230,258 | ) | — | — | (50,904 | ) | (281,548 | ) | ||||||||||
Unrealized loss | — | — | — | — | (23,257 | ) | (23,257 | ) | ||||||||||||
Others | 1,426 | 3,477 | — | 1,006 | — | 5,909 | ||||||||||||||
Balance at December 31, 2011 | 129,237 | 244,388 | — | 26,450 | 63,864 | 463,939 | ||||||||||||||
Investments made | 34,623 | — | 190,669 | 10,300 | 68,661 | 304,253 | ||||||||||||||
Income (loss) from investment | — | (9,077 | ) | (7,657 | ) | 6,004 | — | (10,730 | ) | |||||||||||
Investment impairment | (8,580 | ) | — | — | (1,546 | ) | (8,372 | ) | (18,498 | ) | ||||||||||
Unrealized gain | — | — | — | — | 30,373 | 30,373 | ||||||||||||||
Disposal of investment | (1,584 | ) | (236,212 | ) | — | (260 | ) | (66,407 | ) | (304,463 | ) | |||||||||
Others | 190 | 901 | 742 | 168 | — | 2,001 | ||||||||||||||
Balance at December 31, 2012 | 153,886 | — | 183,754 | 41,116 | 88,119 | 466,875 | ||||||||||||||
Investments made | 40,427 | — | — | 3,341 | 4,769 | 48,537 | ||||||||||||||
Income (loss) from investment * | — | — | 2,250 | 7,275 | — | 9,525 | ||||||||||||||
Investment impairment | (6,134 | ) | — | — | — | — | (6,134 | ) | ||||||||||||
Unrealized gain | — | — | — | — | 46,787 | 46,787 | ||||||||||||||
Disposal\dilution of investment | (26,145 | ) | — | (10,205 | ) | (4,023 | ) | — | (40,373 | ) | ||||||||||
Dividend received | — | — | (4,400 | ) | (2,084 | ) | — | (6,484 | ) | |||||||||||
Others | 2,703 | — | 3,806 | 1,345 | — | 7,854 | ||||||||||||||
Balance at December 31, 2013 | $ | 164,737 | $ | — | $ | 175,205 | $ | 46,970 | $ | 139,675 | $ | 526,587 | ||||||||
* In 2013, the income (loss) from investments included a $1.8 million loss arising from the correction of 2012 results of an investee. This error in 2012 and related correction in 2013 was not material to the Company’s consolidated financial statements both for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||
Cost Method | ||||||||||||||||||||
As of December 31, 2013, investments accounted for under the cost method were $164.7 million. Investments were accounted for under the cost method if the Company had no significant influence or if the underlying shares were not considered in substance ordinary shares and had no readily determinable fair value. In December 2013, the Company took control of its investment in All Sure through a step acquisition, the impact of which was reflected in the disposal of investment (see also Note 5). In October 2011, the Company invested $50.0 million in Yunfeng Funds for the sole purpose of investment in Alibaba Group. Investments in limited partnerships such as the Yunfeng Funds, whose operating and financial policies the Company had virtually no influence over were also accounted for using the cost method. | ||||||||||||||||||||
Equity Method | ||||||||||||||||||||
As of December 31, 2013, investments accounted for under the equity method totaled $222.2 million, which included a $175.2 million investment in E-House. Investments are accounted for under the equity method when the Company has significant influence in the investment and the investment is considered in substance ordinary shares. Investments in limited partnerships, whose operating and financial policies the Company had virtually significant influence over were also accounted for using the equity method. | ||||||||||||||||||||
The Company has filed CRIC’s financial statements in our annual report on Form 20-F for the year ended December 31, 2011, as the 20% significant subsidiary test was met for the year in accordance with Rule 3-09 of Regulation S-X. On April 20, 2012, CRIC merged into and became a whole-owned subsidiary of E-House. Neither E-House nor CRIC accounts for significant subsidiary for the years ended December 31, 2013 and 2012. The Company summarizes the condensed financial information of the Company’s equity investments as a group below in accordance with Rule 4-08 of Regulation S-X. The condensed financial information included the result of CRIC before the transaction and the result of E-House after the transaction: | ||||||||||||||||||||
Years Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating data: | ||||||||||||||||||||
Revenue | $ | 811,048 | $ | 528,198 | ||||||||||||||||
Gross profit | $ | 524,987 | $ | 276,876 | ||||||||||||||||
Loss from operations | $ | 74,009 | $ | (18,599 | ) | |||||||||||||||
Net income (loss) | $ | 63,195 | $ | (30,205 | ) | |||||||||||||||
Net income (loss) attributable to our equity method investments companies | $ | 64,066 | $ | (23,740 | ) | |||||||||||||||
As of December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance sheet data: | ||||||||||||||||||||
Current assets | $ | 1,159,823 | $ | 789,381 | ||||||||||||||||
Long-term assets | $ | 446,680 | $ | 434,744 | ||||||||||||||||
Current liabilities | $ | 410,587 | $ | 249,963 | ||||||||||||||||
Long-term liabilities | $ | 180,621 | $ | 54,357 | ||||||||||||||||
Non-controlling interests | $ | 14,727 | $ | 6,189 | ||||||||||||||||
Investment in E-House was accounted for using the equity method with the cost allocated as follows: | ||||||||||||||||||||
As of April 20, | As of | As of December 31, | ||||||||||||||||||
December 31, | ||||||||||||||||||||
2012 | 2012 | 2013 | ||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | ||||||||||||||||||
Carrying value of investment in E-House | $ | 190,669 | $ | 183,754 | $ | 175,205 | ||||||||||||||
Proportionate share of E-house’s net tangible and intangible assets * | 175,777 | 169,729 | 169,194 | |||||||||||||||||
Excess of carrying value of investment proportionate share of E-house’s net tangible and intangible assets | $ | 14,892 | $ | 14,025 | $ | 6,011 | ||||||||||||||
The excess of carrying value has been primarily assigned to: | ||||||||||||||||||||
Goodwill and amortizable intangible assets * | $ | 19,282 | $ | 18,078 | $ | 9,478 | ||||||||||||||
Deferred tax liabilities | (4,390 | ) | (4,053 | ) | (3,467 | ) | ||||||||||||||
$ | 14,892 | $ | 14,025 | $ | 6,011 | |||||||||||||||
Cumulative losses in equity interest | $ | — | $ | (7,657 | ) | $ | (5,407 | ) | ||||||||||||
* The weighted average life of the intangible assets recorded in E-House’s financial statements was 8 years and the intangible assets not included in E-House’s financial statements, excluding the asset with indefinite life, was 6 years. | ||||||||||||||||||||
In July 2009, the Company entered into a definitive agreement (the “Agreement”) with E-House to merge E-House’s real estate information and consulting services and COHT (the “Transaction”). Under the Agreement, SINA would contribute its online real estate business into its majority-owned subsidiary COHT, and CRIC would issue its own ordinary shares to SINA to acquire SINA’s equity interest in COHT in exchange for shares in CRIC. In September 2009, the Company entered into an amended and restated advertising agency agreement, a domain name and content license agreement, a trademark license agreement and a software license and support services agreement (the “License Agreements”) with COHT as part of its consideration for the interest in CRIC. Beginning October 1, 2009, the Company no longer consolidated the financial results of COHT and instead accounted for its interest in CRIC using the equity method of accounting, which is reported one quarter in arrears. | ||||||||||||||||||||
October 28, 2011, CRIC announced that its board of directors had received a non-binding proposal from E-House to acquire through a merger all of the outstanding shares of CRIC that are not owned by E-House. CRIC would be privatized and wholly-owned by E-House subsequent to the merger. Pursuant to the definitive merger agreement entered between CRIC and E-House on December 28, 2011, upon the terms and subject to the conditions thereof, at the effective time of the merger, each of the CRIC’s ordinary shares (“CRIC shares”) issued and outstanding immediately prior to the effective time of the merger (including CRIC shares represented by American depositary shares (“CRIC ADSs”), each of which represents one CRIC share) would be cancelled in exchange for the right to receive cash consideration of $1.75, without interest, plus, in the case of each CRIC share (not including CRIC shares represented by CRIC ADSs), 0.6 E-House ordinary shares (“E-House shares”), or, in the case of each CRIC share represented by a CRIC ADS, 0.6 E-House American depositary shares (“E-House ADSs”), each of which represents one E-House share. The merger was subject to customary closing conditions and approval by the shareholders of CRIC. | ||||||||||||||||||||
On April 19, 2012, CRIC announced that it had obtained shareholders’ approval and would merge into and become a 100% subsidiary of E-House as of April 20, 2012. Consequently, the Company’s interest in CRIC was converted into 29.3 million ordinary shares of E-House, equivalent to a 24.9% interest in E-House and $85.5 million in cash. As a result of the merger, the Company recognized a one-time gain of $45.3 million, which was the difference between the considerations received and the carrying value of the investment in CRIC at the transaction date, after offsetting the cumulative currency translation adjustments previously recorded for CRIC as other comprehensive income. Earnings/(loss) from CRIC for the period from April 1, 2012 to April 19, 2012 is not material and has been included in the disposal gain of $45.3 million. | ||||||||||||||||||||
In March 2013, E-House issued new shares to its management at a pre-determined price, which resulted in a dilution loss of $10.2 million related to the decrease of SINA’s interest in E-House. | ||||||||||||||||||||
The Company performs an impairment assessment of its investments under the cost method and equity method whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. In 2013, the Company recorded $6.1 million in impairment charges to the carrying value of its investments under the cost method. In 2012, the Company recorded $8.6 million, $1.5 million in impairment charges to the carrying value of its investments under the cost method and equity method, respectively. In 2011, based on the degree and severity of a decline in CRIC’s share price, decline in profit and business outlook for CRIC and the real estate industry in China in general, the Company performed an other-than-temporary impairment assessment on investment in CRIC in 2011, and recorded a $230.3 million charge to write down the investment in CRIC to its fair value. | ||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
The following table shows the carrying amount and fair value of marketable securities: | ||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||
Basis | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Youku Tudou | $ | 67,425 | $ | — | $ | — | $ | 67,425 | ||||||||||||
MCOX | 6,709 | — | (660 | ) | 6,049 | |||||||||||||||
Others | 6,001 | 8,644 | — | 14,645 | ||||||||||||||||
December 31, 2012 | $ | 80,135 | $ | 8,644 | $ | (660 | ) | $ | 88,119 | |||||||||||
Youku Tudou | $ | 67,425 | $ | 44,580 | $ | — | $ | 112,005 | ||||||||||||
MCOX | 6,709 | 1,320 | — | 8,029 | ||||||||||||||||
Others | 10,770 | 8,871 | — | 19,641 | ||||||||||||||||
December 31, 2013 | $ | 84,904 | $ | 54,771 | $ | — | $ | 139,675 | ||||||||||||
Investments in marketable securities are held as available-for-sale and reported at fair value, which totaled $139.7 million as of December 31, 2013. As of December 31, 2013, the Company’s investments in marketable securities included $112.0 million inYouku Tudou Inc. (“ Youku Tudou”) shares and $8.0 million in Mecox Lane Limited (“MCOX”) shares. The Company incurred a total impairment charge of $8.4 million and $50.9 million on its investment in MCOX in 2012 and 2011, which has reduced its cost basis by that amount, respectively. Net unrealized gains as of December 31, 2013 and December 31, 2012 were $54.8 million and $8.0 million, respectively. | ||||||||||||||||||||
On March 12, 2012, Youku Inc (“Youku”) announced that it signed a definitive agreement to merge with Tudou Holdings Limited (“Tudou”) in a 100% stock-for-stock transaction. The merger was completed on August 24, 2012, and, based on the conversion ratio of each Tudou ADS for 1.595 Youku ADS, the Company’s investment in Tudou was converted into 3.7 million ADSs of Youku Tudou with a fair market value of $67.4 million as of closing. As a result of the merger, the Company recognized a one-time investment gain of $7.2 million. In March 2012, the Company disposed 250,000 shares of Tudou and recognized a one-time gain of $3.0 million. | ||||||||||||||||||||
The Company reviews its available-for-sale investments regularly to determine if an investment is other-than-temporarily impaired due to changes in quoted market price or other impairment indicators. In 2012 and 2011, the Company recognized an impairment charge of $8.4 and $50.9 million on its investment in MCOX, respectively, taking into consideration the business outlook for MCOX and the overall e-commerce in China, in general, the financial condition and outlook of MCOX, as well as the severity and duration of the drop in share price compared to the carrying value. Changes in market conditions and other facts and circumstances may change the business prospects of these issuers, our assessment that these investments are not other-than-temporarily impaired, as well as our ability and current intent to hold these securities until the prices recover. | ||||||||||||||||||||
Acquisition
Acquisition | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Acquisitions | ' | |||||||
Acquisitions | ' | |||||||
5. Acquisitions | ||||||||
The Company accounts for business combinations using the purchase method of accounting, which requires the acquisition cost be allocated to the assets and liabilities of the Company acquired, including separately identifiable intangible assets, based on their estimated fair values. The Company makes estimates and judgments in determining the fair value of the acquired assets and liabilities based on independent appraisal reports as well as its experience with similar assets and liabilities in similar industries. If different judgments or assumptions were used, the amounts assigned to the individual acquired assets or liabilities could be materially different. | ||||||||
Weibo Interactive | ||||||||
In May 2013, the Company acquired the remaining 45% equity interest in Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’), an online game platform company, for a consideration of $4.6 million as part of a step-up acquisition. The Company acquired the initial 55% equity interest in Weibo Interactive in August 2011 for a consideration of $5.3 million and accounted for it under the equity method of accounting, as the Company did not hold sufficient board seats to control its operations. In accordance with ASC805 accounting for business combination achieved in stages, the Company’s previously held 55% equity interest shall be remeasured to fair value at the date of acquisition, which resulted in a remeasurement gain of $3.1 million upon obtaining control. The Company hired an independent valuation firm to assist management in valuing its previously held equity interest in Weibo Interactive as of the acquisition date. The Company began to consolidate Weibo Interactive’s financial statements from June 1, 2013. Goodwill arising from this transaction primarily represents the expected synergies from combining the operations of Weibo Interactive with the Company, which are complementary to each other. Total identifiable intangible assets acquired upon acquisition included a customer list of $2.1 million, game platform technology of $1.0 million and non-compete agreement of $0.5 million, which have an estimated useful life between two to five years. Consideration for Weibo Interactive was allocated on the acquisition date based on the fair value of the assets acquired and the liabilities assumed as follows: | ||||||||
As of acquisition date | ||||||||
(In thousands) | ||||||||
Cash consideration for the remaining 45% equity interest | $ | 4,635 | ||||||
Fair value of previously held 55% equity interest | 5,445 | |||||||
Total consideration | 10,080 | |||||||
Tangible assets | 98 | |||||||
Identifiable intangible assets acquired | 3,560 | |||||||
Liabilities assumed | (1,095 | ) | ||||||
Goodwill | 7,517 | |||||||
Total consideration | $ | 10,080 | ||||||
The Company transferred 100% equity interest in Weibo Interactive to its Weibo Cayman subsidiary in December 2013 for a consideration of $10.1million. The transaction was between entities under common control, the carrying amount of the assets and liabilities of Weibo Interactive remained unchanged subsequent to the transaction, and no gain or loss was recorded in SINA’s consolidated statements of comprehensive income (loss). The acquisition completed in May 2013 did not have a material impact on the Company’s consolidated financial statements, and, therefore, pro forma disclosures have not been presented. | ||||||||
All Sure | ||||||||
The Company previously purchased approximately 35% equity interest in All Sure Limited, an online search company, for a consideration of $21.3 million and accounted for the investment under the cost method of accounting, as the preferred shares issued to the Company were not considered common shares nor in-substance common stock as described in ASC 323-10-15. The Company also loaned $14.6 million to All Sure Limited, which was included in the consolidated balance sheets of the Company before the acquisition. In December 2013, All Sure Limited redeemed the 35% equity interest from the Company in exchange of 100% shares in All Sure Hong Kong Limited (thereafter “All Sure”), a wholly owned subsidiary of All Sure Limited, which directly and indirectly owned substantially all the assets and liabilities of the operations in exchange for the extinguishment of the loan. | ||||||||
In accordance with ASC805 accounting for business combination achieved in stages, the Company’s previously held 35% equity interest shall be remeasured to fair value at the date of acquisition, which resulted in a remeasurement loss of $0.6 million upon obtaining control. The Company hired an independent valuation firm to assist management in valuing its previously held equity interest in All Sure as of the acquisition date. The Company began to consolidate All Sure’s financial statements from December 2013. The amount of revenue and earnings of All Sure since the acquisition date included in the consolidated financial statements of the Company in 2013 was immaterial. Goodwill arising from this transaction primarily represents the expected synergies from combining the operations of All Sure and the Company, which are complementary to each other. Total identifiable intangible assets acquired upon acquisition mainly included core technology of $3.6 million and trademark and domain names of $3.6 million, which have an estimated useful life of five and ten years, respectively. Consideration for All Sure was allocated on the acquisition date based on their fair value of the assets acquired and the liabilities assumed as follows: | ||||||||
As of acquisition date | ||||||||
(In thousands) | ||||||||
Consideration | $ | 14,631 | ||||||
Fair value of previously held 35% equity interest | 20,703 | |||||||
Non-controlling interests | 1,678 | |||||||
Total consideration | 37,012 | |||||||
Tangible assets | 7,438 | |||||||
Identifiable intangible assets acquired | 7,200 | |||||||
Liabilities assumed | (2,293 | ) | ||||||
Goodwill | 24,667 | |||||||
Total consideration | $ | 37,012 | ||||||
The following unaudited pro forma combined and consolidated financial information reflects the combined results of operations of the Company and All Sure for the years ended December 31, 2013 and 2012, as if the acquisition of All Sure had occurred on January 1, 2012, and after giving effect to purchase accounting adjustments. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place as of the beginning of the periods presented and may not be indicative of future operating results. | ||||||||
For the Year Ended | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Unaudited | ||||||||
(In thousands) | ||||||||
Net revenues | $ | 666,973 | $ | 534,758 | ||||
Net income | $ | 27,605 | $ | 21,200 | ||||
The pro forma net income for the periods presented includes $0.8 million for the amortization of identifiable intangible assets net of tax for each year. The relevant tax impact was determined using the actual effective income tax rate of All Sure for each presented period. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
6. Goodwill and Intangible Assets | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The changes in the carrying value of goodwill by segment are as follows (in thousands): | ||||||||||||||||||||
Portal | Others | Total | ||||||||||||||||||
Advertising | ||||||||||||||||||||
Balance as of January 1, 2011 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | 68,891 | $ | 15,159 | ||||||||||||
Impairment in 2011 | — | — | (68,891 | ) | — | |||||||||||||||
Balance as of January 1, 2012 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | — | $ | 15,159 | ||||||||||||
Transactions in 2012 | — | — | — | — | ||||||||||||||||
Balance as of January 1, 2013 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | — | $ | 15,159 | ||||||||||||
Acquisition of Weibo Interactive in 2013 | — | 7,517 | — | 7,517 | ||||||||||||||||
Acquisition of All Sure in 2013 | 24,667 | — | — | 24,667 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 39,826 | $ | 7,517 | $ | — | $ | 47,343 | ||||||||||||
The Company’s goodwill as of December 31, 2013 and 2012 was $47.3 million and $15.2 million, respectively. In May and December 2013, the Company acquired additional equity interest in Weibo Interactive and All Sure (see Note 5 for details), which resulted in an increase of $32.2 million in goodwill. The balance as of December 31, 2012 were related to the acquisitions of Davidhill Capital Inc., a British Virgin Islands limited liability corporation, and its UC instant messaging product in 2004 and a privately held web-application development firm in 2008. During 2011, the Company recognized an impairment of $68.9 million on the goodwill related to its MVAS business, due to a significant decline in gross margin and near-term outlook of the business. | ||||||||||||||||||||
As of December 31, 2013, the Company performed a qualitative analysis on the goodwill arising from its business units considering the events and circumstances listed in ASC350 Intangibles — Goodwill and Other, in addition to other entity specific factors. Based on the assessment, the Company determined that it was not necessary to perform a quantitative goodwill impairment test and concluded that no impairment indicators on its goodwill were noted for the twelve months ending December 31, 2013. | ||||||||||||||||||||
Intangible assets | ||||||||||||||||||||
The following table summarizes the Company’s intangible assets: | ||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||
Amortization | Amortization | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Technology* | $ | 15,533 | $ | (11,109 | ) | $ | 4,424 | $ | 11,012 | $ | (11,012 | ) | $ | — | ||||||
Software* | 1,861 | (1,844 | ) | 17 | 1,844 | (1,844 | ) | — | ||||||||||||
Other | 6,997 | (592 | ) | 6,405 | 775 | (94 | ) | 681 | ||||||||||||
Total | $ | 24,391 | $ | (13,545 | ) | $ | 10,846 | $ | 13,631 | $ | (12,950 | ) | $ | 681 | ||||||
* Intangible assets are amortized over the estimated useful lives ranging from two to ten years. | ||||||||||||||||||||
Amortization expense related to intangible assets for the years ended December 31, 2013, 2012 and 2011 was $0.6 million, $0.1 million and $0.7 million, respectively. As of December 31, 2013, estimated amortization expenses for future periods are expected to be as follows: | ||||||||||||||||||||
Year Ended December 31, | (In thousands) | |||||||||||||||||||
2014 | $ | 2,235 | ||||||||||||||||||
2015 | 2,219 | |||||||||||||||||||
2016 | 1,491 | |||||||||||||||||||
2017 | 1,410 | |||||||||||||||||||
2018 and thereafter | 3,169 | |||||||||||||||||||
Total expected amortization expense | $ | 10,524 | ||||||||||||||||||
Investment_in_Weibo
Investment in Weibo | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Investment in Weibo | ' | |||||
Investment in Weibo | ' | |||||
7. Investment in Weibo | ||||||
On April 29, 2013 (the “Transaction Date”), a wholly owned subsidiary of Alibaba Group Holding Limited (“Alibaba”) invested $585.8 million to purchase 30.0 million of preferred shares and 4.8 million of ordinary shares of Weibo, representing an ownership interest of 18% on a fully diluted basis. The Company, through its subsidiary, also granted an option to Alibaba to enable it to purchase additional ordinary shares of Weibo to increase its ownership up to 30% on a fully-diluted basis. | ||||||
Preferred Shares | ||||||
As of the Transaction Date, the fair value of preferred shares was $481.0 million. The Company determined that both redemption and conversion features did not meet the criteria under ASC 815 for bifurcation and, therefore, were not accounted for as an embedded derivative. No beneficial conversion feature charge was recognized for the issuance of preferred shares as the estimated fair value of the ordinary shares was equal to or less than the conversion price on the date of issuance. Due to the liquidation event not considered probable as of the balance sheet dates, no accretion was recorded to adjust the carrying amount of the preferred shares. | ||||||
The following is a list of key terms of the preferred shares: | ||||||
Liquidation Preference. In the event of a “Liquidation Event,” which includes the liquidation, dissolution or winding up of Weibo, or if authorized and approved by the board of directors of the Company, (i) a change of control of Weibo, (ii) the sale of all or substantially all of Weibo’s assets and, properties, (iii) the exclusive license of all or substantially all of Weibo’s intellectual property, or (iv) merger or consolidation of Weibo, the holder(s) of preferred shares are entitled to cause Weibo to redeem or repurchase the preferred shares at an aggregate price equal to the higher of (x) the aggregate amount which the preferred shares would have received if the preferred shares had been converted into ordinary shares immediately prior to such Liquidation Event and (y) the aggregate subscription price for the preferred shares paid by Alibaba in April 2013. The preferred shares held by Alibaba are accounted for as non-controlling interests classified under permanent equity in the Company’s consolidated balance sheets, as a redemption resulting from a Liquidation Event is subject to the approval by the board of directors of the Company. | ||||||
Redemption. The preferred shares are not redeemable, unless resulting from a Liquidation Event as noted above. | ||||||
Conversion. Each preferred share is convertible, at the option of the holder thereof, at any time on a one-for-one basis, and without the payment of additional consideration by the holder, and is subject to adjustment from time to time on a weighted average basis upon (i) the issuance of additional equity shares for a consideration per share, convertible into equity shares, at a price per share less than the conversion price, (ii) a split, subdivision, recapitalization or similar event impacting the outstanding ordinary shares of Weibo, or a consolidation, reverse split or combination of the outstanding ordinary shares of Weibo; or (iii) a merger, consolidation or other business combination, or a reclassification, reorganization, recapitalization, statutory share exchange or similar capital reorganization of the ordinary shares of Weibo. Each preferred share will be automatically converted into ordinary shares of Weibo upon the consummation of a qualified initial public offering of Weibo based on the then-effective conversion price. | ||||||
Voting Rights. Each holder of the preferred shares is entitled to cast the number of votes equal to the number of ordinary shares on an as- converted basis. | ||||||
Dividend. Each holders of the preferred shares is entitled to receive dividends or distributions on an as-converted basis, at a rate equal to the dividends declared and paid on the ordinary shares, payable at the same time when, as, and if declared by Weibo. As long as any preferred shares shall remain outstanding, Weibo shall not directly or indirectly pay or declare any dividend or make any distribution upon, whether in cash, in property or in shares of the capital of Weibo, any ordinary shares unless and until the dividend payable to the holders of the preferred shares is first paid in full. | ||||||
Others. The preferred shares terms include various other provisions typical of preferred share investments, such as rights of first offer, pre- emptive rights and registration rights. | ||||||
Ordinary shares | ||||||
The ordinary shares held by Alibaba were recognized as non-controlling interests and classified under permanent equity in the Company’s consolidated balance sheets at an initial fair value of $54.2 million as of the Transaction Date, which were purchased by Alibaba directly from the employees’ ordinary shares or Weibo, which repurchased vested employee options. In order to facilitate the transaction, Weibo issued its ordinary shares to Alibaba on the Transaction Date and then repurchased the 3.5 million vested options from employees subsequent to the Transaction Date. The consideration for both the ordinary shares and vested options were paid to Weibo first and then paid/to be paid to the employees subsequently. The employees sold their shares and vested options above the current fair value and the difference between the proceeds received by the employees and the fair value of the shares or vested options sold was considered to be compensation for their past services in accordance with ASC 718-20. Therefore, a stock-based compensation of $27.1 million was recorded for the year ended December 31, 2013. As of December 31, 2013, consideration for the ordinary shares and vested options had not been fully paid and the remaining balance was included in accrued liabilities. | ||||||
Option Liability | ||||||
The Company, through its subsidiary, granted an option to Alibaba to enable it to purchase additional ordinary shares and increase its ownership in Weibo up to 30% on a fully-diluted basis. The call option shall expire immediately upon the earlier of the consummation of (i) any sale of shares by Alibaba of more than 25%, determined in the aggregate with all prior sales, of the acquired shares and (ii) the full exercise of the call option. Alibaba has the right to exercise the option, in whole or in part, at any time, commencing on the Transaction Date and ending on the consummation of a qualified IPO of Weibo. The exercise price of the option shall be equal to the lower of (i) an amount that represents a 15% discount to the IPO offering price per ordinary share in a qualified IPO offering and (ii) a price per ordinary share that implies an equity valuation (exclusive of the purchase price to be paid by Alibaba for these ordinary shares) of $5.5 billion for Weibo on a fully diluted basis. | ||||||
In accordance with US GAAP, the option is deemed legally detachable and separately exercisable from the preferred and ordinary shares and, thus, accounted for as a freestanding instrument. As the strike price of the call option may be adjusted by the occurrence of a qualified IPO of Weibo, if any, it is not considered indexed to Weibo’s own stock. Accordingly, the call option was recorded as an investor option liability valued at $50.6 million in the consolidated balance sheets as of the Transaction Date and is marked to market each reporting period. For the year ended December 31, 2013, $21.1 million of gain was recognized based on a subsequent change in fair value in the Company’s consolidated statements of comprehensive income (loss). | ||||||
The Company used the income approach to derive the fair values of the preferred shares and ordinary shares granted to Alibaba as of the Transaction Date. When using the income approach, the Company applied the discounted cash flow analysis based on the Company’s projected cash flow using management’s best estimate as of the Transaction Date. Determination of the estimated fair values requires complex and subjective judgments due to Weibo’s limited financial and operating history, unique business risks and limited public information on companies in China similar to the business of Weibo. The Company utilized the Binominal option pricing model to determine the fair value of the option liability, which was measured using significant unobservable input (level 3) and required an assessment of probability for each exercise scenario. These assumptions are subjective and have inherent uncertainties. Changes in these estimates and assumptions could materially impact our financial position and results of operations. | ||||||
Share Ownership | ||||||
As of December 31, 2013, the share ownership of Weibo on an “if-converted” basis was as follows: | ||||||
Shareholder Name | Shares Type | Ownership | ||||
Percentage | ||||||
SINA | Ordinary shares | 77.6 | % | |||
Alibaba | Preferred shares | 16.7 | % | |||
Ordinary shares | 2.7 | % | ||||
Others | Ordinary shares | 3 | % | |||
Total | 100 | % | ||||
The Company has been the controlling shareholder of Weibo from inception and has consolidated Weibo’s financial results for the periods presented. | ||||||
Amount due from Weibo | ||||||
During 2013, the Company restructured its social media business to accommodate an investment in Weibo. As part of the restructuring, the Company transferred to Weibo certain assets and liabilities associated with the Weibo business. Weibo was made liable for a $250.0 million loan payable to SINA as of April 29, 2013, plus applicable interest payments and any additional outlay subsequent to the Transaction Date. The loan interest was calculated based on actual spending incurred by the Company for the development of Weibo business at each period end at prevailing market interest rate by reference to the three month fixed-deposit rate of The People’s Bank of China, which ranged from 2.55% to 3.05%. The loans are repayable upon demand by SINA, but there is an understanding between the Company and Weibo that the loans would be repaid upon the completion of the initial public offering of Weibo. There is no written loan agreement signed between the Company and Weibo. Currently, the loan, along with other inter-company transactions, has been eliminated in the consolidated financial statements. | ||||||
Strategic Alliance | ||||||
On April 29, 2013, affiliated entities of the Company, including a PRC subsidiary of Weibo, formed a strategic alliance with affiliated entities of Alibaba, a related party, to jointly explore social commerce and develop marketing solutions to enable merchants on Alibaba e-commerce platforms to better connect and build relationships with Weibo’s users. For 2013, Weibo derived $49.1 million in advertising and marketing revenues from Alibaba since the strategic alliance. Prior to the strategic alliance, Alibaba purchased advertising from the Company and continued to do so subsequently. For 2013, apart from the revenue generated on Weibo, the Company recognized $20.0 million revenue from Alibaba since the strategic alliance. | ||||||
Noncontrolling_interests
Non-controlling interests | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Non controlling interests | ' | |||||||
Non controlling interests | ' | |||||||
8. Non-controlling interests | ||||||||
The following table summarizes the Company’s non-controlling interests: | ||||||||
As of December 31, | As of December 31, | |||||||
2013 | 2012 | |||||||
(In thousand) | ||||||||
$ | 468,117 | $ | (2,430 | ) | ||||
Others | 16,291 | 11,633 | ||||||
Total | $ | 484,408 | $ | 9,203 | ||||
