NEW YORK (AP) -- Alibaba Group, China's largest e-commerce company, has agreed to buy an 18 percent stake in Sina Corp.'s Weibo, the microblogging platform.
Alibaba, which is partly owned by Yahoo Inc., says it has paid $586 million for the stake in China's equivalent of Twitter. It has the option of increasing its ownership to 30 percent.
Sina's U.S.-listed shares jumped $6.69, or 13 percent, to $56.99 in morning trading. The day's high of $60.81 was the stock's highest level since October.
The companies also agreed to develop ways to let merchants on Alibaba connect with Weibo users. It expects the alliance to generate $380 million in advertising and commerce services for Weibo over the next three years.
Yahoo owns 24 percent of Alibaba. Yahoo shares fell 1 cent to $24.67.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.