Non-controlling interests related to Weibo mainly represent Weibo’s cumulative results of operations and changes in equity (deficit) attributable to non-controlling shareholders, along with non-controlling shareholders’ original investments for the ordinary and preferred shares issued by Weibo. See Note 7 — Investment in Weibo for further details. | ||||||||
Other_Balance_Sheet_Components
Other Balance Sheet Components | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Balance Sheet Components | ' | |||||||
Other Balance Sheet Components | ' | |||||||
9. Other Balance Sheet Components | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 209,688 | $ | 146,305 | ||||
Allowance for doubtful accounts: | ||||||||
Balance at the beginning of year | (11,054 | ) | (11,492 | ) | ||||
Additional provision charged to expenses | (10,385 | ) | (3,869 | ) | ||||
Write-off | 5,132 | 4,307 | ||||||
Balance at the end of year | (16,307 | ) | (11,054 | ) | ||||
$ | 193,381 | $ | 135,251 | |||||
Prepaid expenses and other current assets: | ||||||||
Content fees | $ | 7,914 | $ | 7,511 | ||||
Rental and other deposits | 8,768 | 7,261 | ||||||
Prepayments for long-term investments | 18,842 | 6,444 | ||||||
Current deferred tax assets | 3,480 | 4,161 | ||||||
Others | 18,178 | 11,121 | ||||||
$ | 57,182 | $ | 36,498 | |||||
Property and equipment, net: | ||||||||
Computers and equipment | $ | 200,506 | $ | 174,132 | ||||
Leasehold improvements | 13,620 | 11,613 | ||||||
Furniture and fixtures | 10,909 | 9,014 | ||||||
Other | 1,814 | 1,350 | ||||||
226,849 | 196,109 | |||||||
Less: Accumulated depreciation | (145,929 | ) | (119,469 | ) | ||||
$ | 80,920 | $ | 76,640 | |||||
Other assets: | ||||||||
Prepayment for land use right and office building | $ | 89,163 | $ | 21,188 | ||||
Issuance cost of convertible debt | 16,074 | — | ||||||
Investment deposits | 6,027 | 14,464 | ||||||
Non-current deferred tax assets | 1,074 | 1,660 | ||||||
Others | 1,007 | 892 | ||||||
$ | 113,345 | $ | 38,204 | |||||
Accrued liabilities: | ||||||||
Sales rebates | $ | 48,047 | $ | 40,031 | ||||
Content fees | 21,296 | 24,270 | ||||||
Accrued compensation and benefits | 27,978 | 17,998 | ||||||
Marketing expenses | 29,656 | 15,918 | ||||||
Amounts owed on non-controlling interests in subsidiary | 12,073 | — | ||||||
Advertisement production costs | 10,352 | 8,577 | ||||||
Others | 71,435 | 61,883 | ||||||
$ | 220,837 | $ | 168,677 |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
10.Related Party Transactions | |
Based on the amended and restated advertising agency agreements with CRIC, agency fees earned from COHT for 2013, 2012 and 2011, calculated at 15% of COHT’s revenue generated from the sales of advertising on SINA’s non-real estate channels, were $6.0 million, $5.1 million and $3.5 million, respectively. As of December 31, 2013 and 2012, receivables due from COHT were $1.7 million and $2.5 million, respectively. In addition, the Company entered into certain license agreements at the time of the transaction with CRIC. The fair value of these license agreements was measured at $187.4 million and was recognized as deferred revenue and amortized on a straight line basis over the contract period of ten years. The amortized deferred revenue from 2011 through 2013 was $18.7 million for each year. | |
On April 29, 2013, affiliated entities of the Company formed a strategic alliance with affiliated entities of Alibaba to jointly explore social commerce and develop marketing solutions to enable merchants on Alibaba e-commerce platforms to better connect and build relationships with Weibo’s users. Alibaba purchased advertising from the Company and continued to do so subsequently. For 2013, the Company recognized a total of $69.1 million in advertising and marketing services revenue from Alibaba since the strategic alliance. | |
Revenues from related parties, excluding those from CRIC and Alibaba stated above, represented approximately 1.7% and 1.7% of net total revenues for 2013 and 2012, respectively. Transactions with related parties included in cost and operating expenses represented 0.8% and 2.0% of total cost and operating expenses for 2013 and 2012, respectively. The Company believes that the terms of the agreements with the related parties are comparable to the terms in arm’s-length transactions with third-party customers and vendors. | |
One of the Company’s subsidiaries entered into an agreement with Broadvision Inc. (“Broadvision”) whose Chairman, Chief Executive Officer and President Pehong Chen is a director of SINA. Under this agreement, Broadvision provides HR information management hosting service, including software subscription, system upgrade and technical support. For 2013, 2012 and 2011, services fee to Broadvision are approximately $169,000, $146,000 and $126,000, respectively. There was no payable outstanding as of December 31, 2013 and 2012. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
11. Income Taxes | |||||||||||
The Company is registered in the Cayman Islands and has operations in four tax jurisdictions — the PRC, the U.S., Hong Kong and Taiwan. The operations in Taiwan represent a branch office of the subsidiary in the U.S. For operations in the U.S., Hong Kong and Taiwan, the Company has incurred net accumulated operating losses for income tax purposes. The Company believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, the Company has provided full valuation allowance for the deferred tax assets arising from the losses at these locations as of December 31, 2013. | |||||||||||
The components of income before income taxes are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except percentage) | |||||||||||
Income (loss) before income tax expenses | $ | 58,432 | $ | 34,585 | $ | (297,417 | ) | ||||
Income (loss) from non-China operations | $ | (18,430 | ) | $ | 19,590 | $ | (362,692 | ) | |||
Income from China operations | $ | 76,862 | $ | 14,995 | $ | 65,275 | |||||
Income tax expenses applicable to China operations | $ | 14,602 | $ | 2,730 | $ | 5,001 | |||||
Effective tax rate for China operations | 19 | % | 18 | % | 8 | % | |||||
The Company generated substantially all of its operating income from the PRC operations for the years ended December 31, 2013, 2012 and 2011, and has recorded income tax provisions for these years. In 2013, the Company’s Cayman Islands operations recorded a dilution loss totaling $10.2 million related to E-House. In 2012, the Company’s Cayman Islands operations recorded impairment charges totaling $8.4 million related to its investments in MCOX, a gain of $45.3 million related to its disposal of investment CRIC and a gain of $10.2 million from its disposal of investment in Tudou. In 2011, the Company’s Cayman Islands operations recorded impairment charges totaling $281.2 million related to its investments in CRIC and MCOX and an impairment charge of $68.9 million related to its MVAS goodwill. See also Note 4 to the Consolidated Financial Statements for further discussion. | |||||||||||
Cayman Islands | |||||||||||
Under the current tax laws of Cayman Islands, the Company is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. | |||||||||||
U.S. | |||||||||||
As of December 31, 2013, the Company’s subsidiary in the U.S. had approximately $86.2 million of federal and $25.3 million of state net operating loss carryforwards available to offset future taxable income. The federal net operating loss carryforwards will expire, if unused, in the years ending June 30, 2018 through December 31, 2033, and the state net operating loss carryforwards will expire, if unused, in the years ending June 30, 2014 through December 31, 2033. Included in the net operating loss carryforwards were $39.7 million and $20.9 million of federal and state net operating loss carryforwards relating to employee stock options, the benefit of which will be credited to equity when realized. The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations when changes occur in the stock ownership of a company. In the event the Company has a change in ownership, utilization of carryforwards could be restricted. The deferred tax assets for the U.S. subsidiary at December 31, 2013 consisted mainly of net operating loss carryforwards, for which a full valuation allowance has been provided, as management believes it is more likely than not that these assets will not be realized in the future. | |||||||||||
The following table sets forth the significant components of the net deferred tax assets for operation in the U.S.: | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry-forwards | $ | 30,826 | $ | 30,884 | |||||||
Other tax credits, allowances for doubtful accounts, accruals and other liabilities | 453 | 488 | |||||||||
Total deferred tax assets | 31,279 | 31,372 | |||||||||
Less: valuation allowance | (31,279 | ) | (31,372 | ) | |||||||
Deferred tax assets | $ | — | $ | — | |||||||
Hong Kong | |||||||||||
As of December 31, 2013, the Company’s Hong Kong subsidiary had approximately $21.2 million of net operating loss carryforwards which can be carried forward indefinitely to offset future taxable income. As of December 31, 2013, the deferred tax assets for the Hong Kong subsidiary, consists mainly of net operating loss carryforwards, for which a full valuation allowance has been provided. Management believes it is more likely than not that these assets will not be realized in the future. | |||||||||||
The following table sets forth the significant components of the net deferred tax assets for Hong Kong operation: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry-forwards | $ | 2,787 | $ | 2,978 | |||||||
Less: valuation allowance | (2,787 | ) | (2,978 | ) | |||||||
Deferred tax assets | $ | — | $ | — | |||||||
China | |||||||||||
Effective January 1, 2008, the Enterprise Income Tax Law (the “EIT Law”) in China unifies the enterprise income tax rate for the entities incorporated in China at 25% if they are not eligible for any preferential tax treatment. The EIT Law provides a five-year transitional period for certain entities that enjoyed a favorable income tax rate of less than 25% and/or a preferential tax holiday under the Previous IT Law and were established before March 16, 2007, to gradually increase their rates to 25%. In addition, high and new technology enterprises continue to enjoy a preferential tax rate of 15%. The EIT Law also provides grandfather treatment for high and new technology enterprises that received special tax holidays under the Previous IT Law to continue to enjoy their tax holidays until expiration provided that specific conditions are met. Five of the Company’s subsidiaries and VIEs in China, SINA.com Technology (China) Co., Ltd., SINA Technology (China) Co., Ltd. , Beijing New Media Information Technology Co., Ltd., Fayco Network Technology Development (Shenzhen) Co., and Beijing SINA Flying Software Co., Ltd., were qualified as high and new technology enterprises and enjoy a preferential tax rate of 15% under the new EIT Law. | |||||||||||
On February 22, 2008, relevant governmental regulatory authorities released qualification criteria, application procedures and assessment processes for “software enterprise”. The relevant qualification criteria, application procedures and assessment processes for software enterprise were updated in April 2013. For those entities qualified as software enterprise, they can enjoy an income tax exemption for two years beginning with its first profitable year and a 50% tax reduction to a rate of 12.5% for the subsequent three years. SINA (Shanghai) Management Co., Ltd., was qualified a software enterprise in 2010 and is exempted from income tax for the first two years and is entitled to a preferential tax rate of 12.5% for the three years from thereafter. Weibo Technology was qualified as a software enterprise and will enjoy the relevant tax holiday from its first profitable year. As of December 31, 2013, Weibo Technology was still in accumulative loss position. | |||||||||||
The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC should be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, should SINA be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to January 1, 2008. | |||||||||||
The EIT Law also imposes a withholding income tax of 10% on dividends distributed by an FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the Previous IT Law. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The State Administration of Taxation further promulgated Circular 601 on October 27, 2009, which provides that tax treaty benefits will be denied to “conduit” or shell companies without business substance and that a beneficial ownership analysis will be used based on a “substance-over-form” principle to determine whether or not to grant the tax treaty benefits. | |||||||||||
A majority of the Company’s FIEs’ operations in China are invested and held by Hong Kong registered entities. If we are regarded as a non-resident enterprise and our Hong Kong subsidiaries are regarded as resident enterprises, then our Hong Kong subsidiaries may be required to pay a 10% withholding tax on any dividends payable to us. If our Hong Kong entities are regarded as non-resident enterprises, then our PRC subsidiaries may be required to pay a 5% withholding tax for any dividends payable to our Hong Kong subsidiaries. However, it is still unclear at this stage whether Circular 601 applies to dividends from our PRC subsidiaries paid to our Hong Kong subsidiaries and if our Hong Kong subsidiaries were not considered as “beneficial owners” of any dividends from their PRC subsidiaries, the dividends payable to our Hong Kong subsidiaries would be subject to withholding tax at a rate of 10%. In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. Based on the subsequently issued interpretation of the EIT, Article 4 of Cai Shui (2008) Circular No. 1, dividends on earnings prior to 2008 but distributed after 2008 are not subject to withholding income tax. The current policy approved by the Company’s board of directors allows the Company to distribute PRC earnings offshore only if the Company does not have to pay a dividend tax. Such policy may require the Company to reinvest all earnings made since 2008 onshore indefinitely or be subject to a significant withholding tax should its policy change to allow for earnings distribution offshore. As of December 31, 2013 and 2012, the Company did not record any withholding tax on the retained earnings of its FIEs in the PRC as the Company intends to reinvest all earnings in China since 2008 to further expand its business in China, and its FIEs do not intend to declare dividends on the retained earnings made since 2008 to their immediate foreign holding companies. | |||||||||||
The Company’s VIEs are wholly owned by the Company’s employees and controlled by the Company through various contractual agreements. To the extent that these VIEs have undistributed earnings, the Company will accrue appropriate expected tax associated with repatriation of such undistributed earnings. | |||||||||||
In December 2009, the State Administration of Tax in China issued a circular on strengthening the management of proceeds from equity transfers by non-China tax resident enterprises and requires foreign entities to report indirect sales of China tax resident enterprises. If the existence of the overseas intermediary holding company is disregarded due to lack of reasonable business purpose or substance, gains on such sale are subject to PRC withholding tax. Due to limited guidance and implementation history of the circular, significant judgment is required in the determination of a reasonable business purpose for an equity transfer by our non-China tax resident entity by considering factors, including but not limited to, the form and substance of the arrangement, time of establishment of the foreign entity, relationship between each step of the arrangement, relationship between each component of the arrangement, implementation of the arrangement and the changes in the financial position of all parties involved in the transaction. Although the Company believes that it is more likely than not all the transactions made by the Company during the all the presented periods would be determined to have reasonable business purpose, should this not be the case, the Company would be subject to a significant withholding tax that could materially and adversely impact its financial position, results of operations and cash flows. | |||||||||||
Composition of income tax expenses for China operations | |||||||||||
The following table sets forth current and deferred portion of income tax expenses of the Company’s China subsidiaries and VIEs: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Current tax provision | $ | 12,820 | $ | 6,245 | $ | 5,930 | |||||
Deferred tax (benefits) provision | 1,782 | (3,515 | ) | (929 | ) | ||||||
Income tax expenses | $ | 14,602 | $ | 2,730 | $ | 5,001 | |||||
Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations | |||||||||||
The following table sets forth reconciliation between the statutory EIT rate and the effective tax rate for China operations: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory EIT rate | 25 | % | 25 | % | 25 | % | |||||
Effect on tax holiday and preferential tax rate | (10 | )% | (12 | )% | (18 | )% | |||||
Permanent differences | (1 | )% | 4 | % | 1 | % | |||||
Change in valuation allowance | 5 | % | 1 | % | — | ||||||
Effective tax rate for China operations | 19 | % | 18 | % | 8 | % | |||||
The provisions for income taxes for the years ended December 31, 2013, 2012 and 2011 differ from the amounts computed by applying the EIT primarily due to the tax holidays and the preferential tax rate enjoyed by certain of the Company’s entities in the PRC. The lower effective tax rate of the Company’s PRC operations for 2011 as primarily due to additional tax holidays received from a newly qualified subsidiary. The effective tax rate of the Company’s PRC operations for 2013 and 2012 increased to 19% and 18% was due to the expiration of tax holidays and the increase in non-deductible expenses. | |||||||||||
The following table sets forth the effect of tax holiday related to China operations: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share amount) | |||||||||||
Tax holiday effect | $ | 7,583 | $ | 1,713 | $ | 10,306 | |||||
Basic net income (loss) per share effect | $ | 0.11 | $ | 0.03 | $ | 0.16 | |||||
Diluted net income (loss) per share effect | $ | 0.11 | $ | 0.03 | $ | 0.16 | |||||
The following table sets forth the significant components of deferred tax assets and liabilities for China operations: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowances for doubtful accounts, accruals and other liabilities | $ | 16,523 | $ | 12,977 | |||||||
Net operating loss carry forwards | 3,082 | 3,187 | |||||||||
Depreciation | 139 | 467 | |||||||||
Total deferred tax assets | 19,744 | 16,631 | |||||||||
Less: valuation allowance | (15,190 | ) | (10,810 | ) | |||||||
Net deferred tax assets | $ | 4,554 | $ | 5,821 | |||||||
Including – Current deferred tax assets | 3,480 | 4,161 | |||||||||
– Non-current deferred tax assets | 1,074 | 1,660 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | (469 | ) | $ | (389 | ) | |||||
Others | (621 | ) | (199 | ) | |||||||
Total deferred tax liabilities | $ | (1,090 | ) | $ | (588 | ) | |||||
Including – Current deferred tax liabilities | (621 | ) | (199 | ) | |||||||
- Non-current deferred tax liabilities | (469 | ) | (389 | ) | |||||||
Valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Company considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carryforwards; and (iii) tax planning strategies. Historically, deferred tax assets were valued using the previous statutory rate of 25% or applicable preferential rates. | |||||||||||
As of December 31, 2013 and 2012, the Company provided full valuation allowance of the deferred tax assets for China operations mainly relates to the allowance for doubtful accounts, given that the Company believes it is more likely than not that these deferred tax assets will not be utilized. | |||||||||||
As of December 31, 2013, the Company had net operating loss carry forwards totaling $12.1 million, of which $6.7 million were provided with valuation allowance and the remaining $5.4 million is expected to be utilized prior to expiration. As of December 31, 2012, the Company had net operating loss carry forwards totaling $12.7 million, of which $6.6 million were provided with valuation allowance and the remaining $6.1 million is expected to be utilized prior to expiration. | |||||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Net Income (Loss) Per Share | ' | ||||||||||
Net Income (Loss) Per Share | ' | ||||||||||
12. Net Income (Loss) Per Share | |||||||||||
Basic net income (loss) per share is computed using the weighted average number of the ordinary shares outstanding during the period. Restricted share units are not considered outstanding in the computation of basic earnings per share (“EPS”). Diluted EPS is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in EPS amounts or a decrease in loss per share amounts) on net income per share. For the year ended December 31, 2011, options to purchase ordinary shares, restricted share units and convertible debts that were anti-dilutive and excluded from the calculation of diluted net loss per share was 1.7 million. For the year ended December 31, 2013, convertible debt that was anti-dilutive and excluded from the calculation of diluted net income per share was 0.8 million. | |||||||||||
In calculating the Company’s consolidated basic and diluted EPS, the numerator include SINA’s share of income (loss) from Weibo based on Weibo’s basic and diluted EPS, respectively, applying the two-class method, multiplied by the number of Weibo shares held by SINA. In periods during which Weibo is profitable, the preferred shares held by Alibaba, a related party of the Company, are participating securities and, therefore, all profits of Weibo are allocated to ordinary shares and participating securities based on their dividend rights, as if all of the earnings for the period had been distributed. Considering that the holder of preferred shares has no contractual obligation to fund the losses of the Weibo business in excess of the initial investment, the Company believes that in applying the two-class method of calculating EPS in accordance with ASC 260-10, in periods during which Weibo recognizes losses, any losses from Weibo should not be allocated to the preferred shares, as a conversion of the preferred shares would increase the denominator to share losses, which would be anti-dilutive to the EPS calculation. For the year ended December 31, 2013, the effect from preferred shares on consolidated net income per share of dilutive shares from Weibo was zero as Weibo recognized losses in 2013. | |||||||||||
Additionally, the Company takes into account the effect on consolidated net income per share of dilutive shares of entities in which the Company holds equity interests that are accounted for using the equity method. | |||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Basic net income per share calculation: | |||||||||||
Numerator: | |||||||||||
Net income (loss) attributable to SINA | $ | 45,132 | $ | 31,738 | $ | (302,092 | ) | ||||
Denominator: | |||||||||||
Weighted average ordinary shares outstanding | 66,741 | 66,401 | 65,121 | ||||||||
Basic net income (loss) per share attributable to SINA | $ | 0.68 | $ | 0.48 | $ | (4.64 | ) | ||||
Diluted net income (loss) per share calculation: | |||||||||||
Numerator: | |||||||||||
Net income (loss) attributable to SINA | $ | 45,132 | $ | 31,738 | $ | (302,092 | ) | ||||
Less: Effect on consolidated net income per share of dilutive shares of the Company’s equity interests | (959 | ) | (555 | ) | — | ||||||
Net income (loss) attributable for calculating diluted net income (loss) per share | 44,173 | 31,183 | (302,092 | ) | |||||||
Denominator: | |||||||||||
Weighted average ordinary shares outstanding | 66,741 | 66,401 | 65,121 | ||||||||
Weighted average ordinary shares equivalents: | |||||||||||
Effects of dilutive securities | |||||||||||
Stock options | 264 | 294 | — | ||||||||
Unvested restricted share units | 82 | 104 | — | ||||||||
Convertible debts | — | 50 | — | ||||||||
Shares used in computing diluted net income (loss) per share attributable to SINA | 67,087 | 66,849 | 65,121 | ||||||||
Diluted net income (loss) per share attributable to SINA | $ | 0.66 | $ | 0.47 | $ | (4.64 | ) | ||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans | ' |
Employee Benefit Plans | ' |
13. Employee Benefit Plans | |
China Contribution Plan | |
The Company’s subsidiaries and VIEs in China participate in a government-mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the Company’s subsidiary to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. For the years ended December 31, 2013, 2012 and 2011, the Company contributed a total of $40.6 million, $31.2 million and $19.8 million, respectively. | |
401(k) Savings Plan | |
The Company’s U.S. subsidiary has a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). Under the 401(k) Plan, participating employees may defer 100% of their eligible pretax earnings up to the Internal Revenue Service’s annual contribution limit. All employees on the U.S. payroll of the Company age 21 years or older are eligible to participate in the 401(k) Plan. The Company has not been required to contribute to the 401(k) Plan. | |
Profit_Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2013 | |
Profit Appropriation | ' |
Profit Appropriation | ' |
14. Profit Appropriation | |
The Company’s subsidiaries and VIEs in China are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign-Invested Enterprises (“FIEs”), its subsidiaries have to make appropriations from its after-tax profit (as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. General reserve fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. The appropriation of the other two reserve funds is at the Company’s discretion. At the same time, the Company’s VIEs, in accordance with the China Company Laws, must make appropriations from its after-tax profit (as determined under the PRC GAAP) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. Statutory surplus fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. | |
General reserve fund and statutory surplus fund are restricted for set off against losses, expansion of production and operation or increase in register capital of the respective company. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation. | |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Shareholders' Equity | ' | |||||||||||||
Shareholders' Equity | ' | |||||||||||||
15. Shareholders’ Equity | ||||||||||||||
Stockholder Rights Plan | ||||||||||||||
In 2005, the Company put in place a Rights Plan to protect the best interests of all shareholders. In general, the Plan vests stockholders of SINA with rights to purchase ordinary shares of the Company at a substantial discount from those securities’ fair market value upon a person or group acquiring, without the approval of the Board of Directors, more than 10% of the Company’s ordinary shares. Any person or group who triggers the purchase right distribution becomes ineligible to participate in the Plan, causing substantial dilution of such person or group’s holdings. The rights will expire on February 22, 2015. | ||||||||||||||
In addition, the Company’s Board of Directors has the authority, without further action by its shareholders, to issue up to 3,750,000 preference shares in one or more series and to fix the powers and rights of these shares, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with its ordinary shares. Preference shares could thus be issued quickly with terms calculated to delay or prevent a change in control or make removal of management more difficult. Similarly, the Board of Directors may approve the issuance of debentures convertible into voting shares, which may limit the ability of others to acquire control of the Company. | ||||||||||||||
Amended and Restated 2007 Share Incentive Plan | ||||||||||||||
On June 29, 2007, the Company adopted the 2007 Share Incentive Plan (the “2007 Plan”), which plan was amended and restated on August 2, 2010 (the “Amended and Restated 2007 Plan”). The Amended and Restated 2007 Plan permits the granting of share options, share appreciation rights, restricted share units and restricted shares. The Amended and Restated 2007 Plan will terminate on August 1, 2015, unless it is terminated earlier by our Board of Directors. Under the plan, a total of 10,000,000 ordinary shares of the Company are available for issuance. The maximum number of ordinary shares available for issuance will be reduced by one share for every one share issued pursuant to a share option or share appreciation right and by 1.75 share for every one share issued as restricted shares or pursuant to a restricted shares unit. The maximum number of ordinary shares that may be granted subject to awards under the Amended and Restated 2007 Plan during any given fiscal year will be limited to 3% of the total outstanding shares of the Company as of the end of the immediately preceding fiscal year, plus any shares remaining available under the share pool for the immediately preceding fiscal year. Share options and share appreciation rights must be granted with an exercise price of at least 100% of the fair market value on the date of grant. Upon adoption, the 2007 Plan replaced the existing 1999 Stock Plan and 1999 Directors’ Stock Option Plan and, as a result, no additional awards could be made under such plans. As of December 31, 2013, there were 848,000 options and 418,000 restricted share units outstanding under the Amended and Restated 2007 Plan. | ||||||||||||||
1999 Stock Plan | ||||||||||||||
In May 1999, the Company adopted the 1999 Stock Plan (the “1999 Plan”). The 1999 Plan provides for the granting of stock options to employees, consultants and directors of the Company. Options granted under the Plan may be either incentive stock options or nonqualified stock options. Incentive stock options (“ISO”) may be granted only to Company employees (including officers and directors who are also employees). Nonqualified stock options (“NSO”) may be granted to Company employees and consultants. Options under the Company’s 1999 Plan may be granted for a term of up to ten years and at prices determined by the Board of Directors of the Company, provided, however, that the exercise price of an ISO shall not be less than 100% of the fair value of the shares on the date of grant or, if granted to a 10% shareholder, shall not be less than 110% of the fair value of the shares on the date of grant. The exercise price of an NSO granted to an executive officer of the Company shall not be less than 100% of the fair value of the shares on the date of grant if such option is intended to qualify as performance-based compensation under Section 162(m) of the US Internal Revenue Code of 1986, as amended. Options granted under the 1999 Plan generally vest over a 4-year term. Certain grants are exercisable immediately under such terms and conditions as determined by the Board of Directors. Ordinary shares issued upon such early exercises are subject to rights of repurchases by the Company until such shares become fully vested. As of December 31, 2013, there were a total of 53,000 options outstanding under the 1999 Plan. | ||||||||||||||
1999 Directors’ Stock Option Plan | ||||||||||||||
In October 1999, the Board approved the 1999 Directors’ Stock Option Plan (the “Directors’ Plan”) covering an aggregate of 750,000 ordinary shares. The Directors’ Plan became effective on the effective date of the initial public offering and provides a non-employee director after the completion of the offering (1) a non-statutory stock option to purchase 37,500 ordinary shares on the date on which he or she first becomes a member of the Board of Directors, and (2) an additional non statutory stock option to purchase 15,000 shares on the date of each annual shareholders’ meeting immediately thereafter, if on such date he or she has served on the Board for at least six months. All options granted under the Directors’ Plan shall have an exercise price equal to 100% of the fair value of the shares on the date of grant and shall have a term of 10 years from the date of grant. All options granted under the Directors’ Plan vest in full immediately upon grant. On September 27, 2005, the shareholders of the Company approved an increase to the aggregate number of ordinary shares issuable under the Directors’ Plan from 750,000 ordinary shares to 1,125,000 ordinary shares. As of December 31, 2013, 137,000 options were outstanding under the Directors’ Plan. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The following table sets stock-based compensation included in each of the accounts: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Costs of revenues | $ | 6,234 | $ | 3,154 | $ | 3,346 | ||||||||
Sales and marketing | 8,643 | 3,729 | 3,155 | |||||||||||
Product development | 11,418 | 3,776 | 3,082 | |||||||||||
General and administrative | 20,806 | 8,699 | 7,024 | |||||||||||
$ | 47,101 | $ | 19,358 | $ | 16,607 | |||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options. Stock based compensation for the year ended December 31, 2013 included $27.1 million to reflect the difference between the proceeds received by employees and the fair value of the vested shares sold to Alibaba. (See Note 7 — Investment in Weibo for further discussion). As of December 31, 2013, there was $9.5 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards granted to the Company’s employees and non-employee directors that will be recognized over a weighted-average period of 2.1 years. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. | ||||||||||||||
Stock Options | ||||||||||||||
The assumptions used to value the Company’s option grants were as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 4.1 | 3.8-4.0 | — | |||||||||||
Expected volatility | 58 | % | 62%-63% | — | ||||||||||
Risk-free interest rate | 0.6 | % | 0.40% | — | ||||||||||
Expected dividend yield | — | — | — | |||||||||||
No option was granted in 2011. Expected term represents the weighted average period of time that stock-based awards granted are expected to be outstanding giving consideration to historical exercise patterns. The simplified method was used for 2013 and 2012, due to the lack of industry comparison and comparable historical exercise patterns. Options granted since 2007 have a contractual life of either six or seven years, compared ten years for previous grants. Most of the grants under the new terms have not been fully vested nor forfeited. In addition, the Company experienced significant changes in revenue mix and employee composition in recent years. For these reasons, the Company believes that share option exercise pattern on new grants may not reflect those of previous grants. Expected volatilities are based on historical volatilities of the Company’s ordinary shares over the respective expected term of the stock-based awards. Risk-free interest rate is based on US Treasury zero-coupon issues with maturity terms similar to the expected term on the stock-based awards. The Company does not anticipate paying any cash dividends in the foreseeable future. | ||||||||||||||
The following table sets forth the summary of number of shares available for issuance: | ||||||||||||||
Shares Available | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 | 6,742 | |||||||||||||
Granted* | (604 | ) | ||||||||||||
Cancelled/expired/forfeited | 21 | |||||||||||||
December 31, 2011 | 6,159 | |||||||||||||
Granted* | (1,040 | ) | ||||||||||||
Cancelled/expired/forfeited | 133 | |||||||||||||
December 31, 2012 | 5,252 | |||||||||||||
Granted* | (610 | ) | ||||||||||||
Cancelled/expired/forfeited | 69 | |||||||||||||
December 31, 2013 | 4,711 | |||||||||||||
* In 2013, 2012 and 2011, 258,000, 246,000 and 345,000 restricted shares units, or 451,500, 430,500 and 603,750 equivalent option shares, respectively, were granted. | ||||||||||||||
The following table sets forth the summary of option activities under the Company’ stock option program: | ||||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | |||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Life | ||||||||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||||
December 31, 2010 | 1,021 | $ | 29.34 | 3.06 | $ | 40,321 | ||||||||
Exercised | (239 | ) | $ | 25.78 | ||||||||||
Cancelled/expired/forfeited | (2 | ) | $ | 33.01 | ||||||||||
December 31, 2011 | 780 | $ | 30.42 | 2.08 | $ | 16,832 | ||||||||
Granted | 610 | 50.75 | ||||||||||||
Exercised | (180 | ) | $ | 24.71 | ||||||||||
Cancelled/expired/forfeited | (1 | ) | $ | 32.84 | ||||||||||
December 31, 2012 | 1,209 | $ | 41.53 | 3.5 | $ | 11,183 | ||||||||
Granted | 160 | 53.83 | ||||||||||||
Exercised | (325 | ) | 35.73 | |||||||||||
Cancelled/expired/forfeited | (6 | ) | 30.39 | |||||||||||
December 31, 2013 | 1,038 | 45.31 | 3.48 | $ | 40,411 | |||||||||
Vested and expected to vest as of December 31, 2012 | 1,181 | $ | 41.33 | 3.45 | $ | 11,156 | ||||||||
Exercisable as of December 31, 2012 | 689 | $ | 34.66 | 1.98 | $ | 10,826 | ||||||||
Vested and expected to vest as of December 31, 2013 | 1,024 | $ | 45.21 | 3.46 | $ | 39,964 | ||||||||
Exercisable as of December 31, 2013 | 562 | $ | 39.93 | 2.46 | $ | 24,927 | ||||||||
The total intrinsic value of options exercised during 2013, 2012 and 2011 was $12.4 million, $6.8 million and $17.6 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. Cash received from the exercises of stock option of the company during 2013, 2012 and 2011 was $10.3 million and $4.4 million and $6.2 million. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2013 and 2012 was $84.25 and $50.22, respectively. | ||||||||||||||
As of December 31, 2013, there was $9.5 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 2.1 years. As of December 31, 2012, there was $11.1 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 2.6 years. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. | ||||||||||||||
Information regarding the stock options outstanding as of December 31, 2013 and 2012 are summarized below: | ||||||||||||||
Range of Exercise Prices | Options | Weighted | Options | Weighted | Weighted Average | |||||||||
Outstanding | Average | Exercisable | Average | Remaining | ||||||||||
Exercise Price | Exercise Price | Contractual Life | ||||||||||||
(In thousands) | (In thousands) | (In years) | ||||||||||||
As of December 31, 2013 | ||||||||||||||
$ 20.86 - $33.29 | 221 | $ | 27.74 | 221 | $ | 27.74 | 0.89 | |||||||
$ 36.40 - $45.13 | 157 | $ | 41.72 | 111 | $ | 40.33 | 2.29 | |||||||
$ 51.48 - $51.48 | 500 | $ | 51.48 | 230 | $ | 51.48 | 4.49 | |||||||
$ 53.83 - $53.83 | 160 | $ | 53.83 | — | $ | — | 5.05 | |||||||
1,038 | $ | 45.31 | 562 | $ | 39.93 | 3.48 | ||||||||
As of December 31, 2012 | ||||||||||||||
$ 12.98 - $24.23 | 129 | $ | 20.91 | 129 | $ | 20.91 | 1.38 | |||||||
$ 24.39 - $30.35 | 107 | $ | 27.33 | 107 | $ | 27.33 | 2.41 | |||||||
$ 33.29 - $33.29 | 183 | $ | 33.29 | 183 | $ | 33.29 | 1.17 | |||||||
$ 33.68 - $51.48 | 790 | $ | 48.73 | 270 | $ | 45.07 | 4.53 | |||||||
1,209 | $ | 41.53 | 689 | $ | 34.66 | 3.5 | ||||||||
Restricted Share Units | ||||||||||||||
Summary of Service-Based Restricted Share Units | ||||||||||||||
The following table sets forth the summary of service-based restricted share unit (“RSU”) activities: | ||||||||||||||
Shares Granted | Weighted-Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 | 538 | $ | 29.06 | |||||||||||
Awarded* | 345 | $ | 80.83 | |||||||||||
Vested | (376 | ) | $ | 31.75 | ||||||||||
Cancelled | (11 | ) | $ | 61.09 | ||||||||||
December 31, 2011 | 496 | $ | 62.37 | |||||||||||
Awarded* | 134 | $ | 48.57 | |||||||||||
Vested | (238 | ) | $ | 51.36 | ||||||||||
Cancelled | (31 | ) | $ | 64.34 | ||||||||||
December 31, 2012 | 361 | $ | 65.87 | |||||||||||
Awarded* | 257 | $ | 71.24 | |||||||||||
Vested | (162 | ) | $ | 61.73 | ||||||||||
Cancelled | (38 | ) | $ | 63.07 | ||||||||||
December 31, 2013 | 418 | $ | 71.03 | |||||||||||
* 36,000 RSUs were granted to non-employee directors in 2013, 2012 and 2011. | ||||||||||||||
As of December 31, 2013, there was $28.2 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested, service-based RSUs granted to the Company’s employees and non-employee directors. This cost is expected to be recognized over a weighted-average period of 3.1 years. As of December 31, 2012, there was $21.9 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested, service-based RSUs granted to the Company’s employees and non-employee directors. This cost is expected to be recognized over a weighted-average period of 3.0 years. The total fair value based on the respective vesting dates of the restricted share units vested was $11.3 million, $12.5 million and $34.2 million during the years ended December 31, 2013, 2012 and 2011 respectively. | ||||||||||||||
Summary of Performance-Based RSUs | ||||||||||||||
The following table sets forth a summary of performance-based RSU activities in the years ended December 31, 2013 and 2012: | ||||||||||||||
Shares Granted | Weighted-Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2011 | — | |||||||||||||
Awarded | 112 | $ | 50.83 | |||||||||||
Issued | — | |||||||||||||
Cancelled | (44 | ) | $ | 50.98 | ||||||||||
December 31, 2012 | 68 | $ | 50.73 | |||||||||||
Awarded | — | |||||||||||||
Issued | (68 | ) | $ | 50.73 | ||||||||||
Cancelled | — | |||||||||||||
December 31, 2013 | — | |||||||||||||
As of December 31, 2013 and 2012, there were no unrecognized compensation cost related to performance-based restricted share units granted to the Company’s employees. No performance-based RSUs were granted in 2011. | ||||||||||||||
Weibo’s Stock-Based Compensation | ||||||||||||||
In August 2010, the Company’s subsidiary Weibo Corporation (formerly known as T.CN Corporation) adopted a 2010 Share Incentive Plan (the “2010 Weibo Incentive Plan”, formerly known as 2010 T.CN Plan), which permits the granting of stock options, share appreciation rights, restricted share units and restricted shares of Weibo to employees, directors and consultants. Weibo granted its options equivalent to approximately 1.7%, 1.3% and 1.1% of Weibo’s ordinary shares on a fully diluted basis in 2013, 2012 and 2011, respectively. Fair value of options estimated at grant date for 2013, 2012 and 2011 was $16.9 million, $3.6 million and $1.0 million, respectively. | ||||||||||||||
The following table sets forth the stock-based compensation included in each of the relevant accounts arising from Weibo’s incentive plan: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Cost of revenues | $ | 4,253 | $ | 201 | $ | 125 | ||||||||
Sales and marketing | 6,150 | 330 | 182 | |||||||||||
Product development | 9,209 | 638 | 467 | |||||||||||
General and administrative | 11,630 | 668 | 228 | |||||||||||
$ | 31,242 | $ | 1,837 | $ | 1,002 | |||||||||
Stock compensation expenses related to the grants for Weibo were amortized over four years on a straight-line basis with $4.1 million, $1.8 million and $1.0 million in 2013, 2012 and 2011, respectively. Stock-based compensation related to 2010 Weibo Incentive Plan for the year ended December 31, 2013 included a $27.1 million expense, which was the difference between the purchase price and the fair value of ordinary shares or vested options purchased from employees in connection with the Alibaba transaction (See Note 7). | ||||||||||||||
Weibo’s Stock Options | ||||||||||||||
Weibo uses the Black-Scholes option pricing model to estimate the fair value of stock options. The assumptions used to value Weibo’s option grants were as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 3.5 - 4.8 | 3.5 - 4.8 | 4.8 | |||||||||||
Expected volatility | 54% -61% | 60% - 63% | 52% - 55% | |||||||||||
Risk-free interest rate | 0.5% - 1.2% | 0.4% - 0.8% | 1.1% - 1.8% | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Expected term represents the weighted average period of time that stock-based awards granted are expected to be outstanding taking consideration of historical exercise patterns. Due to the lack of industry comparison and comparable historical exercise pattern, Weibo used the simplified method to calculate the expected term. Expected volatilities are based on historical volatilities of comparable companies’ ordinary shares over the respective expected term of the stock-based awards. Risk-free interest rate is based on US Treasury zero-coupon issues with maturity terms similar to the expected term on the stock-based awards. Weibo does not anticipate paying any cash dividends in the foreseeable future. | ||||||||||||||
The following table sets forth a summary of the number of shares available for issuance under Weibo’s incentive plan: | ||||||||||||||
Shares Available | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 (unaudited) | 8,224 | |||||||||||||
Granted | (1,879 | ) | ||||||||||||
Cancelled/expired/forfeited | 383 | |||||||||||||
December 31, 2011 | 6,728 | |||||||||||||
Granted | (2,175 | ) | ||||||||||||
Cancelled/expired/forfeited | 908 | |||||||||||||
Repurchased | 2,625 | |||||||||||||
December 31, 2012 | 8,086 | |||||||||||||
Granted* | (4,772 | ) | ||||||||||||
Cancelled/expired/forfeited | 1,157 | |||||||||||||
Repurchased | 177 | |||||||||||||
December 31, 2013 | 4,648 | |||||||||||||
* In 2013, 800,000 restricted share units or 1,400,000 equivalent option shares was granted (see Restricted Share Units of Weibo section below for details), in addition to 3,372,000 stock options granted. | ||||||||||||||
The following table sets forth the summary of option activities under Weibo’ stock option program: | ||||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | |||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Life | ||||||||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||||
December 31, 2010 | 26,776 | $ | 0.36 | 6.4 | $ | 1,250 | ||||||||
Granted | 1,879 | $ | 1.13 | |||||||||||
Cancelled/expired/forfeited | (383 | ) | $ | 0.38 | ||||||||||
December 31, 2011 | 28,272 | $ | 0.41 | 5.5 | $ | 82,726 | ||||||||
Granted | 2,175 | $ | 3.34 | |||||||||||
Exercise | (3,445 | ) | $ | 0.36 | ||||||||||
Cancelled/expired/forfeited | (908 | ) | $ | 0.6 | ||||||||||
Repurchased | (2,625 | ) | $ | 0.36 | ||||||||||
December 31, 2012 | 23,469 | $ | 0.69 | 4.6 | $ | 60,226 | ||||||||
Granted | 3,372 | $ | 3.38 | |||||||||||
Exercise | (3,449 | ) | $ | 0.38 | ||||||||||
Cancelled/expired/forfeited | (1,157 | ) | $ | 2.49 | ||||||||||
Repurchased | (3,674 | ) | $ | 0.45 | ||||||||||
December 31, 2013 | 18,561 | $ | 1.17 | 4.3 | $ | 239,975 | ||||||||
Vested and expected to vest as of December 31, 2012 | 23,006 | $ | 0.67 | 4.6 | $ | 59,507 | ||||||||
Exercisable as of December 31, 2012 | 8,557 | $ | 0.38 | 4.5 | $ | 24,584 | ||||||||
Vested and expected to vest as of December 31, 2013 | 18,261 | $ | 1.14 | 4.3 | $ | 236,716 | ||||||||
Exercisable as of December 31, 2013 | 8,957 | $ | 0.48 | 3.7 | $ | 122,026 | ||||||||
The total intrinsic value of options exercised for the years ended December 31, 2013, 2012 and 2011 was $37.3 million, $10.3 million and nil, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. Cash received from the exercises of stock option for Weibo during the years ended December 31, 2013, 2012 and 2011 was $1.0 million, nil and $2.2 million, respectively. | ||||||||||||||
As of December 31, 2013 and 2012, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to Weibo’s employees and directors was $16.4 million and $4.8 million, respectively. Total unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.9 years and may be adjusted for future changes in estimated forfeitures. | ||||||||||||||
Information regarding stock options of Weibo outstanding is summarized below: | ||||||||||||||
Range of Exercise Prices | Options | Weighted | Options | Weighted | Weighted Average | |||||||||
Outstanding | Average | Exercisable | Average | Remaining | ||||||||||
Exercise Price | Exercise Price | Contractual Life | ||||||||||||
(In thousands) | (In thousands) | (In years) | ||||||||||||
As of December 31, 2013 | ||||||||||||||
$ 0.36 - $0.41 | 12,571 | $ | 0.36 | 7,989 | $ | 0.36 | 3.7 | |||||||
$ 0.96 - $1.80 | 1,324 | $ | 1.14 | 830 | $ | 1.14 | 4.3 | |||||||
$ 3.25 - $3.36 | 2,822 | $ | 3.3 | 138 | $ | 3.26 | 5.6 | |||||||
$ 3.43 - $3.50 | 1,844 | $ | 3.48 | — | $ | — | 6.6 | |||||||
18,561 | $ | 1.17 | 8,957 | $ | 0.48 | 4.3 | ||||||||
As of December 31, 2012 | ||||||||||||||
$ 0.36 - $0.41 | 19,567 | $ | 0.36 | 8,522 | $ | 0.37 | 4.6 | |||||||
$ 0.96 - $1.80 | 1,778 | $ | 1.14 | — | $ | — | 4.6 | |||||||
$ 3.25 - $3.36 | 2,124 | $ | 3.34 | 35 | $ | 3.35 | 4.7 | |||||||
23,469 | $ | 0.69 | 8,557 | $ | 0.38 | 4.6 | ||||||||
Weibo’s Restricted Share Units | ||||||||||||||
The following table sets forth the summary of service-based restricted share unit activities for Weibo: | ||||||||||||||
Shares | Weighted-Average | |||||||||||||
Granted | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
(In | ||||||||||||||
thousands) | ||||||||||||||
December 31, 2012 | — | |||||||||||||
Awarded | 800 | $ | 13.19 | |||||||||||
December 31, 2013 | 800 | $ | 13.19 | |||||||||||
As of December 31, 2013, there was $9.2 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested, service-based RSUs granted to Weibo’s employees and non-employee directors. This cost is expected to be recognized over a weighted-average period of 3.9 years. There were no restricted share units vested during the year ended December 31, 2013. | ||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
16. Segment Information | |||||||||||||||||
Prior to 2013, the Company operated three principal business segments — advertising, MVAS and other non-advertising. Information provided to the Company’s chief operating decision makers (“CODM”), the Company’s Chief Executive Officer was at the gross margin level. Starting in the fourth quarter of 2013, the Company’s CODM began to review the operating performance of Weibo, which previously was separately presented in the advertising and other non-advertising segments. | |||||||||||||||||
To better reflect management’s perspective and match the segment presentation with recent business developments, the Company reformatted its segment information for prior periods. Accordingly, Portal advertising includes previous advertising business excluding Weibo’s advertising and marketing services, and Others includes MVAS and other non-advertising and excludes Weibo’s non-advertising services. Portal advertising and Others operating performance measurement was provided to the Company’s CODM at the gross margin level and the combined results were presented at the net income (loss) level. Weibo’s operating performance measurement was provided to the Company’s CODM at the net income (loss) level. | |||||||||||||||||
The Company currently does not allocate operating costs nor assets to all of its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. The Company currently does not allocate other long-lived assets to the geographic operations, except for property and equipment. | |||||||||||||||||
The following tables present summary information by segment: | |||||||||||||||||
For the Year Ended December 31, 2013: | |||||||||||||||||
Portal | Others | Portal | Total | ||||||||||||||
advertising | advertising & Others | ||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 378,068 | $ | 98,725 | $ | 476,793 | $ | 188,313 | $ | 665,106 | |||||||
Costs of revenues | 161,385 | 49,788 | 211,173 | 59,891 | 271,064 | ||||||||||||
Gross margin | 57 | % | 50 | % | 56 | % | 68 | % | 59 | % | |||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 97,342 | $ | 63,069 | $ | 160,411 | |||||||||||
Product development | 45,592 | 100,740 | 146,332 | ||||||||||||||
General and administrative | 42,210 | 22,517 | 64,727 | ||||||||||||||
Total operating expenses | 185,144 | 186,326 | 371,470 | ||||||||||||||
Income (loss) from operations | 80,476 | (57,904 | ) | 22,572 | |||||||||||||
Interest and other income, net | 21,676 | (2,884 | ) | 18,792 | |||||||||||||
Change in fair value of investor option liability | — | 21,064 | 21,064 | ||||||||||||||
Income (loss) from equity method investment, net | 10,761 | (1,236 | ) | 9,525 | |||||||||||||
Realized gain (loss) on long-term investments | (10,503 | ) | 3,116 | (7,387 | ) | ||||||||||||
Investment impairment | (6,134 | ) | — | (6,134 | ) | ||||||||||||
Income (loss) before income tax expenses | 96,276 | (37,844 | ) | 58,432 | |||||||||||||
Income tax expense | (14,331 | ) | (271 | ) | (14,602 | ) | |||||||||||
Net income (loss) | $ | 81,945 | $ | (38,115 | ) | $ | 43,830 | ||||||||||
For the Year Ended December 31, 2012(restated): | |||||||||||||||||
Portal | Others | Portal | Total | ||||||||||||||
advertising | advertising & Others | ||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 363,198 | $ | 100,202 | $ | 463,400 | $ | 65,929 | $ | 529,329 | |||||||
Costs of revenues | 154,526 | 46,977 | 201,503 | 46,429 | 247,932 | ||||||||||||
Gross margin | 57 | % | 53 | % | 57 | % | 30 | % | 53 | % | |||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 101,962 | $ | 40,380 | $ | 142,342 | |||||||||||
Product development | 37,020 | 71,186 | 108,206 | ||||||||||||||
General and administrative | 33,619 | 5,778 | 39,397 | ||||||||||||||
Total operating expenses | 172,601 | 117,344 | 289,945 | ||||||||||||||
Income (loss) from operations | 89,296 | (97,844 | ) | (8,548 | ) | ||||||||||||
Interest and other income, net | 21,651 | (4,853 | ) | 16,798 | |||||||||||||
Loss from equity method investment, net | (9,390 | ) | (1,340 | ) | (10,730 | ) | |||||||||||
Realized gain on long-term investments | 55,563 | — | 55,563 | ||||||||||||||
Investment impairment | (18,498 | ) | — | (18,498 | ) | ||||||||||||
Income (loss) before income tax expenses | 138,622 | (104,037 | ) | 34,585 | |||||||||||||
Income tax benefit (expense ) | (4,281 | ) | 1,551 | (2,730 | ) | ||||||||||||
Net income (loss) | $ | 134,341 | $ | (102,486 | ) | $ | 31,855 | ||||||||||
For the Year Ended December 31, 2011(restated): | |||||||||||||||||
Portal | Others | Portal advertising &Others | Total | ||||||||||||||
advertising | |||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 368,805 | $ | 114,024 | $ | 482,829 | $ | — | $ | 482,829 | |||||||
Costs of revenues | 127,931 | 57,890 | 185,821 | 29,527 | 215,348 | ||||||||||||
Gross margin | 65 | % | 49 | % | 62 | % | — | 55 | % | ||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 90,819 | $ | 45,048 | $ | 135,867 | |||||||||||
Product development | 29,343 | 36,921 | 66,264 | ||||||||||||||
General and administrative | 26,140 | 3,981 | 30,121 | ||||||||||||||
Goodwill impairment | 68,891 | — | 68,891 | ||||||||||||||
Total operating expenses | 215,193 | 85,950 | 301,143 | ||||||||||||||
Income (loss) from operations | 81,815 | (115,477 | ) | (33,662 | ) | ||||||||||||
Interest and other income, net | 18,077 | (1,750 | ) | 16,327 | |||||||||||||
Income (loss) from equity method investment, net | 1,889 | (423 | ) | 1,466 | |||||||||||||
Investment impairment | (281,548 | ) | — | (281,548 | ) | ||||||||||||
Income (loss) before income tax expenses | (179,767 | ) | (117,650 | ) | (297,417 | ) | |||||||||||
Income tax expense | (5,001 | ) | — | (5,001 | ) | ||||||||||||
Net loss | $ | (184,768 | ) | $ | (117,650 | ) | $ | (302,418 | ) | ||||||||
The following is a summary of the Company’s geographic operations: | |||||||||||||||||
PRC | International | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Year ended and as of December 31, 2013: | |||||||||||||||||
Net revenues | $ | 660,695 | $ | 4,411 | $ | 665,106 | |||||||||||
Long-lived assets | $ | 75,691 | $ | 5,229 | $ | 80,920 | |||||||||||
Year ended and as of December 31, 2012: | |||||||||||||||||
Net revenues | $ | 525,678 | $ | 3,651 | $ | 529,329 | |||||||||||
Long-lived assets | $ | 76,195 | $ | 445 | $ | 76,640 | |||||||||||
Year ended and as of December 31, 2011: | |||||||||||||||||
Net revenues | $ | 479,341 | $ | 3,488 | $ | 482,829 | |||||||||||
Long-lived assets | $ | 74,112 | $ | 399 | $ | 74,511 | |||||||||||
Revenues are attributed to the countries in which the invoices are issued. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Financial Instruments | ' | |||||||||||||
17. Financial Instruments | ||||||||||||||
Fair Value | ||||||||||||||
The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 and 2012: | ||||||||||||||
Fair Value Measurements | ||||||||||||||
(In thousands) | ||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | |||||||||||
Active Market | Observable Inputs | Unobservable Inputs | ||||||||||||
for Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Money market funds* | $ | 10,480 | $ | 10,480 | $ | — | $ | — | ||||||
Bank time deposits** | 1,385,164 | — | 1,385,164 | — | ||||||||||
Available-for-sale securities*** | 139,675 | 139,675 | — | — | ||||||||||
Investor option liability | (29,504 | ) | — | — | (29,504 | ) | ||||||||
Total | $ | 1,505,815 | $ | 150,155 | $ | 1,385,164 | $ | (29,504 | ) | |||||
As of December 31, 2012 | ||||||||||||||
Money market funds* | $ | 10,005 | $ | 10,005 | $ | — | $ | — | ||||||
Bank time deposits** | 559,393 | — | 559,393 | — | ||||||||||
Available-for-sale securities*** | 88,119 | 88,119 | — | — | ||||||||||
Total | $ | 657,517 | $ | 98,124 | $ | 559,393 | $ | — | ||||||
* Included in cash and cash equivalents on the Company’s consolidated balance sheets. | ||||||||||||||
** Included in cash and cash equivalents and short-term investments on the Company’s consolidated balance sheets. | ||||||||||||||
*** Included in long-term investments on the Company’s consolidated balance sheets. | ||||||||||||||
Recurring | ||||||||||||||
The Company measures money market funds, bank time deposits, available-for-sale securities and investor option liability at fair value on a recurring basis. | ||||||||||||||
The fair values of the Company’s money market funds and available-for-sale securities are determined based on the quoted market price (Level 1). The fair value of the Company’s bank time deposits are determined based on the quoted market price for similar products (Level 2). The investor option liability, which enables Alibaba, a related party of the Company, to purchase additional ordinary shares and increase its ownership in Weibo up to 30% on a fully-diluted basis (See Note 7), is measured using significant unobservable inputs (Level 3) when determining its fair value. | ||||||||||||||
The Company utilized the Binomial option pricing model to determine the fair value of the investor option liability. Estimates of the volatility for the option pricing model were based on the volatility of ordinary shares of a group of comparable, publicly-traded companies. Estimates of expected life were based on the estimated time to liquidation events, and in particular, estimates regarding the timing of a qualified IPO, the likelihood that the Company would undertake a liquidation event other than a qualified IPO, as well as assumptions regarding whether Alibaba would choose to sell off more than 25% of its shares in the Company and, if so, when. Accordingly, the weighted time period for the expiration of the option liability was estimated at 1.4 years. The risk-free interest rate was based on the U.S. Treasury yield for a term consistent with the estimated expected life. | ||||||||||||||
The key inputs used in investor option liability valuation as of December 31, 2013 were as follows: | ||||||||||||||
As of | ||||||||||||||
December 31, 2013 | ||||||||||||||
Expected dividend yield | — | |||||||||||||
Risk-free interest rate | 0.3 | % | ||||||||||||
Expected volatility | 53 | % | ||||||||||||
Expected life (in years) | 1.4 | |||||||||||||
Fair value per ordinary share of Weibo | $ | 14.1 | ||||||||||||
The investor option liability was valued at $50.6 million as of the Transaction Date. A gain of $21.1 million was recognized in 2013 as subsequent change in fair value when marked to market in the Company’s consolidated statements of comprehensive income (loss). | ||||||||||||||
Determination of these unobservable inputs requires complex and subjective judgments due to the limited financial and operating history of Weibo, unique business risks and limited public information on companies in China similar to Weibo’s business. Changes in these inputs might result in a significantly higher or lower fair value measurement and materially impact the Company’s financial position and results of operations | ||||||||||||||
Non-recurring | ||||||||||||||
The Company measures certain financial assets, including the investments under cost method and equity method on an other than temporary basis, and intangible assets, goodwill and fixed assets are marked to fair value when an impairment charge is recognized. | ||||||||||||||
As of December 31, 2013 and 2012, certain investments under cost method and equity method were measured using significant unobservable inputs (Level 3) and written down from their respective carrying value to a fair value of nil, with impairment charges incurred and recorded in earnings for the year then ended. The impairment charges related to these investments were $6.1 million, $10.1 million and $230.3 million for the years ended December 31, 2013, 2012 and 2011, respectively (see Note 4 for further information). | ||||||||||||||
The Company reviews its available-for-sale investments regularly to determine if an investment is other-than-temporarily impaired due to changes in quoted market price or other impairment indicators. The Company recognized an impairment charge of $8.4 million and $50.9 million on MCOX for 2012 and 2011, respectively. No write down was warranted on MCOX based on its fair value in 2013. | ||||||||||||||
In accordance with the Company policy to perform an impairment assessment of its goodwill on an annual basis as of the balance sheet date or when facts and circumstances warrant a review, the Company performed an impairment assessment on its goodwill of reporting units as of December 31, 2013 and 2012 and concluded that no write down was warranted. | ||||||||||||||
Concentration of Risk | ||||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivables. In addition, with the majority of its operations in China, the Company is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Company has not done so. The Company limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the U.S., PRC, Hong Kong, Singapore and Taiwan, which are among the largest and most respected with high ratings from internationally-recognized rating agencies, that management believes are of high credit quality. The Company periodically reviews these institutions’ reputations, track records and reported reserves. | ||||||||||||||
As of December 31, 2013 and 2012, the Company had $1,844.5 million and $694.0 million in cash and bank deposits, such as time deposits (with terms generally up to twelve months), with large domestic banks in China, respectively. Historically, deposits in Chinese banks were secure due to the state policy on protecting depositors’ interests. However, China promulgated a new Bankruptcy Law that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Bankruptcy Law, a Chinese bank may go bankrupt. In addition, since China’s concession to WTO, foreign banks have been gradually permitted to operate in China and have become significant competitors to Chinese banks in many aspects, especially since the opening of RMB business to foreign banks in late 2006. Therefore, the risk of bankruptcy on Chinese banks in which the Company holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Company’s deposits goes bankrupt, the Company is unlikely to claim its deposits back in full, since it is unlikely to be classified as a secured creditor to the bank under the PRC laws. | ||||||||||||||
Accounts receivable consist primarily of advertising agencies, direct advertising customers and mobile operators. As of December 31, 2013 and 2012, substantially all accounts receivable were derived from the Company’s China operations. | ||||||||||||||
Only one customer accounted for more than 10% of the Company’s total net revenues in 2013 and no individual customer or agency accounted for more than 10% of the Company’s total net revenues in 2012 and 2011. Only one customer accounted for more than 10% of the Company’s net accounts receivables as of December 31, 2013, and no individual customer or agency accounted for more than 10% of the Company’s net accounts receivables as of December 31, 2012. | ||||||||||||||
With regards to the MVAS operations, revenues charged via provincial and local subsidiaries of China Mobile were 8%, 11% and 14% of the Company’s net revenues in 2013, 2012 and 2011, respectively. Revenues from the SMS product line accounted for 2%, 5% and 7%of the Company’s net revenues for 2013, 2012 and 2011 respectively. China Mobile and its provincial and local subsidiaries in aggregate accounted for less than 10% of the Company’s net accounts receivables as of December 31, 2013 and 2012, respectively. Accounts receivable from third-party operators represent MVAS fees collected on behalf of the Company after deducting their billing and collection services and transmission charges. The Company maintains allowances for potential credit losses. Historically, the Company has not had any significant direct write off of bad debts. | ||||||||||||||
The majority of the Company’s net operating income was derived from China. The operations in China are carried out by the subsidiaries and VIEs. The Company depends on dividend payments from its subsidiaries in China after these subsidiaries receive payments from VIEs in China under various services and other arrangements. In addition, under Chinese law, its subsidiaries are only allowed to pay dividends to the Company out of their accumulated profits, if any, as determined in accordance with Chinese accounting standards and regulations. Moreover, these Chinese subsidiaries are required to set aside at least 10% of their respective accumulated profits, if any, up to 50% of their registered capital to fund certain mandated reserve funds that are not payable or distributable as cash dividends. The appropriation to mandated reserve funds are assessed annually. | ||||||||||||||
In 2013, 2012 and 2011, the majority of the Company’s revenues derived and expenses incurred were in RMB. As of December 31, 2013 and 2012, the Company’s cash, cash equivalents and short-term investments balance denominated in RMB was $377.7 million and $310.0 million, accounting for 20.2% and 43.4% of the Company’s total cash, cash equivalents and short-term investments balance, respectively. As of December 31, 2013 and 2012, the Company’s accounts receivable balance denominated in RMB was $191.1 million and $133.4 million, which accounted for 99% and 99% of its net accounts receivable balance, respectively. As of December 31, 2013 and 2012,the Company’s current liabilities balance denominated in RMB was $241.3 million and $181.0 million, which accounted for 74% and 80% of its total current liabilities balance, respectively. Accordingly, the Company may experience economic losses and negative impacts on earnings and equity as a result of exchange rate fluctuations of RMB. Moreover, the Chinese government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Company may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. | ||||||||||||||
The Company performed a test on the restricted net assets of consolidated subsidiaries and VIEs (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets did not exceed 25% of the consolidated net assets of the Company as of December 31, 2013. | ||||||||||||||
Convertible_Debt_and_Treasury_
Convertible Debt and Treasury Stock | 12 Months Ended |
Dec. 31, 2013 | |
Convertible Debt and Treasury Stock. | ' |
Convertible Debt and Treasury Stock | ' |
18.Convertible Debt and Treasury Stock | |
Convertible Debt | |
In 2003, the Company issued a $100 million of zero-coupon, convertible, subordinated notes due in 2023. The zero coupon notes were issued at par and bear no interest. For the year ended December 31, 2011, the Company issued 3.8 million new ordinary shares to settle conversion requests equivalent to $96.8 million, reducing the convertible debt amount to $2.2 million as of December 31, 2011. For the year ended December 31, 2012, the Company issued 0.1 million new ordinary shares to settle conversion requests equivalent to $2.0 million and redeemed the remaining $200,000 convertible debt with cash. No balance of convertible notes was related to the zero-coupon debt issued in 2003 thereafter. There was no impact in the financial statement arising from the zero-coupon, convertible, subordinated notes in 2013. | |
In November 2013, the Company issued $800 million in aggregate principle amount of 1.00% coupon interest convertible senior notes due on December 1, 2018 (the “Notes”) at par. The Notes may be converted into ordinary shares of the Company proceeding December 1, 2018 in $1,000 principal amount or an integral multiple of $1,000 in excess thereof, at the option of the holder, which is equivalent to an initial conversion price of approximately $ 123.70 per ordinary share, subject to adjustment. The conversion rate may be adjusted under certain circumstances, such as distribution of dividends and stock splits. In addition, upon a make-whole fundamental change, the Company will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its Notes in connection with such make-whole fundamental change. As of December 1, 2018, unless earlier converted, the Company is required to redeem or repurchase the notes. | |
The net proceeds to the Company from the issuance of the Notes were $783.2 million, net of issuance cost of $16.8 million. Concurrently, the Company repurchased its shares of $100.0 million from the open market. The Company pays cash interest at an annual rate of 1.00% on the Notes, payable semiannually in arrears in cash on June 1 and December 1 of each year, beginning June 1, 2014. The issuance costs of the Notes are being amortized to interest expense to the earliest conversion date of the Notes (“December 1, 2016”). | |
Concurrently with the issuance of the Notes, the Company offered a put option (“Put Option”) to the holders of the Notes, which enable the holders to have the right to require the Company to repurchase for cash all or part of the Notes at a price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest to the repurchase date (“December 1, 2016”). If a fundamental change (as defined in the Indenture) occurs prior to the maturity date, the Holders may require the Company to purchase for cash all or any portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes to be purchased plus accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date. The Company believes that the likelihood of occurrence of events considered the fundamental change is remote. | |
In accordance with ASC 815-10-15, the Company concluded that (i) The Put Option is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation as the Holders can only recover its initial investment upon exercise of its option, there are no interest rate scenarios under which the embedded derivative would at least double the investor’s initial rate of return; (ii) The bifurcation of the conversion feature from the debt host, the Notes, is not required as the scope exception prescribed in ASC 815-10-15 is met as the conversion option is considered indexed to the entity’s own stock and classified in stockholders’ equity; (iii) There is no beneficial conversion feature noted at the issuance date as the conversion price of the Notes is greater than the stock price of the Company at the date of issuance. Therefore, the offering of the Notes and the embedded put option should be accounted for as bundle transactions in accordance with the accounting rule and the value of the Notes and Put Option are measured at par under the caption of convertible debts in the consolidated balance sheets. | |
The issuance costs of the Notes were recorded as deferred expenses and are amortized as interest expense, using the effective interest method over its expected life from its issuance date to its earliest conversion date pursuant to the accounting rule. | |
Treasury Stock | |
In connection with the convertible debt issuance, the Company’s board of directors approved to use up to $100 million of net proceeds to repurchase the Company’s outstanding ordinary shares concurrently through legally permissible means. For the year ended December 31, 2013, the Company repurchased 1,171,900 ordinary shares in the amount of $100.0 million. All the ordinary shares repurchased are no longer outstanding and pending cancellation and are included as treasury stock. For the years ended December 31, 2012 and 2011, no ordinary shares were repurchased by the Company. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
19. Commitments and Contingencies | |||||||||||||||||
Operating lease commitments include the commitments under the lease agreements for the Company’s office premises. The Company leases its office facilities under non-cancelable operating leases with various expiration dates through 2017. For the years ended December 31, 2013, 2012, and 2011, rental expense was $21.2 million, $17.4 million and $11.7 million, respectively. Based on the current rental lease agreements, future minimum rental payments required as of December 31, 2013 were as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Operating leases commitment | $ | 46,099 | $ | 20,004 | $ | 24,509 | $ | 1,586 | $ | — | |||||||
Purchase commitments mainly include minimum commitments for construction cost of new office building, Internet connection, content and services related to website operation, MVAS costs, and marketing activities. In May 2013, The Company entered into an agreement for the construction of a new office building in Zhongguancun Software Park, Haidian District, Beijing. The gross floor area for the new office building as planned is approximately 132,000 square meters and the aggregate construction cost is expected to be in the range of $180 - $200 million, to be paid in installments over the construction period. | |||||||||||||||||
Purchase commitments as of December 31, 2013 were as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Purchase commitments | $ | 326,878 | $ | 238,029 | $ | 88,099 | $ | 356 | $ | 394 | |||||||
In November 2013, the Company issued $800 million in aggregate principle amount of 1.00% coupon interest convertible senior notes due on December 1, 2018 at par. The Company expected to pay cash interest at an annual rate of 1.00% on the convertible senior notes, payable semiannually in arrears in cash on June 1 and December 1 of each year, beginning June 1, 2014. The Company also offered a put option to the holders of the notes, which enable the holders to have the right to require the Company to repurchase for cash all or part of the notes at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest to, but excluding the repurchase date, (“December 1, 2016”). | |||||||||||||||||
Interest payment commitment on the convertible senior notes as of December 31, 2013 was as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Interest payment commitments | $ | 40,000 | $ | 8,000 | $ | 16,000 | $ | 16,000 | $ | — | |||||||
There are uncertainties regarding the legal basis of the Company’s ability to operate an Internet business and telecommunication value-added services in China as of December 31, 2013. Although China has implemented a wide range of market-oriented economic reforms, the telecommunication, information and media industries remain highly regulated. Not only are such restrictions currently in place, but in addition regulations are unclear as to in which specific segments of these industries companies with foreign investors, including us, may operate. Therefore, the Company might be required to limit the scope of its operations in China, and this could have a material adverse effect on its financial position, results of operations and cash flows. | |||||||||||||||||
As of December 31, 2013, there are no claims, lawsuits, investigations and proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the Company’s knowledge, are reasonably possible to have, a material effect on the Company’s financial position, results of operations or cash flows. | |||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
20. Subsequent Events | |
i) On March 14, 2014, the Company entered into a series of agreements with Weibo with respect to various ongoing relationships, including a master transaction agreement, a transitional service agreement, a non-competition agreement and a sales and marketing services agreement. | |
ii) On March 14, 2014, the Company received a written notice from Alibaba confirming its intent to fully exercise its option to increase its ownership in Weibo to 30% on a fully diluted basis upon Weibo’s initial public offering (IPO). | |
iii) On March 28, 2014, Weibo shareholders adopted the 2014 Share Incentive Plan (‘the 2014 Plan’). Initially, the 2014 Plan shall be funded by the remaining 5,647,872 shares from the 2010 Share Incentive Plan. On January 1, 2015, shares in the 2014 Plan will be allowed a one-time increase in an amount equal to 10% of the total number of Weibo shares issued and outstanding on a fully-diluted basis as of December 31, 2014. Weibo intends to use such share incentive plan, which has a term of ten years, to continue to attract and retain employee talent. | |
iv) On March 28, 2014, Weibo shareholders adopted the second amended and restated memorandum and articles of association, which became effective immediately prior to Weibo’s IPO on April 17, 2014. The second amended and restated memorandum and articles of association include a dual-class voting structure, whereby Class A ordinary shares are entitled to one vote per share and Class B ordinary shares, which SINA holds, are entitled to three votes per share. | |
v) On April 11, 2014, the board of directors of the Company has approved a new share repurchase program whereby the Company is authorized to repurchase its own ordinary shares with an aggregate value of up to US$500 million. | |
vi) On April 17, 2014, Weibo, a subsidiary of the Company, completed its initial public offering on NASDAQ with the new issuance of 16,800,000 Class A ordinary shares and all of Weibo’s outstanding preferred shares automatically converted into 30,046,154 Class A ordinary shares immediately upon the completion of its offering. On April 22, 2014, Weibo issued an additional 2,520,000 Class A ordinary shares arising from the exercise of green shoe. From these transactions, Weibo received a net proceed of $306.5 million. | |
vii) Weibo offered a total of 19,320,000 Weibo ADSs, representing 19,320,000 Class A ordinary shares, in connection with its initial public offering, of which 6,000,000 ADSs were allotted to Ali WB Investment Holding Ltd., or Ali WB, a wholly owned subsidiary of Alibaba. Concurrently with the initial public offering, Ali WB acquired an additional 2.9 million Class A ordinary shares of Weibo in a private placement and 21.1 million Class A ordinary shares from the Company. Subsequent to the initial public offering, Weibo repurchased 2.9 million ordinary shares from the Company with the proceed from the issuance of ordinary shares to Ali WB in the private placement. Following these transactions, the Company remained the majority shareholder of Weibo, holding 58% of Weibo’s total outstanding shares, and Ali WB remained the second largest shareholder holding 32% of Weibo’s total outstanding shares. | |
viii) In April 2014, the Company received three notices from Beijing Municipal Cultural Market Administrative Law Enforcement Unit concerning alleged violations of PRC regulations on the Company’s distribution of certain unhealthy and indecent literary content on its online reading channel book.sina.com.cn and certain unhealthy and indecent video content uploaded by users on its website www.sina.com.cn. The Company was informed that as administrative penalties for these violations, the State Administration of Press, Publication, Radio, Film and Television proposes to revoke the Company’s Internet Publication License and the License for Online Transmission of Audio-Visual Programs, and Beijing Municipal Cultural Market Administrative Law Enforcement Unit proposes to impose an administrative fine for these violations. If the Company’s Internet Publication License and the License for Online Transmission of Audio-Visual Programs are determined to be revoked, its online reading, video and related businesses may be adversely affected, which will have a material adverse impact on the Company’s results of operations. The authority also determined that the revenues derived from the alleged violation relating to the reading channel was RMB508,581 ($82,029). In accordance with relevant law, the administrative fine is expected to be five to ten times of revenues derived from the alleged violation. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Basis of presentation and use of estimates | ' | ||||||||||
Basis of presentation and use of estimates | |||||||||||
The preparation of the Company’s consolidated financial statements is in conformity with Generally Accepted Accounting Principles in the United States (“US GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods reported. Actual results may differ materially from such estimates. The Company believes the basis of consolidation, fair value, the recognition of non-controlling interests, revenue recognition, taxation, business combination, net income (loss) per share, goodwill and other long-lived assets, allowances for doubtful accounts, long-term investments, stock-based compensation and foreign currency represent critical accounting policies that reflect the more significant judgments and estimates used in the preparation of its consolidated financial statements. | |||||||||||
Consolidation | ' | ||||||||||
Consolidation | |||||||||||
The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and its variable interest entities (“VIEs”), in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated. | |||||||||||
To comply with PRC laws and regulations, the Company provides substantially all of its Internet content and MVAS services in China via its VIEs, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIEs. The Company has signed various agreements with its VIEs to allow the transfer of economic benefits from the VIEs to the Company. | |||||||||||
The Company’s VIEs are wholly or partially owned by certain employees of the Company. The capital for the VIEs are funded by the Company and recorded as interest-free loans to these PRC employees. These loans were eliminated with the capital of the VIEs during consolidation. Under various contractual agreements, employee shareholders of the VIEs are required to transfer their ownership in these entities to the Company’s subsidiaries in China when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to the Company and the Company has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive technical service agreements with the VIEs, under which the Company provided technical and other services to the VIEs. In addition, employee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to the Company. As of December 31, 2013 and 2012, the total amount of interest-free loans to these PRC employees was $35.9 million and $34.2 million, respectively, and the aggregate accumulated losses of all VIEs were approximately $13.0 million and $14.4 million, respectively, which have been included in the consolidated financial statements. | |||||||||||
The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Total assets | $ | 214,984 | $ | 133,077 | |||||||
Total liabilities | $ | 134,632 | $ | 98,511 | |||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net revenues | $ | 455,097 | $ | 314,504 | $ | 244,274 | |||||
Net income (loss) | $ | 1,415 | $ | (6,322 | ) | $ | (1,556 | ) | |||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net increase in cash and cash equivalents | $ | 60,171 | $ | 2,285 | $ | 13,960 | |||||
As of December 31, 2013, the total assets for the consolidated VIEs were $215.0 million, which mainly comprised of $135.1 million in cash, cash equivalents and short-term investments, the remaining balances include goodwill, intangible assets, accounts receivables, long-term investments and property and equipment. As of December 31, 2013, total liabilities for the consolidated VIEs were $134.6 million, which mainly included $95.4 million in accrued liabilities and $20.5 million in deferred revenues. | |||||||||||
As of December 31, 2012, the total assets for the consolidated VIEs were $133.1 million, which mainly comprising $92.3 million cash, cash equivalents and short-term investments, and the remaining balance mainly include accounts receivables and property and | |||||||||||
equipment. As of December 31, 2012, total liabilities for the consolidated VIEs were $98.5 million, which included $77.3 million in accrued liabilities, $10.1 million in income tax payable and $11.1 million in deferred revenues. | |||||||||||
Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs amounting to a total of $58.4 million as of December 31, 2013. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through its VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. | |||||||||||
The following is a summary of the Company’s major VIEs and subsidiary of VIEs as of December 31, 2013: | |||||||||||
· Beijing SINA Internet Information Service Co., Ltd. (the “ICP Company”), a Chinese company controlled through business agreements, is responsible for operating www.sina.com and www.sina.cn in connection with its Internet content company license, sell online advertising and provide MVAS with its Value-Added Telecommunication Services Operating License via third-party operators in China. The register capital of the ICP Company is $19.0 million and its register shareholders include Hong Du, a Company executive officer, holding 27.1% equity interest, Tong Chen, a Company executive officer, holding 22.8% equity interest, and Yan Wang, a director of the Company, holding 0.2% equity interest. The remaining equity interests are 22.8% held by a non-executive PRC employee of the Company and 27.1% held by a former employee. | |||||||||||
· Guangzhou Media Message Technologies, Inc. (“Xunlong”), a Chinese company controlled through business agreements, is responsible for providing MVAS via third-party operators in China under its Value-Added Telecommunication Services Operating License. It is owned by two non-executive PRC employees of the Company. The registered capital of the Xunlong is $1.2 million. | |||||||||||
· Beijing Star-Village Online Cultural Development Co., Ltd. (“StarVI”), formerly Beijing Star-Village.com Cultural Development Co., Ltd, a Chinese company controlled through business agreements, is responsible for providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three non-executive PRC employees of the Company. The registered capital of the StarVI is $1.2 million. | |||||||||||
· Shenzhen Wang Xing Technology Co., Ltd. (“Wangxing”), a Chinese company controlled through business agreements, is responsible for providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by two non-executive PRC employees of the Company. The registered capital of Wangxing is $1.2 million. | |||||||||||
· Jinzhuo Hengbang Technology (Beijing) Co., Ltd. (“the IAD Company”), formerly Beijing SINA Infinity Advertising Co., Ltd., is an advertising agency in China controlled through business agreements and approved for the design, production, issuance and serving as an agency of advertisements. It is owned by two non-executive PRC employees of the Company. The registered capital of the IAD Company is $7.3 million. | |||||||||||
· Beijing Weimeng Technology Co., Ltd (“Weimeng”), a Chinese company controlled through business agreement, is responsible for operating www.weibo.com and www.weibo.cn in connection with its Internet content company license and providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three non-executive PRC employees of the Company. The registered capital of Weimeng is $1.5 million. | |||||||||||
· Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’), an online-game platform company, was acquired by the IAD Company in May 2013. All of the equity interest in Weibo Interactive was transferred to Weimeng in December 2013 (see Note 5). The registered capital of Weibo Interactive is $5.5 million. | |||||||||||
The Company began to consolidate the ICP Company in October 2001. Xunlong and StarVI were acquired from Memestar Limited in January 2003 and the operating results for these two companies have been consolidated by the Company since January 2003. Wangxing was acquired from Crillion Corporation in March 2004 and the operating results for Wangxing have been consolidated by the Company since March 2004. The operating results of the IAD Company and Weimeng have been consolidated since its establishment in 2004 and 2010, respectively. | |||||||||||
Unrecognized revenue-producing assets held by the VIEs include the Internet Content Provision License, the Online Culture Operating Permit, License for Online Transmission of Audio-visual Programs, trademark and the domain names of sina.com, sina.cn, sina.com.cn, weibo.com, weibo.cn and weibo.com.cn. Recognized revenue-producing assets held by the VIEs include core technology, trademark and domain names arising from the acquisition of All Sure, customer lists relating to game-related services, game platform technology and the non-compete agreement arising from the acquisition of Weibo Interactive. Unrecognized revenue-producing assets, including customer lists relating to advertising and marketing services, game-related services, Weibo VIP memberships and data licensing, as well as trademarks, are held by the WFOEs. | |||||||||||
The following is a summary of the VIE agreements: | |||||||||||
Loan Agreements. One of the Company’s wholly owned subsidiaries, Sina.com Technology (China) Co., Ltd. (“STC”), or Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology”) in the case of Weimeng, has granted interest-free loans to the shareholders of the VIEs with the sole purpose of providing funds necessary for the capital injection of the VIEs. The terms of the loans in general are for 10 years, except for the loans relating to the ICP Company in which case may be 5 years, or Weibo Technology in the case of Weimeng, at its own discretion, has the right to shorten or extend the terms of the loans if necessary. These loans were eliminated with the capital of the VIEs during consolidation. | |||||||||||
Share Transfer Agreements. Each shareholder of the VIEs has granted STC, or Weibo Technology in the case of Weimeng, an option to purchase his/her shares in the respective VIEs at a purchase price equal to the amount of capital injection. STC, or Weibo Technology in the case of Weimeng, may exercise such option at any time until it has acquired all shares of such VIE, subject to applicable PRC laws. The options will be effective until the earlier of (i) the shareholders of the VIEs and STC, or Weibo Technology in the case of Weimeng, have fully performed their obligations under this agreement, or (ii) the respective shareholders of the VIEs and STC, or Weibo Technology in the case of Weimeng, agree to terminate the share transfer agreement in writing. | |||||||||||
Loan Repayment Agreements. Each shareholder of the VIEs and STC, or Weibo Technology in the case of Weimeng, has agreed that the interest-free loans under the loan agreements shall only be repaid through share transfer. Once the share transfers are completed, the purchase price for the share transfer will be offset against the loan repayment. | |||||||||||
Agreements on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of the VIEs has authorized STC, or Weibo Technology in the case of Weimeng, to exercise all of his/her voting power as a shareholder of the respective VIE. The authorizations are irrevocable and will not expire until the respective VIE dissolves. | |||||||||||
Share Pledge Agreements. Each shareholder of the VIEs has pledged all of his/her shares in the VIEs and all other rights relevant to the share rights to STC, or Weibo Technology in the case of Weimeng, as a collateral security for his/her obligation to pay off all debt to STC, or Weibo Technology in the case of Weimeng, under the loan agreement and for the payment obligation of the VIEs under the trademark license agreement and the technical services agreement. In the event of default of any payment obligation, STC, or Weibo Technology in the case of Weimeng, will be entitled to certain rights, including transferring the pledged shares to itself and disposing the pledged shares through a sale or auction. During the term of each agreement, STC, or Weibo Technology in the case of Weimeng, is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of (i) the VIEs and the shareholders of the VIEs have fully performed their obligations under the above-referred agreements, or (ii) STC, or Weibo Technology in the case of Weimeng, has unilaterally consented to terminate the respective share pledge agreement. | |||||||||||
Exclusive Technical Services Agreements. Each of the VIEs below has entered into an exclusive technical services agreement with STC, or Weibo Technology in the case of Weimeng, pursuant to which STC, or Weibo Technology in the case of Weimeng, is engaged to provide certain technical services to the VIEs, depending on the licenses obtained and held by the VIE. These exclusive technical services agreements will not expire until the respective VIE dissolves, and the service fees are adjusted annually through written agreements. Due to its control over the respective VIEs, the Company’s wholly owned subsidiaries have the right to determine the service fees to be charged to the respective VIEs by considering, among others, the technical complexity of the services, the actual costs that may be incurred for providing the services, the operations of each VIE, applicable tax rates, planned capital expenditures and business strategies. The service fees that the Company’s wholly owned subsidiaries charged to the major VIEs amounted to $186.3 million, $85.2 million, and $49.2 million, respectively, for the fiscal year ended December 31, 2013, 2012 and 2011. | |||||||||||
Xunlong, one of our VIEs, has engaged STC to provide technical services for its Internet information service and MVAS businesses, and STC has the sole right to appoint any company or companies at its discretion to perform such technical services. Beijing New Media Information Technology Co., Ltd., our wholly owned subsidiary, has been appointed by STC to perform technical services for Xunlong. | |||||||||||
Wangxing, one of our VIEs, has also entered into a technical services agreement with STC with terms and rights substantially identical to the technical services agreement entered into between Xunlong and STC for the Internet information service and MVAS businesses described above. | |||||||||||
The ICP Company, one of our VIEs, has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value added telecommunication and other related businesses. The ICP Company is obligated to pay service fees to STC. | |||||||||||
The IAD Company, one of our VIEs, has also entered into a technical services agreement with STC with terms substantially identical to the technical services agreement entered into between the ICP Company and STC for the online advertising and other related businesses described above. Pursuant to changes in applicable PRC laws in 2008, SINA established two wholly owned subsidiaries to engage directly in online advertising and related businesses. | |||||||||||
StarVI, one of our VIEs, has also entered into a technical services agreement with STC with terms substantially identical to the technical services agreement entered into between Xunlong and STC for the value added telecommunication and other related businesses described above. | |||||||||||
Weimeng, one of our VIEs, has engaged Weibo Technology to provide technical services for its online advertising and other related businesses. | |||||||||||
Exclusive Sales Agency Agreements. Each of the VIEs has granted STC, or Weibo Technology in case of Weimeng, the exclusive right to distribute, sell and provide agency services for all the products and services provided by the VIEs. These exclusive sale agency agreements will not expire until the respective VIEs dissolve. We have entered into the Exclusive Sales Agency Agreements to allow us to generate revenues from the VIEs in the form of sales agency fees if we decide to enter into sales agency arrangements with the VIEs in the future (when permitted under PRC laws). | |||||||||||
Trademark License Agreements. STC, or Weibo Technology in case of Weimeng, has granted each of the VIEs trademark licenses to use the trademarks held by STC, or Weibo Technology in case of Weimeng, in specific areas, and each of the licensed VIEs is obligated to pay license fees to STC, or Weibo Technology in case of Weimeng. The term of these agreements is for one year and is automatically renewed provided that there is no objection from STC, or Weibo Technology in case of Weimeng. We have entered into the Trademark License Agreements to provide other potential revenue-generating channels from the VIEs. | |||||||||||
The Company believes that the contractual arrangements among its VIEs, subsidiaries and certain employees of the Company are in compliance with the current PRC laws and are legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the powers of attorney provided by the shareholders of the VIEs are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, its subsidiaries or VIEs. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs or that a loss will occur as a result of the aforementioned risks and uncertainties is remote. | |||||||||||
Non-controlling interests | ' | ||||||||||
Non-controlling interests | |||||||||||
For the Company’s majority-owned subsidiaries and VIEs, non-controlling interests are recognized to reflect the portion of their equity that are not attributable, directly or indirectly, to the Company as the controlling shareholder. The majority of the Company’s non-controlling interests relate to the operations of Weibo. To reflect the economic interest in Weibo held by non-controlling shareholders, Weibo’s net income (loss) attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income (loss). Pursuant to the liquidation terms and redemption terms of the preferred shares, any net income or loss by Weibo are not allocated to the non-controlling preferred shareholders. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. | |||||||||||
Fair value | ' | ||||||||||
Fair value | |||||||||||
All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||
The Company measures certain financial assets, including the investments under the cost method and equity method on an other-than —temporary basis, and intangible assets, goodwill and fixed assets are marked to fair value when an impairment charge is recognized. | |||||||||||
Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: | |||||||||||
· Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||
· Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model- derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||
· Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||
The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximates fair value. The fair values of the preferred shares and ordinary shares granted to Alibaba were derived from the income approach by applying the discounted cash flow method based on the Company’s best estimate of projected cash flow as of the Transaction date. The Company utilized the Binominal option pricing model to determine the fair value of the option liability, which was measured using significant unobservable input (level 3) and required an assessment of the probability weight for each exercise scenario. | |||||||||||
Net income (loss) per share | ' | ||||||||||
Net income (loss) per share | |||||||||||
Basic net income (loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Restricted share units are not considered outstanding in computation of basic earnings per share. Diluted net income (loss) per share is computed using the weighted average number of ordinary share and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units, and conversion of the convertible debt. The computation of diluted net income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income per share. Additionally, the Company takes into account the effect on consolidated net income per share of dilutive shares of entities in which the Company holds equity interests, including long-term investments accounted for using the equity method and the consolidated subsidiaries, such as Weibo. | |||||||||||
Cash equivalents | ' | ||||||||||
Cash equivalents | |||||||||||
The Company considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash equivalents are comprised of investments in time deposits that mature within three months, which are stated at cost plus accrued interest, and money market funds are stated at fair market value. | |||||||||||
Business combination | ' | ||||||||||
Business combination | |||||||||||
Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). | |||||||||||
In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. | |||||||||||
Goodwill and other long-lived assets | ' | ||||||||||
Goodwill and other long-lived assets | |||||||||||
Goodwill. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. The Company tests goodwill for impairment at the reporting unit level on an annual basis as of December 31, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. US GAAP provides the option to apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The qualitative approach starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If so, the quantitative impairment test is performed; otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of goodwill with its carrying value. For reporting units directly applying a quantitative assessment, the goodwill impairment test is quantitatively performed by comparing the fair values of those reporting units to their carrying amounts. Commencing in January 2012, the Company adopted the option to apply the qualitative approach to assess its goodwill on the relevant reporting units. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. | |||||||||||
Long-live assets other than goodwill. Intangible assets arising from acquisitions are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from two to ten years. | |||||||||||
Long-lived assets and certain identifiable intangible assets other than goodwill to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold or use is based on the amount by which the carrying value exceeds the fair value of the asset. | |||||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three to four years for computers and equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Depreciation expenses were $34.4 million, $29.5 million and $21.0 million for 2013, 2012 and 2011, respectively. | |||||||||||
Long-term investments | ' | ||||||||||
Long-term investments | |||||||||||
Long-term investments are comprised of investments in publicly traded companies, privately-held companies and limited partnerships. For long-term investments over which the Company does not have significant influence, the cost method accounting is used. For long-term investments in shares that are not ordinary shares or in-substance ordinary shares and that do not have readily determinable fair value, the cost method accounting is used. Investments in limited partnerships over whose operating and financing policies the Company has virtually no influence are accounted for using the cost method. The Company uses the equity method to account for ordinary-share-equivalent equity investments and limited-partnership investments in entities over which it has significant influence but does not own a majority equity interest or otherwise control. The Company accounts for its investment in E-House (China) Holdings Limited (“E-House”)/China Real Estate Information Corporation (“CRIC”) using the equity method of accounting. The Company has recorded its share of results of E-House/CRIC one quarter in arrears within income (loss) from long-term investments. ( See Note 4 for further discussion on the long-term investment in E-House/CRIC). | |||||||||||
The Company assesses its long-term investments accounted for under the cost method and equity method for other-than-temporary impairment by considering factors including, but not limited to, stock prices of public companies in which the Company has an equity investment, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately-held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and the determination of whether any identified impairment is other-than-temporary. If any impairment is considered other-than-temporary, the Company will write down the asset to its fair value and take the corresponding charge to the consolidated statements of comprehensive income (loss). | |||||||||||
The Company invests in marketable equity securities to meet business objectives and intends to hold the securities for more than a year from the balance sheet date. These marketable securities are reported at fair value, classified and accounted for as available-for-sale securities under Long-term Investments. The treatment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Company assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders’ equity. If the Company determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss charged to income. The fair value of the investment would then become the new cost basis of the investment and are not be adjusted for subsequent recoveries in fair value. | |||||||||||
Convertible debt | ' | ||||||||||
Convertible debt | |||||||||||
The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to the conversion feature, call and put option, and beneficial conversion feature. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. | |||||||||||
The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Convertible debts are classified as a current liability if their due date is or will be within one year from the balance sheet date. | |||||||||||
Treasury stock | ' | ||||||||||
Treasury stock | |||||||||||
The Company accounted for those shares repurchased and no longer outstanding as treasury stock at cost. | |||||||||||
Revenue recognition | ' | ||||||||||
Revenue recognition | |||||||||||
Advertising | |||||||||||
Advertising revenues are derived principally from online advertising and marketing, including display advertising and promoted marketing, and, to a lesser extent, sponsorship arrangements. | |||||||||||
Display advertising arrangements allow advertisers to place advertisements on particular areas of the Company’s websites or platform, in particular formats and over particular periods of time. Advertising revenues from display advertising arrangements are recognized ratably over the contract period of display, when the collectability is reasonably assured. The Company enters into cost per day (“CPD”) advertising arrangements with customers, under which the Company recognizes revenues ratably over the contract period. The Company also enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Company recognizes revenues based on the number of times that the advertisement has been displayed. | |||||||||||
Promoted marketing arrangements are primarily priced based on CPM or cost per engagement (“CPE”). An engagement may include when a user clicks on a link, becomes a follower of the marketing customer account, shares the promoted feed or marks the feed as a favorite. Under the CPM model, customers are obligated to pay when the advertisement is displayed, while under the CPE model, customers are obligated to pay based on the number of engagements with the marketing feed. | |||||||||||
Sponsorship arrangements allow advertisers to sponsor a particular area on its websites in exchange for a fixed payment over the contract period. Advertising revenues from sponsorship are recognized ratably over the contract period. Advertising revenues derived from the design, coordination and integration of online advertising and sponsorship arrangements to be placed on the Company’s websites are recognized ratably over the term of such arrangements. | |||||||||||
Revenues are recognized only when the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) the price is fixed or determinable; (3) the service is performed; and (4) collectability of the related fee is reasonably assured. The majority of the Company’s revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. Advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their relative selling price for revenue recognition purposes. The Company adopted the new revenue recognition policy on multiple-deliverable revenue arrangements, which required the arrangement consideration be allocated to all deliverables at the inception of the arrangement on the following basis (a) vendor-specific objective evidence (“VSOE”) of selling price, if it exists, otherwise, (b) third-party evidence (“TPE”) of the selling price. If neither (a) nor (b) exists, then use (c) management’s best estimate of the selling price of the deliverable. The Company primarily uses VSOE to allocate the arrangement consideration if such selling price is available. For the deliverables that have not been sold separately, the best estimate of the selling price has taken into consideration of the pricing of advertising areas of the Company’s platform with similar popularities and advertisements with similar formats and quoted prices from competitors and other market conditions. Revenues recognized with reference to best estimation of selling price were immaterial for all periods presented. The Company recognizes revenue on the elements delivered and defers the recognition of revenue for the undelivered elements until the remaining obligations have been satisfied. | |||||||||||
Revenues from barter transactions are recognized during the period in which the advertisements are displayed on the Company’s properties. Barter transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods or services received. Revenues from barter transactions were immaterial for all periods presented. | |||||||||||
Fee-based revenues | |||||||||||
MVAS. | |||||||||||
MVAS revenues are derived principally from providing mobile phone users with SMS, MMS, CRBT, WAP, IVR and KJAVA games. These services include news and other content subscriptions, picture and logo download, ring tones, ring back tones, mobile games and access to music files. Revenues from MVAS are charged on a monthly or per-usage basis. Such revenues are recognized in the period in which the service is performed, provided that no significant obligations remain, collection of the receivables is reasonably assured and the amounts can be accurately estimated. | |||||||||||
The Company contracts with China Mobile and its subsidiaries, China Unicom and its subsidiaries, and China Telecom Corporation and its subsidiaries for billing, collection and transmission services related to the MVAS offered to its users. The Company also contracts with other service providers to provide content and to distribute MVAS or other services for us. Revenues are recorded on a gross basis when most of the gross indicators are met, such as the Company is considered the primary obligor in the arrangement, designs and develops (in some cases with the assistance of third-parties) the MVAS, has reasonable latitude to establish price, has discretion in selecting the operators to offer its MVAS, provides customer services related to the MVAS and takes on the credit risks associated with the transmission fees. Conversely, revenues are recorded on a net basis when most of the gross indicators are not met. | |||||||||||
The Company purchases certain contents from third-party content providers for its MVAS. In most of these arrangements, the fees payable to the third-party content providers are calculated based on certain percentages of the revenue earned by their contents after deducting the fees paid to the third-party operators. The Company’s MVAS revenues are inclusive of such fees when the Company acts as the principal in these arrangements by having the ability to determine the fees charged to end users and being the primary obligor to the end users with respect to providing such services. | |||||||||||
Due to the time lag between when the services are rendered and when the operator billing statements are received, MVAS revenues are estimated based on the Company’s internal billing records and transmissions for the month, adjusting for prior periods’ confirmation rates with operators and prior periods’ discrepancies between internally estimated revenues and actual revenues confirmed by operators. The confirmation rate applied to the estimation of revenues is determined at the lower of the latest confirmation rate available and the average of six-month historical rates if such historical average is available. If the Company has not yet received confirmation rates for six months, revenues would be deferred until billing statements are received from the operators. Historically, there have been no significant adjustments to the revenue estimates. | |||||||||||
Historically, due to the time lag of receiving billing statements from operators and the lack of adequate information to make estimates, the Company has adopted a one-month lag reporting policy for MVAS revenues. For the years ended December 31, 2013, 2012 and 2011, the Company recorded MVAS revenues in the amount of $60.3 million, $69.0 million and$83.5 million, respectively. The impact of reporting in one-month lag for MVAS revenues was immaterial. | |||||||||||
Other fee-based services. | |||||||||||
Other fee-based services allow the Company’s users to subscribe to services on its websites or platform, including game-related service, Weibo VIP membership, e-reading and paid personal/corporate email services and data licensing. Revenues from these services are recognized over the periods in which the services are performed, provided that no significant obligations remain, collection of the receivables is reasonably assured and the amounts can be accurately estimated. | |||||||||||
Game related service revenues are generated from purchasing of virtual items through its game platform. The Company collects payments from the game players in connection with the sale of virtual currency, which are converted into in-game credits (game tokens) that can be used to purchase virtual items in the third party developed games. The Company remits certain predetermined percentages of the proceeds to the game developers when the virtual currency is converted into in-game credits. | |||||||||||
The Company has determined that the game developers are the primary obligors for the web game services given that the game developers are responsible for developing, maintaining and updating the online games and have reasonable latitude to establish the prices of virtual items for which in-game credits are used. The Company views the game developers to be its customers, and the Company’s primary responsibility is to promote the games of the developers, provide virtual currency exchange services, maintain the platform for game players to easily access the games and offer customer support to resolve registration, log on, currency exchange and other related issue. Accordingly, the Company records game related revenues, net of predetermined revenue sharing with the game developers. | |||||||||||
Virtual currencies in general are not refundable once they have been sold unless there are unused in-game credits at the time a game is discontinued. Sale of virtual items net of the game developer proceeds are recognized as revenues over the estimated consumption period of in-game virtual items, which is typically from a few days to one month after the purchase of in-game credits. | |||||||||||
Deferred revenues. Deferred revenues are mostly derived from the amended and restated advertising agency agreement, the domain name and content license agreement, the trademark license agreement and the software license and support services agreement (“License Agreements”) the Company entered into with China Online Housing Technology Corporation (“COHT”) in September 2009 as part of the Company’s consideration for the interest in E-House\CRIC. The amount allocated to the fair value of the License Agreements was $187.4 million, which represents the difference between the total consideration and the fair value of equity interests of COHT disposed. This amount was recorded as deferred revenues and amortized over the contract period of ten years. Deferred revenues also consist of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are mainly from the customer advance of advertising and marketing services. | |||||||||||
Allowances for doubtful accounts | ' | ||||||||||
Allowances for doubtful accounts | |||||||||||
The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts based on a historical, rolling average, bad debt rate in the prior year and other factors, such as credit-worthiness of the customers and the age of the receivable balances. The Company also provides specific provisions for bad debts when facts and circumstances indicate that the receivable is unlikely to be collected. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, or if the operators incur more bad debt than their original estimates, additional allowances may be required that could materially impact the Company’s financial position and results of operations. | |||||||||||
Cost of revenues | ' | ||||||||||
Cost of revenues | |||||||||||
Advertising. Cost of advertising revenues consist mainly of costs associated with the production of websites, which includes fees paid to third parties for Internet connection, content and services, payroll-related expenses, and equipment depreciation associated with the website production. | |||||||||||
The Company presents taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction on a gross basis in the financial statements. In November 2011, the Ministry of Finance and the State Administration of Taxation promulgated the Pilot Program for Imposition of Value-Added Tax (“VAT”) to Replace Business Tax (“Pilot Program”). Pursuant to the Pilot Program, a VAT was initially imposed in Shanghai starting from January 1, 2012, to replace the business tax in the transport and shipping industry and some of the modern service industries. Effective September 1, 2012, the Pilot Program was expanded to eight other cities and provinces in China, including Beijing. Beginning from August 1, 2013, the Pilot Program was expanded to all regions in PRC. With the implementation of the Pilot Program, the Company is subject to 6.7% VAT and surcharges and 3% cultural business construction fees for certain parts of its advertising revenues. Prior to the Pilot Program, the Company was subject to 5.6% business tax and surcharges and 3% cultural business construction fees. The total amount of such taxes for 2013, 2012 and 2011 were $50.9 million, $39.5 million and $32.5 million, respectively. | |||||||||||
Non-advertising. Cost of non-advertising revenues consist mainly of fees paid to or retained by the third-party operators for their services relating to the billing and collection of the Company’s MVAS revenues and for using their transmission gateways. Costs of non-advertising revenues also consist of fees or royalties paid to third-party content and service providers associated with the MVAS, costs for providing the enterprise services and turnover taxes levied on non-advertising revenues in China. Business taxes and surcharges levied on MVAS are approximately 3.4%. For other non-advertising revenues, before the implementation of the Pilot Program the business tax and surcharges levied was 5.6% and became 6.7% after switching over to the VAT. | |||||||||||
Advertising expenses | ' | ||||||||||
Advertising expenses | |||||||||||
Advertising expenses consist primarily of costs for the promotion of corporate image, product marketing and direct marketing. The Company expenses all advertising costs as incurred and classify these costs under sales and marketing expense. The nature of the Company’s direct marketing activities is such that they are intended to acquire subscribers for subscription-based and usage-based MVAS. The Company expenses all such direct marketing expenses. Advertising expenses for 2013, 2012 and 2011 were $78.7 million, $72.4 million and $87.2 million, respectively. | |||||||||||
Product development expenses | ' | ||||||||||
Product development expenses | |||||||||||
Product development expenses consist primarily of payroll-related expenses incurred for enhancement to and maintenance of the Company’s websites as well as costs associated with new product development and product enhancements. The Company expenses all costs incurred for the planning and post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of website content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred. | |||||||||||
Operating leases | ' | ||||||||||
Operating leases | |||||||||||
The Company leases office space under operating lease agreements with initial lease term up to four years. Rental expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease. Certain lease agreements contain rent holidays, which are recognized on a straight-line basis over the lease term. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the initial lease terms. | |||||||||||
Stock-based compensation | ' | ||||||||||
Stock-based compensation | |||||||||||
All stock-based awards to employees and directors, including stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Options granted generally vest over four years. | |||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends. Shares of the Company’s subsidiaries, which do not have quoted market prices, were valued based on the income approach, if a revenue model had been established, the market approach, if information from comparable companies had been available or a weighted blend of these approaches if more than one is applicable. | |||||||||||
Determination of estimated fair value of the Company’s subsidiaries requires complex and subjective judgments due to their limited financial and operating history, unique business risks and limited public information on companies in China similar to the Company’s subsidiaries. The Company, with the assistance of an independent valuation firm, evaluated the use of two generally accepted valuation approaches. The income approach is used if a revenue model had been established, the market approach is used if information from comparable companies had been available, or a weighted blend of these two approaches is used if more than one is applicable, to estimate the Company’s subsidiaries’ enterprise value for purposes of recording stock-based compensation in connection with employee stock options and recording fair value changes for option liability to Alibaba. Before April 2013, the market approach was primarily used to determine the fair value of the Company’s subsidiary’s ordinary shares. The Company selected guideline companies that engaged in a similar line of business with similar growth prospects and that were subject to similar financial and business risks. For periods beyond April 2013, the income approach was applied since the revenue model for the Company’s subsidiary had been established and projections of revenues, costs and expenses, incremental working capital and capital expenditures became available as the business developed. If different assumptions were used for estimating stock-based compensation expense or if a different valuation method were used, the change in stock-based compensation expense could adversely affect the Company’s gross profit, operating income, net income attributable to SINA and net income per share attributable to SINA. | |||||||||||
The Company recognizes the estimated compensation cost of service-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The Company recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years. | |||||||||||
The Company recognizes the estimated compensation cost of performance-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The rewards are earned upon attainment of identified performance goals. The Company recognizes the compensation cost, net of forfeitures, over the performance period. The Company also adjusts the compensation cost based on the probability of performance goal achievement at the end of each reporting period. | |||||||||||
Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option and restricted share units forfeitures and record stock-based compensation expense only for those awards that are expected to vest. See Note 15 for further discussion on stock-based compensation. | |||||||||||
Taxation | ' | ||||||||||
Taxation | |||||||||||
Income taxes | |||||||||||
Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. | |||||||||||
Uncertain tax positions | |||||||||||
To assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. | |||||||||||
Foreign currency | ' | ||||||||||
Foreign currency | |||||||||||
The Company’s reporting currency and functional currency are the U.S. dollar. The Company’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are remeasured into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated. | |||||||||||
Foreign currency transactions denominated in currencies other than the functional currency are remeasured into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in interest and other income (expenses), net. | |||||||||||
Foreign currency translation adjustments to the Company’s comprehensive income (loss) for 2013, 2012 and 2011 were $21.3 million, $(2.3) million and$22.2 million, respectively. The Company recorded a net foreign currency transaction gain of $1.5 million in 2013, a net foreign currency transaction loss of $30,000 in 2012 and a net foreign currency transaction gain of $2.3 million in 2011. Gains in 2013 and 2011 resulted from the Chinese RMB appreciating against the U.S. dollar. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity. | |||||||||||
Comprehensive income (loss) | ' | ||||||||||
Comprehensive income (loss) | |||||||||||
Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), foreign currency translation adjustments, share of change in other comprehensive income of equity investments one quarter in arrears, which are foreign currency translation adjustments, and unrealized gains (losses) on marketable securities classified as available-for-sale. | |||||||||||
Recent accounting pronouncements | ' | ||||||||||
Recent accounting pronouncements | |||||||||||
In February 2013, the FASB issued revised guidance on “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The revised guidance does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the revised guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The revised guidance was effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The revised guidance did not have a significant impact on the consolidated financial position, results of operations or cash flows of the Company. | |||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which is an update to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward exists. The guidance requires an entity to present an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, except for when a net operating loss carryforward is not available as of the reporting date to settle taxes that would result from the disallowance of the tax position or when the entity does not intend to use the deferred tax asset for purposes of reducing the net operating loss carryforward. The guidance is effective for fiscal years beginning after December 15, 2013 and for interim periods within that fiscal year. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial position, results of operations or cash flows. | |||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Schedule of assets, liabilities, results of operations and net increase (decrease) in cash and cash equivalents of the VIEs and their subsidiaries included in the Company's consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Total assets | $ | 214,984 | $ | 133,077 | |||||||
Total liabilities | $ | 134,632 | $ | 98,511 | |||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net revenues | $ | 455,097 | $ | 314,504 | $ | 244,274 | |||||
Net income (loss) | $ | 1,415 | $ | (6,322 | ) | $ | (1,556 | ) | |||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net increase in cash and cash equivalents | $ | 60,171 | $ | 2,285 | $ | 13,960 | |||||
Cash_Cash_Equivalents_and_Shor1
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash, Cash Equivalents and Short-term Investments | ' | |||||||
Schedule of cash, cash equivalents and short-term investments | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents: | ||||||||
Cash | 472,595 | $ | 144,200 | |||||
Cash equivalents: | ||||||||
Bank time deposits (matured within 3 months) | 433,201 | 45,621 | ||||||
Money market funds | 10,480 | 10,005 | ||||||
443,681 | 55,626 | |||||||
916,276 | 199,826 | |||||||
Short-term investments: | ||||||||
Bank time deposits | 951,963 | 513,772 | ||||||
Total cash, cash equivalents and short-term investments | $ | 1,868,239 | $ | 713,598 | ||||
Longterm_Investments_Tables
Long-term Investments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Long-term Investments | ' | |||||||||||||||||||
Schedule of changes in long-term investments | ' | |||||||||||||||||||
Available for | ||||||||||||||||||||
Cost | Equity Method | Sale | ||||||||||||||||||
Method | (CRIC) | (E-House) | (Others) | Securities | Total | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance at December 31, 2010 | $ | 31,368 | $ | 466,460 | $ | — | $ | 7,917 | $ | 2,368 | $ | 508,113 | ||||||||
Investments made | 96,829 | 2,068 | — | 18,702 | 135,657 | 253,256 | ||||||||||||||
Income (loss) from investment | — | 2,641 | — | (1,175 | ) | — | 1,466 | |||||||||||||
Investment impairment | (386 | ) | (230,258 | ) | — | — | (50,904 | ) | (281,548 | ) | ||||||||||
Unrealized loss | — | — | — | — | (23,257 | ) | (23,257 | ) | ||||||||||||
Others | 1,426 | 3,477 | — | 1,006 | — | 5,909 | ||||||||||||||
Balance at December 31, 2011 | 129,237 | 244,388 | — | 26,450 | 63,864 | 463,939 | ||||||||||||||
Investments made | 34,623 | — | 190,669 | 10,300 | 68,661 | 304,253 | ||||||||||||||
Income (loss) from investment | — | (9,077 | ) | (7,657 | ) | 6,004 | — | (10,730 | ) | |||||||||||
Investment impairment | (8,580 | ) | — | — | (1,546 | ) | (8,372 | ) | (18,498 | ) | ||||||||||
Unrealized gain | — | — | — | — | 30,373 | 30,373 | ||||||||||||||
Disposal of investment | (1,584 | ) | (236,212 | ) | — | (260 | ) | (66,407 | ) | (304,463 | ) | |||||||||
Others | 190 | 901 | 742 | 168 | — | 2,001 | ||||||||||||||
Balance at December 31, 2012 | 153,886 | — | 183,754 | 41,116 | 88,119 | 466,875 | ||||||||||||||
Investments made | 40,427 | — | — | 3,341 | 4,769 | 48,537 | ||||||||||||||
Income (loss) from investment * | — | — | 2,250 | 7,275 | — | 9,525 | ||||||||||||||
Investment impairment | (6,134 | ) | — | — | — | — | (6,134 | ) | ||||||||||||
Unrealized gain | — | — | — | — | 46,787 | 46,787 | ||||||||||||||
Disposal\dilution of investment | (26,145 | ) | — | (10,205 | ) | (4,023 | ) | — | (40,373 | ) | ||||||||||
Dividend received | — | — | (4,400 | ) | (2,084 | ) | — | (6,484 | ) | |||||||||||
Others | 2,703 | — | 3,806 | 1,345 | — | 7,854 | ||||||||||||||
Balance at December 31, 2013 | $ | 164,737 | $ | — | $ | 175,205 | $ | 46,970 | $ | 139,675 | $ | 526,587 | ||||||||
* In 2013, the income (loss) from investments included a $1.8 million loss arising from the correction of 2012 results of an investee. This error in 2012 and related correction in 2013 was not material to the Company’s consolidated financial statements both for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||
Summary of condensed financial information | ' | |||||||||||||||||||
Years Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating data: | ||||||||||||||||||||
Revenue | $ | 811,048 | $ | 528,198 | ||||||||||||||||
Gross profit | $ | 524,987 | $ | 276,876 | ||||||||||||||||
Loss from operations | $ | 74,009 | $ | (18,599 | ) | |||||||||||||||
Net income (loss) | $ | 63,195 | $ | (30,205 | ) | |||||||||||||||
Net income (loss) attributable to our equity method investments companies | $ | 64,066 | $ | (23,740 | ) | |||||||||||||||
As of December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance sheet data: | ||||||||||||||||||||
Current assets | $ | 1,159,823 | $ | 789,381 | ||||||||||||||||
Long-term assets | $ | 446,680 | $ | 434,744 | ||||||||||||||||
Current liabilities | $ | 410,587 | $ | 249,963 | ||||||||||||||||
Long-term liabilities | $ | 180,621 | $ | 54,357 | ||||||||||||||||
Non-controlling interests | $ | 14,727 | $ | 6,189 | ||||||||||||||||
Schedule of equity method investments | ' | |||||||||||||||||||
As of April 20, | As of | As of December 31, | ||||||||||||||||||
December 31, | ||||||||||||||||||||
2012 | 2012 | 2013 | ||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | ||||||||||||||||||
Carrying value of investment in E-House | $ | 190,669 | $ | 183,754 | $ | 175,205 | ||||||||||||||
Proportionate share of E-house’s net tangible and intangible assets * | 175,777 | 169,729 | 169,194 | |||||||||||||||||
Excess of carrying value of investment proportionate share of E-house’s net tangible and intangible assets | $ | 14,892 | $ | 14,025 | $ | 6,011 | ||||||||||||||
The excess of carrying value has been primarily assigned to: | ||||||||||||||||||||
Goodwill and amortizable intangible assets * | $ | 19,282 | $ | 18,078 | $ | 9,478 | ||||||||||||||
Deferred tax liabilities | (4,390 | ) | (4,053 | ) | (3,467 | ) | ||||||||||||||
$ | 14,892 | $ | 14,025 | $ | 6,011 | |||||||||||||||
Cumulative losses in equity interest | $ | — | $ | (7,657 | ) | $ | (5,407 | ) | ||||||||||||
* The weighted average life of the intangible assets recorded in E-House’s financial statements was 8 years and the intangible assets not included in E-House’s financial statements, excluding the asset with indefinite life, was 6 years. | ||||||||||||||||||||
Schedule of fair value of marketable securities and related unrealized gains and losses | ' | |||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||
Basis | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Youku Tudou | $ | 67,425 | $ | — | $ | — | $ | 67,425 | ||||||||||||
MCOX | 6,709 | — | (660 | ) | 6,049 | |||||||||||||||
Others | 6,001 | 8,644 | — | 14,645 | ||||||||||||||||
December 31, 2012 | $ | 80,135 | $ | 8,644 | $ | (660 | ) | $ | 88,119 | |||||||||||
Youku Tudou | $ | 67,425 | $ | 44,580 | $ | — | $ | 112,005 | ||||||||||||
MCOX | 6,709 | 1,320 | — | 8,029 | ||||||||||||||||
Others | 10,770 | 8,871 | — | 19,641 | ||||||||||||||||
December 31, 2013 | $ | 84,904 | $ | 54,771 | $ | — | $ | 139,675 |
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Weibo Interactive | ' | |||||||
Acquisition | ' | |||||||
Schedule of allocation of consideration on the acquisition date based on fair value of assets acquired and liabilities assumed | ' | |||||||
As of acquisition date | ||||||||
(In thousands) | ||||||||
Cash consideration for the remaining 45% equity interest | $ | 4,635 | ||||||
Fair value of previously held 55% equity interest | 5,445 | |||||||
Total consideration | 10,080 | |||||||
Tangible assets | 98 | |||||||
Identifiable intangible assets acquired | 3,560 | |||||||
Liabilities assumed | (1,095 | ) | ||||||
Goodwill | 7,517 | |||||||
Total consideration | $ | 10,080 | ||||||
All Sure | ' | |||||||
Acquisition | ' | |||||||
Schedule of allocation of consideration on the acquisition date based on fair value of assets acquired and liabilities assumed | ' | |||||||
As of acquisition date | ||||||||
(In thousands) | ||||||||
Consideration | $ | 14,631 | ||||||
Fair value of previously held 35% equity interest | 20,703 | |||||||
Non-controlling interests | 1,678 | |||||||
Total consideration | 37,012 | |||||||
Tangible assets | 7,438 | |||||||
Identifiable intangible assets acquired | 7,200 | |||||||
Liabilities assumed | (2,293 | ) | ||||||
Goodwill | 24,667 | |||||||
Total consideration | $ | 37,012 | ||||||
Schedule of unaudited pro forma combined and consolidated financial information | ' | |||||||
For the Year Ended | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Unaudited | ||||||||
(In thousands) | ||||||||
Net revenues | $ | 666,973 | $ | 534,758 | ||||
Net income | $ | 27,605 | $ | 21,200 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
Schedule of changes in the carrying value of goodwill by segment | ' | |||||||||||||||||||
The changes in the carrying value of goodwill by segment are as follows (in thousands): | ||||||||||||||||||||
Portal | Others | Total | ||||||||||||||||||
Advertising | ||||||||||||||||||||
Balance as of January 1, 2011 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | 68,891 | $ | 15,159 | ||||||||||||
Impairment in 2011 | — | — | (68,891 | ) | — | |||||||||||||||
Balance as of January 1, 2012 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | — | $ | 15,159 | ||||||||||||
Transactions in 2012 | — | — | — | — | ||||||||||||||||
Balance as of January 1, 2013 | ||||||||||||||||||||
Goodwill | $ | 15,159 | $ | — | $ | — | $ | 15,159 | ||||||||||||
Acquisition of Weibo Interactive in 2013 | — | 7,517 | — | 7,517 | ||||||||||||||||
Acquisition of All Sure in 2013 | 24,667 | — | — | 24,667 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 39,826 | $ | 7,517 | $ | — | $ | 47,343 | ||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | |||||||||||||||
Amortization | Amortization | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Technology* | $ | 15,533 | $ | (11,109 | ) | $ | 4,424 | $ | 11,012 | $ | (11,012 | ) | $ | — | ||||||
Software* | 1,861 | (1,844 | ) | 17 | 1,844 | (1,844 | ) | — | ||||||||||||
Other | 6,997 | (592 | ) | 6,405 | 775 | (94 | ) | 681 | ||||||||||||
Total | $ | 24,391 | $ | (13,545 | ) | $ | 10,846 | $ | 13,631 | $ | (12,950 | ) | $ | 681 | ||||||
* Intangible assets are amortized over the estimated useful lives ranging from two to ten years. | ||||||||||||||||||||
Schedule of estimated amortization expenses | ' | |||||||||||||||||||
As of December 31, 2013, estimated amortization expenses for future periods are expected to be as follows: | ||||||||||||||||||||
Year Ended December 31, | (In thousands) | |||||||||||||||||||
2014 | $ | 2,235 | ||||||||||||||||||
2015 | 2,219 | |||||||||||||||||||
2016 | 1,491 | |||||||||||||||||||
2017 | 1,410 | |||||||||||||||||||
2018 and thereafter | 3,169 | |||||||||||||||||||
Total expected amortization expense | $ | 10,524 | ||||||||||||||||||
Investment_in_Weibo_Tables
Investment in Weibo (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Investment in Weibo | ' | |||||
Schedule of share ownership of Weibo on an if converted basis | ' | |||||
As of December 31, 2013, the share ownership of Weibo on an “if-converted” basis was as follows: | ||||||
Shareholder Name | Shares Type | Ownership | ||||
Percentage | ||||||
SINA | Ordinary shares | 77.6 | % | |||
Alibaba | Preferred shares | 16.7 | % | |||
Ordinary shares | 2.7 | % | ||||
Others | Ordinary shares | 3 | % | |||
Total | 100 | % |
Noncontrolling_interests_Table
Non-controlling interests (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Non controlling interests | ' | |||||||
Summary of non controlling interests | ' | |||||||
As of December 31, | As of December 31, | |||||||
2013 | 2012 | |||||||
(In thousand) | ||||||||
$ | 468,117 | $ | (2,430 | ) | ||||
Others | 16,291 | 11,633 | ||||||
Total | $ | 484,408 | $ | 9,203 |
Other_Balance_Sheet_Components1
Other Balance Sheet Components (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Balance Sheet Components | ' | |||||||
Schedule of other balance sheet components | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 209,688 | $ | 146,305 | ||||
Allowance for doubtful accounts: | ||||||||
Balance at the beginning of year | (11,054 | ) | (11,492 | ) | ||||
Additional provision charged to expenses | (10,385 | ) | (3,869 | ) | ||||
Write-off | 5,132 | 4,307 | ||||||
Balance at the end of year | (16,307 | ) | (11,054 | ) | ||||
$ | 193,381 | $ | 135,251 | |||||
Prepaid expenses and other current assets: | ||||||||
Content fees | $ | 7,914 | $ | 7,511 | ||||
Rental and other deposits | 8,768 | 7,261 | ||||||
Prepayments for long-term investments | 18,842 | 6,444 | ||||||
Current deferred tax assets | 3,480 | 4,161 | ||||||
Others | 18,178 | 11,121 | ||||||
$ | 57,182 | $ | 36,498 | |||||
Property and equipment, net: | ||||||||
Computers and equipment | $ | 200,506 | $ | 174,132 | ||||
Leasehold improvements | 13,620 | 11,613 | ||||||
Furniture and fixtures | 10,909 | 9,014 | ||||||
Other | 1,814 | 1,350 | ||||||
226,849 | 196,109 | |||||||
Less: Accumulated depreciation | (145,929 | ) | (119,469 | ) | ||||
$ | 80,920 | $ | 76,640 | |||||
Other assets: | ||||||||
Prepayment for land use right and office building | $ | 89,163 | $ | 21,188 | ||||
Issuance cost of convertible debt | 16,074 | — | ||||||
Investment deposits | 6,027 | 14,464 | ||||||
Non-current deferred tax assets | 1,074 | 1,660 | ||||||
Others | 1,007 | 892 | ||||||
$ | 113,345 | $ | 38,204 | |||||
Accrued liabilities: | ||||||||
Sales rebates | $ | 48,047 | $ | 40,031 | ||||
Content fees | 21,296 | 24,270 | ||||||
Accrued compensation and benefits | 27,978 | 17,998 | ||||||
Marketing expenses | 29,656 | 15,918 | ||||||
Amounts owed on non-controlling interests in subsidiary | 12,073 | — | ||||||
Advertisement production costs | 10,352 | 8,577 | ||||||
Others | 71,435 | 61,883 | ||||||
$ | 220,837 | $ | 168,677 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of components of income before income taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except percentage) | |||||||||||
Income (loss) before income tax expenses | $ | 58,432 | $ | 34,585 | $ | (297,417 | ) | ||||
Income (loss) from non-China operations | $ | (18,430 | ) | $ | 19,590 | $ | (362,692 | ) | |||
Income from China operations | $ | 76,862 | $ | 14,995 | $ | 65,275 | |||||
Income tax expenses applicable to China operations | $ | 14,602 | $ | 2,730 | $ | 5,001 | |||||
Effective tax rate for China operations | 19 | % | 18 | % | 8 | % | |||||
Schedule of current and deferred portion of income tax expenses | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Current tax provision | $ | 12,820 | $ | 6,245 | $ | 5,930 | |||||
Deferred tax (benefits) provision | 1,782 | (3,515 | ) | (929 | ) | ||||||
Income tax expenses | $ | 14,602 | $ | 2,730 | $ | 5,001 | |||||
Schedule of reconciliation between the statutory EIT rate and the effective tax rate | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory EIT rate | 25 | % | 25 | % | 25 | % | |||||
Effect on tax holiday and preferential tax rate | (10 | )% | (12 | )% | (18 | )% | |||||
Permanent differences | (1 | )% | 4 | % | 1 | % | |||||
Change in valuation allowance | 5 | % | 1 | % | — | ||||||
Effective tax rate for China operations | 19 | % | 18 | % | 8 | % | |||||
Schedule of effect of tax holiday related to China operations | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share amount) | |||||||||||
Tax holiday effect | $ | 7,583 | $ | 1,713 | $ | 10,306 | |||||
Basic net income (loss) per share effect | $ | 0.11 | $ | 0.03 | $ | 0.16 | |||||
Diluted net income (loss) per share effect | $ | 0.11 | $ | 0.03 | $ | 0.16 | |||||
U.S. | ' | ||||||||||
Income Taxes | ' | ||||||||||
Schedule of significant components of deferred tax assets and liabilities | ' | ||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry-forwards | $ | 30,826 | $ | 30,884 | |||||||
Other tax credits, allowances for doubtful accounts, accruals and other liabilities | 453 | 488 | |||||||||
Total deferred tax assets | 31,279 | 31,372 | |||||||||
Less: valuation allowance | (31,279 | ) | (31,372 | ) | |||||||
Deferred tax assets | $ | — | $ | — | |||||||
Hong Kong | ' | ||||||||||
Income Taxes | ' | ||||||||||
Schedule of significant components of deferred tax assets and liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry-forwards | $ | 2,787 | $ | 2,978 | |||||||
Less: valuation allowance | (2,787 | ) | (2,978 | ) | |||||||
Deferred tax assets | $ | — | $ | — | |||||||
China | ' | ||||||||||
Income Taxes | ' | ||||||||||
Schedule of significant components of deferred tax assets and liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowances for doubtful accounts, accruals and other liabilities | $ | 16,523 | $ | 12,977 | |||||||
Net operating loss carry forwards | 3,082 | 3,187 | |||||||||
Depreciation | 139 | 467 | |||||||||
Total deferred tax assets | 19,744 | 16,631 | |||||||||
Less: valuation allowance | (15,190 | ) | (10,810 | ) | |||||||
Net deferred tax assets | $ | 4,554 | $ | 5,821 | |||||||
Including – Current deferred tax assets | 3,480 | 4,161 | |||||||||
– Non-current deferred tax assets | 1,074 | 1,660 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | (469 | ) | $ | (389 | ) | |||||
Others | (621 | ) | (199 | ) | |||||||
Total deferred tax liabilities | $ | (1,090 | ) | $ | (588 | ) | |||||
Including – Current deferred tax liabilities | (621 | ) | (199 | ) | |||||||
- Non-current deferred tax liabilities | (469 | ) | (389 | ) | |||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Net Income (Loss) Per Share | ' | ||||||||||
Schedule of basic and diluted net income (loss) per share | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Basic net income per share calculation: | |||||||||||
Numerator: | |||||||||||
Net income (loss) attributable to SINA | $ | 45,132 | $ | 31,738 | $ | (302,092 | ) | ||||
Denominator: | |||||||||||
Weighted average ordinary shares outstanding | 66,741 | 66,401 | 65,121 | ||||||||
Basic net income (loss) per share attributable to SINA | $ | 0.68 | $ | 0.48 | $ | (4.64 | ) | ||||
Diluted net income (loss) per share calculation: | |||||||||||
Numerator: | |||||||||||
Net income (loss) attributable to SINA | $ | 45,132 | $ | 31,738 | $ | (302,092 | ) | ||||
Less: Effect on consolidated net income per share of dilutive shares of the Company’s equity interests | (959 | ) | (555 | ) | — | ||||||
Net income (loss) attributable for calculating diluted net income (loss) per share | 44,173 | 31,183 | (302,092 | ) | |||||||
Denominator: | |||||||||||
Weighted average ordinary shares outstanding | 66,741 | 66,401 | 65,121 | ||||||||
Weighted average ordinary shares equivalents: | |||||||||||
Effects of dilutive securities | |||||||||||
Stock options | 264 | 294 | — | ||||||||
Unvested restricted share units | 82 | 104 | — | ||||||||
Convertible debts | — | 50 | — | ||||||||
Shares used in computing diluted net income (loss) per share attributable to SINA | 67,087 | 66,849 | 65,121 | ||||||||
Diluted net income (loss) per share attributable to SINA | $ | 0.66 | $ | 0.47 | $ | (4.64 | ) | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of stock-based compensation | ' | |||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Costs of revenues | $ | 6,234 | $ | 3,154 | $ | 3,346 | ||||||||
Sales and marketing | 8,643 | 3,729 | 3,155 | |||||||||||
Product development | 11,418 | 3,776 | 3,082 | |||||||||||
General and administrative | 20,806 | 8,699 | 7,024 | |||||||||||
$ | 47,101 | $ | 19,358 | $ | 16,607 | |||||||||
Schedule of assumptions used to value the option grants | ' | |||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 4.1 | 3.8-4.0 | — | |||||||||||
Expected volatility | 58 | % | 62%-63% | — | ||||||||||
Risk-free interest rate | 0.6 | % | 0.40% | — | ||||||||||
Expected dividend yield | — | — | — | |||||||||||
Summary of number of shares available for issuance | ' | |||||||||||||
Shares Available | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 | 6,742 | |||||||||||||
Granted* | (604 | ) | ||||||||||||
Cancelled/expired/forfeited | 21 | |||||||||||||
December 31, 2011 | 6,159 | |||||||||||||
Granted* | (1,040 | ) | ||||||||||||
Cancelled/expired/forfeited | 133 | |||||||||||||
December 31, 2012 | 5,252 | |||||||||||||
Granted* | (610 | ) | ||||||||||||
Cancelled/expired/forfeited | 69 | |||||||||||||
December 31, 2013 | 4,711 | |||||||||||||
* In 2013, 2012 and 2011, 258,000, 246,000 and 345,000 restricted shares units, or 451,500, 430,500 and 603,750 equivalent option shares, respectively, were granted. | ||||||||||||||
Summary of option activities under the Company' stock option program | ' | |||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | |||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Life | ||||||||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||||
December 31, 2010 | 1,021 | $ | 29.34 | 3.06 | $ | 40,321 | ||||||||
Exercised | (239 | ) | $ | 25.78 | ||||||||||
Cancelled/expired/forfeited | (2 | ) | $ | 33.01 | ||||||||||
December 31, 2011 | 780 | $ | 30.42 | 2.08 | $ | 16,832 | ||||||||
Granted | 610 | 50.75 | ||||||||||||
Exercised | (180 | ) | $ | 24.71 | ||||||||||
Cancelled/expired/forfeited | (1 | ) | $ | 32.84 | ||||||||||
December 31, 2012 | 1,209 | $ | 41.53 | 3.5 | $ | 11,183 | ||||||||
Granted | 160 | 53.83 | ||||||||||||
Exercised | (325 | ) | 35.73 | |||||||||||
Cancelled/expired/forfeited | (6 | ) | 30.39 | |||||||||||
December 31, 2013 | 1,038 | 45.31 | 3.48 | $ | 40,411 | |||||||||
Vested and expected to vest as of December 31, 2012 | 1,181 | $ | 41.33 | 3.45 | $ | 11,156 | ||||||||
Exercisable as of December 31, 2012 | 689 | $ | 34.66 | 1.98 | $ | 10,826 | ||||||||
Vested and expected to vest as of December 31, 2013 | 1,024 | $ | 45.21 | 3.46 | $ | 39,964 | ||||||||
Exercisable as of December 31, 2013 | 562 | $ | 39.93 | 2.46 | $ | 24,927 | ||||||||
Schedule of stock options outstanding | ' | |||||||||||||
Range of Exercise Prices | Options | Weighted | Options | Weighted | Weighted Average | |||||||||
Outstanding | Average | Exercisable | Average | Remaining | ||||||||||
Exercise Price | Exercise Price | Contractual Life | ||||||||||||
(In thousands) | (In thousands) | (In years) | ||||||||||||
As of December 31, 2013 | ||||||||||||||
$ 20.86 - $33.29 | 221 | $ | 27.74 | 221 | $ | 27.74 | 0.89 | |||||||
$ 36.40 - $45.13 | 157 | $ | 41.72 | 111 | $ | 40.33 | 2.29 | |||||||
$ 51.48 - $51.48 | 500 | $ | 51.48 | 230 | $ | 51.48 | 4.49 | |||||||
$ 53.83 - $53.83 | 160 | $ | 53.83 | — | $ | — | 5.05 | |||||||
1,038 | $ | 45.31 | 562 | $ | 39.93 | 3.48 | ||||||||
As of December 31, 2012 | ||||||||||||||
$ 12.98 - $24.23 | 129 | $ | 20.91 | 129 | $ | 20.91 | 1.38 | |||||||
$ 24.39 - $30.35 | 107 | $ | 27.33 | 107 | $ | 27.33 | 2.41 | |||||||
$ 33.29 - $33.29 | 183 | $ | 33.29 | 183 | $ | 33.29 | 1.17 | |||||||
$ 33.68 - $51.48 | 790 | $ | 48.73 | 270 | $ | 45.07 | 4.53 | |||||||
1,209 | $ | 41.53 | 689 | $ | 34.66 | 3.5 | ||||||||
' | ||||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of stock-based compensation | ' | |||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Cost of revenues | $ | 4,253 | $ | 201 | $ | 125 | ||||||||
Sales and marketing | 6,150 | 330 | 182 | |||||||||||
Product development | 9,209 | 638 | 467 | |||||||||||
General and administrative | 11,630 | 668 | 228 | |||||||||||
$ | 31,242 | $ | 1,837 | $ | 1,002 | |||||||||
Schedule of assumptions used to value the option grants | ' | |||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 3.5 - 4.8 | 3.5 - 4.8 | 4.8 | |||||||||||
Expected volatility | 54% -61% | 60% - 63% | 52% - 55% | |||||||||||
Risk-free interest rate | 0.5% - 1.2% | 0.4% - 0.8% | 1.1% - 1.8% | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Summary of number of shares available for issuance | ' | |||||||||||||
Shares Available | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 (unaudited) | 8,224 | |||||||||||||
Granted | (1,879 | ) | ||||||||||||
Cancelled/expired/forfeited | 383 | |||||||||||||
December 31, 2011 | 6,728 | |||||||||||||
Granted | (2,175 | ) | ||||||||||||
Cancelled/expired/forfeited | 908 | |||||||||||||
Repurchased | 2,625 | |||||||||||||
December 31, 2012 | 8,086 | |||||||||||||
Granted* | (4,772 | ) | ||||||||||||
Cancelled/expired/forfeited | 1,157 | |||||||||||||
Repurchased | 177 | |||||||||||||
December 31, 2013 | 4,648 | |||||||||||||
* In 2013, 800,000 restricted share units or 1,400,000 equivalent option shares was granted (see Restricted Share Units of Weibo section below for details), in addition to 3,372,000 stock options granted. | ||||||||||||||
Summary of option activities under the Company' stock option program | ' | |||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | |||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic Value | |||||||||||
Contractual Life | ||||||||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||||
December 31, 2010 | 26,776 | $ | 0.36 | 6.4 | $ | 1,250 | ||||||||
Granted | 1,879 | $ | 1.13 | |||||||||||
Cancelled/expired/forfeited | (383 | ) | $ | 0.38 | ||||||||||
December 31, 2011 | 28,272 | $ | 0.41 | 5.5 | $ | 82,726 | ||||||||
Granted | 2,175 | $ | 3.34 | |||||||||||
Exercise | (3,445 | ) | $ | 0.36 | ||||||||||
Cancelled/expired/forfeited | (908 | ) | $ | 0.6 | ||||||||||
Repurchased | (2,625 | ) | $ | 0.36 | ||||||||||
December 31, 2012 | 23,469 | $ | 0.69 | 4.6 | $ | 60,226 | ||||||||
Granted | 3,372 | $ | 3.38 | |||||||||||
Exercise | (3,449 | ) | $ | 0.38 | ||||||||||
Cancelled/expired/forfeited | (1,157 | ) | $ | 2.49 | ||||||||||
Repurchased | (3,674 | ) | $ | 0.45 | ||||||||||
December 31, 2013 | 18,561 | $ | 1.17 | 4.3 | $ | 239,975 | ||||||||
Vested and expected to vest as of December 31, 2012 | 23,006 | $ | 0.67 | 4.6 | $ | 59,507 | ||||||||
Exercisable as of December 31, 2012 | 8,557 | $ | 0.38 | 4.5 | $ | 24,584 | ||||||||
Vested and expected to vest as of December 31, 2013 | 18,261 | $ | 1.14 | 4.3 | $ | 236,716 | ||||||||
Exercisable as of December 31, 2013 | 8,957 | $ | 0.48 | 3.7 | $ | 122,026 | ||||||||
Schedule of stock options outstanding | ' | |||||||||||||
Range of Exercise Prices | Options | Weighted | Options | Weighted | Weighted Average | |||||||||
Outstanding | Average | Exercisable | Average | Remaining | ||||||||||
Exercise Price | Exercise Price | Contractual Life | ||||||||||||
(In thousands) | (In thousands) | (In years) | ||||||||||||
As of December 31, 2013 | ||||||||||||||
$ 0.36 - $0.41 | 12,571 | $ | 0.36 | 7,989 | $ | 0.36 | 3.7 | |||||||
$ 0.96 - $1.80 | 1,324 | $ | 1.14 | 830 | $ | 1.14 | 4.3 | |||||||
$ 3.25 - $3.36 | 2,822 | $ | 3.3 | 138 | $ | 3.26 | 5.6 | |||||||
$ 3.43 - $3.50 | 1,844 | $ | 3.48 | — | $ | — | 6.6 | |||||||
18,561 | $ | 1.17 | 8,957 | $ | 0.48 | 4.3 | ||||||||
As of December 31, 2012 | ||||||||||||||
$ 0.36 - $0.41 | 19,567 | $ | 0.36 | 8,522 | $ | 0.37 | 4.6 | |||||||
$ 0.96 - $1.80 | 1,778 | $ | 1.14 | — | $ | — | 4.6 | |||||||
$ 3.25 - $3.36 | 2,124 | $ | 3.34 | 35 | $ | 3.35 | 4.7 | |||||||
23,469 | $ | 0.69 | 8,557 | $ | 0.38 | 4.6 | ||||||||
Service-based restricted share units | ' | |||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of restricted share unit activity | ' | |||||||||||||
Shares Granted | Weighted-Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2010 | 538 | $ | 29.06 | |||||||||||
Awarded* | 345 | $ | 80.83 | |||||||||||
Vested | (376 | ) | $ | 31.75 | ||||||||||
Cancelled | (11 | ) | $ | 61.09 | ||||||||||
December 31, 2011 | 496 | $ | 62.37 | |||||||||||
Awarded* | 134 | $ | 48.57 | |||||||||||
Vested | (238 | ) | $ | 51.36 | ||||||||||
Cancelled | (31 | ) | $ | 64.34 | ||||||||||
December 31, 2012 | 361 | $ | 65.87 | |||||||||||
Awarded* | 257 | $ | 71.24 | |||||||||||
Vested | (162 | ) | $ | 61.73 | ||||||||||
Cancelled | (38 | ) | $ | 63.07 | ||||||||||
December 31, 2013 | 418 | $ | 71.03 | |||||||||||
* 36,000 RSUs were granted to non-employee directors in 2013, 2012 and 2011. | ||||||||||||||
Service-based restricted share units | Weibo | ' | |||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of restricted share unit activity | ' | |||||||||||||
Shares | Weighted-Average | |||||||||||||
Granted | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
(In | ||||||||||||||
thousands) | ||||||||||||||
December 31, 2012 | — | |||||||||||||
Awarded | 800 | $ | 13.19 | |||||||||||
December 31, 2013 | 800 | $ | 13.19 | |||||||||||
Performance-based RSU | ' | |||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of restricted share unit activity | ' | |||||||||||||
Shares Granted | Weighted-Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||
December 31, 2011 | — | |||||||||||||
Awarded | 112 | $ | 50.83 | |||||||||||
Issued | — | |||||||||||||
Cancelled | (44 | ) | $ | 50.98 | ||||||||||
December 31, 2012 | 68 | $ | 50.73 | |||||||||||
Awarded | — | |||||||||||||
Issued | (68 | ) | $ | 50.73 | ||||||||||
Cancelled | — | |||||||||||||
December 31, 2013 | — | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Summary information by segment | ' | ||||||||||||||||
For the Year Ended December 31, 2013: | |||||||||||||||||
Portal | Others | Portal | Total | ||||||||||||||
advertising | advertising & Others | ||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 378,068 | $ | 98,725 | $ | 476,793 | $ | 188,313 | $ | 665,106 | |||||||
Costs of revenues | 161,385 | 49,788 | 211,173 | 59,891 | 271,064 | ||||||||||||
Gross margin | 57 | % | 50 | % | 56 | % | 68 | % | 59 | % | |||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 97,342 | $ | 63,069 | $ | 160,411 | |||||||||||
Product development | 45,592 | 100,740 | 146,332 | ||||||||||||||
General and administrative | 42,210 | 22,517 | 64,727 | ||||||||||||||
Total operating expenses | 185,144 | 186,326 | 371,470 | ||||||||||||||
Income (loss) from operations | 80,476 | (57,904 | ) | 22,572 | |||||||||||||
Interest and other income, net | 21,676 | (2,884 | ) | 18,792 | |||||||||||||
Change in fair value of investor option liability | — | 21,064 | 21,064 | ||||||||||||||
Income (loss) from equity method investment, net | 10,761 | (1,236 | ) | 9,525 | |||||||||||||
Realized gain (loss) on long-term investments | (10,503 | ) | 3,116 | (7,387 | ) | ||||||||||||
Investment impairment | (6,134 | ) | — | (6,134 | ) | ||||||||||||
Income (loss) before income tax expenses | 96,276 | (37,844 | ) | 58,432 | |||||||||||||
Income tax expense | (14,331 | ) | (271 | ) | (14,602 | ) | |||||||||||
Net income (loss) | $ | 81,945 | $ | (38,115 | ) | $ | 43,830 | ||||||||||
For the Year Ended December 31, 2012(restated): | |||||||||||||||||
Portal | Others | Portal | Total | ||||||||||||||
advertising | advertising & Others | ||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 363,198 | $ | 100,202 | $ | 463,400 | $ | 65,929 | $ | 529,329 | |||||||
Costs of revenues | 154,526 | 46,977 | 201,503 | 46,429 | 247,932 | ||||||||||||
Gross margin | 57 | % | 53 | % | 57 | % | 30 | % | 53 | % | |||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 101,962 | $ | 40,380 | $ | 142,342 | |||||||||||
Product development | 37,020 | 71,186 | 108,206 | ||||||||||||||
General and administrative | 33,619 | 5,778 | 39,397 | ||||||||||||||
Total operating expenses | 172,601 | 117,344 | 289,945 | ||||||||||||||
Income (loss) from operations | 89,296 | (97,844 | ) | (8,548 | ) | ||||||||||||
Interest and other income, net | 21,651 | (4,853 | ) | 16,798 | |||||||||||||
Loss from equity method investment, net | (9,390 | ) | (1,340 | ) | (10,730 | ) | |||||||||||
Realized gain on long-term investments | 55,563 | — | 55,563 | ||||||||||||||
Investment impairment | (18,498 | ) | — | (18,498 | ) | ||||||||||||
Income (loss) before income tax expenses | 138,622 | (104,037 | ) | 34,585 | |||||||||||||
Income tax benefit (expense ) | (4,281 | ) | 1,551 | (2,730 | ) | ||||||||||||
Net income (loss) | $ | 134,341 | $ | (102,486 | ) | $ | 31,855 | ||||||||||
For the Year Ended December 31, 2011(restated): | |||||||||||||||||
Portal | Others | Portal advertising &Others | Total | ||||||||||||||
advertising | |||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Net revenues | $ | 368,805 | $ | 114,024 | $ | 482,829 | $ | — | $ | 482,829 | |||||||
Costs of revenues | 127,931 | 57,890 | 185,821 | 29,527 | 215,348 | ||||||||||||
Gross margin | 65 | % | 49 | % | 62 | % | — | 55 | % | ||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | $ | 90,819 | $ | 45,048 | $ | 135,867 | |||||||||||
Product development | 29,343 | 36,921 | 66,264 | ||||||||||||||
General and administrative | 26,140 | 3,981 | 30,121 | ||||||||||||||
Goodwill impairment | 68,891 | — | 68,891 | ||||||||||||||
Total operating expenses | 215,193 | 85,950 | 301,143 | ||||||||||||||
Income (loss) from operations | 81,815 | (115,477 | ) | (33,662 | ) | ||||||||||||
Interest and other income, net | 18,077 | (1,750 | ) | 16,327 | |||||||||||||
Income (loss) from equity method investment, net | 1,889 | (423 | ) | 1,466 | |||||||||||||
Investment impairment | (281,548 | ) | — | (281,548 | ) | ||||||||||||
Income (loss) before income tax expenses | (179,767 | ) | (117,650 | ) | (297,417 | ) | |||||||||||
Income tax expense | (5,001 | ) | — | (5,001 | ) | ||||||||||||
Net loss | $ | (184,768 | ) | $ | (117,650 | ) | $ | (302,418 | ) | ||||||||
Schedule of geographic operations | ' | ||||||||||||||||
PRC | International | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Year ended and as of December 31, 2013: | |||||||||||||||||
Net revenues | $ | 660,695 | $ | 4,411 | $ | 665,106 | |||||||||||
Long-lived assets | $ | 75,691 | $ | 5,229 | $ | 80,920 | |||||||||||
Year ended and as of December 31, 2012: | |||||||||||||||||
Net revenues | $ | 525,678 | $ | 3,651 | $ | 529,329 | |||||||||||
Long-lived assets | $ | 76,195 | $ | 445 | $ | 76,640 | |||||||||||
Year ended and as of December 31, 2011: | |||||||||||||||||
Net revenues | $ | 479,341 | $ | 3,488 | $ | 482,829 | |||||||||||
Long-lived assets | $ | 74,112 | $ | 399 | $ | 74,511 | |||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Schedule of financial instruments, measured at fair value, by level within the fair value hierarchy | ' | |||||||||||||
Fair Value Measurements | ||||||||||||||
(In thousands) | ||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | |||||||||||
Active Market | Observable Inputs | Unobservable Inputs | ||||||||||||
for Identical Assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Money market funds* | $ | 10,480 | $ | 10,480 | $ | — | $ | — | ||||||
Bank time deposits** | 1,385,164 | — | 1,385,164 | — | ||||||||||
Available-for-sale securities*** | 139,675 | 139,675 | — | — | ||||||||||
Investor option liability | (29,504 | ) | — | — | (29,504 | ) | ||||||||
Total | $ | 1,505,815 | $ | 150,155 | $ | 1,385,164 | $ | (29,504 | ) | |||||
As of December 31, 2012 | ||||||||||||||
Money market funds* | $ | 10,005 | $ | 10,005 | $ | — | $ | — | ||||||
Bank time deposits** | 559,393 | — | 559,393 | — | ||||||||||
Available-for-sale securities*** | 88,119 | 88,119 | — | — | ||||||||||
Total | $ | 657,517 | $ | 98,124 | $ | 559,393 | $ | — | ||||||
* Included in cash and cash equivalents on the Company’s consolidated balance sheets. | ||||||||||||||
** Included in cash and cash equivalents and short-term investments on the Company’s consolidated balance sheets. | ||||||||||||||
*** Included in long-term investments on the Company’s consolidated balance sheets. | ||||||||||||||
Schedule of key inputs used in investor option liability valuation | ' | |||||||||||||
As of | ||||||||||||||
December 31, 2013 | ||||||||||||||
Expected dividend yield | — | |||||||||||||
Risk-free interest rate | 0.3 | % | ||||||||||||
Expected volatility | 53 | % | ||||||||||||
Expected life (in years) | 1.4 | |||||||||||||
Fair value per ordinary share of Weibo | $ | 14.1 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Schedule of future minimum rental payments | ' | ||||||||||||||||
Based on the current rental lease agreements, future minimum rental payments required as of December 31, 2013 were as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Operating leases commitment | $ | 46,099 | $ | 20,004 | $ | 24,509 | $ | 1,586 | $ | — | |||||||
Schedule of purchase commitments | ' | ||||||||||||||||
Purchase commitments as of December 31, 2013 were as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Purchase commitments | $ | 326,878 | $ | 238,029 | $ | 88,099 | $ | 356 | $ | 394 | |||||||
Schedule of interest payment commitment on the convertible senior notes | ' | ||||||||||||||||
Interest payment commitment on the convertible senior notes as of December 31, 2013 was as follows: | |||||||||||||||||
Total | Less than One | One to | Three to | More than | |||||||||||||
Year | Three Years | Five Years | Five Years | ||||||||||||||
(In thousands) | |||||||||||||||||
Interest payment commitments | $ | 40,000 | $ | 8,000 | $ | 16,000 | $ | 16,000 | $ | — | |||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
entity | ||||
subsidiary | ||||
VIEs | ' | ' | ' | ' |
Interest-free loans to PRC employees | $35,900,000 | $34,200,000 | ' | ' |
Aggregate accumulated losses | 13,000,000 | 14,400,000 | ' | ' |
Cash, cash equivalents and short-term investments | 1,868,239,000 | 713,598,000 | ' | ' |
Goodwill | 47,343,000 | 15,159,000 | 15,159,000 | 15,159,000 |
Net intangible assets | 10,846,000 | 681,000 | ' | ' |
Accounts receivables | 193,381,000 | 135,251,000 | ' | ' |
Accrued liabilities | 220,837,000 | 168,677,000 | ' | ' |
Income tax payable | 21,577,000 | 13,466,000 | ' | ' |
Assets and liabilities of the VIEs and their subsidiaries | ' | ' | ' | ' |
Total assets | 214,984,000 | 133,077,000 | ' | ' |
Total liabilities | 134,632,000 | 98,511,000 | ' | ' |
Results of operations of the VIEs and their subsidiaries | ' | ' | ' | ' |
Net revenues | 665,106,000 | 529,329,000 | 482,829,000 | ' |
Net income (loss) | 43,830,000 | 31,855,000 | -302,418,000 | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Net increase in cash and cash equivalents | 716,450,000 | -314,154,000 | -129,639,000 | ' |
Assets, except for registered capital and PRC statutory reserves of VIEs, that can only be used to settle obligations of the respective VIEs | 0 | ' | ' | ' |
Registered capital and PRC statutory reserves of VIEs | 58,400,000 | ' | ' | ' |
Number of entities consolidated beginning in January 2003 | 2 | ' | ' | ' |
Term of loan agreements | '10 years | ' | ' | ' |
Service fees revenue changed by wholly owned subsidiaries | 186,300,000 | 85,200,000 | 49,200,000 | ' |
Number of wholly owned subsidiaries established to engage directly in advertising business | 2 | ' | ' | ' |
Term of trademark license agreements | '1 year | ' | ' | ' |
ICP Company | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 19,000,000 | ' | ' | ' |
Term of loan agreements | '5 years | ' | ' | ' |
ICP Company | Hong Du, executive officer of the entity | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Percentage of variable interest entity held by employees | 27.10% | ' | ' | ' |
ICP Company | Tong Chen, executive officer of the entity | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Percentage of variable interest entity held by employees | 22.80% | ' | ' | ' |
ICP Company | Yan Wang, director | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Percentage of variable interest entity held by employees | 0.20% | ' | ' | ' |
ICP Company | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Percentage of variable interest entity held by employees | 22.80% | ' | ' | ' |
ICP Company | Former employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Percentage of variable interest entity held by employees | 27.10% | ' | ' | ' |
Xunlong | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 1,200,000 | ' | ' | ' |
Xunlong | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Number of non-executive PRC employees who hold ownership interest in VIEs | 2 | ' | ' | ' |
StarVI | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 1,200,000 | ' | ' | ' |
StarVI | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Number of non-executive PRC employees who hold ownership interest in VIEs | 3 | ' | ' | ' |
Wangxing | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 1,200,000 | ' | ' | ' |
Wangxing | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Number of non-executive PRC employees who hold ownership interest in VIEs | 2 | ' | ' | ' |
IAD Company | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 7,300,000 | ' | ' | ' |
IAD Company | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Number of non-executive PRC employees who hold ownership interest in VIEs | 2 | ' | ' | ' |
Weimeng | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 1,500,000 | ' | ' | ' |
Weimeng | Non-executive PRC employee | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Number of non-executive PRC employees who hold ownership interest in VIEs | 3 | ' | ' | ' |
Weibo Interactive | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Registered capital | 5,500,000 | ' | ' | ' |
Consolidated VIEs | ' | ' | ' | ' |
VIEs | ' | ' | ' | ' |
Cash, cash equivalents and short-term investments | 135,100,000 | 92,300,000 | ' | ' |
Accrued liabilities | 95,400,000 | 77,300,000 | ' | ' |
Income tax payable | ' | 10,100,000 | ' | ' |
Deferred revenues | 20,500,000 | 11,100,000 | ' | ' |
Results of operations of the VIEs and their subsidiaries | ' | ' | ' | ' |
Net revenues | 455,097,000 | 314,504,000 | 244,274,000 | ' |
Net income (loss) | 1,415,000 | -6,322,000 | -1,556,000 | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | ' | ' |
Net increase in cash and cash equivalents | $60,171,000 | $2,285,000 | $13,960,000 | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets other than goodwill | ' | ' | ' |
Depreciation | $34,433 | $29,548 | $20,968 |
Minimum | ' | ' | ' |
Intangible assets other than goodwill | ' | ' | ' |
Estimated useful lives of intangible assets | '2 years | ' | ' |
Maximum | ' | ' | ' |
Intangible assets other than goodwill | ' | ' | ' |
Estimated useful lives of intangible assets | '10 years | ' | ' |
Computers and equipment | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated useful lives of assets | '3 years | ' | ' |
Computers and equipment | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated useful lives of assets | '4 years | ' | ' |
Furniture and fixtures | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated useful lives of assets | '5 years | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) (USD $) | 0 Months Ended | 12 Months Ended | 8 Months Ended | 12 Months Ended | 8 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
Sep. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2009 | Dec. 31, 2013 | |
item | Stock Options | Service-based restricted share units | Advertising | Advertising | Advertising | Advertising | Other non-advertising revenues | Other non-advertising revenues | MVAS | MVAS | MVAS | MVAS | CRIC | CRIC/E-House | ||||
Non-advertising | ||||||||||||||||||
Long-term investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of time within which results of equity method earnings are recognized in arrears | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months |
Non-advertising | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Confirmation rate determination, number of months considered for calculation of average historical rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' |
MVAS revenue recognition, period of lag | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month | ' | ' | ' | ' | ' |
MVAS revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $60,300,000 | $69,000,000 | $83,500,000 | ' | ' | ' |
Game-related service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum period for recognition of revenues after purchase of in-game credits | ' | '1 month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount allocated to fair value of License Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,400,000 | ' |
License Agreements, period of amortization of deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other cities and provinces in China to which the Pilot Program was expanded | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VAT and surcharges (as a percent) | ' | ' | ' | ' | ' | ' | ' | 6.70% | ' | ' | ' | 6.70% | ' | ' | ' | ' | ' | ' |
Cultural business construction fees (as a percent) | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business tax and surcharges (as a percent) | ' | ' | ' | ' | ' | ' | 5.60% | ' | ' | ' | 5.60% | ' | ' | ' | ' | 3.40% | ' | ' |
Taxes assessed by governmental authority | ' | ' | ' | ' | ' | ' | ' | 50,900,000 | 39,500,000 | 32,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising expenses | ' | 78,700,000 | 72,400,000 | 87,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum initial lease term of office space | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of stock options granted | ' | ' | ' | ' | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments recorded in other comprehensive (loss)/income | ' | 21,307,000 | -2,293,000 | 22,227,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net foreign currency transaction gain (loss) | ' | $1,500,000 | ($30,000) | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash_Cash_Equivalents_and_Shor2
Cash, Cash Equivalents and Short-term Investments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Cash and cash equivalents: | ' | ' | ' | ' |
Cash | $472,595,000 | $144,200,000 | ' | ' |
Cash equivalents: | ' | ' | ' | ' |
Bank time deposits (matured within 3 months) | 433,201,000 | 45,621,000 | ' | ' |
Money market funds | 10,480,000 | 10,005,000 | ' | ' |
Total cash equivalents | 443,681,000 | 55,626,000 | ' | ' |
Total cash and cash equivalents | 916,276,000 | 199,826,000 | 513,980,000 | 643,619,000 |
Short-term investments: | ' | ' | ' | ' |
Bank time deposits | 951,963,000 | 513,772,000 | ' | ' |
Total cash, cash equivalents and short-term investments | 1,868,239,000 | 713,598,000 | ' | ' |
Interest income | $17,300,000 | $17,000,000 | $13,700,000 | ' |
Longterm_Investments_Details
Long-term Investments (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 20, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Correction of 2012 results of an investee | CRIC | Cost Method | Cost Method | Cost Method | Cost Method | Equity Method | Equity Method | Equity Method | Equity Method | Equity Method | Equity Method | Equity Method | Equity Method | Equity Method | Available-for-sale Securities | Available-for-sale Securities | Available-for-sale Securities | ||||
Yunfeng Funds | CRIC | CRIC | E-House | E-House | E-House | Others | Others | Others | |||||||||||||
Long-term Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $466,875,000 | $463,939,000 | $508,113,000 | ' | ' | $153,886,000 | $129,237,000 | $31,368,000 | ' | $222,200,000 | $244,388,000 | $466,460,000 | $183,754,000 | ' | ' | $41,116,000 | $26,450,000 | $7,917,000 | $88,119,000 | $63,864,000 | $2,368,000 |
Investments made | 48,537,000 | 304,253,000 | 253,256,000 | ' | ' | 40,427,000 | 34,623,000 | 96,829,000 | 50,000,000 | ' | ' | 2,068,000 | ' | 190,669,000 | ' | 3,341,000 | 10,300,000 | 18,702,000 | 4,769,000 | 68,661,000 | 135,657,000 |
Income (loss) from investment | 9,525,000 | -10,730,000 | 1,466,000 | -1,800,000 | ' | ' | ' | ' | ' | ' | -9,077,000 | 2,641,000 | 2,250,000 | -7,657,000 | ' | 7,275,000 | 6,004,000 | -1,175,000 | ' | ' | ' |
Investment impairment | -6,134,000 | -18,498,000 | -281,548,000 | ' | -230,300,000 | -6,134,000 | -8,580,000 | -386,000 | ' | ' | ' | -230,258,000 | ' | ' | ' | ' | -1,546,000 | ' | ' | -8,372,000 | -50,904,000 |
Unrealized gain (loss) | 46,787,000 | 30,373,000 | -23,257,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,787,000 | 30,373,000 | -23,257,000 |
Disposal\dilution of investment | -40,373,000 | -304,463,000 | ' | ' | ' | -26,145,000 | -1,584,000 | ' | ' | ' | -236,212,000 | ' | -10,205,000 | ' | ' | -4,023,000 | -260,000 | ' | ' | -66,407,000 | ' |
Dividend received | -6,484,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,400,000 | ' | ' | -2,084,000 | ' | ' | ' | ' | ' |
Others | 7,854,000 | 2,001,000 | 5,909,000 | ' | ' | 2,703,000 | 190,000 | 1,426,000 | ' | ' | 901,000 | 3,477,000 | 3,806,000 | 742,000 | ' | 1,345,000 | 168,000 | 1,006,000 | ' | ' | ' |
Balance at the end of the period | 526,587,000 | 466,875,000 | 463,939,000 | ' | ' | 164,737,000 | 153,886,000 | 129,237,000 | ' | 222,200,000 | ' | 244,388,000 | 175,205,000 | 183,754,000 | ' | 46,970,000 | 41,116,000 | 26,450,000 | 139,675,000 | 88,119,000 | 63,864,000 |
Operating data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 811,048,000 | 528,198,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | 524,987,000 | 276,876,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from operations | 74,009,000 | -18,599,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 63,195,000 | -30,205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to our equity method investments companies | 64,066,000 | -23,740,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance sheet data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | 1,159,823,000 | 789,381,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term assets | 446,680,000 | 434,744,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | 410,587,000 | 249,963,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term liabilities | 180,621,000 | 54,357,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-controlling interest | 14,727,000 | 6,189,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,205,000 | 183,754,000 | 190,669,000 | ' | ' | ' | ' | ' | ' |
Proportionate share of investee's net tangible and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,194,000 | 169,729,000 | 175,777,000 | ' | ' | ' | ' | ' | ' |
Excess of carrying value of investment proportionate share of investee's net tangible and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,011,000 | 14,025,000 | 14,892,000 | ' | ' | ' | ' | ' | ' |
The excess of carrying value has been primarily assigned to: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,478,000 | 18,078,000 | 19,282,000 | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,467,000 | -4,053,000 | -4,390,000 | ' | ' | ' | ' | ' | ' |
Cumulative earnings (losses) in equity interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($5,407,000) | ($7,657,000) | ' | ' | ' | ' | ' | ' | ' |
Weighted average life of the intangible assets recorded in investee's financial statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average life of the intangible assets not recorded in investee's financial statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Investments_Details_2
Long-term Investments (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Mar. 31, 2013 | Oct. 28, 2011 | Apr. 20, 2012 | Oct. 28, 2011 | Oct. 28, 2011 | Apr. 20, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Oct. 28, 2011 |
E-House | E-House | E-House | E-House | E-House | E-House | CRIC | CRIC | CRIC | CRIC | ||||
CRIC | CRIC | CRIC | |||||||||||
Ordinary shares | ADS | ||||||||||||
Marketable equity securities designated as available-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ordinary shares represented by each American depositary share | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | 1 |
Cash consideration per share for sale of investment (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.75 |
Number of E-house shares/ADSs received for each CRIC share/ADS cancelled | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | ' | ' | ' | ' |
E-house's percentage of ownership in CRIC after the completion of the merger | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Number of E-house's ordinary shares received on completion of the merger with CRIC being acquired by E-house | ' | ' | ' | 29.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | 24.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from disposal of CRIC's shares | ' | $85,472,000 | ' | ' | ' | ' | ' | ' | ' | $85,500,000 | ' | ' | ' |
Gain recognized on fair value basis from disposal of CRIC's shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,300,000 | ' | ' | ' |
Dilution loss | ' | ' | ' | ' | 10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges to the carrying value of investments under cost method | 6,100,000 | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge for equity method investments | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount charged to write down the investment | $6,134,000 | $18,498,000 | $281,548,000 | ' | ' | ' | ' | ' | ' | ' | ' | $230,300,000 | ' |
Period of time within which results of equity method earnings are recognized in arrears | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' |
Longterm_Investments_Details_3
Long-term Investments (Details 3) (USD $) | 1 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2012 | Aug. 24, 2012 | Mar. 12, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tudou | Youku | Youku | Youku | Youku Tudou | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | Equity securities | |
Tudou | Tudou | Youku Tudou | Youku Tudou | MCOX | MCOX | MCOX | Others | Others | ||||||
Available for Sale Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost Basis | ' | ' | ' | ' | ' | $84,904,000 | $80,135,000 | $67,425,000 | $67,425,000 | $6,709,000 | ' | $6,709,000 | $10,770,000 | $6,001,000 |
Gross Unrealized Gains | ' | ' | ' | ' | ' | 54,771,000 | 8,644,000 | 44,580,000 | ' | ' | ' | 1,320,000 | 8,871,000 | 8,644,000 |
Gross Unrealized Losses | ' | ' | ' | ' | ' | ' | -660,000 | ' | ' | -660,000 | ' | ' | ' | ' |
Fair value | ' | 67,400,000 | ' | ' | ' | 139,675,000 | 88,119,000 | 112,005,000 | 67,425,000 | 6,049,000 | ' | 8,029,000 | 19,641,000 | 14,645,000 |
Impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | 50,900,000 | ' | ' | ' |
Unrealized gain (loss) | ' | ' | ' | ' | ' | 54,800,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock-for-stock transaction under merger | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Youku's ADS was converted to for each Tudou's ADS held by SINA | ' | ' | ' | 1.595 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ADS received on conversion of ADS of Tudou | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares disposed | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
One-time investment gain | $3,000,000 | ' | ' | ' | $7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition_Details
Acquisition (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | 31-May-13 | Aug. 31, 2011 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Weibo Interactive | Weibo Interactive | Weibo Interactive | Weibo Interactive | Weibo Interactive | Weibo Interactive | Weibo Interactive | Weibo Interactive | All Sure | All Sure | All Sure | All Sure | All Sure | |||||
Minimum | Maximum | Customer list | Game platform technology | Non-compete agreement | Core technology | Trademark and domain names | |||||||||||
Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining equity interest acquired (as a percent) | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest percentage acquired accounted for under the equity method of accounting | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration for acquisition of equity interest accounted for under the equity method of accounting | ' | ' | ' | ' | ' | ' | $5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest previously held (as a percent) | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | ' | ' | ' |
Consideration for amount accounted for under the cost method of accounting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,300,000 | 21,300,000 | ' | ' | ' |
Loan receivable from All Sure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,600,000 | 14,600,000 | ' | ' | ' |
Percentage of equity interest redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' |
Exchange of shares (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Remeasurement gain upon obtaining control | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remeasurement loss upon obtaining control | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Estimated useful life of identifiable intangible assets acquired | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | ' | ' | ' | ' | ' | ' | '5 years | '10 years |
Allocation of consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,631,000 | ' | ' | ' | ' |
Cash consideration for the remaining 45% equity interest | ' | ' | ' | ' | ' | 4,635,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of previously held equity interest | ' | ' | ' | ' | ' | 5,445,000 | ' | ' | ' | ' | ' | ' | 20,703,000 | ' | ' | ' | ' |
Non-controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,678,000 | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | ' | 10,080,000 | ' | ' | ' | ' | ' | ' | 37,012,000 | ' | ' | ' | ' |
Tangible assets | ' | ' | ' | ' | ' | 98,000 | ' | ' | ' | ' | ' | ' | 7,438,000 | 7,438,000 | ' | ' | ' |
Identifiable intangible assets acquired | ' | ' | ' | ' | ' | 3,560,000 | ' | ' | ' | 2,100,000 | 1,000,000 | 500,000 | 7,200,000 | 7,200,000 | ' | 3,600,000 | 3,600,000 |
Liabilities assumed | ' | ' | ' | ' | ' | -1,095,000 | ' | ' | ' | ' | ' | ' | -2,293,000 | -2,293,000 | ' | ' | ' |
Goodwill | 47,343,000 | 15,159,000 | 15,159,000 | 15,159,000 | ' | 7,517,000 | ' | ' | ' | ' | ' | ' | 24,667,000 | 24,667,000 | ' | ' | ' |
Total consideration | ' | ' | ' | ' | ' | 10,080,000 | ' | ' | ' | ' | ' | ' | 37,012,000 | 37,012,000 | ' | ' | ' |
Percentage of equity interest transferred to Weibo Cayman subsidiary | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration for transfer of equity interest to subsidiary of Weibo Cayman | ' | ' | ' | ' | 10,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited pro forma combined and consolidated financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 666,973,000 | 534,758,000 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,605,000 | 21,200,000 | ' | ' |
Amortization of identifiable intangible assets net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | $800,000 | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 8 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | |
Weibo Interactive | Weibo Interactive | All Sure | Portal advertising | Portal advertising | Portal advertising | Portal advertising | Portal advertising | Others | ||||||
All Sure | Weibo Interactive | |||||||||||||
Changes in the carrying value of goodwill by segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | $15,159,000 | $15,159,000 | ' | $7,517,000 | ' | $39,826,000 | $15,159,000 | $15,159,000 | $15,159,000 | ' | $7,517,000 | ' | $68,891,000 |
Impairment | ' | -68,891,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -68,891,000 |
Acquisition | 32,200,000 | ' | ' | 7,517,000 | ' | 24,667,000 | ' | ' | ' | ' | 24,667,000 | ' | 7,517,000 | ' |
Balance at the end of the period | $47,343,000 | $15,159,000 | $15,159,000 | ' | $7,517,000 | $24,667,000 | $39,826,000 | $15,159,000 | $15,159,000 | $15,159,000 | ' | $7,517,000 | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets | ' | ' | ' |
Cost | $24,391 | $13,631 | ' |
Accumulated Amortization | -13,545 | -12,950 | ' |
Net | 10,846 | 681 | ' |
Amortization expenses related to intangible assets | 604 | 144 | 731 |
Year Ended December 31 | ' | ' | ' |
2014 | 2,235 | ' | ' |
2015 | 2,219 | ' | ' |
2016 | 1,491 | ' | ' |
2017 | 1,410 | ' | ' |
2018 and thereafter | 3,169 | ' | ' |
Total expected amortization expense | 10,524 | ' | ' |
Minimum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '2 years | ' | ' |
Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '10 years | ' | ' |
Other | ' | ' | ' |
Intangible assets | ' | ' | ' |
Cost | 6,997 | 775 | ' |
Accumulated Amortization | -592 | -94 | ' |
Net | 6,405 | 681 | ' |
Technology | ' | ' | ' |
Intangible assets | ' | ' | ' |
Cost | 15,533 | 11,012 | ' |
Accumulated Amortization | -11,109 | -11,012 | ' |
Net | 4,424 | 0 | ' |
Technology | Minimum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '2 years | ' | ' |
Technology | Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '10 years | ' | ' |
Software | ' | ' | ' |
Intangible assets | ' | ' | ' |
Cost | 1,861 | 1,844 | ' |
Accumulated Amortization | -1,844 | -1,844 | ' |
Net | $17 | $0 | ' |
Software | Minimum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '2 years | ' | ' |
Software | Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives of intangible assets | '10 years | ' | ' |
Investment_in_Weibo_Details
Investment in Weibo (Details) (USD $) | 12 Months Ended | 8 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 8 Months Ended | 12 Months Ended | 0 Months Ended | 8 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Alibaba | Alibaba | Alibaba | Alibaba | Company | ||||||||||||||||||||||
Ordinary shares | Alibaba | Alibaba | Alibaba | Alibaba | Alibaba | Alibaba | Ordinary shares | Alibaba | Alibaba | Alibaba | Alibaba | Alibaba | Others | |||||||||||||
Preferred shares | Ordinary shares | Preferred shares | Preferred shares | Ordinary shares | Ordinary shares | Ordinary shares | ||||||||||||||||||||
Investment in Weibo | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount invested in Weibo | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $585,800,000 | ' | ' | ' | ' | ' |
Number of shares of Weibo's purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | 4,800,000 | ' | ' |
Ownership interest on a fully diluted basis(as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | 16.70% | ' | 2.70% | 3.00% |
Maximum percentage of ownership interest in subsidiary to be reached under option granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' |
Fair value of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 481,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fair value of ordinary shares recognized as non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of vested options repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation charge recorded to reflect the difference between the proceeds received by employees and the fair value of the employee vested shares sold | 47,101,000 | 19,358,000 | 16,607,000 | ' | 27,100,000 | ' | 27,100,000 | ' | ' | 31,242,000 | 1,837,000 | 1,002,000 | ' | ' | 27,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of sale of shares including prior sales considered for expiration of option to increase ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' |
Percentage of discount applied on IPO offering price per share to calculate exercise price of option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Threshold amount of equity valuation considered to calculate exercise price of option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000,000 | ' | ' | ' | ' | ' |
Investor option liability | 29,504,000 | ' | ' | ' | ' | 50,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains recognized as subsequent change in fair value of investor option liability | 21,064,000 | ' | ' | ' | 21,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77.60% | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Loans receivable | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference interest rate | ' | ' | ' | ' | ' | ' | ' | 'Three month fixed-deposit rate of The People's Bank of China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, minimum | ' | ' | ' | ' | ' | ' | ' | 2.55% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, maximum | ' | ' | ' | ' | ' | ' | ' | 3.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue derived from related parties | $86,583,000 | $13,921,000 | $6,939,000 | $69,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49,100,000 | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling_interests_Detai
Non-controlling interests (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Non-controlling interests | ' | ' |
Total | $484,408 | $9,203 |
' | ' | |
Non-controlling interests | ' | ' |
Total | 468,117 | -2,430 |
Others | ' | ' |
Non-controlling interests | ' | ' |
Total | $16,291 | $11,633 |
Other_Balance_Sheet_Components2
Other Balance Sheet Components (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts receivable, net: | ' | ' | ' |
Accounts receivable | $209,688 | $146,305 | ' |
Allowance for doubtful accounts: | ' | ' | ' |
Balance at the beginning of year | -11,054 | -11,492 | ' |
Additional provision charged to expenses | -10,385 | -3,869 | -2,530 |
Write-off | 5,132 | 4,307 | ' |
Balance at the end of year | -16,307 | -11,054 | -11,492 |
Accounts receivable, net | 193,381 | 135,251 | ' |
Prepaid expenses and other current assets: | ' | ' | ' |
Content fees | 7,914 | 7,511 | ' |
Rental and other deposits | 8,768 | 7,261 | ' |
Prepayments for long-term investments | 18,842 | 6,444 | ' |
Current deferred tax assets | 3,480 | 4,161 | ' |
Others | 18,178 | 11,121 | ' |
Prepaid expenses and other current assets | 57,182 | 36,498 | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 226,849 | 196,109 | ' |
Less: Accumulated depreciation | -145,929 | -119,469 | ' |
Property and equipment, net | 80,920 | 76,640 | 74,511 |
Other assets: | ' | ' | ' |
Prepayment for land use right and office building | 89,163 | 21,188 | ' |
Issuance cost of convertible debt | 16,074 | ' | ' |
Investment deposits | 6,027 | 14,464 | ' |
Non-current deferred tax assets | 1,074 | 1,660 | ' |
Others | 1,007 | 892 | ' |
Other assets | 113,345 | 38,204 | ' |
Accrued liabilities: | ' | ' | ' |
Sales rebates | 48,047 | 40,031 | ' |
Content fees | 21,296 | 24,270 | ' |
Accrued compensation and benefits | 27,978 | 17,998 | ' |
Marketing expenses | 29,656 | 15,918 | ' |
Amounts owed on non-controlling interests in subsidiary | 12,073 | ' | ' |
Advertisement production costs | 10,352 | 8,577 | ' |
Others | 71,435 | 61,883 | ' |
Total Accrued liabilities | 220,837 | 168,677 | ' |
Computers and equipment | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 200,506 | 174,132 | ' |
Leasehold improvements | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 13,620 | 11,613 | ' |
Furniture and fixtures | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 10,909 | 9,014 | ' |
Other | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | $1,814 | $1,350 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 8 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
COHT | COHT | COHT | CRIC | Related parties other than CRIC and Alibaba | Related parties other than CRIC and Alibaba | Broadvision | Broadvision | Broadvision | Alibaba | ||||
entity | |||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agency fee, rate on related third party revenue (as a percent) | ' | ' | ' | 15.00% | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' |
Revenue derived from related parties | $86,583,000 | $13,921,000 | $6,939,000 | $6,000,000 | $5,100,000 | $3,500,000 | ' | ' | ' | ' | ' | ' | $69,100,000 |
Receivables due from related party | ' | ' | ' | 1,700,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount allocated to fair value of License Agreements | ' | ' | ' | ' | ' | ' | 187,400,000 | ' | ' | ' | ' | ' | ' |
License Agreements, period of amortization of deferred revenues | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Amortized deferred revenues | 18,745,000 | 18,745,000 | 18,745,000 | 18,700,000 | 18,700,000 | 18,700,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue that are from related parties | ' | ' | ' | ' | ' | ' | ' | 1.70% | 1.70% | ' | ' | ' | ' |
Percentage of cost and operating expenses that are with related parties | 0.80% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries entering into transaction with related party (in entities) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Service fees to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,000 | 146,000 | 126,000 | ' |
Payable outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2013 | Feb. 22, 2008 | Dec. 31, 2013 | |
jurisdiction | Cayman Islands | Cayman Islands | Cayman Islands | Cayman Islands | U.S. | U.S. | Hong Kong | Hong Kong | China | China | China | China | China | China | China | China | China | |||
MVAS | High and new technology enterprises | Software enterprise | Software enterprise | |||||||||||||||||
entity | SINA (Shanghai) Management Co., Ltd. | |||||||||||||||||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tax jurisdictions | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Components of income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before income tax expense | $58,432,000 | $34,585,000 | ($297,417,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from non-China operations | -18,430,000 | 19,590,000 | -362,692,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from China operations | 76,862,000 | 14,995,000 | 65,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expenses applicable to China operations | 14,602,000 | 2,730,000 | 5,001,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective tax rate for China operations (as a percent) | 19.00% | 18.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dilution loss | ' | ' | ' | -10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge related to investment | 6,134,000 | 18,498,000 | 281,548,000 | ' | 8,400,000 | 281,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain recognized on disposal of investment CRIC | ' | ' | ' | ' | 45,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on disposal of investment in Tudou | ' | ' | ' | ' | 10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | ' | ' | 68,891,000 | ' | ' | ' | 68,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal net operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | 86,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State net operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | 25,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal net operating loss carryforwards related to employee stock options | ' | ' | ' | ' | ' | ' | ' | 39,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State net operating loss carryforwards related to employee stock options | ' | ' | ' | ' | ' | ' | ' | 20,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowances for doubtful accounts, accruals and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,523,000 | 12,977,000 | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carry-forwards | ' | ' | ' | ' | ' | ' | ' | 30,826,000 | 30,884,000 | 2,787,000 | 2,978,000 | 3,082,000 | 3,187,000 | ' | ' | ' | ' | ' | ' | ' |
Other tax credits, allowances for doubtful accounts, accruals and other liabilities | ' | ' | ' | ' | ' | ' | ' | 453,000 | 488,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139,000 | 467,000 | ' | ' | ' | ' | ' | ' | ' |
Total deferred tax assets | ' | ' | ' | ' | ' | ' | ' | 31,279,000 | 31,372,000 | ' | ' | 19,744,000 | 16,631,000 | ' | ' | ' | ' | ' | ' | ' |
Less: valuation allowance | ' | ' | ' | ' | ' | ' | ' | -31,279,000 | -31,372,000 | -2,787,000 | -2,978,000 | -15,190,000 | -10,810,000 | ' | ' | ' | ' | ' | ' | ' |
Net deferred tax assets | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 4,554,000 | 5,821,000 | ' | ' | ' | ' | ' | ' | ' |
Including - Current deferred tax assets | 3,480,000 | 4,161,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,480,000 | 4,161,000 | ' | ' | ' | ' | ' | ' | ' |
Non-current deferred tax assets | 1,074,000 | 1,660,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,074,000 | 1,660,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -469,000 | -389,000 | ' | ' | ' | ' | ' | ' | ' |
Others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -621,000 | -199,000 | ' | ' | ' | ' | ' | ' | ' |
Total deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,090,000 | -588,000 | ' | ' | ' | ' | ' | ' | ' |
Including - Current deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -621,000 | -199,000 | ' | ' | ' | ' | ' | ' | ' |
Non-current deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -469,000 | -389,000 | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,200,000 | ' | 12,100,000 | 12,700,000 | ' | ' | ' | ' | ' | ' | ' |
Statutory rate (as a percent) | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' |
Transitional period to entities that enjoyed preferential tax holiday under the previous income tax law | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold for previous tax rate below which preferential rates subsequently apply (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Preferential statutory rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 12.50% | 12.50% |
Number of qualified subsidiaries (in entities) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Period of special tax holidays | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years |
Reduction in preferential tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Period of reduced preferential income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years |
Withholding income tax on dividends distributed by an FIE to its immediate holding company outside China (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of withholding income tax on dividends distributed by an FIE to its immediate holding company in Hong Kong | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interests held by foreign investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of withholding income tax on dividends distributed by PRC subsidiaries to its immediate holding company in Hong Kong | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Composition of income tax expenses for China operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current tax provision | 12,820,000 | 6,245,000 | 5,930,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax (benefits) provision | 1,782,000 | -3,515,000 | -929,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expenses | 14,602,000 | 2,730,000 | 5,001,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory EIT rate (as a percent) | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' |
Effect on tax holiday and preferential tax rate (as a percent) | -10.00% | -12.00% | -18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Permanent differences (as a percent) | -1.00% | 4.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in valuation allowance (as a percent) | 5.00% | 1.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective tax rate for China operations (as a percent) | 19.00% | 18.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax holiday on China operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax holiday effect | 7,583,000 | 1,713,000 | 10,306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic net income (loss) per share effect (in dollars per share) | $0.11 | $0.03 | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted net income (loss) per share effect (in dollars per share) | $0.11 | $0.03 | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical rate for valuing deferred tax assets (as a percent) | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards provided with valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,700,000 | 6,600,000 | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards expected to be utilized prior to expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,400,000 | $6,100,000 | ' | ' | ' | ' | ' | ' | ' |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Anti-dilutive share | ' | ' | ' |
Anti-dilutive share excluded from the calculation of diluted net income (loss) per share | 800,000 | ' | 1,700,000 |
Numerator: | ' | ' | ' |
Net income (loss) attributable to SINA | $45,132,000 | $31,738,000 | ($302,092,000) |
Denominator: | ' | ' | ' |
Weighted average ordinary shares outstanding | 66,741,000 | 66,401,000 | 65,121,000 |
Basic net income (loss) per share attributable to SINA (in dollars per share) | $0.68 | $0.48 | ($4.64) |
Numerator: | ' | ' | ' |
Net income (loss) attributable to SINA | 45,132,000 | 31,738,000 | -302,092,000 |
Less: Effect on consolidated net income per share of dilutive shares of the Company's equity interests | -959,000 | -555,000 | ' |
Net income (loss) attributable for calculating diluted net income (loss) per share | 44,173,000 | 31,183,000 | -302,092,000 |
Denominator: | ' | ' | ' |
Weighted average ordinary shares outstanding | 66,741,000 | 66,401,000 | 65,121,000 |
Weighted average ordinary shares equivalents: Effects of dilutive securities | ' | ' | ' |
Stock options (in shares) | 264,000 | 294,000 | ' |
Unvested restricted share units | 82,000 | 104,000 | ' |
Convertible debts (in shares) | ' | 50,000 | ' |
Shares used in computing diluted net income (loss) per share attributable to SINA | 67,087,000 | 66,849,000 | 65,121,000 |
Diluted net income (loss) per share attributable to SINA (in dollars per share) | $0.66 | $0.47 | ($4.64) |
Weibo Corporation | ' | ' | ' |
Anti-dilutive share | ' | ' | ' |
Effect from preferred shares on consolidated net income per share of dilutive shares | $0 | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
China Contribution plan | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Employer contribution under China Contribution Plan | $40.60 | $31.20 | $19.80 |
401(k) Savings Plan | ' | ' | ' |
Employee Benefit Plans | ' | ' | ' |
Maximum percentage of eligible pretax earnings to be deferred by employees of U.S. subsidiary under 401(k) Savings Plan | 100.00% | ' | ' |
Profit_Appropriation_Details
Profit Appropriation (Details) | 12 Months Ended |
Dec. 31, 2013 | |
fund | |
Profit Appropriation | ' |
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund | 10.00% |
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund | 50.00% |
Number of reserve funds except general reserve fund, appropriation at the entity's discretion | 2 |
Minimum percentage of after-tax profit transferred by VIEs to statutory reserve fund | 10.00% |
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory reserve funds | 50.00% |
Shareholders_Equity_Details
Shareholders' Equity (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2006 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 02, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 29, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 29, 2007 | Dec. 31, 2013 | Sep. 27, 2005 | Oct. 31, 1999 | |
series | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Amended and Restated 2007 Share Incentive Plan | Amended and Restated 2007 Share Incentive Plan | Amended and Restated 2007 Share Incentive Plan | Amended and Restated 2007 Share Incentive Plan | 1999 Stock Plan | 1999 Stock Plan | 1999 Stock Plan | 1999 Stock Plan | 1999 Stock Plan | 1999 Directors' Stock Option Plan | 1999 Directors' Stock Option Plan | 1999 Directors' Stock Option Plan | 1999 Directors' Stock Option Plan | ||||
Maximum | Stock Options | Restricted share units | Stock Options | Stock Options | ISO | NSO | NSO | NSO | NSO | ||||||||||||||
Maximum | |||||||||||||||||||||||
Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unapproved share purchase percentage needed to initiate Shareholders' Rights Plan | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum preference shares to be issued by board of directors without approval of shareholders | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of series in which preference shares is to be issued | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,125,000 | 750,000 |
Amount that maximum number of ordinary shares available for issuance is reduced for every share issued pursuant to share option or share appreciation right | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount that maximum number of ordinary shares available for issuance is reduced for every share issued as restricted shares or pursuant to restricted share units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares available for grant as a percentage of total outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum exercise price of shares granted as a percentage of fair market value on the date of grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
Number of additional awards could be made under the plan | 4,711,000 | 5,252,000 | 6,159,000 | 6,742,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' |
Outstanding stock options at the end of the period (in shares) | ' | ' | ' | ' | 1,038,000 | ' | 1,209,000 | 780,000 | 1,021,000 | ' | ' | ' | 848,000 | ' | ' | 53,000 | ' | ' | ' | ' | 137,000 | ' | ' |
Outstanding other than stock options at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 418,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of the options granted | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '10 years | ' | ' |
Minimum shares held by one shareholder as a percent of total shares outstanding for purposes of setting exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Minimum exercise price of shares granted as a percentage of fair market value on the date of grants for shareholders owning more than 10% of total shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Number of options granted to new members of the board of directors (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,500 | ' | ' |
Number of options granted annually to eligible board of directors members (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' |
Minimum period served by a board of director as a member of board to gain options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Exercise price of shares granted as percentage of fair market value on the date of grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | $47,101 | $19,358 | $16,607 |
Alibaba | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 27,100 | ' | ' |
Costs of revenues | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 6,234 | 3,154 | 3,346 |
Sales and marketing | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 8,643 | 3,729 | 3,155 |
Product development | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 11,418 | 3,776 | 3,082 |
General and administrative | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | $20,806 | $8,699 | $7,024 |
Shareholders_Equity_Details_3
Shareholders' Equity (Details 3) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2006 | |
Summary of Stock Option | ' | ' | ' | ' | ' |
Unrecognized compensation cost | $9,500,000 | ' | ' | ' | ' |
Weighted-average period of unrecognized compensation cost | '2 years 1 month 6 days | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | ' | ' | ' |
Outstanding number of shares available for issuance at the beginning of the period | 5,252,000 | 6,159,000 | 6,742,000 | ' | ' |
Granted (in shares or equivalent shares) | -610,000 | -1,040,000 | -604,000 | ' | ' |
Cancelled/expired/forfeited (in shares) | 69,000 | 133,000 | 21,000 | ' | ' |
Outstanding number of shares available for issuance at the end of the period | 4,711,000 | 5,252,000 | 6,159,000 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Ending stock price (in dollars per share) | $84.25 | $50.22 | ' | ' | ' |
Stock Options | ' | ' | ' | ' | ' |
Summary of Stock Option | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 9,500,000 | 11,100,000 | ' | ' | ' |
Weighted-average period of unrecognized compensation cost | '2 years 1 month 6 days | '2 years 7 months 6 days | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' | ' |
Expected term | '4 years 1 month 6 days | ' | ' | ' | ' |
Expected volatility (as a percent) | 58.00% | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | 0.60% | 0.40% | ' | ' | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ' | ' |
Contractual life of the options granted | ' | ' | ' | ' | '10 years |
Number of shares available for issuance | ' | ' | ' | ' | ' |
Granted (in shares or equivalent shares) | -451,500 | -430,500 | -603,750 | ' | ' |
Stock options activity | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,209,000 | 780,000 | 1,021,000 | ' | ' |
Granted (in shares) | 160,000 | 610,000 | 0 | ' | ' |
Exercised (in shares) | -325,000 | -180,000 | -239,000 | ' | ' |
Cancelled/expired/forfeited (in shares) | -6,000 | -1,000 | -2,000 | ' | ' |
Outstanding at the end of the period (in shares) | 1,038,000 | 1,209,000 | 780,000 | 1,021,000 | ' |
Vested and expected to vest at the end of the year (in shares) | 1,024,000 | 1,181,000 | ' | ' | ' |
Exercisable at the end of the period (in shares) | 562,000 | 689,000 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $41.53 | $30.42 | $29.34 | ' | ' |
Granted (in dollars per share) | $53.83 | $50.75 | ' | ' | ' |
Exercised (in dollars per share) | $35.73 | $24.71 | $25.78 | ' | ' |
Cancelled/expired/forfeited (in dollars per share) | $30.39 | $32.84 | $33.01 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $45.31 | $41.53 | $30.42 | $29.34 | ' |
Vested and expected to vest at the end of the period (in dollars per share) | $45.21 | $41.33 | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | $39.93 | $34.66 | ' | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' | ' |
Outstanding at the end the period | '3 years 5 months 23 days | '3 years 6 months | '2 years 29 days | '3 years 22 days | ' |
Vested and expected to vest at the end of the period | '3 years 5 months 16 days | '3 years 5 months 12 days | ' | ' | ' |
Exercisable at the end of the period | '2 years 5 months 16 days | '1 year 11 months 23 days | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | 40,411,000 | 11,183,000 | 16,832,000 | 40,321,000 | ' |
Vested and expected to vest at the end of the period | 39,964,000 | 11,156,000 | ' | ' | ' |
Exercisable at the end of the period | 24,927,000 | 10,826,000 | ' | ' | ' |
Total intrinsic value of options exercised | 12,400,000 | 6,800,000 | 17,600,000 | ' | ' |
Cash received from the exercises of stock option | $10,300,000 | $4,400,000 | $6,200,000 | ' | ' |
Stock Options | Minimum | ' | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' | ' |
Expected term | ' | '3 years 9 months 18 days | ' | ' | ' |
Expected volatility (as a percent) | ' | 62.00% | ' | ' | ' |
Contractual life of the options granted | '6 years | ' | ' | ' | ' |
Stock Options | Maximum | ' | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' | ' |
Expected term | ' | '4 years | ' | ' | ' |
Expected volatility (as a percent) | ' | 63.00% | ' | ' | ' |
Contractual life of the options granted | '7 years | ' | ' | ' | ' |
Restricted share units | ' | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | ' | ' | ' |
Restricted shares units granted (in shares) | 258,000 | 246,000 | 345,000 | ' | ' |
Shareholders_Equity_Details_4
Shareholders' Equity (Details 4) (Stock Options, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Range of Exercise Prices | ' | ' |
Options Outstanding (in shares) | 1,038 | 1,209 |
Weighted Average Exercise Price (in dollars per share) | $45.31 | $41.53 |
Options Exercisable (in shares) | 562 | 689 |
Weighted Average Exercise Price (in dollars per share) | $39.93 | $34.66 |
Weighted Average Remaining Contractual Life | '3 years 5 months 23 days | '3 years 6 months |
Range of Exercise Prices $20.86 - $33.29 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $20.86 | ' |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $33.29 | ' |
Options Outstanding (in shares) | 221 | ' |
Weighted Average Exercise Price (in dollars per share) | $27.74 | ' |
Options Exercisable (in shares) | 221 | ' |
Weighted Average Exercise Price (in dollars per share) | $27.74 | ' |
Weighted Average Remaining Contractual Life | '10 months 20 days | ' |
Range of Exercise Prices $36.40 - $45.13 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $36.40 | ' |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $45.13 | ' |
Options Outstanding (in shares) | 157 | ' |
Weighted Average Exercise Price (in dollars per share) | $41.72 | ' |
Options Exercisable (in shares) | 111 | ' |
Weighted Average Exercise Price (in dollars per share) | $40.33 | ' |
Weighted Average Remaining Contractual Life | '2 years 3 months 14 days | ' |
Range of Exercise Prices $51.48 - $51.48 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $51.48 | ' |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $51.48 | ' |
Options Outstanding (in shares) | 500 | ' |
Weighted Average Exercise Price (in dollars per share) | $51.48 | ' |
Options Exercisable (in shares) | 230 | ' |
Weighted Average Exercise Price (in dollars per share) | $51.48 | ' |
Weighted Average Remaining Contractual Life | '4 years 5 months 26 days | ' |
Range of Exercise Prices $53.83 - $53.83 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $53.83 | ' |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $53.83 | ' |
Options Outstanding (in shares) | 160 | ' |
Weighted Average Exercise Price (in dollars per share) | $53.83 | ' |
Weighted Average Remaining Contractual Life | '5 years 18 days | ' |
Range of Exercise Prices $12.98 - $24.23 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | ' | $12.98 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | ' | $24.23 |
Options Outstanding (in shares) | ' | 129 |
Weighted Average Exercise Price (in dollars per share) | ' | $20.91 |
Options Exercisable (in shares) | ' | 129 |
Weighted Average Exercise Price (in dollars per share) | ' | $20.91 |
Weighted Average Remaining Contractual Life | ' | '1 year 4 months 17 days |
Range of Exercise Prices $24.39 - $30.35 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | ' | $24.39 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | ' | $30.35 |
Options Outstanding (in shares) | ' | 107 |
Weighted Average Exercise Price (in dollars per share) | ' | $27.33 |
Options Exercisable (in shares) | ' | 107 |
Weighted Average Exercise Price (in dollars per share) | ' | $27.33 |
Weighted Average Remaining Contractual Life | ' | '2 years 4 months 28 days |
Range of Exercise Prices $33.29 - $33.29 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | ' | $33.29 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | ' | $33.29 |
Options Outstanding (in shares) | ' | 183 |
Weighted Average Exercise Price (in dollars per share) | ' | $33.29 |
Options Exercisable (in shares) | ' | 183 |
Weighted Average Exercise Price (in dollars per share) | ' | $33.29 |
Weighted Average Remaining Contractual Life | ' | '1 year 2 months 1 day |
Range of Exercise Prices $33.68 - $51.48 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | ' | $33.68 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | ' | $51.48 |
Options Outstanding (in shares) | ' | 790 |
Weighted Average Exercise Price (in dollars per share) | ' | $48.73 |
Options Exercisable (in shares) | ' | 270 |
Weighted Average Exercise Price (in dollars per share) | ' | $45.07 |
Weighted Average Remaining Contractual Life | ' | '4 years 6 months 11 days |
Shareholders_Equity_Details_5
Shareholders' Equity (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Unrecognized compensation cost | $9,500,000 | ' | ' |
Expected weighted-average recognition period for unrecognized compensation cost | '2 years 1 month 6 days | ' | ' |
Service-based restricted share units | ' | ' | ' |
Restricted Share Units | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 361,000 | 496,000 | 538,000 |
Awarded (in shares) | 257,000 | 134,000 | 345,000 |
Vested (in shares) | -162,000 | -238,000 | -376,000 |
Cancelled (in shares) | -38,000 | -31,000 | -11,000 |
Outstanding at the end of the period (in shares) | 418,000 | 361,000 | 496,000 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $65.87 | $62.37 | $29.06 |
Awarded (in dollars per share) | $71.24 | $48.57 | $80.83 |
Vested (in dollars per share) | $61.73 | $51.36 | $31.75 |
Cancelled (in dollars per share) | $63.07 | $64.34 | $61.09 |
Outstanding at the end of the period (in dollars per share) | $71.03 | $65.87 | $62.37 |
Unrecognized compensation cost | 28,200,000 | 21,900,000 | ' |
Expected weighted-average recognition period for unrecognized compensation cost | '3 years 1 month 6 days | '3 years | ' |
Total fair value vested | 11,300,000 | 12,500,000 | 34,200,000 |
Service-based restricted share units | Non-employee directors | ' | ' | ' |
Restricted Share Units | ' | ' | ' |
Awarded (in shares) | 36,000 | 36,000 | 36,000 |
Performance-based RSU | ' | ' | ' |
Restricted Share Units | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 68,000 | ' | ' |
Awarded (in shares) | ' | 112,000 | 0 |
Issued (in shares) | -68,000 | ' | ' |
Cancelled (in shares) | ' | -44,000 | ' |
Outstanding at the end of the period (in shares) | ' | 68,000 | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $50.73 | ' | ' |
Awarded (in dollars per share) | ' | $50.83 | ' |
Issued (in dollars per share) | $50.73 | ' | ' |
Cancelled (in dollars per share) | ' | $50.98 | ' |
Outstanding at the end of the period (in dollars per share) | ' | $50.73 | ' |
Unrecognized compensation cost | $0 | $0 | ' |
Shareholders_Equity_Details_6
Shareholders' Equity (Details 6) (Weibo Corporation, 2010 Weibo Incentive Plan, Options, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weibo Corporation | 2010 Weibo Incentive Plan | Options | ' | ' | ' |
Shareholders' Equity | ' | ' | ' |
Percentage of ordinary shares outstanding, granted | 1.70% | 1.30% | 1.10% |
Estimated fair value of options at grant date | $16.90 | $3.60 | $1 |
Shareholders_Equity_Details_7
Shareholders' Equity (Details 7) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | $47,101,000 | $19,358,000 | $16,607,000 |
Alibaba | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 27,100,000 | ' | ' |
Costs of revenues | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 6,234,000 | 3,154,000 | 3,346,000 |
Sales and marketing | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 8,643,000 | 3,729,000 | 3,155,000 |
Product development | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 11,418,000 | 3,776,000 | 3,082,000 |
General and administrative | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 20,806,000 | 8,699,000 | 7,024,000 |
Weibo Corporation | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 31,242,000 | 1,837,000 | 1,002,000 |
Amortization period | '4 years | ' | ' |
Stock compensation expenses related to the grants | 4,100,000 | 1,800,000 | 1,000,000 |
Weibo Corporation | Alibaba | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 27,100,000 | ' | ' |
Weibo Corporation | Costs of revenues | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 4,253,000 | 201,000 | 125,000 |
Weibo Corporation | Sales and marketing | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 6,150,000 | 330,000 | 182,000 |
Weibo Corporation | Product development | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | 9,209,000 | 638,000 | 467,000 |
Weibo Corporation | General and administrative | ' | ' | ' |
Stock-based Compensation | ' | ' | ' |
Stock-based compensation expense | $11,630,000 | $668,000 | $228,000 |
Shareholders_Equity_Details_8
Shareholders' Equity (Details 8) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Number of shares available for issuance | ' | ' | ' | ' |
Outstanding number of shares available for issuance at the beginning of the period | 5,252,000 | 6,159,000 | 6,742,000 | ' |
Granted (in shares or equivalent shares) | -610,000 | -1,040,000 | -604,000 | ' |
Cancelled/expired/forfeited (in shares) | 69,000 | 133,000 | 21,000 | ' |
Outstanding number of shares available for issuance at the end of the period | 4,711,000 | 5,252,000 | 6,159,000 | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Unrecognized compensation cost | $9,500,000 | ' | ' | ' |
Weighted-average period of unrecognized compensation cost | '2 years 1 month 6 days | ' | ' | ' |
Stock Options | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | '4 years 1 month 6 days | ' | ' | ' |
Expected volatility (as a percent) | 58.00% | ' | ' | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ' |
Number of shares available for issuance | ' | ' | ' | ' |
Granted (in shares or equivalent shares) | -451,500 | -430,500 | -603,750 | ' |
Stock options activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,209,000 | 780,000 | 1,021,000 | ' |
Granted (in shares) | 160,000 | 610,000 | 0 | ' |
Exercised (in shares) | -325,000 | -180,000 | -239,000 | ' |
Cancelled/expired/forfeited (in shares) | -6,000 | -1,000 | -2,000 | ' |
Outstanding at the end of the period (in shares) | 1,038,000 | 1,209,000 | 780,000 | 1,021,000 |
Vested and expected to vest at the end of the year (in shares) | 1,024,000 | 1,181,000 | ' | ' |
Exercisable at the end of the period (in shares) | 562,000 | 689,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $41.53 | $30.42 | $29.34 | ' |
Granted (in dollars per share) | $53.83 | $50.75 | ' | ' |
Exercised (in dollars per share) | $35.73 | $24.71 | $25.78 | ' |
Cancelled/expired/forfeited (in dollars per share) | $30.39 | $32.84 | $33.01 | ' |
Outstanding at the end of the period (in dollars per share) | $45.31 | $41.53 | $30.42 | $29.34 |
Vested and expected to vest at the end of the period (in dollars per share) | $45.21 | $41.33 | ' | ' |
Exercisable at the end of the period (in dollars per share) | $39.93 | $34.66 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' |
Outstanding at the end the period | '3 years 5 months 23 days | '3 years 6 months | '2 years 29 days | '3 years 22 days |
Vested and expected to vest at the end of the period | '3 years 5 months 16 days | '3 years 5 months 12 days | ' | ' |
Exercisable at the end of the period | '2 years 5 months 16 days | '1 year 11 months 23 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | 40,411,000 | 11,183,000 | 16,832,000 | 40,321,000 |
Vested and expected to vest at the end of the period | 39,964,000 | 11,156,000 | ' | ' |
Exercisable at the end of the period | 24,927,000 | 10,826,000 | ' | ' |
Total intrinsic value of options exercised | 12,400,000 | 6,800,000 | 17,600,000 | ' |
Cash received from the exercises of stock option | 10,300,000 | 4,400,000 | 6,200,000 | ' |
Unrecognized compensation cost | 9,500,000 | 11,100,000 | ' | ' |
Weighted-average period of unrecognized compensation cost | '2 years 1 month 6 days | '2 years 7 months 6 days | ' | ' |
Stock Options | Minimum | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | ' | '3 years 9 months 18 days | ' | ' |
Expected volatility (as a percent) | ' | 62.00% | ' | ' |
Stock Options | Maximum | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | ' | '4 years | ' | ' |
Expected volatility (as a percent) | ' | 63.00% | ' | ' |
Restricted share units | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | ' | ' |
Restricted shares units granted (in shares) | 258,000 | 246,000 | 345,000 | ' |
Weibo Corporation | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | ' | ' |
Outstanding number of shares available for issuance at the beginning of the period | 8,086,000 | 6,728,000 | 8,224,000 | ' |
Granted (in shares or equivalent shares) | -4,772,000 | -2,175,000 | -1,879,000 | ' |
Cancelled/expired/forfeited (in shares) | 1,157,000 | 908,000 | 383,000 | ' |
Repurchased (in shares) | 177,000 | 2,625,000 | ' | ' |
Outstanding number of shares available for issuance at the end of the period | 4,648,000 | 8,086,000 | 6,728,000 | ' |
Weibo Corporation | Stock Options | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | ' | ' | '4 years 9 months 18 days | ' |
Risk-free interest rate, Minimum (as a percent) | 0.50% | 0.40% | 1.10% | ' |
Risk-free interest rate, Maximum (as a percent) | 1.20% | 0.80% | 1.80% | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ' |
Number of shares available for issuance | ' | ' | ' | ' |
Granted (in shares or equivalent shares) | -1,400,000 | ' | ' | ' |
Stock options activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 23,469,000 | 28,272,000 | 26,776,000 | ' |
Granted (in shares) | 3,372,000 | 2,175,000 | 1,879,000 | ' |
Exercised (in shares) | -3,449,000 | -3,445,000 | ' | ' |
Cancelled/expired/forfeited (in shares) | -1,157,000 | -908,000 | -383,000 | ' |
Repurchased (in shares) | -3,674,000 | -2,625,000 | ' | ' |
Outstanding at the end of the period (in shares) | 18,561,000 | 23,469,000 | 28,272,000 | 26,776,000 |
Vested and expected to vest at the end of the year (in shares) | 18,261,000 | 23,006,000 | ' | ' |
Exercisable at the end of the period (in shares) | 8,957,000 | 8,557,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $0.69 | $0.41 | $0.36 | ' |
Granted (in dollars per share) | $3.38 | $3.34 | $1.13 | ' |
Exercised (in dollars per share) | $0.38 | $0.36 | ' | ' |
Cancelled/expired/forfeited (in dollars per share) | $2.49 | $0.60 | $0.38 | ' |
Repurchased (in dollars per share) | $0.45 | $0.36 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $1.17 | $0.69 | $0.41 | $0.36 |
Vested and expected to vest at the end of the period (in dollars per share) | $1.14 | $0.67 | ' | ' |
Exercisable at the end of the period (in dollars per share) | $0.48 | $0.38 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' |
Outstanding at the end the period | '4 years 3 months 18 days | '4 years 7 months 6 days | '5 years 6 months | '6 years 4 months 24 days |
Vested and expected to vest at the end of the period | '4 years 3 months 18 days | '4 years 7 months 6 days | ' | ' |
Exercisable at the end of the period | '3 years 8 months 12 days | '4 years 6 months | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | 239,975,000 | 60,226,000 | 82,726,000 | 1,250,000 |
Vested and expected to vest at the end of the period | 236,716,000 | 59,507,000 | ' | ' |
Exercisable at the end of the period | 122,026,000 | 24,584,000 | ' | ' |
Total intrinsic value of options exercised | 37,300,000 | 10,300,000 | 0 | ' |
Cash received from the exercises of stock option | 1,000,000 | 0 | 2,200,000 | ' |
Unrecognized compensation cost | $16,400,000 | $4,800,000 | ' | ' |
Weighted-average period of unrecognized compensation cost | '1 year 10 months 24 days | ' | ' | ' |
Weibo Corporation | Stock Options | Minimum | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | '3 years 6 months | '3 years 6 months | ' | ' |
Expected volatility (as a percent) | 54.00% | 60.00% | 52.00% | ' |
Weibo Corporation | Stock Options | Maximum | ' | ' | ' | ' |
Assumptions used to value the option grants | ' | ' | ' | ' |
Expected term | '4 years 9 months 18 days | '4 years 9 months 18 days | ' | ' |
Expected volatility (as a percent) | 61.00% | 63.00% | 55.00% | ' |
Weibo Corporation | Restricted share units | ' | ' | ' | ' |
Number of shares available for issuance | ' | ' | ' | ' |
Restricted shares units granted (in shares) | 800,000 | ' | ' | ' |
Shareholders_Equity_Details_9
Shareholders' Equity (Details 9) (Stock Options, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Range of Exercise Prices | ' | ' |
Options Outstanding (in shares) | 1,038 | 1,209 |
Weighted Average Exercise Price (in dollars per share) | $45.31 | $41.53 |
Options Exercisable (in shares) | 562 | 689 |
Weighted Average Exercise Price (in dollars per share) | $39.93 | $34.66 |
Weighted Average Remaining Contractual Life | '3 years 5 months 23 days | '3 years 6 months |
Weibo Corporation | ' | ' |
Range of Exercise Prices | ' | ' |
Options Outstanding (in shares) | 18,561 | 23,469 |
Weighted Average Exercise Price (in dollars per share) | $1.17 | $0.69 |
Options Exercisable (in shares) | 8,957 | 8,557 |
Weighted Average Exercise Price (in dollars per share) | $0.48 | $0.38 |
Weighted Average Remaining Contractual Life | '4 years 3 months 18 days | '4 years 7 months 6 days |
Weibo Corporation | Range of Exercise Prices $0.36 - $0.41 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $0.36 | $0.36 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $0.41 | $0.41 |
Options Outstanding (in shares) | 12,571 | 19,567 |
Weighted Average Exercise Price (in dollars per share) | $0.36 | $0.36 |
Options Exercisable (in shares) | 7,989 | 8,522 |
Weighted Average Exercise Price (in dollars per share) | $0.36 | $0.37 |
Weighted Average Remaining Contractual Life | '3 years 8 months 12 days | '4 years 7 months 6 days |
Weibo Corporation | Range of Exercise Prices $0.96 - $1.80 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $0.96 | $0.96 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $1.80 | $1.80 |
Options Outstanding (in shares) | 1,324 | 1,778 |
Weighted Average Exercise Price (in dollars per share) | $1.14 | $1.14 |
Options Exercisable (in shares) | 830 | ' |
Weighted Average Exercise Price (in dollars per share) | $1.14 | ' |
Weighted Average Remaining Contractual Life | '4 years 3 months 18 days | '4 years 7 months 6 days |
Weibo Corporation | Range of Exercise Prices $3.25 - $3.36 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $3.25 | $3.25 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $3.36 | $3.36 |
Options Outstanding (in shares) | 2,822 | 2,124 |
Weighted Average Exercise Price (in dollars per share) | $3.30 | $3.34 |
Options Exercisable (in shares) | 138 | 35 |
Weighted Average Exercise Price (in dollars per share) | $3.26 | $3.35 |
Weighted Average Remaining Contractual Life | '5 years 7 months 6 days | '4 years 8 months 12 days |
Weibo Corporation | Range of Exercise Prices $3.43 - $3.50 | ' | ' |
Range of Exercise Prices | ' | ' |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $3.43 | ' |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $3.50 | ' |
Options Outstanding (in shares) | 1,844 | ' |
Weighted Average Exercise Price (in dollars per share) | $3.48 | ' |
Weighted Average Remaining Contractual Life | '6 years 7 months 6 days | ' |
Shareholders_Equity_Details_10
Shareholders' Equity (Details 10) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Unrecognized compensation cost | $9,500,000 | ' | ' |
Expected weighted-average recognition period for unrecognized compensation cost | '2 years 1 month 6 days | ' | ' |
Service-based restricted share units | ' | ' | ' |
Restricted Share Units | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 361,000 | 496,000 | 538,000 |
Awarded (in shares) | 257,000 | 134,000 | 345,000 |
Outstanding at the end of the period (in shares) | 418,000 | 361,000 | 496,000 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $65.87 | $62.37 | $29.06 |
Awarded (in dollars per share) | $71.24 | $48.57 | $80.83 |
Outstanding at the end of the period (in dollars per share) | $71.03 | $65.87 | $62.37 |
Unrecognized compensation cost | 28,200,000 | 21,900,000 | ' |
Expected weighted-average recognition period for unrecognized compensation cost | '3 years 1 month 6 days | '3 years | ' |
Vested (in shares) | -162,000 | -238,000 | -376,000 |
Weibo Corporation | Service-based restricted share units | ' | ' | ' |
Restricted Share Units | ' | ' | ' |
Awarded (in shares) | 800,000 | ' | ' |
Outstanding at the end of the period (in shares) | 800,000 | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Awarded (in dollars per share) | $13.19 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $13.19 | ' | ' |
Unrecognized compensation cost | $9,200,000 | ' | ' |
Expected weighted-average recognition period for unrecognized compensation cost | '3 years 10 months 24 days | ' | ' |
Vested (in shares) | 0 | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | |||
Segment Information | ' | ' | ' |
Number of principal business segments | ' | 3 | ' |
Summary information by segment | ' | ' | ' |
Net revenues | $665,106,000 | $529,329,000 | $482,829,000 |
Costs of revenues | 271,064,000 | 247,932,000 | 215,348,000 |
Gross margin (as a percent) | 59.00% | 53.00% | 55.00% |
Operating expenses: | ' | ' | ' |
Sales and marketing | 160,411,000 | 142,342,000 | 135,867,000 |
Product development | 146,332,000 | 108,206,000 | 66,264,000 |
General and administrative | 64,727,000 | 39,397,000 | 30,121,000 |
Goodwill impairment | ' | ' | 68,891,000 |
Total operating expenses | 371,470,000 | 289,945,000 | 301,143,000 |
Income (loss) from operations | 22,572,000 | -8,548,000 | -33,662,000 |
Interest and other income, net | 18,792,000 | 16,798,000 | 16,327,000 |
Change in fair value of investor option liability (Note 17) | 21,064,000 | ' | ' |
Income (loss) from equity method investments, net | 9,525,000 | -10,730,000 | 1,466,000 |
Realized gain (loss) on long-term investments | -7,387,000 | 55,563,000 | ' |
Investment impairment | -6,134,000 | -18,498,000 | -281,548,000 |
Income (loss) before income tax expense | 58,432,000 | 34,585,000 | -297,417,000 |
Income tax benefit (expense) | -14,602,000 | -2,730,000 | -5,001,000 |
Net income (loss) | 43,830,000 | 31,855,000 | -302,418,000 |
Portal advertising & Others | ' | ' | ' |
Summary information by segment | ' | ' | ' |
Net revenues | 476,793,000 | 463,400,000 | 482,829,000 |
Costs of revenues | 211,173,000 | 201,503,000 | 185,821,000 |
Gross margin (as a percent) | 56.00% | 57.00% | 62.00% |
Operating expenses: | ' | ' | ' |
Sales and marketing | 97,342,000 | 101,962,000 | 90,819,000 |
Product development | 45,592,000 | 37,020,000 | 29,343,000 |
General and administrative | 42,210,000 | 33,619,000 | 26,140,000 |
Goodwill impairment | ' | ' | 68,891,000 |
Total operating expenses | 185,144,000 | 172,601,000 | 215,193,000 |
Income (loss) from operations | 80,476,000 | 89,296,000 | 81,815,000 |
Interest and other income, net | 21,676,000 | 21,651,000 | 18,077,000 |
Income (loss) from equity method investments, net | 10,761,000 | -9,390,000 | 1,889,000 |
Realized gain (loss) on long-term investments | -10,503,000 | 55,563,000 | ' |
Investment impairment | -6,134,000 | -18,498,000 | -281,548,000 |
Income (loss) before income tax expense | 96,276,000 | 138,622,000 | -179,767,000 |
Income tax benefit (expense) | -14,331,000 | -4,281,000 | -5,001,000 |
Net income (loss) | 81,945,000 | 134,341,000 | -184,768,000 |
Portal advertising | ' | ' | ' |
Summary information by segment | ' | ' | ' |
Net revenues | 378,068,000 | 363,198,000 | 368,805,000 |
Costs of revenues | 161,385,000 | 154,526,000 | 127,931,000 |
Gross margin (as a percent) | 57.00% | 57.00% | 65.00% |
Others | ' | ' | ' |
Summary information by segment | ' | ' | ' |
Net revenues | 98,725,000 | 100,202,000 | 114,024,000 |
Costs of revenues | 49,788,000 | 46,977,000 | 57,890,000 |
Gross margin (as a percent) | 50.00% | 53.00% | 49.00% |
Operating expenses: | ' | ' | ' |
Goodwill impairment | ' | ' | 68,891,000 |
' | ' | ' | |
Summary information by segment | ' | ' | ' |
Net revenues | 188,313,000 | 65,929,000 | ' |
Costs of revenues | 59,891,000 | 46,429,000 | 29,527,000 |
Gross margin (as a percent) | 68.00% | 30.00% | ' |
Operating expenses: | ' | ' | ' |
Sales and marketing | 63,069,000 | 40,380,000 | 45,048,000 |
Product development | 100,740,000 | 71,186,000 | 36,921,000 |
General and administrative | 22,517,000 | 5,778,000 | 3,981,000 |
Total operating expenses | 186,326,000 | 117,344,000 | 85,950,000 |
Income (loss) from operations | -57,904,000 | -97,844,000 | -115,477,000 |
Interest and other income, net | -2,884,000 | -4,853,000 | -1,750,000 |
Change in fair value of investor option liability (Note 17) | 21,064,000 | ' | ' |
Income (loss) from equity method investments, net | -1,236,000 | -1,340,000 | -423,000 |
Realized gain (loss) on long-term investments | 3,116,000 | ' | ' |
Income (loss) before income tax expense | -37,844,000 | -104,037,000 | -117,650,000 |
Income tax benefit (expense) | -271,000 | 1,551,000 | ' |
Net income (loss) | ($38,115,000) | ($102,486,000) | ($117,650,000) |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Company's geographic operations | ' | ' | ' |
Net revenues | $665,106 | $529,329 | $482,829 |
Long-lived assets | 80,920 | 76,640 | 74,511 |
PRC | ' | ' | ' |
Company's geographic operations | ' | ' | ' |
Net revenues | 660,695 | 525,678 | 479,341 |
Long-lived assets | 75,691 | 76,195 | 74,112 |
International | ' | ' | ' |
Company's geographic operations | ' | ' | ' |
Net revenues | 4,411 | 3,651 | 3,488 |
Long-lived assets | $5,229 | $445 | $399 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Alibaba | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | Financial instruments measured on a recurring basis | |
Quoted Prices in Active Market for Identical Assets (Level 1) | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||
Alibaba | ||||||||||
Fair Value of Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market funds | ' | ' | $10,480 | $10,005 | $10,480 | $10,005 | ' | ' | ' | ' |
Bank time deposits | ' | ' | 1,385,164 | 559,393 | ' | ' | 1,385,164 | 559,393 | ' | ' |
Available-for-sale securities | ' | ' | 139,675 | 88,119 | 139,675 | 88,119 | ' | ' | ' | ' |
Investor option liability | -29,504 | -50,600 | -29,504 | ' | ' | ' | ' | ' | -29,504 | ' |
Total | ' | ' | $1,505,815 | $657,517 | $150,155 | $98,124 | $1,385,164 | $559,393 | ($29,504) | ' |
Percentage of ownership interest in subsidiary to be reached if fully exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Alibaba | Alibaba | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | ||||
Investor option liability | Investor option liability | Investor option liability | Investor option liability | Significant Unobservable Inputs (Level 3) | MCOX | MCOX | MCOX | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||||||
Alibaba | |||||||||||||||||||
Key inputs used in investor option liability valuation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of shares sold (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life (in years) | ' | ' | ' | ' | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value per ordinary share of Weibo (in dollars per share) | $84.25 | $50.22 | ' | ' | ' | ' | ' | ' | ' | $14.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investor option liability | $29,504,000 | ' | ' | ' | $50,600,000 | $29,504,000 | ' | $50,600,000 | ' | ' | $29,504,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gains recognized as subsequent change in fair value of investor option liability | 21,064,000 | ' | ' | 21,100,000 | ' | ' | 21,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge related to investment | 6,134,000 | 18,498,000 | 281,548,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 8,400,000 | 50,900,000 | 6,100,000 | 10,100,000 | 230,300,000 |
Impairment charge | ' | ' | $68,891,000 | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | item | |
Concentration of Risk | ' | ' | ' |
Cash, cash equivalents and short-term investments | 1,868,239 | 713,598 | ' |
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund | 10.00% | ' | ' |
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund | 50.00% | ' | ' |
Accounts receivable denominated in RMB | 193,381 | 135,251 | ' |
Current liabilities denominated in RMB | 328,106 | 227,029 | ' |
Percentage of consolidated net assets that restricted net assets did not exceed | 25.00% | ' | ' |
Exposure to credit loss | Cash, cash equivalents and short-term investments | China | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Cash, cash equivalents and short-term investments | 1,844,500 | 694,000 | ' |
Maximum term of original maturity of time deposits | '12 months | ' | ' |
Currency concentration risk | Cash, cash equivalents and short-term investments | RMB | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Cash, cash equivalents and short-term investments | 377,700 | 310,000 | ' |
Percentage of benchmark derived from specified source | 20.20% | 43.40% | ' |
Currency concentration risk | Consolidated net accounts receivables benchmark | RMB | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Percentage of benchmark derived from specified source | 99.00% | 99.00% | ' |
Accounts receivable denominated in RMB | 191,100 | 133,400 | ' |
Currency concentration risk | Current liabilities | RMB | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Percentage of benchmark derived from specified source | 74.00% | 80.00% | ' |
Current liabilities denominated in RMB | 241,300 | 181,000 | ' |
Advertising segment | Customer concentration risk | Consolidated net revenues benchmark | Customer | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Number of customers accounted for more than 10% | 1 | 0 | 0 |
Advertising segment | Customer concentration risk | Consolidated net accounts receivables benchmark | Customer | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Number of customers accounted for more than 10% | 1 | 0 | ' |
MVAS segment | Customer concentration risk | Consolidated net revenues benchmark | China Mobile and its provincial and local subsidiaries | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Percentage of benchmark derived from specified source | 8.00% | 11.00% | 14.00% |
MVAS segment | SMS product line concentration risk | Consolidated net revenues benchmark | ' | ' | ' |
Concentration of Risk | ' | ' | ' |
Percentage of benchmark derived from specified source | 2.00% | 5.00% | 7.00% |
Convertible_Debt_and_Treasury_1
Convertible Debt and Treasury Stock (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2003 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 |
Zero-coupon, convertible, subordinated notes | Zero-coupon, convertible, subordinated notes | Zero-coupon, convertible, subordinated notes | Zero-coupon, convertible, subordinated notes | Notes | Notes | ||||
Convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principle amount of notes issued | ' | ' | ' | ' | ' | $100,000,000 | ' | $800,000,000 | ' |
Coupon rate of the convertible notes (as a percent) | ' | ' | ' | ' | ' | 0.00% | ' | 1.00% | ' |
Interest rate of convertible notes (as a percent) | ' | ' | ' | ' | ' | 0.00% | ' | 1.00% | ' |
Number of ordinary shares issued to settle conversion requests | ' | ' | ' | 100 | 3,800 | ' | ' | ' | ' |
Equivalent value of ordinary shares issued to settle conversion requests | ' | 2,000,000 | 96,798,000 | 2,000,000 | 96,800,000 | ' | ' | ' | ' |
Convertible notes amount | ' | ' | ' | 0 | 2,200,000 | ' | 0 | ' | ' |
Convertible debt redeemed | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' |
Denomination of principal amount of debt which is used for conversion calculation | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Conversion price of the Notes (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $123.70 | ' |
Net proceeds from issuance of notes | 783,227,000 | ' | ' | ' | ' | ' | ' | 783,200,000 | ' |
Issuance cost | ' | ' | ' | ' | ' | ' | ' | 16,800,000 | ' |
Shares repurchased | $99,975,000 | ' | ' | ' | ' | ' | ' | $100,000,000 | ' |
Redemption price (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Redemption price of Notes upon fundamental change (as a percent) | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Convertible_Debt_and_Treasury_2
Convertible Debt and Treasury Stock (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Convertible Debt and Treasury Stock. | ' | ' | ' | ' |
Amount approved to repurchase of ordinary shares from net proceeds from convertible senior notes | $100,000,000 | ' | ' | ' |
Number of ordinary shares repurchased | ' | 1,171,900 | 0 | 0 |
Total consideration for repurchase of ordinary shares | ' | $99,975,000 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | 31-May-13 | 31-May-13 | |
Agreement for the construction of a new office building in Zhongguancun Software Park, Haidian District, Beijing | Agreement for the construction of a new office building in Zhongguancun Software Park, Haidian District, Beijing | Agreement for the construction of a new office building in Zhongguancun Software Park, Haidian District, Beijing | ||||
sqm | Minimum | Maximum | ||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' |
Rental expense of operating lease | $21,200,000 | $17,400,000 | $11,700,000 | ' | ' | ' |
Operating leases commitment | ' | ' | ' | ' | ' | ' |
Total | 46,099,000 | ' | ' | ' | ' | ' |
Less than One Year | 20,004,000 | ' | ' | ' | ' | ' |
One to Three Years | 24,509,000 | ' | ' | ' | ' | ' |
Three to Five Years | 1,586,000 | ' | ' | ' | ' | ' |
More than Five Years | 0 | ' | ' | ' | ' | ' |
Purchase commitments | ' | ' | ' | ' | ' | ' |
Gross floor area (in square meters) | ' | ' | ' | 132,000 | ' | ' |
Aggregate construction cost expected to be | ' | ' | ' | ' | 180,000,000 | 200,000,000 |
Purchase commitments | ' | ' | ' | ' | ' | ' |
Total | 326,878,000 | ' | ' | ' | ' | ' |
Less than One Year | 238,029,000 | ' | ' | ' | ' | ' |
One to Three Years | 88,099,000 | ' | ' | ' | ' | ' |
Three to Five Years | 356,000 | ' | ' | ' | ' | ' |
More than Five Years | $394,000 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 1 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2013 | |
Interest payment commitments | ' | ' |
Number of claims, lawsuits, investigations and proceedings, including unasserted claims that are probable to be assessed, are likely to have, a material change on the Company's financial position results of operations or cash flow | ' | 0 |
Convertible senior notes | ' | ' |
Interest payment commitments | ' | ' |
Aggregate principle amount of notes issued | $800,000,000 | ' |
Coupon rate of the convertible notes (as a percent) | 1.00% | ' |
Interest rate of convertible notes (as a percent) | 1.00% | ' |
Redemption price of Notes upon fundamental change (as a percent) | 100.00% | ' |
Interest payment commitments | ' | ' |
Total | ' | 40,000,000 |
Less than One Year | ' | 8,000,000 |
One to Three Years | ' | 16,000,000 |
Three to Five Years | ' | 16,000,000 |
More than Five Years | ' | $0 |
Subsequent_Events_Details
Subsequent Events (Details) | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||
Apr. 29, 2013 | Apr. 11, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 22, 2014 | Apr. 28, 2014 | Apr. 22, 2014 | Apr. 17, 2014 | Apr. 22, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Apr. 22, 2014 | Apr. 28, 2014 | Apr. 22, 2014 | Apr. 22, 2014 | Mar. 28, 2014 | Apr. 28, 2014 | Mar. 14, 2014 | |
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
Alibaba | USD ($) | USD ($) | CNY | Minimum | Maximum | Ali WB | ||||||||||||||
notice | Class A ordinary shares | Class A ordinary shares | Class A ordinary shares | Class A ordinary shares | Class A ordinary shares | Class A ordinary shares | Class B ordinary shares | ADS | Ali WB | Ali WB | Ali WB | 2014 Plan | Alibaba | |||||||
USD ($) | vote | vote | Class A ordinary shares | ADS | ||||||||||||||||
Subsequent Events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest in subsidiary to be reached if fully exercised | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% |
Number of shares funded from the 2010 Share Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,647,872 | ' | ' |
One-time percentage increase on January 1, 2015 for maximum aggregate number of shares which may be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Term of share incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Number of votes each share is entitled to | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3 | ' | ' | ' | ' | ' | ' | ' |
Number of ordinary shares authorized to be repurchased under new share repurchase program | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 2,520,000 | 16,800,000 | 19,320,000 | ' | ' | 19,320,000 | ' | ' | ' | ' | ' | ' |
Number of ordinary shares converted into from conversion of preferred shares upon completion of the offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,046,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of Class A ordinary shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 306,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued in IPO allotted to Ali WB | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' |
Number of shares issued in private placement offering to Ali WB | ' | ' | ' | ' | ' | ' | 21,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' |
Number of shares from the Company | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Weibo's shares to be held by Sina subsequent to the IPO and private placement transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58.00% | ' |
Percentage of Weibo's shares held by Ali WB subsequent to the IPO and private placement transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | ' | ' | ' | ' | ' |
Number of notices received from Beijing Municipal Cultural Market Administrative Law Enforcement | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues derived from alleged violation relating to reading channel, determined by authority | ' | ' | $82,029 | 508,581 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multiple expected to be applied to revenues derived from the alleged violation | ' | ' | ' | ' | 5 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |