View Filing Data

Cash and cash equivalents

$ 237,440

$ 284,865

^[1],[2]

Short-term investments

98,439

166,414

^[1]

120,230

120,210

42,295

18,357

^[1]

Total current assets

498,404

589,846

^[1]

22,850

30,874

^[1]

Intangible assets, net

1,966

3,539

^[1]

11,117

11,652

^[1]

294,679

63,777

^[1]

Other assets

10,173

3,826

^[1]

Current liabilities (including amounts of the consolidated VIE without recourse to the primary beneficiaries of $72,935 and $107,389 as of December 31, 2014 and 2015, respectively. (Note 1):

839,189

703,514

^[1]

Accounts payable

2,532

2,420

^[1]

Accrued liabilities due to third parties and employees

138,917

81,809

^[1]

Accrued liabilities due to related parties (Note 10)

16,047

5,786

^[1]

39,091

20,957

^[1]

Total current liabilities

12,188

24,279

^[1]

208,775

135,251

^[1]

Long-term liabilities

Long-term deferred revenues

1,047

Other long-term liabilities

1,338

873

^[1]

Total long-term liabilities

2,385

873

^[1]

Commitments and contingencies (Note 16)

211,160

136,124

^[1]

^[1]

Shareholders' equity:

Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated) authorized; 203,658 and 212,177 shares (including 96,168 Class A ordinary shares and 116,009 Class B ordinary shares) issued and outstanding as of December 31, 2014 and 2015, respectively.

^[1]

Additional paid-in capital

938,922

904,402

^[1]

Accumulated other comprehensive loss

(10,635)

(2,836)

^[1]

Accumulated deficit

(307,668)

(342,413)

^[1]

Total Weibo shareholders' equity

620,672

559,204

^[1]

Non-controlling interests

7,357

8,186

^[1]

Total shareholders' equity

628,029

567,390

^[1],[3]

Total liabilities and shareholders' equity

839,189

703,514

^[1]

32,217

36,976

^[1]

33,961

18,509

^[1]

Allowance for doubtful accounts

$ 54,052

$ 64,725

^[1]

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated statements of shareholders’ equity (deficit) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
shares in Thousands

Dec. 31, 2015

Dec. 31, 2014

$ 1,375,000

$ 2,440,000

Current liabilities

$ 208,775,000

$ 135,251,000

^[1]

Ordinary shares, par value (in dollars per share)

$ 0.00025

Ordinary shares, shares issued

2,400,000

212,177

203,658

Ordinary shares, shares outstanding

212,177

203,658

Class A ordinary shares

Ordinary shares, shares issued

1,800,000

96,168

Ordinary shares, shares outstanding

96,168

Class B ordinary shares

Ordinary shares, shares issued

200,000

116,009

Ordinary shares, shares outstanding

116,009

Ordinary shares to be designated

Consolidated VIEs without recourse to the primary beneficiaries

400,000

Current liabilities

$ 107,389,000

$ 72,935,000

Allowance for doubtful accounts

139,000

Allowance for doubtful accounts

$ 1,375,000

$ 2,301,000

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Advertising and marketing revenues

Total advertising and marketing revenues

$ 207,657

$ 129,644

^[1]

$ 96,976

^[1]

402,415

264,782

^[1]

148,426

^[1]

Other revenues

75,476

69,390

^[1]

39,887

^[1]

Total revenues

477,891

334,172

^[1]

188,313

^[1]

Costs and Expenses

Cost of revenues

141,960

83,599

^[1]

59,891

^[1]

Sales and marketing

126,059

120,361

^[1]

63,076

^[1]

Product development

143,444

125,832

^[1]

100,740

^[1]

General and administrative

28,925

26,483

^[1]

23,214

^[1]

Total costs and expenses

440,388

356,275

^[1]

246,921

^[1]

Income (loss) from operations

37,503

(22,103)

^[1]

(58,608)

^[1]

Loss from equity method investments

(6)

(5)

^[1],[2]

(1,236)

^[1],[2]

Realized gain from investments

944

481

^[1]

397

^[1]

Remeasurement gain upon obtaining control (Note 6)

(8,005)

(2,521)

^[1],[2]

(2,526)

^[1],[2]

^[1],[2]

3,116

Interest and other income (expenses), net (including interest expense on amount due to SINA of $6,709, $2,838, and nil for the years ended December 31, 2013, 2014 and 2015, respectively)

6,344

6,780

^[1]

(2,871)

^[1]

Change in fair value of investor option liability (Note 15)

^[1],[2]

(46,972)

21,064

Income (loss) before income tax expenses

36,780

(64,340)

^[1]

(40,664)

^[1]

Less: Income tax expenses

2,591

1,128

^[1]

271

^[1]

Less: Net loss attributable to the non-controlling interests

34,189

(65,468)

^[1],[2]

(40,935)

^[1],[2]

(556)

(143)

^[1]

(1,145)

^[1]

34,745

(65,325)

^[1]

(39,790)

^[1]

Other comprehensive loss

Unrealized loss on available-for-sale securities

(7,874)

(1,450)

^[1]

(174)

^[1]

(198)

(2,067)

^[1]

Total comprehensive income (loss)

26,117

(68,985)

^[1]

(41,109)

^[1]

Less: Comprehensive loss attributable to non-controlling interests

(829)

(366)

^[1]

(888)

^[1]

Comprehensive income (loss) attributable to Weibo's ordinary shareholders

$ 26,946

$ (68,619)

^[1]

$ (40,221)

^[1]

Basic net income (loss) per share attributable to Weibo's ordinary shareholders (in dollars per share)

$ 0.17

$ (0.35)

^[1]

$ (0.27)

^[1]

Shares used in computing basic net income (loss) per share attributable to Weibo's ordinary shareholders (in shares)

208,163

186,878

^[1]

146,820

^[1]

Diluted net income (loss) per share attributable to Weibo's ordinary shareholders (in dollars per share)

$ 0.16

$ (0.35)

^[1]

$ (0.27)

^[1]

Shares used in computing diluted net income (loss) per share attributable to Weibo's ordinary shareholders (in shares)

217,918

186,878

^[1]

146,820

^[1]

Advertising and marketing revenues

Related party

$ 143,650

$ 107,587

^[1]

$ 49,135

^[1]

Balance (in shares) at Dec. 31, 2012

Advertising and marketing revenues

Related party

$ 51,108

$ 27,551

^[1]

$ 2,315

^[1]

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
COMBINED AND CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Interest expense on amount due to SINA	$ 0	$ 2,838,000	$ 6,709,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)
shares in Thousands, $ in Thousands

Ordinary Shares

SINA

Ordinary Shares

Alibaba

Ordinary Shares

IPO

Ordinary Shares

Additional Paid-In Capital

SINA

Additional Paid-In Capital

Alibaba

Additional Paid-In Capital

IPO

Additional Paid-In Capital

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

Non-controlling Interests

SINA

Alibaba

IPO

Total

Balance at Dec. 31, 2012

^[1]

$ 36

$ 21,781

$ 1,007

$ (237,298)

$ 6,696

$ (207,778)

^[1]

143,445

Increase (Decrease) in Shareholders' Equity (Deficit)

Issuance of ordinary shares pursuant to stock plan

1,258

Issuance of ordinary shares pursuant to stock plan (in shares)

3,449

Issuance of ordinary shares (either in IPO or to related party)

$ 1

$ 39,037

$ 39,038

Issuance of ordinary shares (either in IPO or to related party) (in shares)

3,498

Repurchase of vested options

(37,959)

Non-cash stock-based compensation

4,105

Legal transfer of Weibo Interactive and recognition of amount due to SINA

$ 13,092

^[2]

(10,080)

^[2]

Sale of subsidiaries' shares to non-controlling interests

1,461

(39,790)

(1,145)

(40,935)

^[2],[3]

Balance (in shares) at Dec. 31, 2013

118

(549)

257

(174)

^[3]

Balance at Dec. 31, 2013

^[1]

$ 37

31,352

458

(277,088)

7,269

(237,972)

^[1]

150,392

Increase (Decrease) in Shareholders' Equity (Deficit)

Issuance of ordinary shares pursuant to stock plan

$ 1

1,918

1,919

Issuance of ordinary shares pursuant to stock plan (in shares)

3,900

Issuance of ordinary shares (either in IPO or to related party)

$ 5

42,224

$ 301,273

42,224

$ 301,278

Issuance of ordinary shares (either in IPO or to related party) (in shares)

2,923

19,320

Deemed contribution from Alibaba due to exercise of call option by Alibaba

$ 15,300

^[2]

Repurchase of ordinary shares from SINA

(42,224)

Repurchase of ordinary shares from SINA (in shares)

(2,923)

Conversion of preferred shares into ordinary shares

$ 8

479,604

479,612

Conversion of preferred shares into ordinary shares (in shares)

30,046

Non-cash stock-based compensation

13,779

Sale of subsidiaries' shares to non-controlling interests

$ 61,176

^[2]

1,283

(65,325)

(143)

(65,468)

^[2],[3]

Unrealized loss on available-for-sale securities

(1,227)

(223)

(1,450)

^[3]

(2,067)

^[3]

Balance at Dec. 31, 2014

^[1]

$ 51

904,402

(2,836)

(342,413)

8,186

$ 567,390

^[4]

Balance (in shares) at Dec. 31, 2014

203,658

^[1]

203,658

Increase (Decrease) in Shareholders' Equity (Deficit)

Issuance of ordinary shares pursuant to stock plan

$ 2

8,121

$ 8,123

Issuance of ordinary shares pursuant to stock plan (in shares)

8,519

Non-cash stock-based compensation

26,399

34,745

(556)

34,189

Unrealized loss on available-for-sale securities

(7,601)

(273)

(7,874)

(198)

Balance at Dec. 31, 2015

$ 53

$ 938,922

$ (10,635)

$ (307,668)

$ 7,357

$ 628,029

Balance (in shares) at Dec. 31, 2015

212,177

[1]	The above consolidated statements of shareholders’ equity (deficit) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[4]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Cash flows from operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

$ 34,189

$ (65,468)

^[1],[2]

$ (40,935)

^[1],[2]

Depreciation and amortization

20,950

23,060

^[1]

21,529

^[1]

Stock-based compensation

26,399

13,779

^[1]

4,105

^[1]

Provision (reversal) for allowance for doubtful accounts

(368)

2,138

^[1]

2,345

^[1]

Deferred income taxes

(977)

866

^[1]

271

^[1]

Loss from equity method investments

^[1],[2]

1,236

^[1],[2]

Gain on sale of investments

(608)

(481)

^[1]

(397)

^[1]

8,005

2,521

^[1],[2]

2,526

^[1],[2]

Change in fair value of investor option liability

^[1],[2]

(3,116)

^[1],[2]

46,972

(21,064)

Loss on disposal of property and equipment

184

Changes in assets and liabilities, net of acquisition:

Accounts receivable due from third parties

4,988

(14,938)

^[1]

(26,930)

^[1]

Accrued liabilities due to third parties and employees

470

(12,283)

^[1]

(2,400)

^[1]

Other assets

713

(23)

^[1]

52,109

32,886

^[1]

35,881

^[1]

Net cash provided by (used in) operating activities

17,753

5,799

^[1]

12,638

^[1]

181,971

(19,412)

^[1]

(1,950)

^[1]

Cash flows from investing activities:

Purchases of short-term investments

(149,374)

(230,161)

^[1]

(250,000)

^[1]

Maturities of short-term investments

216,615

321,208

^[1]

117,564

^[1]

Investment and prepayment in long-term investments

(268,758)

(54,383)

^[1]

(17,672)

^[1]

Proceeds from disposal of long-term investments

6,090

1,644

^[1]

505

^[1]

Purchases of property and equipment

(10,858)

(14,743)

^[1]

(12,044)

^[1]

Cash paid for business acquisition, net of cash acquired

(22,025)

(9,648)

^[1]

Net cash provided by (used in) investing activities

(228,310)

13,917

^[1]

(161,647)

^[1]

Cash flows from financing activities:

Proceeds from IPO, net of commission

^[1]

306,491

Payment of offering expenses

^[1]

(5,213)

Proceeds from employees options exercised

7,822

1,508

^[1]

991

^[1]

Proceeds from the issuance of preferred and ordinary shares (Note 3)

^[1]

585,799

Payment for ordinary shares and repurchase of vested options

^[1]

(6,873)

(45,876)

Proceeds from sales of non-controlling interests in subsidiaries

^[1]

968

1,461

Other financing activities

(2,863)

(269,042)

^[1]

(159,816)

^[1]

^[1]

(989)

Net cash provided by financing activities

4,959

43,663

^[1]

408,214

^[1]

Effect of exchange rate changes on cash and cash equivalents

(6,045)

(2,402)

^[1]

131

^[1]

Net increase (decrease) in cash and cash equivalents

(47,425)

35,766

^[1]

244,748

^[1]

Cash and cash equivalents at the beginning of the year

^[1]

284,865

^[3]

249,099

4,351

Cash and cash equivalents at the end of the year

237,440

284,865

^[1],[3]

249,099

^[1]

Supplemental disclosure of cash flow information

Cash paid for interest

^[1]

(7,580)

Cash paid for income taxes

(311)

Supplemental schedule of non-cash investing and financing activities

Conversion of preferred shares to ordinary shares

^[1]

479,612

Legal transfer of Weibo Interactive and recognition of amount due to SINA

^[1]

(10,080)

Property and equipment in accounts payable

2,532

2,420

^[1]

824

^[1]

Changes in assets and liabilities, net of acquisition:

(15,313)

(16,589)

^[1]

24,507

^[1]

Changes in assets and liabilities, net of acquisition:

Supplemental schedule of non-cash investing and financing activities

10,673

(43,426)

^[1]

(21,299)

^[1]

Deemed contribution from Alibaba

^[1]

15,300

Other related parties

Changes in assets and liabilities, net of acquisition:

Due to related parties

10,261

2,279

^[1]

(5,835)

^[1]

Changes in assets and liabilities, net of acquisition:

Due to related parties

12,537

8,233

^[1]

8,279

^[1]

Interest on amount due to SINA

^[1]

(4,742)

6,709

Cash flows from financing activities:

Funding from SINA

^[1]

15,824

26,644

Supplemental schedule of non-cash investing and financing activities

$ (2,863)

(276,614)

(159,816)

Deemed contribution from SINA (Note 10)

^[1]

$ 61,176

$ 13,092

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Operations and reorganization

12 Months Ended

Dec. 31, 2015

Operations and reorganization

1. Operations and reorganization

Weibo Corporation (“Weibo” or the “Company”) is a leading social media for people to create, share and discover Chinese-language content. It provides an unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world. As a microcosm of the Chinese society and a cultural phenomenon in China, Weibo allows people to be heard publicly and exposed to the rich ideas, cultures and experiences of the broader world. Media outlets use Weibo as a source of news and a distribution channel for their headline news. Government agencies and officials use Weibo as an official communication channel for disseminating timely information and gauging public opinion to improve public services. Charities use Weibo to make the world a better place by launching charitable projects, seeking donations and volunteers and leveraging celebrities and organizations on Weibo to amplify their social influence. Weibo generates the majority of its revenues from advertising and marketing services as well as other services, including game-related services, VIP membership and data licensing.

Incorporated in the Cayman Islands, Weibo Corporation is a majority-owned subsidiary of Sina Corporation (the “Parent” or “SINA”). In April 2014, the Company completed an initial public offering (the “IPO”) with the new issuance of 19,320,000 Class A ordinary shares. The company received $306.5 million in net proceeds from the issuance of new shares upon the IPO. Immediately prior to the completion of the IPO, all the ordinary shares held by SINA was converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders was converted into an equal number of the Class A ordinary shares, and all of its outstanding preferred shares were automatically converted into 30,046,154 Class A ordinary shares. The call option held by a subsidiary of Alibaba Group was exercised to purchase 29,990,778 Class A ordinary shares from SINA and the Company (Note 3). Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to three votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares.

Reorganization

Weibo business was founded by SINA, its parent, in 2009. Prior to the establishment of the Company, the operations of Weibo business was carried out by various subsidiaries and variable interest entities (“VIEs”) of SINA (the “Predecessor Operations”). After its establishment, the Company has gradually completed the reorganization steps as described below (the “Reorganization”).

Establishment of Weibo Corporation. Weibo Corporation, an exempted company with limited liability, is the holding company for the Weibo business. Weibo HK is a wholly owned subsidiary of Weibo, and Weibo Technology, a wholly foreign-owned enterprise, (“the WFOE”), is a subsidiary of Weibo HK. The Company’s VIE and its subsidiaries are controlled by the WFOE through a series of contractual agreements. Weibo Corporation, its subsidiaries, the VIE and the VIE’s subsidiaries together are referred to as “the Group.”

The following sets forth the Company’s major subsidiaries, the VIE and its subsidiary:

Company	Date of Incorporation	Place of Incorporation	Percentage of Direct/ Indirect Economic Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

Major VIE and VIE’s subsidiary
Beijing Weimeng Technology Co., Ltd (“Weimeng” or “the VIE”)	August 9, 2010	PRC	100	%

Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’)	Acquired in May 2013 (Note 6)	PRC	100	%

Transfer of assets and liabilities relating to the Weibo business to the Group. According to the Company’s Shareholder Agreement dated April 29, 2013, the Group shall be liable for a loan payable to SINA for assets and liabilities incurred by SINA for the development of the Weibo business. The interest on amount due to SINA is calculated based on actual spending incurred by SINA for the development of Weibo business at each period end. The consolidated statements of income (loss) and comprehensive income (loss) reflected a charge for interest on the amount due to SINA, as well as on the amounts included as accrued liabilities due to SINA, at prevailing market interest rates by reference to the three-month time deposit rate of The People’s Bank of China, which ranged from 2.55% to 3.05%. The loans are repayable upon demand. There is no written loan agreement signed between SINA and Weibo. The interest expenses incurred was $6.7 million, $2.8 million and nil for the years ended December 31, 2013, 2014 and 2015, respectively. On April 29, 2013, SINA waived the interest charged to the Group in the amount of $8.5 million. The total waived amounts were accounted for as deemed contribution from SINA. In accordance with the Shareholder Agreement, the amount due to SINA after the waiver was $250 million and further cash outlay after April 29, 2013 to support the development of the Weibo business would increase the amount due to SINA. As of December 31, 2013, the Group recorded amount due to SINA of $285.2 million, including an interest payable balance of $4.8 million. The Group paid $276.6 million after the IPO to SINA in 2014. As of December 31, 2014 and 2015, Weibo had a $24.3 million and $12.2 million payment due to SINA, which is interest free and payable on demand. Such balances represented mainly the amounts payable to SINA for the Weibo Funds, which was settled in June 2015, and allocated expenses.

Transfer of Equity Interest in Weibo Interactive. Starting in 2011, SINA held a 55% equity interest in Weibo Interactive, an online-game platform company incorporated in China, and accounted for such interest using the equity method of accounting, as it had no control over the operations and assets of such interest. Weibo Interactive has been providing game platform maintenance services to Weibo since 2012. In May 2013, SINA gained control of Weibo Interactive through a step acquisition in which the remaining 45% equity interest was obtained for a consideration of $4.6 million. In connection with the Reorganization, SINA entered into an agreement to transfer 100% equity interest in Weibo Interactive to the Group for a consideration of $10.1 million effective in December 2013 (Note 6).

The transfer of Weibo Interactive to the Group was accounted for as a business combination between entities under common control, with financial statements presented for prior periods retrospectively adjusted to reflect the transfer from the first day SINA took control in May 2013. The investment in Weibo Interactive prior to the step-up acquisition was also reflected in the Group’s consolidated financial statements as if the investment was held by the Group since 2012.

The amounts recognized in the Group’s consolidated financial statements reflect the assets and liabilities of Weibo Interactive at SINA’s historical carrying value. The net equity of Weibo Interactive was reflected in the Group’s consolidated financial statements at the historical carrying value within the equity section as a deemed contribution from SINA. The $10.1 million of consideration payable to SINA was recognized when the transfer became legally effective in December 2013, which resulted in a decrease in equity and a corresponding increase in amount due to SINA. The service fees paid to Weibo Interactive prior to the May 2013 step-up acquisition were disclosed as related party transactions under cost of revenues in the Group’s consolidated statements of income (loss) and comprehensive income (loss). The service fees paid to Weibo Interactive after the step-up acquisition were eliminated as inter-company transactions.

Transfer of Equity Interest in Weibo Funds. SINA held a 55% and 85% equity interest in two limited liability partnerships, (“Weibo Funds’’), since 2011 and 2013, respectively, and had control over the operations and assets of the Weibo Funds, which engage in the investment of high-tech startups related to the Weibo business. On June 30, 2015, SINA transferred its equity interest in the Weibo Funds to the Group for a consideration of $22.0 million, and the Group accounted for such transaction as a business combination between entities under common control (Note 6). The Group’s consolidated financial statements presented for prior periods have been retrospectively adjusted as if the Group had control on the first day SINA took control.

The amounts recognized in the Group’s consolidated financial statements reflect the assets, liabilities, and net equity of the Weibo Funds at SINA’s historical carrying value. A consideration of $22.0 million payable to SINA was recognized when the transfer became legally effective in June 2015.

Intellectual Property License Agreement. The intellectual property license agreement was entered into by and between SINA and the Company in April 2013. Under this agreement, SINA granted the Company and its subsidiaries a perpetual, worldwide, royalty-free, fully paid-up, non-sublicensable, non-transferable, limited, exclusive license of certain trademarks and a non-exclusive license of certain other intellectual property owned by SINA to make, sell, offer to sell and distribute products, services and applications on a microblogging and social networking platform. The Company granted SINA and its affiliates a non-exclusive, perpetual, worldwide, non-sublicensable, non-transferable limited license of certain of the Company’s intellectual property to use, reproduce, modify, prepare derivative works of, perform, display or otherwise exploit such intellectual property. This agreement commenced on April 29, 2013 and will continue to be in effect unless terminated by SINA should the Company breach the terms as provided in the agreement.

Basis of Presentation for the Reorganization. Since the Group and the Predecessor Operations are under common control, the accompanying consolidated financial statements include the assets, liabilities, revenue, expenses and cash flows that were directly attributable to the Predecessor Operations for all periods presented. The assets and liabilities have been stated at historical carrying amounts. In addition, the accompanying consolidated financial statements have been prepared as if the current corporate structure, including the transfer of Weibo Interactive in December 2013 and Weibo Funds in June 2015, had been in existence throughout the periods presented.

Only those assets and liabilities that are specifically identifiable to Weibo business are included in the Group’s consolidated balance sheets. Accounts receivable amounts directly related to Weibo but for which SINA will receive payments and remit payments to the Group are included in the accounts receivable due from SINA, and, if any uncollectible losses arise from the accounts receivable due from SINA, such losses will pass through to the Group. Liabilities directly related to Weibo but for which SINA will make payments and receive reimbursements from the Group are included in the accrued liabilities due to related parties. The Group was liable for a payable to SINA for assets and liabilities incurred by SINA for the development of the Weibo business and presented as amount due to SINA in the consolidated balance sheets. Loan from SINA is presented under cash flow from financing activities in the consolidated statements of cash flows, whereas cash payment for billings from SINA for costs and expenses allocated is presented under operating activities. The Group’s statements of income (loss) and comprehensive income (loss) consists all the related costs and expenses of the Weibo business, including allocation to the cost of revenues, sales and marketing expenses, product development expenses, and general and administrative expenses, which are incurred by SINA but related to the Weibo business. These allocations were based on proportional cost allocation by considering proportion of the revenues, infrastructure usage metrics and labor usage metrics, among other things, attributable to the Group and are made on a basis considered reasonable by management. Income tax liability is calculated based on a separate return basis as if the Group had filed a separate tax return.

Total expenses allocated from SINA were as follows:

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Cost of revenues	$	14,760	$	—	$	—
Sales and marketing	6,074		17,417		1,263
Product development	19,256		18,362		19,531
General and administrative	4,215		6,581		3,884

	$	44,305	$	42,360	$	24,678

However, while the expenses allocated to the Group for these items are not necessarily indicative of the expenses that would have been incurred if the Group had been a separate and independent entity, the Company does not believe that there is any significant difference between the nature and amount of these allocated expenses and the expenses that would have been incurred if the Group had been a separate and stand-alone entity. The decrease in total expenses allocated from SINA was mainly attributed to the Company building up its own operational functions and signing agreements with vendors under its own legal entities, resulting in less reliance on the services from SINA.

Combination and Consolidation

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, the VIE, of which the Company is the primary beneficiary, Weibo Interactive, an investment from July 2011 to May 2013, and Weibo Funds, which were purchased from SINA in June 2015. The transfers of Weibo Interactive in December 2013 and Weibo Funds in June 2015 were accounted for as business combinations between entities under common control. Therefore, in accordance with ASC Subtopic 805-50, the consolidated financial statements of the Group presented for prior periods retrospectively adjusted to reflect the transfers on a consolidated basis from the first day that SINA took control of Weibo Interactive and Weibo Funds. All significant intercompany balances and transactions have been eliminated.

To comply with PRC laws and regulations, the Group provides a substantial amount of its services in China via the VIE, which holds critical operating licenses that enable the Group to do business in China. Most of the Group’s revenues, costs and net income (loss) in China were generated directly or indirectly through the VIE or the Predecessor Operations. The Company, through its subsidiary, has signed various agreements with the VIE to allow the transfer of economic benefits from the VIE to the Company. The Group has determined that it is the primary beneficiary of the VIE through Weibo Technology’s contractual arrangements with the VIE. Accordingly, the Company has consolidated the VIE’s results of operations and assets and liabilities in the Group’s financial statements pursuant to the United States Generally Accepted Accounting Principles (“US GAAP”) for all the periods presented.

Shareholders of the VIE are certain nominee shareholders of the Company or SINA. The capital for their investments in the VIE is funded by the Company and recorded as interest-free loans to these individuals. These loans were eliminated with the capital of the VIE during consolidation. Each shareholder of the VIE has agreed to transfer his equity interest in the VIE to Weibo Technology 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 VIE, including without limitation the right to appoint all directors of the VIE, have been assigned to Weibo Technology. Weibo Technology has also entered into exclusive technical service agreements with the VIE under which Weibo Technology provides technical and other services to the VIE in exchange for substantially all net income of the VIE. In addition, the shareholders of the VIE have pledged their shares in the VIE as collateral for the non-payment of loans or for the technical and other services fees due to Weibo Technology. As of December 31, 2014 and 2015, the total amount of interest-free loans to VIEs’ shareholders was $10.5 million and $10.0 million, respectively. As of December 31, 2014 and 2015, the aggregate accumulated loss of VIEs and VIEs’ subsidiaries was $22.2 million and $32.8 million, respectively, which were included in the Group’s consolidated financial statements.

The following table sets forth the assets, liabilities, results of operations and cash flows of the VIE and the VIE’s subsidiaries taken as a whole, including the Predecessor Operations, which are included in the Group’s consolidated balance sheets and statements of income (loss) and comprehensive income (loss):

	As of December 31,
	2014		2015
	(In thousands)
Cash, cash equivalents and short-term Investments	$	10,674	$	129,154
Accounts receivable	118,891		120,937
Property and equipment, net	2,092		1,277
Goodwill	11,357		10,821
Intangible assets	3,539		1,966
Prepayment for long-term investments	3,481		1,660
Deferred tax assets	31		1,493
Long-term investments	37,594		38,104
Others	12,409		26,838


Total assets	$	200,068	$	332,250


Accrued liabilities	$	34,439	$	66,075
Amount due to SINA	24,076		8,465
Amount due to the subsidiaries of the Group	121,977		232,006
Deferred revenues	14,117		29,567
Income tax payable	2		3,257
Deferred tax liability	873		477
Others	301		25


Total liabilities	$	195,785	$	339,872

	Year Ended December 31,
	2013		2014			2015
	(In thousands)
Net revenues	$	169,819	$	298,767		$	391,568
Net income (loss)	$	23,189	$	(6,351	)	$	(10,572	)

	Year Ended December 31,
	2013			2014			2015
	(In thousands)
Net cash provided by operating activities	$	32,877		$	14,198		$	158,290
Net cash used in investing activities	$	(11,004	)	$	(9,552	)	$	(39,965	)
Net cash used in financing activities	$	(13,037	)	$	(5,997	)	$	—
Net increase (decrease) in cash and cash equivalents	$	8,836		$	(1,351	)	$	118,325

Under the contractual arrangements with the VIE, the Company has the power to direct activities of the VIE through Weibo Technology and can have assets transferred freely out of the VIE without restrictions. Therefore, the Company considers that there is no asset of the VIE that can only be used to settle obligations of the VIE and its subsidiaries, except for the registered capital and non-distributable reserve funds of the VIE and its subsidiaries, amounting to $47.4 million and $51.9 million as of December 31, 2014 and 2015, respectively. Since the VIE is incorporated as limited liability company under the PRC Company Law, creditors of the VIE 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 VIE. As the Company is conducting certain businesses mainly through the VIE, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The total amount of advertising and marketing service provided by the VIE to related parties was $51.5 million, $135.1 million and $183.7 million for the years ended December 31, 2013, 2014 and 2015, respectively. The total amount of costs and expenses allocated from SINA to the VIE was $37.2 million, $16.1 million and $8.4 million for the years ended December 31, 2013, 2014 and 2015, respectively. In December 2013, the Group purchased all of the equity interest of a company providing the game platform maintenance services from SINA for a consideration of $10.1 million. In June 2015, the Group purchased all of SINA’s equity interest in the two Weibo funds for a consideration of $22.0 million.

Unrecognized revenue-producing assets held by the VIE include the Internet Content Provision License, the Online Culture Operating Permit, and the domain names of weibo.com, weibo.cn and weibo.com.cn. Recognized revenue-producing assets held by the VIE include customer lists relating to game-related services, game platform technology and a non-compete agreement, which were acquired mostly through acquisitions. Unrecognized revenue-producing assets, including customer lists relating to advertising and marketing services, game-related services, VIP Memberships and data licensing, as well as trademarks, are also held by Weibo Technology, the WFOE.

The following is a summary of VIE agreements:

Loan Agreements. The Company’s wholly owned subsidiary Weibo Technology has granted interest-free loans to each shareholder of the VIE with the sole purpose of providing funds necessary for capital injection into the VIE. The terms of the loans are for 10 years, and Weibo Technology has the right to, at its own discretion, shorten or extend the terms of the loans, if necessary. These loans were eliminated with the capital of the VIE during consolidation.

Share Transfer Agreements. Each shareholder of the VIE has granted Weibo Technology an option to purchase his shares in the VIE at a purchase price equal to the amount of the capital injection. Weibo Technology may exercise such option at any time until it has acquired all the shares of the VIE, subject to applicable PRC laws. The option will be effective until the earlier of (i) the shareholders of the VIE and Weibo Technology have fully performed their obligations under this agreement, and (ii) the respective shareholders of the VIE and Weibo Technology agree to terminate the share transfer agreement in writing.

Loan Repayment Agreements. Each shareholder of the VIE has agreed with Weibo Technology 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 set off against the loan repayment.

Agreements on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of the VIE has authorized Weibo Technology to exercise all his voting power as a shareholder of the VIE on all matters requiring shareholders’ approval under PRC laws and regulations and the articles of association of the VIE, including without limitation to the appointment of directors, transfer, mortgage or dispose of the VIE’s assets, transfer of any equity interest in the VIE, and merger, split, dissolution and liquidation of the VIE. The authorizations are irrevocable and will not expire until the VIE dissolves.

Share Pledge Agreements. Each shareholder of the VIE has pledged all of his shares in the VIE and all other rights relevant to the share rights to Weibo Technology, as a collateral security for his obligations to pay off all debts to Weibo Technology, under the loan agreement and for the payment obligations of the VIE under the trademark license agreement and the technical services agreement. In the event of default of any payment obligations, Weibo Technology will be entitled to certain rights, including transferring the pledged shares to itself and disposing the pledged shares through sale or auction. During the term of each agreement, Weibo Technology is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of (i) the VIE and the shareholders of the VIE have fully performed their obligations under the above-referred agreements, and (ii) Weibo Technology unilaterally consents to terminate the respective share pledge agreement.

Exclusive Technical Services Agreement, Exclusive Sales Agency Agreement and Trademark License Agreement. The VIE has entered into an exclusive technical services agreement, an exclusive sales agency agreement and a trademark license agreement with Weibo Technology. Under the exclusive technical services agreement, Weibo Technology is engaged to provide technical services for the VIE’s online advertising and other related businesses. Under the exclusive sales agency agreement, the VIE has granted Weibo Technology the exclusive right to distribute, sell and provide agency services for all the products and services provided by the VIE. The term of the technical service agreement and the sales agency agreement will not expire until the VIE dissolves.

Due to its control over the VIE, Weibo Technology has the right to determine the service fee to be charged to the VIE under these agreements. By considering, among other things, the technical complexity of the service, the actual cost that may be incurred for providing such service, the operations of the VIE, applicable tax rates, planned capital expenditure and business strategies. Weibo Technology charged an amount of $79.2 million, $187.8 million and $232.4 million in service fees from the VIE under these agreements for the years ended December 31, 2013, 2014 and 2015, respectively, which was determined based on the actual cost incurred for providing such service and the cash position and operation of the VIE.

Under the trademark license agreement, Weibo Technology has granted the VIE trademark licenses to use its trademarks for specific areas, and the VIE is obligated to pay license fees to Weibo Technology. The term of the agreement is for one year and is automatically renewed provided that there is no objection from Weibo Technology.

The Company believes that the contractual arrangements among its subsidiary, the VIE and the VIE’s shareholders are in compliance with the current PRC laws and 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. As a result, the Company may be unable to consolidate the VIE and the VIE’s subsidiaries in the consolidated financial statements. The Company’s ability to control the VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholder approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with the VIE 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 believes the possibility that it will no longer be able to control and consolidate the VIE will occur as a result of the aforementioned risks and uncertainties are remote.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Significant Accounting Policies

2. Significant Accounting Policies

Basis of presentation and use of estimates

The preparation of the Group’s consolidated financial statements is in conformity with 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 during the reporting period. Actual results could differ materially from such estimates. The Group believes the basis of combination and consolidation, revenue recognition, fair value accounting, income taxes, goodwill and other long-lived assets, allowances for doubtful accounts, stock-based compensation, and the determination of the estimated useful lives of assets reflect the more significant judgments and estimates used in the preparation of its consolidated financial statements.

Non-controlling interests

For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, 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). 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 measurements

Financial instruments

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 Group 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.

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 due from third parties, accounts receivable due from Alibaba, accounts receivable due from SINA and other related parties, accounts payable, amount due to SINA, accrued liabilities due to third parties and employees and accrued liabilities due to related parties approximates fair value because of their short-term nature. See Note 15 Financial Instruments for additional information.

Cash equivalents

The Group 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 stated at cost plus accrued interest.

Long-term investments

Long-term investments are comprised of investments in publicly traded and privately held companies. For long-term investments over which the Group does not have significant influence, the cost method of accounting is used. For long-term investments in shares that are not common stock or in-substance common stock and that do not have readily determinable fair value, the cost method accounting is used. The Group uses the equity method to account for ordinary-share-equivalent equity investments over which it has significant influence but does not own a majority equity interest or otherwise control. The Group used the equity method to account for the investment in Weibo Interactive prior to May 2013, when it had significant influence but did not control Weibo Interactive.

The Group monitors its investments accounted for under the cost method and equity method for other-than-temporary impairment by considering factors such as current economic and market conditions and the operating performance of the business, including current earnings trends, undiscounted cash flows, and other company-specific information, such as recent financing rounds. Determination of the fair value, particularly for investments in privately-held companies whose revenue model is 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 Group will write down the asset to its fair value and take the corresponding charge to the consolidated statements of income (loss) and comprehensive income (loss). The Group recorded an impairment charge of $1.9 million, $2.5 million and $6.6 million to the carrying value of long-term investments for the years ended December 31, 2013, 2014 and 2015, respectively.

The Group 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 Group assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, 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 loss in shareholders’ equity. If the Group 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 the consolidated statements of income (loss). The fair value of the investment would then become the new cost basis of the investment and is not adjusted for subsequent recoveries in fair 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 paid, 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. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period.

Long-lived assets

Property and equipment

Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. 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 $21.3 million, $21.8 million and $19.5 million for the years ended December 31, 2013, 2014 and 2015, respectively.

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 Group’s acquisitions of interests in its subsidiaries and consolidated VIE. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. 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, which by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group, 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. The Group 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. 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.

Intangible 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 five 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. Judgment is used in estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the asset’s fair value.

Stock-based compensation

All stock-based awards to employees and directors, such as 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 expenses on a straight-line basis over the requisite service period, which is the vesting period.

The Group 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 fair value of the Company’s ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected value volatility of the Company over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and expected dividends, if any. Options granted generally vest over four years.

The Group 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 Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years.

Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate pre-vesting option and records stock-based compensation expense only for those awards that are expected to vest. See Note 7 Stock-based Compensation for further discussion on stock-based compensation.

Prior to the IPO, the determination of estimated fair value of Weibo required 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 Weibo. The Group, with the assistance of an independent valuation firm, evaluated the use of two generally accepted valuation approaches. The income approach was used if a revenue model had been established, the market approach was used if information from comparable companies had been available, or a weighted blend of these two approaches was used if more than one was applicable, to estimate the 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. For the market approach, the Group 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. Prior to the IPO, the income approach was applied when the revenue model for Weibo had been established and projections of revenues, costs and expenses, incremental working capital and capital expenditures became available as the business developed. After the IPO, the closing market price of the underlying shares on the last trading date prior to the grant dates is applied in determining the fair value of the options and RSUs granted. Changes in these estimates and assumptions could materially affect the determination of fair value of stock-based compensation.

Allowances for doubtful accounts

The Group maintains an allowance for doubtful accounts which reflects its best estimate of amounts that will not be collected. The Group determines the allowance for doubtful accounts based on a historical, rolling average, bad debt rate in the prior period and other factors, such as credit-worthiness of the customers and the age of the receivable balances. The Group 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 Group’s customers were to deteriorate, resulting in an impairment of their ability to make payments, more bad debt allowances may be required.

Revenue recognition

Advertising and marketing revenues

Advertising and marketing revenues are derived principally from online advertising, including social display ads and promoted marketing. Social display ad arrangements allow customers to place advertisements on particular areas of the Group’s platform in particular formats and over particular periods of time, which is typically no more than three months. The Group enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Group recognizes revenues based on the number of times that the advertisement has been displayed. The Group also enters into cost per day (“CPD”) advertising arrangements with customers, under which the Group recognizes revenues ratably over the contract periods.

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 promoted feed.

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 Group’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. For multiple-deliverable revenue arrangements, it is required that the arrangement consideration to 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 Group 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 (BESP) is used, which has taken into consideration of the pricing of advertising areas of the Group’s platform with similar popularity and advertisements with similar format and quoted prices from competitors and other market conditions. Revenues recognized with reference to BESP were immaterial for all periods presented. The Group recognizes revenues on the elements delivered and defers the recognition of revenues 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 Group’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.

Other revenues

The Group generates other revenues principally from fee-based services, including game-related services, VIP membership 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 receivable is reasonably assured and the amounts can be accurately estimated.

Game-related services. Game-related service revenues are mostly generated from the sale of virtual items from games operated by the Group. The Group 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 Group remits certain predetermined percentages of the proceeds to the game developers when the virtual currency is converted into in-game credits.

The Group has determined that the game developers are the primary obligors for the game-related service given that the game developers are responsible for developing, maintaining and updating the game related services and have reasonable latitude to establish the prices of virtual items for which in-game credits are used. The Group views the game developers to be its customers, and the Group’s primary responsibility is to promote the games of the developers, provide virtual currency exchange service, maintain the platform for game players to easily access the games and offer customer support to resolve registration, log-in, currency exchange and other related issues. Accordingly, the Group records game-related revenue, 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 currencies 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.

VIP Membership. VIP Membership is a service package consisting of user certification and preferential benefits, such as daily priority listings and higher quota for following user accounts. Prepaid VIP membership fees are recorded as deferred revenue and recognized as revenue ratably over the contract period of the membership service.

Data licensing. The Group began to offer data licensing arrangements that allow its customers to access, search and analyze historical and real-time data on its platform. The data licensing arrangement is for a fixed period, typically one year, and such revenue is recognized ratably over the contract period.

Deferred revenues

Deferred revenues 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 the advertising and marketing services and the sales of the fee-based services, such as virtual currency or in-game virtual items sold for game related services and VIP membership.

Cost of revenues

Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, labor cost and turnover tax levied on the revenues, part of which were allocated from SINA (see Note 1 Reorganization). The Group 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 Group is subject to 6.7% VAT and surcharges and 3% cultural business construction fees for certain parts of its advertising and marketing revenues. Prior to the Pilot Program, the Group was subject to 5.6% business tax and surcharges and 3% cultural business construction fees. The total amount of such taxes on its advertising and marketing revenues for the years ended December 31, 2013, 2014 and 2015 were $12.5 million, $23.2 million and $35.3 million, respectively. For other revenues, the business tax and surcharges were 5.6% before the implementation of the Pilot Program and became 6.7% after switching over to the VAT. The implementation of the Pilot Program has not had a significant impact on the Group’s consolidated statements of income (loss) and comprehensive income (loss) for the years ended December 31, 2013, 2014 and 2015.

Advertising expenses

Advertising expenses consist primarily of costs for the promotion of corporate image and product marketing, part of which were allocated from SINA (see Note 1 Reorganization). The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2013, 2014 and 2015, the advertising expenses were $33.2 million, $71.0 million and $81.2 million, respectively.

Product development expenses

Product development expenses consist primarily of payroll-related expenses and infrastructure cost incurred for enhancement to and maintenance of the Group’s platform as well as costs associated with new product development and product enhancements, part of which were allocated from SINA (see Note 1 Reorganization). The Group 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 platform 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 Group leases office space under operating lease agreements with initial lease term up to three 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, part of which were allocated from SINA (see Note 1 Reorganization). 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. The allocated rental expenses from SINA for the years ended December 31, 2013, 2014 and 2015, were $3.2 million, $4.0 million and $3.5 million, respectively.

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 carry forwards. The Group records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. Income tax liability is calculated based on a separate return basis as if the Group had filed separate tax returns before the Reorganization.

Uncertain tax positions. To assess uncertain tax positions, the Group 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 Group’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues, costs 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 (loss) unless the associated net investment has been sold, liquidated, or substantially liquidated.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate prevailing on the transactions dates. Monetary assets and liabilities denominated in foreign currencies are translated 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 (expense), net.

Foreign currency translation adjustments included in the Group’s consolidated income (loss) and comprehensive income (loss) for the years ended December 31, 2013, 2014 and 2015 were loss of $0.2 million, $1.5 million and $7.9 million, respectively. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity and the amounts recorded were immaterial for each of the periods presented.

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. Options and RSUs 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 shares and potential ordinary shares outstanding during the period under treasury stock method. Potential ordinary shares include options to purchase ordinary shares and RSUs, unless they were anti-dilutive. The computation of diluted net income (loss) 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 (loss) per share.

Loss per share is computed in accordance with ASC 260, Earnings per Share. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s convertible preferred shares are participating securities because they are entitled to receive dividends or distributions on an as converted basis. For the periods prior to the Company’s IPO, the computation of basic loss per share using the two-class method was not applicable as the Group was in a net loss position and net loss is not allocated to other participating securities, since these securities are not obligated to share the losses in accordance with the contractual terms.

Segment reporting

In accordance with ASC 280, Segment Reporting, the Group’s chief operating decision maker (“CODM”), the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. The Group currently operates and manages its business in two principal business segments globally—advertising and marketing services and other services. Information regarding the business segments provided to the Group’s CODM is at the revenue level and the Group currently does not allocate operating costs or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As the Group’s long-lived assets are substantially all located in the PRC and substantially the Group’s revenues are derived from within the PRC, no geographical segments are presented.

Concentration of risks

Concentration of credit risk. Financial instruments that potentially subject the Group to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. In addition, with the majority of its operations in China, the Group is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Group has not done so. The Group limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the US, PRC and Hong Kong, 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 Group periodically reviews these institutions’ reputations, track records and reported reserves.

As of December 31, 2014 and 2015, the Group had $448.5 million and $334.6 million in cash and bank time deposits (with terms generally up to twelve months) with large domestic banks in China, respectively. China promulgated a 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 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 Group holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Group’s deposits goes bankrupt, the Group 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.

Alibaba accounted for 26%, 32% and 30% of the Group’s total revenue for the years ended December 31, 2013, 2014 and 2015, respectively. Excluding revenues from Alibaba, most of the Group’s advertising and marketing revenues were from advertising agencies. The Group’s top 10 advertising agencies in China contributed to 20%, 14%, and 15% of the Group’s total revenues for the years ended December 31, 2013, 2014, and 2015, respectively.

As of December 31, 2014 and 2015, substantially all accounts receivable were derived from the Group’s China operations. Excluding accounts receivable due from Alibaba, SINA and other related parties, accounts receivable primarily consists of amounts due from advertising agencies and direct customers. Alibaba accounted for 54% of the Group’s net accounts receivable as of December 31, 2014, and Alibaba and a customer accounted for 45% and 16%, respectively, of the Group’s net accounts receivable as of December 31, 2015.

Concentration of foreign currency risks. For the years ended December 31, 2013, 2014 and 2015, the majority of the Group’s revenues derived and expenses incurred were in RMB. As of December 31, 2014 and 2015, the Group’s cash, cash equivalents and short-term investments balance denominated in RMB was $10.4 million and $157.9 million, accounting for 2% and 47% of the Group’s total cash, cash equivalents and short-term investments balance. As of December 31, 2014 and 2015, the Group’s aggregate net accounts receivable balance (including accounts receivable due from third parties, Alibaba, SINA and other related parties) denominated in RMB was $120.1 million and $120.1 million, respectively, accounting for almost all of its net accounts receivable balance. As of December 31, 2014 and 2015, the Group’s current liabilities balance denominated in RMB was $127.5 million and $197.9 million, accounting for 94% and 95% of its total current liabilities balance. Accordingly, the Group may experience economic losses and negative impacts on earnings and equity (deficit) 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 Group may experience difficulties in completing the administrative procedures necessary to remit its RMB out of the PRC and convert it into foreign currency.

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), change in unrealized losses on marketable securities classified as available-for-sale, and foreign currency translation adjustments.

Recent accounting pronouncements

In May 2014, the FASB issued, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The guidance substantially converges final standards on revenue recognition between the FASB and the International Accounting Standards Board providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all exiting revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles.

The core principle of the guidance is that an entity should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within those reporting periods. In April 2015, the FASB proposed a one-year delay in the effective date and companies will be allowed to early adopt as of the original effective date. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements.

In August 2014, the FASB issued a new pronouncement Presentation of Financial Statements — Going Concern. This standard requires management to evaluate for each annual and interim reporting period whether it is probable that the reporting entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued. If the entity is in such a position, the standard provides for certain disclosures depending on whether or not the entity will be able to successfully mitigate its going concern status. This guidance is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its financial position, results of operations, or cash flows.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis”, which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Group is currently evaluating the impact on the adoption of ASU 2015-02 to its consolidated financial statements.

In April 2015, the FASB issued updated guidance which requires the issuer to presents the issuance costs of debt in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This guidance will be effective beginning the first quarter of fiscal year 2016. The Group does not expect the adoption of the guidance will have a significant effect on its consolidated financial statements.

In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”, which eliminates the requirement for acquirers in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed at the acquisition date. This update is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements.

In November 2015, the FASB issued updated guidance which requires deferred tax assets and liabilities to be presented as noncurrent on the balance sheet. This guidance was required to be adopted by reporting entities beginning the first quarter of fiscal year 2017 but early adoption is permitted. The Group early adopted the guidance and retrospectively reclassified approximately $18,000 of the current deferred tax assets from prepaid expenses and other current assets into other assets in the consolidated balance sheets as of December 31, 2014.The Group believes the adoption of the guidance does not have a significant effect on its consolidated financial statements.

In January 2016, the FASB issued updated guidance intended to improve the recognition and measurement of financial instruments. This guidance will be effective beginning the first quarter of fiscal year 2018. The Group is currently evaluating the impact this new guidance will have on its consolidated financial statements.

In February 2016, the FASB issued a new standard on leases, ASU No. 2016-2, which requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize a liability to make lease payments (the lease liability) and a right-of use representing its right to use the underlying asset for the lease term in the statements of financial position. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This standard will be effective for the Group beginning the first quarter of fiscal year 2019. The Group is currently evaluating the impact that this new standard will have on its consolidated financial statements.

Investment in Weibo

12 Months Ended

Dec. 31, 2015

Cash, Cash Equivalents and Short-term Investments

Investment in Weibo

3. Investment in Weibo

On April 29, 2013 (“Transaction Date”), Alibaba Group Holding Limited (“Alibaba”) through its wholly owned subsidiary invested $585.8 million to purchase 30.0 million of preferred shares and 4.8 million of ordinary shares of the Company, representing an ownership interest of 18% on a fully diluted basis. The Company also granted an option to Alibaba to enable it to purchase additional ordinary shares and preferred shares and increase its ownership in Weibo up to 30% on a fully-diluted basis.

Preferred Shares

All of the preferred shares were converted to Class A ordinary shares upon the completion of the Group’s initial public offering on April 17, 2014. Immediately prior to the initial public offering, the Company’s preference shares comprised of the following:

Issuance Date	Shares outstanding	Carrying Amount
		(In thousands)
April 29, 2013	30,046,154	$	479,612

Prior to the automatic conversion to ordinary share upon the Company’s initial public offering on April 17, 2014, the preference shares were entitled to certain preferences with respect to conversion, redemption, dividends and liquidation. The holders of preference shares were entitled to vote together with the holders of ordinary shares, and not as a separate class, on all matters submitted to a vote of the shareholders of the Company, on an as-if-converted basis.

Ordinary Shares

The ordinary shares held by Alibaba, recognized at an initial fair value of $54.2 million as of the Transaction Date, were purchased from the Group’s employees or from the Company for vested employee options repurchased. In order to facilitate the transaction, the Company issued 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 the Company first and then paid to the employees subsequently. The difference between the proceeds employees received and the fair value of the shares or vested options sold was considered to be compensation for 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.

Option Liability

The Company granted an option to Alibaba to enable it to purchase additional ordinary shares and increase its ownership in the Company 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 the Company on a fully diluted basis.

In accordance with ASC Subtopic 815-10, 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 as of the Transaction Date. For the years ended December 31, 2013 and 2014, $21.1 million of income and $47.0 million of losses, respectively, was recognized based on a subsequent change in fair value in the Group’s consolidated statements of income (loss) and comprehensive income (loss). See Note 15 for further details.

Immediately prior to the exercise of the option, the fair value of the investor option liability was approximately $76.5 million, with $47.0 million of losses recognized in the Group’s consolidated statements of loss and comprehensive loss in 2014. Alibaba fully exercised its option to increase its ownership in the Company to 30% on a fully diluted basis upon the IPO and acquired 29,990,778 Class A ordinary shares, which consists of (i) 21,067,300 shares acquired from SINA at a price that represents a 15% discount to the IPO price of the Company, (ii) 2,923,478 shares acquired from the Company at a price that represents a 15% discount to the IPO price through a concurrent private placement and (iii) 6,000,000 shares purchased from the Company at the IPO price. As part of a series of the transaction, the Company repurchased 2,923,478 ordinary shares from SINA with the US$42.2 million proceeds from the issuance of ordinary shares to Alibaba in the concurrent private placement. Among the acquired shares by Alibaba, 23,990,778 shares were purchased from SINA at a price representing 15% discount to its IPO price and 6,000,000 shares were purchased from the Company in the public offering at the IPO price. The discount of US$ 61.2 million borne by SINA on behalf of Weibo were considered as a deemed contribution from the shareholder. As Alibaba’s decision to waive the discount for the newly issued 6,000,000 Class A ordinary shares was motivated by its position as principle shareholder, the discount of US$15.3 million was also considered as a deemed contribution from the shareholder.

Amount due to SINA

In April 2013, the Group agreed to repay SINA for the cost of developing its business plus applicable interest payments. The interest on amount due to SINA is calculated based on actual spending incurred by SINA for the development of Weibo’s business at each period end. The consolidated statements of income (loss) and comprehensive income (loss) reflect a charge for interest on the amount due to SINA, as well as on the amounts included as accrued liabilities due to SINA at prevailing market interest rates by reference to the three-month time deposit rate of The People’s Bank of China, which ranged from 2.55% to 3.05%. The loans are repayable upon demand. There is no written agreement signed between SINA and Weibo and there are no fixed payment terms for the loan. In accordance with the agreements for the Alibaba Transaction, the Group is liable for a $250.0 million loan payable to SINA as of April 29, 2013, plus applicable interest payments and any additional outlays subsequent to the Transaction Date. On April 29, 2013, $8.5 million in interest due to SINA was waived, which was recorded as deemed contribution from SINA in the equity section of the consolidated balance sheets. The outstanding loan balance due to SINA was settled after the IPO with proceeds raised from the IPO. As of December 31, 2014 and 2015, Weibo had payments due to SINA in the amount of $24.3 million and $12.2 million, respectively, which were interest free and payable on demand. Such balances represented mainly the amounts payable to SINA for the Weibo Funds, which was settled in June 2015, and allocated expenses.

Cash, Cash Equivalents and Short-term Investments

12 Months Ended

Dec. 31, 2015

Cash, Cash Equivalents and Short-term Investments

4. Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments consist of the following:

	As of December 31,
	2014		2015
	(In thousands)
Cash and cash equivalents:
Cash	$	54,915	$	186,347
Cash equivalents:
Bank time deposits	229,950		51,093


	284,865		237,440


Short-term investments:
Bank time deposits	166,414		98,439


Total cash, cash equivalents and short-term investments	$	451,279	$	335,879

The carrying amounts of cash, cash equivalents and short-term investments approximate fair values. Interest income for the years ended December 31, 2013, 2014 and 2015 was $3.8 million, $8.3 million and $5.5 million, respectively. The maturity dates of the bank time deposits were within one year.

Long-term Investments

12 Months Ended

Dec. 31, 2015

Long-term Investments

Long-term Investments

5. Long-term Investments

Long-term investments comprised of investments in privately held and publicly traded companies. The following sets forth the changes in the Group’s long-term investments:

	Cost Method			Equity Method			Available-for-Sale Securities			Total
	(In thousands)
Balance at December 31, 2012	$	12,485		$	3,565		$	—		$	16,050
Investments made	11,868			4,635			—			16,503
Loss from equity method investment	—			(1,236		)	—			(1,236		)
Impairment on investments	(1,928		)	—			—			(1,928		)
Remeasurement gain upon obtaining control	—			3,116			—			3,116
Disposal of investments	(585		)	—			—			(585		)
Transfer from long-term investments to a wholly owned subsidiary	—			(10,080		)	—			(10,080		)
Others	415			—			—			415


Balance at December 31, 2013	$	22,255		$	—		$	—		$	22,255
Investments made	32,412			158			15,096			47,666
Loss from equity method investment	—			(5		)	—			(5		)
Impairment on investments	(2,521		)	—			—			(2,521		)
Transfer from long-term investments to a wholly owned subsidiary	(1,189		)	—			—			(1,189		)
Unrealized loss	—			—			(2,067		)	(2,067		)
Others	(363		)	1			—			(362		)


Balance at December 31, 2014	$	50,594		$	154		$	13,029		$	63,777
Investments made	252,256			—			—			252,256
Loss from equity method investment	—			(6		)	—			(6		)
Disposal of investments	(13,134		)	—			—			(13,134		)
Impairment on investments	(6,608		)	—			—			(6,608		)
Unrealized loss	—			—			(198		)	(198		)
Others	(1,401		)	(7		)	—			(1,408		)


Balance at December 31, 2015	$	281,707		$	141		$	12,831		$	294,679

As of December 31, 2014 and 2015, investments accounted for under the cost method were $50.6 and $281.7 million, respectively. Investments were accounted for under the cost method if the Group had no significant influence or if the underlying shares were not considered in substance ordinary shares and had no readily determinable fair value. For the year ended December 31, 2015, the Group made investments in private high tech companies totaling $252.3 million, which were accounted for under the cost method. These investments were made in general to help strengthen the Group’s ecosystem and included a $142.0 million investment in Didi and Kuaidi Taxi, an online transportation network company, through its holding company, Xiaoju Kuaizhi Inc., and a $70.0 million investment in a company which develops social applications.

Investments in marketable securities are held as available-for-sale (“AFS”) and reported at fair value. The Group invested $15.1 million in 2014 in a company accounted for as an AFS, which was marked to the fair value of $13.0 million and $12.8 million as of December 31, 2014 and 2015, respectively.

The Group performs an impairment assessment of its investments and determines if an investment is other-than-temporarily impaired due to changes in quoted market price or other impairment indicators. The Group recorded $2.5 million, $2.5 million, and $8.0 million in impairment charges related to its investment activities for the years ended December 31, 2013, 2014 and 2015, respectively.

The entire disclosure for investments in certain debt and equity securities.

Acquisitions

12 Months Ended

Dec. 31, 2015

Acquisitions

6. Acquisitions

In May 2013, SINA acquired the remaining 45% equity interest in Weibo Interactive, an online-game platform company that it had accounted for under the equity method of accounting, for a consideration of $4.6 million. In accordance with ASC-805 related to a business combination achieved in stages, SINA’s previously held 55% equity interest was remeasured to fair value at the date of acquisition using the discounted cash flow method, which resulted in a $3.1 million remeasurement gain upon obtaining control. SINA hired an independent valuation firm to assist management in valuing its previously held equity interest in Weibo Interactive as of the acquisition date. SINA 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 complementary operations of Weibo Interactive with the Group. Total identifiable intangible assets acquired upon acquisition mainly included a customer list of $2.1 million, game platform technology of $1.0 million and non-compete agreement of $0.5 million, with an estimated average weighted useful life between two to five years.

Consideration for Weibo Interactive 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)
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

In connection with the Reorganization, SINA transferred 100% equity interest in Weibo Interactive to the Group in December 2013 for a consideration of $10.1 million (see Note 1). The amounts recognized in the Group’s financial statements reflected the transferred assets and liabilities at SINA’s historical cost for all periods presented as this represented a transaction between entities under common control. The acquisition completed in May 2013 was not material to the Group’s consolidated financial statements, and, therefore, pro forma disclosure is not required.

In October 2014, the Group acquired an 84% equity interest in Shanghai Gametree Information Technology Co. Ltd,. (“Gametree”), a game developer for a consideration of $3.1 million and began to consolidate its financial results since October 1, 2014. The Group hired an independent valuation firm to assist management in valuing the equity interest acquired by the Group. Goodwill arising from this transaction primarily represents the expected synergies from combining the operations of game developer with the Group, which are complementary to each other. Total identifiable intangible assets acquired upon acquisition were the existing game technology amounting to $1.7 million, which have an estimated useful life of approximately 4.3 years. The impact of the game developer’s financial results since the acquisition date included in the consolidated financial statements of the Group was immaterial. The acquired business is also not material to the Group’s financial statements and, thus, a presentation of pro-forma financial information for the business combination is not required.

Consideration for the purchase 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	$	3,062
Non-controlling interests	292

Total consideration	3,354


Tangible assets	1,518
Identifiable intangible assets acquired	1,688
Liabilities assumed	(3,692		)
Goodwill	3,840


Total consideration	$	3,354

On June 30, 2015, the Group completed the acquisition from SINA of the 55% and 85% equity interest in the two Weibo funds, which engage in investing in high-tech startups related to the Weibo business for a total cash consideration of $22.0 million. The Group engaged an independent valuation firm to assist management in its valuation of the purchase price allocation. Since Weibo and the Weibo Funds were controlled by SINA both before and after the acquisition, this transaction was accounted for as a business combination between entities under common control by SINA. Therefore, in accordance with ASC Subtopic 805-50, the consolidated financial statements of the Group include the acquired assets and liabilities of the Weibo Funds at their historical carrying amounts. In addition, the Group’s consolidated financial statements as of and for the year ended December 31, 2015 have been prepared as if the Weibo Funds had been owned by the Group for all periods presented and the Group’s consolidated financial statements as of and for the years ended December 31, 2013 and 2014 have been retrospectively adjusted accordingly.

The following sets forth the changes in the Group’s goodwill by segment:

	Advertising & Marketing		Other		Total
	(In thousands)
Balance as of December 31, 2012	$	—	$	—	$	—
Acquisition of Weibo Interactive	—		7,517		7,517

Balance as of December 31, 2013	$	—	$	7,517	$	7,517

Acquisition of game developer	—		3,840		3,840
Others	—		295		295


Balance as of December 31, 2014	$	—	$	11,652	$	11,652

As of December 31, 2014 and 2015, the balance of goodwill was $11.7 million and $11.1 million, respectively. The decrease of approximately $535,000 in balance in 2015 was mainly due to the depreciation of the Renminbi and was reflected in currency translation adjustment in consolidated financial statements.

As of December 31, 2014 and 2015, the Group performed a qualitative analysis on the goodwill arising from the acquisition taking into consideration the events and circumstances listed in ASC350 Intangibles—Goodwill and Other, including consideration of macroeconomic factors, industry and market conditions, share price of the Group and overall financial performance, in addition to other entity-specific factors. Based on the assessment, the Group determined that it was not necessary to perform a quantitative goodwill impairment test and concluded that no impairment indicators on its goodwill were noted during the period presented.

As of December 31, 2015, the Group’s intangible assets totaling $2.0 million mainly consisted of acquired intangible assets, including game-related platform technology, game-user base and customer contracts. The amortization expense for the years ended December 31, 2013, 2014 and 2015 was $0.2 million, $1.2 million and $1.5 million, respectively. As of December 31, 2015, estimated amortization expenses for future periods are expected to be as follows:

Year Ended December 31,	(In thousands)
2016	$	761
2017	677
2018	528
2019 and thereafter	—

Total expected amortization expense	$	1,966

Other Balance Sheet Components

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

Stock-Based Compensation

Stock-Based Compensation

7. Stock-Based Compensation

In August 2010, the Company adopted the 2010 Share Incentive Plan (the “2010 Plan”), which has a term of ten years and permits the grant of options, share appreciation rights, restricted shares and restricted share units of the Company to employees, directors and consultants of the Company and its affiliates. Under the plan, a total of 35 million ordinary shares were initially reserved 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 Company granted options equivalent to approximately 1.7%, nil and nil of the Company’s ordinary shares on a fully diluted basis for the years ended December 31, 2013, 2014 and 2015, respectively. Fair value of options granted, which was estimated at grant date, for the years ended December 31, 2013, 2014 and 2015 was $16.9 million, nil and nil, respectively.

In March 2014, the Company adopted the 2014 Share Incentive Plan (the “2014 Plan”), which was funded by the remaining 4.6 million shares from the 2010 Plan plus an additional 1.0 million shares. On January 1, 2015, shares in the 2014 Plan, which has a term life of ten years, was 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. The Company intends to use such share incentive plan to attract and retain employee talent.

The following table sets forth the stock-based compensation included in each of the relevant accounts:

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Cost of revenues	$	4,253	$	755	$	1,196
Sales and marketing	6,150		1,583		3,209
Product development	9,209		4,392		10,210
General and administrative	11,630		7,049		11,784


	$	31,242	$	13,779	$	26,399

Stock based compensation related to the grants were amortized generally over four years on a straight-line basis with $4.1 million, $13.8 million and $26.4 million expensed for the years ended December 31, 2013, 2014 and 2015, respectively. Stock-based compensation for the year ended December 31, 2013 included a $27.1 million expense, which is 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 3).

Stock Options

The Group uses the Black-Scholes option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s option grants were as follows:

	Year Ended December 31,
	2013	2014*	2015*
Stock options:
Expected term (in years)	3.5 - 4.8	N/A	N/A
Expected volatility	54% -61%	N/A	N/A
Risk-free interest rate	0.5% - 1.2%	N/A	N/A
Expected dividend yield	—	—	—

* No options were granted in 2014 and 2015.

Expected term represents the weighted average period of time that stock-based awards granted are expected to be outstanding taking into consideration of historical exercise patterns. Due to the lack of industry comparison and comparable historical exercise pattern, the Company 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. The Company 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:

	Shares Available
	(In thousands)
December 31, 2012	8,086
Granted*	(4,772	)
Cancelled/expired/forfeited	1,157
Repurchased	177


December 31, 2013	4,648
Addition	1,000
Granted*	(2,951	)
Cancelled/expired/forfeited	41


December 31, 2014	2,738
Addition	21,684
Granted*	(4,851	)
Cancelled/expired/forfeited	646


December 31, 2015	20,217

*In 2013, 0.8 million restricted share units, equivalent to 1.4 million option shares, and 3.4 million stock options were granted under the 2010 Plan. In 2014, 3.0 million restricted share units and no options were granted under the 2014 Plan. In 2015, 4.9 million restricted share units and no options were granted under the 2014 Plan.

The following table sets forth a summary of option activities under the Company’s stock option program:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)				(In years)	(In thousands)
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
Granted	—		$	—
Exercise	(3,697	)	$	0.52
Cancelled/expired/forfeited	(534	)	$	2.84
Repurchased	—		$	—


December 31, 2014	14,330		$	1.28	3.2	$	185,684
Granted	—		$	—
Exercise	(7,309	)	$	1.11
Cancelled/expired/forfeited	(718	)	$	3.22
Repurchased	—		$	—

December 31, 2015	6,303		$	1.26	2.4	$	114,975


Vested and expected to vest as of December 31, 2014	14,261		$	1.27	3.2	$	184,937
Exercisable as of December 31, 2014	11,446		$	0.76	2.7	$	154,235

Vested and expected to vest as of December 31, 2015	6,237		$	1.24	2.4	$	113,909
Exercisable as of December 31, 2015	5,649		$	1.01	2.2	$	104,473

The total intrinsic value of options exercised for the years ended December 31, 2013, 2014 and 2015 was $37.3 million, $65.7 million and $106.2 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. As of December 31, 2013, the estimated fair value of the Company’s ordinary shares was $14.10, which was determined with the assistance of an independent valuation firm. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2014 and 2015 was $14.24 and $19.50, respectively. Cash received from the exercise of stock option during the years ended December 31, 2013, 2014 and 2015 was $1.0 million, $1.5 million and $7.8 million, respectively.

As of December 31, 2014 and 2015, unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to the Group’s employees and directors was $11.3 million and $3.9 million, respectively. Total unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.7 years and may be adjusted for future changes in estimated forfeitures.

Information regarding stock options outstanding is summarized below:

Range of Exercise Prices	Options Outstanding	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
	(In thousands)			(In thousands)			(In years)
As of December 31, 2014
$0.36 - $0.41	9,337	$	0.37	9,337	$	0.37	2.3
$0.96 - $1.80	844	$	1.19	764	$	1.18	3.1
$3.25 - $3.36	2,542	$	3.29	1,345	$	3.30	4.8
$3.43 - $3.50	1,607	$	3.48	—	$	—	5.5


	14,330	$	1.28	11,446	$	0.76	3.2


As of December 31, 2015
$0.36 - $0.41	4,167	$	0.36	4,167	$	0.36	1.7
$0.96 - $1.80	406	$	1.24	406	$	1.24	2.3
$3.25 - $3.36	682	$	3.32	519	$	3.33	3.5
$3.43 - $3.50	1,048	$	3.48	557	$	3.48	4.6


	6,303	$	1.26	5,649	$	1.01	2.2

Restricted Share Units

The following table sets forth a summary of restricted share unit activities:

	Shares Granted		Weighted- Average Grant Date Fair Value
	(In thousands)
December 31, 2013	800		$	13.19
Awarded	2,951		$	17.11
Vested	(203	)	$	13.19
Cancelled	(41	)	$	17.23


December 31, 2014	3,507		$	16.44
Awarded	4,851		$	12.41
Vested	(1,211	)	$	14.69
Cancelled	(646	)	$	14.18


December 31, 2015	6,501		$	13.98

As of December 31, 2015, unrecognized compensation cost, adjusted for estimated forfeitures and related to non-vested, service-based restricted share units granted to the Company’s employees and non-employee directors, was $73.0 million. This cost is expected to be recognized over a weighted-average period of 3.2 years. The total fair value based on the vesting date of the restricted share units vested was $2.7 million and $17.8 million for the years ended December 31, 2014 and 2015, respectively.

Other Balance Sheet Components

12 Months Ended

Dec. 31, 2015

Other Balance Sheet Components

8. Other Balance Sheet Components

	As of December 31,
	2013		2014			2015
			(In thousands)
Accounts receivable, net:
Due from third parties			$	39,277		$	33,592
Due from SINA and other related parties			18,648			33,961
Due from Alibaba			64,725			54,052


Total gross amount			$	122,650		$	121,605
Allowance for doubtful accounts:
Balance at the beginning of the year	(897	)	(3,242		)	(2,440		)
Reversal (additional provision) charged to expenses, net	(2,345	)	(2,138		)	368
Write-off	—		2,940			697


Balance at the end of the year	(3,242	)	(2,440		)	(1,375		)


			$	120,210		$	120,230


Prepaid expenses and other current assets:
Rental and other deposits			$	3,319		$	3,636
Input VAT			1,526			443
Prepayment for investments			4,037			25,574
Advertising prepayment			3,936			3,531
Prepayment to outsource service providers			1,730			5,422
Prepayment for license fee			1,872			—
Others			1,937			3,689


			$	18,357		$	42,295


Property and equipment, net:
Computers and equipment			$	89,069		$	93,947
Leasehold improvements			4,944			4,795
Furniture and fixtures			2,052			1,309
Others			730			1,464


Property and equipment, gross			96,795			101,515
Less: Accumulated depreciation			(65,921		)	(78,665		)


			$	30,874		$	22,850


Accrued liabilities*:
Payroll and welfare			$	19,686		$	25,972
Amounts owed on option/share repurchase			1,203			—
Content fees			1,005			1,267
Marketing expenses			19,806			35,715
Internet connection costs			6,834			7,673
Employee payroll withholding taxes			3,547			3,547
Sales rebates			14,126			19,593
Professional fees			3,138			3,127
Revenue share			3,057			9,071
VAT and other tax payable			6,629			29,955
Payable to other service providers			1,074			2,673
Payable to outsourced service providers			1,375			2,382
Others			6,115			13,989


			$	87,595		$	154,964

* Include amounts due to third parties, employees and related parties.

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Taxes

Income Taxes

9. Income Taxes

The Company is registered in the Cayman Islands and mainly operates in two taxable jurisdictions—the PRC and Hong Kong.

The Group’s income (loss) before income taxes is as follows:

	Year Ended December 31,
	2013			2014			2015
	(In thousands, except percentage)
Income (Loss) before income tax expenses	$	(40,664	)	$	(64,340	)	$	36,780
Loss from non-China operations	$	(13,341	)	$	(54,073	)	$	(28,016	)
Income (Loss) from China operations	$	(27,323	)	$	(10,267	)	$	64,796
Income tax expenses applicable to China operations	$	271		$	1,128		$	2,591
Effective tax rate for China operations	(1.0		)%	(11.0		)%	4.0		%

The Company recorded stock-based compensation expense as well as a $47.0 million loss in 2014 from the change in fair value of investor option liability in non-China operations. The Company generated the majority of its operating income (loss) from the PRC operations and has recorded income tax provisions for the periods presented. Income tax liability is calculated based on a separate return basis, as if the Group had filed separate tax returns before the Reorganization.

Cayman Islands

Under the current tax laws of the 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 is required.

Hong Kong

Weibo HK is subject to taxes in Hong Kong at 16.5% for all the periods presented. As of December 31, 2015, the Company’s Hong Kong subsidiary had approximately $1.2 million of net operating loss carry forward, which can be carried forward indefinitely to offset future taxable income. As of December 31, 2015, deferred tax assets for Weibo HK consists mainly of net operating loss carry forwards, for which a full valuation allowance was provided. Management believes it is more likely than not that these assets will not be realized in the future.

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. On February 22, 2008, relevant governmental regulatory authorities released qualification criteria, application procedures and assessment processes for “software enterprise,” which 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. The Group’s WFOE qualifies as a software enterprise and, thus, can enjoy the relevant tax holiday starting in its first profitable year in 2015.

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 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 Group does not believe that it is likely that its operations outside of the PRC be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, should Weibo 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 a WFOE 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. 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 a WFOE 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 WFOE). 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.

The operations of the Group’s WFOE in China is invested and held by Weibo HK. If the Company is regarded as a non-resident enterprise and Weibo HK is regarded as a resident enterprise, then Weibo HK may be required to pay a 10% withholding tax on any dividends payable to us. If Weibo HK is regarded as a non-resident enterprise, then Weibo Technology may be required to pay a 5% withholding tax for any dividends payable to Weibo HK. However, it is still unclear at this stage whether Circular 601 applies to dividends from Weibo Technology paid to the Hong Kong subsidiary. If Weibo HK were not considered as “beneficial owners” of any dividends from Weibo Technology, the dividends payable to Weibo HK would be subject to a withholding tax of 10%. In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to Weibo Corporation and are subject to the withholding taxes. The current policy approved by the Company’s board of directors allows the Group to distribute PRC earnings offshore only if the Group does not have to pay a dividend tax. As of December 31, 2015, the Group did not record any withholding tax for its PRC subsidiaries.

Composition of income tax expenses for China operations

The following table sets forth current and deferred portion of income tax expenses (benefits) of the Company’s China subsidiary and VIE:

	Years Ended December 31,
	2013		2014		2015
	(In thousands)
Deferred tax expenses (benefits)	$	271	$	866	$	(977	)
Current income tax expenses	—		262		3,568


Income tax expenses	$	271	$	1,128	$	2,591

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		2014		2015
Statutory EIT rate	25.0	%	25.0	%	25	%
Effect on tax holiday	—		—		(24.2	)%
Permanent differences	0.5	%	2.2	%	0.5	%
Change in valuation allowance	(26.5	)%	(38.2	)%	2.7	%


Effective tax rate for China operations	(1.0	)%	(11.0	)%	4.0	%

The provision for income taxes for the years ended December 31, 2013, 2014 and 2015 differ from the amounts computed by applying the statutory EIT rate primarily due to the utilization of net operating loss of Weimeng, as it was in a profitable position in 2014, and the tax exemption of Weibo Technology in 2015 as a qualified software enterprise. For the year ended December 31, 2015, Weibo Technology was tax exempted for $15.7 million, which resulted in an effect of $0.08 on basic net income per share.

Deferred tax assets and liabilities

The following table sets forth the significant components of deferred tax assets and liabilities for the Group:

	As of December 31,
	2014			2015
	(In thousands)
Deferred tax assets:
Net operating loss carry forwards	$	42,347		$	41,604
Less: valuation allowance	(42,347		)	(41,604		)
Depreciation, accounts receivable, accrued and other liabilities	8,386			4,550
Less: valuation allowance	(8,355		)	(3,057		)


Net deferred tax assets	$	31		$	1,493


Deferred tax liabilities:
Acquired intangible assets	$	873		$	477
Depreciation	—			295
Others	—			566


Total deferred tax liabilities	$	873		$	1,338

Valuation allowance is provided against deferred tax assets when the Group 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 Group considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies. Historically, deferred tax assets were valued using the statutory rate of 25%. As of December 31, 2014 and 2015, the Group had net operating loss carry forwards totaling $169.3 million and $160.5 million, respectively, for which full valuation allowance was provided. As of December 31, 2015, the net operating loss carry forwards will expire, if unused, in the year ending December 31, 2019 through December 31, 2020.

Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions

Related Party Transactions

10. Related Party Transactions

The following sets forth significant related parties and their relationships with the Company:

Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company (since April 29, 2013).

Weibo Interactive		Investee accounted for under the equity method until May 2013 and wholly owned under common control thereafter.

The following sets forth significant related party transactions with the Company:

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Transactions with SINA
Revenue billed through SINA(1)	$	851	$	4,057	$	22,114
Deemed contribution from SINA(2)	$	13,092	$	61,176	$	—
Legal transfer of Weibo Interactive and recognition of due to SINA(3)	$	10,080	$	—	$	—
Legal transfer of Weibo Funds and recognition of due to SINA(4)	$	17,506	$	22,565	$	—
Costs and expenses allocated from SINA(5)	$	44,305	$	42,360	$	24,678
Interest expense on amount due to SINA	$	6,709	$	2,838	$	—
Repayment of amount due to SINA(6)	$	159,816	$	276,614	$	2,863

(1)

For the years ended December 31, 2013, 2014 and 2015, the Group billed $0.9 million, $4.1 million and $22.1 million to third parties through SINA.

(2)

The $13.1 million in deemed contribution from SINA in 2013 included $4.6 million related to the step-up acquisition of Weibo Interactive and $8.5 million related to the waived interest expense payable to SINA (see Note 1). The $61.2 million in deemed contribution from SINA in 2014 represented the discount borne by SINA upon the settlement of investor options (see Note 3).

(3)

The $10.1 million related to the consideration paid to SINA in exchange for 100% equity interest in Weibo Interactive in December 2013 (see Note 1).

(4)

The $17.5 million and $22.6 million for fiscal 2013 and 2014 related to the amount paid by SINA for the Weibo Funds. (see Note1).

(5)

Costs and expenses allocated from SINA represented the charge for certain services provided by SINA’s affiliates and charged to the Company using actual cost allocation based on proportional utilization (see Note 1). In addition to the allocated costs and expenses, SINA also billed $29.4 million for other costs and expenses associated with Weibo business in 2015.

(6)

For the year ended December 31, 2014, the Company repaid approximately $276.6 million for a loan and related interests to SINA (see Note 3).

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Transactions with Alibaba
Advertising and marketing services provided to Alibaba	$	49,135	$	107,587	$	143,650
Deemed contribution from Alibaba(7)	$	—	$	15,300	$	—
Services provided by Alibaba	$	—	$	128	$	4,515

(7)

The $15.3 million for the year ended December 31, 2014, represents the discount borne by Alibaba upon the settlement of investor options (see Note 3).

On April 29, 2013, affiliated entities of SINA, including the Group’s subsidiary, entered into a strategic collaboration 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. The strategic collaboration was entered into on a separate agreement from those relating to the investment in Weibo by Alibaba. For the years ended December 31, 2013, 2014 and 2015, the Group recorded advertising and marketing services revenue under the strategic collaboration with Alibaba amounting to $49.1 million, $107.6 million and $137.4 million, respectively. The strategic collaboration agreement with Alibaba expired in January 2016. Although the Group is discussing areas of collaboration with the various business units of Alibaba and expects to continue to work with Alibaba in the area of social commerce and other areas, the Group does not expect to renew its strategic collaboration arrangement.

The following sets forth the outstanding balance due to or from related parties:

	As of December 31,
	2014		2015
	(In thousands)
Amount due to SINA	$	24,279	$	12,188
Accounts receivable due from SINA(8)	$	3,151	$	31
Accounts receivable due from Alibaba	$	64,725	$	54,052

(8)

The Group settles customer and supplier balances with SINA when the third-parties settle such amount with SINA. Any uncollectible losses arising from the accounts receivable due from SINA are passed on to the Group.

For the years ended December 31, 2013, 2014 and 2015, advertising and marketing revenues generated from other related parties were $2.3 million, $27.6 million and $29.2 million, and other revenues from other related parties were nil, $1.5 million and $2.1 million, respectively. For the years ended December 31, 2013, 2014 and 2015, the Group received promotional services from other related parties amounting to approximately $0.9 million, $11.2 million and $7.8 million, respectively. As of December 31, 2014 and 2015, the amount due from other related parties was $15.4 million and $33.9 million, respectively. As of December 31, 2014 and 2015, the amount due to related parties was$5.8 million and $16.0 million, respectively.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Net Income (Loss) Per Share

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2015
Employee Benefit Plans
Employee Benefit Plans	11. Employee Benefit Plans China Contribution Plan The Company’s subsidiary, VIE and VIE’s subsidiaries 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 entities incorporated in China 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 Group has no further commitments beyond its monthly contribution. For the years ended December 31, 2013, 2014 and 2015, the Group’s total contribution was $18.3 million, $27.2 million and $29.7 million, respectively.

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2015

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. Options, RSUs and preferred shares 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 under the treasury stock method. For the years ended December 31, 2013 and 2014, options to purchase ordinary shares and RSUs that were anti-dilutive and excluded from the calculation of diluted net loss per share were 52.6 million and 17.8 million. For the year ended December 31, 2015, options to purchase ordinary shares and RSUs of 9.8 million were recognized as dilutive factors and included in the calculation of diluted net income per share. For the years ended December 31, 2013, preferred shares convertible into ordinary shares that were anti-dilutive and excluded from the calculation of diluted net loss per share of Weibo were 30.0 million. For the years ended December 31, 2014 and 2015, no preferred shares were included in the calculation of diluted net income (loss) per share of the Group, as all preferred shares converted into ordinary shares during the Group’s IPO in 2014.

For periods prior to the IPO and where Weibo was profitable, the preferred shares held by Alibaba were considered participating securities and, therefore, all profits of Weibo were 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 Group in excess of the initial investment, the Group believes that in applying the two-class method of calculating EPS in accordance with ASC 260-10 in periods during which the Group recognized losses, any losses from the Group should not be allocated to the preferred shares, since the preferred shares were not obligated to share the losses in accordance with the contractual terms.

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			2014			2015
	(In thousands, except per share data)
Basic net income (loss) per share calculation:
Numerator:
Net income (loss) attributable to Weibo	$	(39,790	)	$	(65,325	)	$	34,745
Denominator:
Weighted average ordinary shares outstanding	146,820			186,878			208,163
Basic net income (loss) per share attributable to Weibo	$	(0.27	)	$	(0.35	)	$	0.17


Diluted net income (loss) per share calculation:
Numerator:
Net income (loss) attributable for calculating diluted net income (loss) per share	$	(39,790	)	$	(65,325	)	$	34,745
Denominator:
Weighted average ordinary shares outstanding	146,820			186,878			208,163
Weighted average ordinary shares equivalents:
Effects of dilutive securities
Stock options	—			—			8,572
Unvested restricted share units	—			—			1,183
Shares used in computing diluted net income (loss) per share attributable to Weibo	146,820			186,878			217,918
Diluted net income (loss) per share attributable to Weibo	$	(0.27	)	$	(0.35	)	$	0.16

Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information

Segment Information

13. Segment Information

The Group currently operates and manages its business in two principal business segments globally—advertising and marketing services and other services. Information regarding the business segments provided to the Group’s chief operating decision makers (“CODM”), its Chief Executive Officer, is at the revenue level and the Group currently does not allocate operating costs or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As the Group’s long-lived assets are substantially all located in the PRC and substantially all the Group’s revenues are derived from within the PRC, no geographical segments are presented.

The following is a summary of the Group’s revenues:

Revenues	Advertising & Marketing		Other		Total
	(In thousand)

Year ended December 31, 2013	$	148,426	$	39,887	$	188,313

Year ended December 31, 2014	$	264,782	$	69,390	$	334,172

Year ended December 31, 2015	$	402,415	$	75,476	$	477,891

Commitments and Contingencies

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

Profit Appropriation and Restricted Net Assets	12 Months Ended
Profit Appropriation and Restricted Net Assets	Dec. 31, 2015
Profit Appropriation and Restricted Net Assets
Profit Appropriation and Restricted Net Assets	14. Profit Appropriation and Restricted Net Assets The Company’s subsidiary, the VIE and the VIE’s subsidiaries in China are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s WFOE, its subsidiaries have to make appropriations from their 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 Group’s discretion. At the same time, the Company’s VIE, in accordance with the China Company Laws, must make appropriations from their 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 registered 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. As of December 31, 2014, the Group accrued approximately $0.1 million in the reserve fund, as Weimeng had fully utilized its accumulated deficit and became profitable in 2014. As of December 31, 2015, the Group accrued approximately $7.1 million in the reserve fund, as Weimeng and Weibo Technology were both profitable in 2015. Under the PRC laws and regulations, the subsidiary, the VIE and the VIE’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances of the consolidated net assets as of December 31, 2015. Even though the Group currently does not require any such dividends, loans or advances from the PRC subsidiaries and VIE for working capital and other funding purposes, the Group may in the future require additional cash resources from the PRC subsidiary, VIE and VIE’s subsidiaries due to changes in business conditions, to fund future acquisitions and development, or merely declare and pay dividends to or distribution to its shareholders. Net assets subject to restriction for the Group amounted to $218.7 million, or 35% of the Group’s total consolidated net assets as of December 31, 2015.

Financial Instruments

12 Months Ended

Dec. 31, 2015

Financial Instruments

Financial Instruments

15. 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, 2014 and 2015:

	Fair Value Measurements
	(in thousands)
	Total		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of December 31, 2014:
Bank time deposits*	$	396,364	$	—	$	396,364	$	—
Available-for-sale securities**	13,029		13,029		—		—


Total	$	409,393	$	13,029	$	396,364	$	—


As of December 31, 2015:
Bank time deposits*	$	149,532	$	—	$	149,532	$	—
Available-for-sale securities**	12,831		12,831		—		—


Total	$	162,363	$	12,831	$	149,532	$	—

* Included in cash and cash equivalents and short-term investments on the Group’s consolidated balance sheets.

** Included in long-term investments on the Group’s consolidated balance sheets.

Recurring

The Group measures bank time deposits, available-for-sale securities and investor option liability at fair value on a recurring basis.

The option liability, which enabled Alibaba to purchase additional ordinary shares and increase its ownership in Weibo up to 30% on a fully-diluted basis (see Note 3), was measured using significant unobservable inputs (Level 3) when determining its fair value as of December 31, 2013. The Group utilized the Binomial option pricing model to determine the fair value of the 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 option liability valuation as of December 31, 2013 were as follows:

	As of December 31, 2013
Expected dividend yield	—
Risk-free interest rate	0.30		%
Expected volatility	53		%
Expected life (in years)	1.40
Fair value per ordinary share	$	14.10

Determination of these unobservable inputs requires complex and subjective judgments due to the limited financial and operating history of the Company, unique business risks and limited public information on companies in China similar to the business of the Company. 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.

The option liability was initially recorded as an investor option liability valued at $50.6 million as of the Transaction Date. Immediately prior to the exercise of the option, the fair value of investor option liability was $76.5 million. For the years ended December 31, 2013 and 2014, $21.1 million in income and $47.0 million in losses, respectively, was recognized as subsequent change in fair value when marked to market in the Group’s consolidated statements of income (loss) and comprehensive income (loss). The option was fully exercised by Alibaba upon the Group’s IPO in April 2014.

The following table sets forth the reconciliation of the fair value measurements using significant unobservable inputs (level 3) from January 1, 2013 to December 31, 2015:

	Investor option liability
	(In thousands)
Balance as of April 29, 2013 (Transaction Date)	(50,568	)
Gain on fair value change of investor option liability	21,064
Balance as of December 31, 2013	(29,504	)
Loss on fair value change of investor option liability	(46,972	)
Option fully exercised	76,476
Balance as of December 31, 2014	—
Balance as of December 31, 2015	—

Non-recurring

The Group measures certain financial assets, including the investments under cost method and equity method on an other-than-temporary basis, intangible assets, goodwill and fixed assets are marked to fair value when an impairment charge is recognized.

The Group 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. No impairment related to available-for-sale was recorded for the years ended December 31, 2013, 2014 and 2015. 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 investment related impairment losses of $2.5 million, $2.5 million and $8.0 million were recorded for the years ended December 31, 2013, 2014 and 2015, respectively. (see Note 5 for further information).

In accordance with the Group 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 Group performed an impairment assessment on its goodwill of reporting units annually. The Group concluded that no write down was warranted for years ended December 31, 2013, 2014 and 2015.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies

16. Commitments and Contingencies

Operating lease commitments include the commitments under the lease agreements for the Group’s office premises. The Group leases its office facilities under non-cancelable operating leases with various expiration dates through 2018. For the years ended December 31, 2013, 2014 and 2015, lease expense was $8.8 million, $14.9 million and $15.5 million, respectively. Based on the current rental lease agreements, future minimum lease payments required as of December 31, 2015 was as follows:

Operating lease commitments	Total		Less than One Year		One to Three Years		Three to Five Years		More than Five Years
	(In thousands)
As of December 31, 2015:	$	8,612	$	7,166	$	1,446	$	—	$	—

Purchase commitments mainly include minimum commitments for internet connection and marketing activities.

Purchase commitments as of December 31, 2015 was as follows:

Purchase commitments	Total		Less than One Year		One to Three Years		Three to Five Years		More than Five Years
	(In thousands)
As of December 31, 2015:	$	71,586	$	64,455	$	7,020	$	111	$	—

There are uncertainties regarding the legal basis of the Group’s ability to operate an Internet business in China. 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, the existing regulations are unclear as to which specific segments of these industries companies with foreign investors, including us, may operate. Therefore, the Group may 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.

There are no claims, lawsuits, investigations or proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the Group’s knowledge, are reasonably possible to have, a material impact on the Group’s financial position results of operations or cash flow.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2015
Subsequent Events
Subsequent Events	17. Subsequent Events The Group has performed an evaluation of subsequent events through the date of this report, which is the date the financial statements were issued, with no other material events nor transactions needing recognition or disclosure found.

Additional information-condensed financial statements of Weibo Corporation

12 Months Ended

Dec. 31, 2015

Additional information-condensed financial statements of Weibo Corporation

Additional information-condensed financial statements of Weibo Corporation

18. Additional information—condensed financial statements of Weibo Corporation

The condensed financial information of Weibo Corporation has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company used the equity method to account for investment in its subsidiaries and VIE.

The operations of the Company, its subsidiaries and VIE were included in the consolidated financial statements, whereby the inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Company’s stand-alone financial information, its investment in subsidiaries and VIE were reported using the equity method of accounting.

Relevant PRC statutory laws and regulations permit the payment of dividends by the Company’s PRC subsidiaries and VIE only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, PRC laws and regulations require that annual appropriations of 10% of after-tax income should be set aside as a reserve prior to the payment of dividends. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries and VIE are restricted in their ability to transfer a portion of their net assets to the Company, either in the form of dividends, loans or advances.

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Group. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted.

As of December 31, 2014 and 2015, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Group, except for those which have been separately disclosed in the consolidated financial statements, if any.

Condensed Financial Information of Weibo Corporation

Balance Sheets

(In thousands, except for par value)

	As of December 31,
	2014			2015
	(As adjusted*)
ASSETS
Current assets:
Cash and cash equivalents	$	229,950		$	60,810
Short-term investments	166,253			98,284
Prepaid expenses and other current assets	229			5,905


Total current assets	396,432			164,999
Long-term investments	13,029			256,059
Investment in subsidiaries and VIE	156,500			210,325
Amount due from SINA	—			1,002


Total assets	$	565,961		$	632,385


LIABILITIES AND SHAREHOLDERS’ EQUITY
Accrued liabilities	$	6,543		$	10,666
Amount due to SINA	214			—
Long-term Liabilities	—			1,047


Total liabilities	$	6,757		$	11,713


Commitments and contingencies

Shareholders’ equity:
Shareholders’ equity:
Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated)authorized; 203,658 and 212,177 shares (including 96,168 Class A ordinary shares and 116,009 Class B ordinary shares) issued and outstanding as of December 31, 2014 and 2015, respectively.	$	51		$	53
Additional paid-in capital	904,402			938,922
Accumulated other comprehensive loss	(2,836		)	(10,635		)
Accumulated deficit	(342,413		)	(307,668		)


Total shareholders’ equity	559,204			620,672


Total liabilities and shareholders’ equity	$	565,961		$	632,385

*The above condensed financial statements of Weibo Corporation present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Condensed Financial Information of Weibo Corporation

Statements of Income (Loss) and Comprehensive Income (Loss)

(In thousands)

	Year Ended December 31,
	2013			2014			2015
	(As adjusted*)			(As adjusted*)
Operating loss	$	(522	)	$	(1,086	)	$	(1,279	)
Interest and other income (expenses), net	(2,051		)	5,034			4,759
Change in fair value of investor option liability	21,064			(46,972		)	—
Other income (loss), net
Share of income (loss) of subsidiaries and VIE	(58,281		)	(22,301		)	31,265


Net income (loss)	(39,790		)	(65,325		)	34,745


Other comprehensive loss
Currency translation adjustments	(431		)	(1,227		)	(7,601		)
Available-for-sale fair value change	—			(2,067		)	(198		)


Total comprehensive income (loss)	$	(40,221	)	$	(68,619	)	$	26,946

Condensed Financial Information of Weibo Corporation

Statements of Cash flow

(In thousands)

	2013			2014			2015
	(As adjusted*)			(As adjusted*)
Net cash provided by (used in) operating activities	$	(12,320	)	$	(627	)	$	5,317

Purchase of short-term investments	(250,000		)	(230,161		)	(148,863		)
Maturity of short-term investments	117,564			321,208			218,762
Investments and prepayments on equity investments	—			(15,096		)	(247,200		)
Investment in subsidiaries	(93,781		)	(68,873		)	(4,978		)

Net cash used in investing activities	(226,217		)	7,078			(182,279		)

Proceeds from issuance of preferred shares and ordinary shares to Alibaba	585,799			—			—
Proceeds from IPO, net of commission	—			301,270			—
Repayment of amount due to SINA	(117,564		)	(255,688		)	—
Others	(46,865		)	(4,954		)	7,822

Net cash provided by financing activities	421,370			40,628			7,822


Net increase (decrease) in cash and cash equivalents	$	182,833		$	47,079		$	(169,140	)


Cash and cash equivalents at the beginning of year	$	38		$	182,871		$	229,950
Cash and cash equivalents at the end of year	$	182,871		$	229,950		$	60,810
Supplemental schedule of non-cash investing and financing activities
Investment in subsidiaries and VIE directly financed by SINA	$	17,090		$	6,413		$	17,582

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Basis of presentation and use of estimates

Non-controlling interests

Fair value measurements

Financial instruments

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

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.

Cash equivalents

Allowances for doubtful accounts

Business combination

Long-lived assets

Property and equipment

Goodwill

Intangible assets other than goodwill

Stock-based compensation

Revenue recognition

Advertising and marketing revenues

Other revenues

Product development expenses

Cost of revenues

Advertising expenses

Operating leases

Taxation

Income taxes

Foreign currency

Net Income (loss) per share

Segment reporting

Concentration of risks

Comprehensive income (loss)

Recent accounting pronouncements

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

Operations and reorganization (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of ownership structure of the subsidiaries, VIE and VIE's subsidiary

Company	Date of Incorporation	Place of Incorporation	Percentage of Direct/ Indirect Economic Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

Major VIE and VIE’s subsidiary
Beijing Weimeng Technology Co., Ltd (“Weimeng” or “the VIE”)	August 9, 2010	PRC	100	%

Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’)	Acquired in May 2013 (Note 6)	PRC	100	%

Schedule of expenses allocated from SINA

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Cost of revenues	$	14,760	$	—	$	—
Sales and marketing	6,074		17,417		1,263
Product development	19,256		18,362		19,531
General and administrative	4,215		6,581		3,884

	$	44,305	$	42,360	$	24,678

Schedule of assets, liabilities, results of operations and cash flows of the VIE and its subsidiary taken as a whole, including the Predecessor Operations

	As of December 31,
	2014		2015
	(In thousands)
Cash, cash equivalents and short-term Investments	$	10,674	$	129,154
Accounts receivable	118,891		120,937
Property and equipment, net	2,092		1,277
Goodwill	11,357		10,821
Intangible assets	3,539		1,966
Prepayment for long-term investments	3,481		1,660
Deferred tax assets	31		1,493
Long-term investments	37,594		38,104
Others	12,409		26,838


Total assets	$	200,068	$	332,250


Accrued liabilities	$	34,439	$	66,075
Amount due to SINA	24,076		8,465
Amount due to the subsidiaries of the Group	121,977		232,006
Deferred revenues	14,117		29,567
Income tax payable	2		3,257
Deferred tax liability	873		477
Others	301		25


Total liabilities	$	195,785	$	339,872

	Year Ended December 31,
	2013		2014			2015
	(In thousands)
Net revenues	$	169,819	$	298,767		$	391,568
Net income (loss)	$	23,189	$	(6,351	)	$	(10,572	)

	Year Ended December 31,
	2013			2014			2015
	(In thousands)
Net cash provided by operating activities	$	32,877		$	14,198		$	158,290
Net cash used in investing activities	$	(11,004	)	$	(9,552	)	$	(39,965	)
Net cash used in financing activities	$	(13,037	)	$	(5,997	)	$	—
Net increase (decrease) in cash and cash equivalents	$	8,836		$	(1,351	)	$	118,325

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

Investment in Weibo (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of preference shares

Issuance Date	Shares outstanding	Carrying Amount
		(In thousands)
April 29, 2013	30,046,154	$	479,612

Cash, Cash Equivalents and Short-term Investments

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=27011957&loc=d3e177068-122764

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21553-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6403732&loc=d3e21300-112643

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.28,29)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 30
-Article 5

+ Details

Cash, Cash Equivalents and Short-term Investments (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Cash, cash equivalents and short-term investments

	As of December 31,
	2014		2015
	(In thousands)
Cash and cash equivalents:
Cash	$	54,915	$	186,347
Cash equivalents:
Bank time deposits	229,950		51,093


	284,865		237,440


Short-term investments:
Bank time deposits	166,414		98,439


Total cash, cash equivalents and short-term investments	$	451,279	$	335,879

Long-term Investments (Tables)

12 Months Ended

Dec. 31, 2015

Long-term Investments

Schedule of changes in long-term investments

	Cost Method			Equity Method			Available-for-Sale Securities			Total
	(In thousands)
Balance at December 31, 2012	$	12,485		$	3,565		$	—		$	16,050
Investments made	11,868			4,635			—			16,503
Loss from equity method investment	—			(1,236		)	—			(1,236		)
Impairment on investments	(1,928		)	—			—			(1,928		)
Remeasurement gain upon obtaining control	—			3,116			—			3,116
Disposal of investments	(585		)	—			—			(585		)
Transfer from long-term investments to a wholly owned subsidiary	—			(10,080		)	—			(10,080		)
Others	415			—			—			415


Balance at December 31, 2013	$	22,255		$	—		$	—		$	22,255
Investments made	32,412			158			15,096			47,666
Loss from equity method investment	—			(5		)	—			(5		)
Impairment on investments	(2,521		)	—			—			(2,521		)
Transfer from long-term investments to a wholly owned subsidiary	(1,189		)	—			—			(1,189		)
Unrealized loss	—			—			(2,067		)	(2,067		)
Others	(363		)	1			—			(362		)


Balance at December 31, 2014	$	50,594		$	154		$	13,029		$	63,777
Investments made	252,256			—			—			252,256
Loss from equity method investment	—			(6		)	—			(6		)
Disposal of investments	(13,134		)	—			—			(13,134		)
Impairment on investments	(6,608		)	—			—			(6,608		)
Unrealized loss	—			—			(198		)	(198		)
Others	(1,401		)	(7		)	—			(1,408		)


Balance at December 31, 2015	$	281,707		$	141		$	12,831		$	294,679

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of changes in goodwill by segment

	Advertising & Marketing		Other		Total
	(In thousands)
Balance as of December 31, 2012	$	—	$	—	$	—
Acquisition of Weibo Interactive	—		7,517		7,517

Balance as of December 31, 2013	$	—	$	7,517	$	7,517

Acquisition of game developer	—		3,840		3,840
Others	—		295		295


Balance as of December 31, 2014	$	—	$	11,652	$	11,652

Schedule of estimated amortization expenses

As of December 31, 2015, estimated amortization expenses for future periods are expected to be as follows:

Year Ended December 31,	(In thousands)
2016	$	761
2017	677
2018	528
2019 and thereafter	—

Total expected amortization expense	$	1,966

Weibo Interactive

Schedule of fair value of the assets acquired and the 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

Gametree

Schedule of fair value of the assets acquired and the liabilities assumed

	As of acquisition date
	(In thousands)
Cash consideration	$	3,062
Non-controlling interests	292

Total consideration	3,354


Tangible assets	1,518
Identifiable intangible assets acquired	1,688
Liabilities assumed	(3,692		)
Goodwill	3,840


Total consideration	$	3,354

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Stock-Based Compensation

Schedule of stock-based compensation

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Cost of revenues	$	4,253	$	755	$	1,196
Sales and marketing	6,150		1,583		3,209
Product development	9,209		4,392		10,210
General and administrative	11,630		7,049		11,784


	$	31,242	$	13,779	$	26,399

Schedule of assumptions used to value the option grants

	Year Ended December 31,
	2013	2014*	2015*
Stock options:
Expected term (in years)	3.5 - 4.8	N/A	N/A
Expected volatility	54% -61%	N/A	N/A
Risk-free interest rate	0.5% - 1.2%	N/A	N/A
Expected dividend yield	—	—	—

* No options were granted in 2014 and 2015.

Summary of the number of shares available for issuance

	Shares Available
	(In thousands)
December 31, 2012	8,086
Granted*	(4,772	)
Cancelled/expired/forfeited	1,157
Repurchased	177


December 31, 2013	4,648
Addition	1,000
Granted*	(2,951	)
Cancelled/expired/forfeited	41


December 31, 2014	2,738
Addition	21,684
Granted*	(4,851	)
Cancelled/expired/forfeited	646


December 31, 2015	20,217

Summary of option activities under the Company' stock option program

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)				(In years)	(In thousands)
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
Granted	—		$	—
Exercise	(3,697	)	$	0.52
Cancelled/expired/forfeited	(534	)	$	2.84
Repurchased	—		$	—


December 31, 2014	14,330		$	1.28	3.2	$	185,684
Granted	—		$	—
Exercise	(7,309	)	$	1.11
Cancelled/expired/forfeited	(718	)	$	3.22
Repurchased	—		$	—

December 31, 2015	6,303		$	1.26	2.4	$	114,975


Vested and expected to vest as of December 31, 2014	14,261		$	1.27	3.2	$	184,937
Exercisable as of December 31, 2014	11,446		$	0.76	2.7	$	154,235

Vested and expected to vest as of December 31, 2015	6,237		$	1.24	2.4	$	113,909
Exercisable as of December 31, 2015	5,649		$	1.01	2.2	$	104,473

Schedule of stock options outstanding

Range of Exercise Prices	Options Outstanding	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
	(In thousands)			(In thousands)			(In years)
As of December 31, 2014
$0.36 - $0.41	9,337	$	0.37	9,337	$	0.37	2.3
$0.96 - $1.80	844	$	1.19	764	$	1.18	3.1
$3.25 - $3.36	2,542	$	3.29	1,345	$	3.30	4.8
$3.43 - $3.50	1,607	$	3.48	—	$	—	5.5


	14,330	$	1.28	11,446	$	0.76	3.2


As of December 31, 2015
$0.36 - $0.41	4,167	$	0.36	4,167	$	0.36	1.7
$0.96 - $1.80	406	$	1.24	406	$	1.24	2.3
$3.25 - $3.36	682	$	3.32	519	$	3.33	3.5
$3.43 - $3.50	1,048	$	3.48	557	$	3.48	4.6


	6,303	$	1.26	5,649	$	1.01	2.2

Summary of service-based restricted share unit activities

	Shares Granted		Weighted- Average Grant Date Fair Value
	(In thousands)
December 31, 2013	800		$	13.19
Awarded	2,951		$	17.11
Vested	(203	)	$	13.19
Cancelled	(41	)	$	17.23


December 31, 2014	3,507		$	16.44
Awarded	4,851		$	12.41
Vested	(1,211	)	$	14.69
Cancelled	(646	)	$	14.18


December 31, 2015	6,501		$	13.98

Other Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2015

Other Balance Sheet Components

Schedule of other balance sheet components

	As of December 31,
	2013		2014			2015
			(In thousands)
Accounts receivable, net:
Due from third parties			$	39,277		$	33,592
Due from SINA and other related parties			18,648			33,961
Due from Alibaba			64,725			54,052


Total gross amount			$	122,650		$	121,605
Allowance for doubtful accounts:
Balance at the beginning of the year	(897	)	(3,242		)	(2,440		)
Reversal (additional provision) charged to expenses, net	(2,345	)	(2,138		)	368
Write-off	—		2,940			697


Balance at the end of the year	(3,242	)	(2,440		)	(1,375		)


			$	120,210		$	120,230


Prepaid expenses and other current assets:
Rental and other deposits			$	3,319		$	3,636
Input VAT			1,526			443
Prepayment for investments			4,037			25,574
Advertising prepayment			3,936			3,531
Prepayment to outsource service providers			1,730			5,422
Prepayment for license fee			1,872			—
Others			1,937			3,689


			$	18,357		$	42,295


Property and equipment, net:
Computers and equipment			$	89,069		$	93,947
Leasehold improvements			4,944			4,795
Furniture and fixtures			2,052			1,309
Others			730			1,464


Property and equipment, gross			96,795			101,515
Less: Accumulated depreciation			(65,921		)	(78,665		)


			$	30,874		$	22,850


Accrued liabilities*:
Payroll and welfare			$	19,686		$	25,972
Amounts owed on option/share repurchase			1,203			—
Content fees			1,005			1,267
Marketing expenses			19,806			35,715
Internet connection costs			6,834			7,673
Employee payroll withholding taxes			3,547			3,547
Sales rebates			14,126			19,593
Professional fees			3,138			3,127
Revenue share			3,057			9,071
VAT and other tax payable			6,629			29,955
Payable to other service providers			1,074			2,673
Payable to outsourced service providers			1,375			2,382
Others			6,115			13,989


			$	87,595		$	154,964

* Include amounts due to third parties, employees and related parties.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of income (loss) before income taxes

	Year Ended December 31,
	2013			2014			2015
	(In thousands, except percentage)
Income (Loss) before income tax expenses	$	(40,664	)	$	(64,340	)	$	36,780
Loss from non-China operations	$	(13,341	)	$	(54,073	)	$	(28,016	)
Income (Loss) from China operations	$	(27,323	)	$	(10,267	)	$	64,796
Income tax expenses applicable to China operations	$	271		$	1,128		$	2,591
Effective tax rate for China operations	(1.0		)%	(11.0		)%	4.0		%

Schedule of current and deferred portion of income tax expenses (benefits)

	Years Ended December 31,
	2013		2014		2015
	(In thousands)
Deferred tax expenses (benefits)	$	271	$	866	$	(977	)
Current income tax expenses	—		262		3,568


Income tax expenses	$	271	$	1,128	$	2,591

Schedule of reconciliation between the statutory EIT rate and the effective tax rate

	Year Ended December 31,
	2013		2014		2015
Statutory EIT rate	25.0	%	25.0	%	25	%
Effect on tax holiday	—		—		(24.2	)%
Permanent differences	0.5	%	2.2	%	0.5	%
Change in valuation allowance	(26.5	)%	(38.2	)%	2.7	%


Effective tax rate for China operations	(1.0	)%	(11.0	)%	4.0	%

Schedule of deferred tax assets and liabilities

	As of December 31,
	2014			2015
	(In thousands)
Deferred tax assets:
Net operating loss carry forwards	$	42,347		$	41,604
Less: valuation allowance	(42,347		)	(41,604		)
Depreciation, accounts receivable, accrued and other liabilities	8,386			4,550
Less: valuation allowance	(8,355		)	(3,057		)


Net deferred tax assets	$	31		$	1,493


Deferred tax liabilities:
Acquired intangible assets	$	873		$	477
Depreciation	—			295
Others	—			566


Total deferred tax liabilities	$	873		$	1,338

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2015

Related Party Transactions

Schedule of significant related parties and their relationships with the Company

Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company (since April 29, 2013).

Weibo Interactive		Investee accounted for under the equity method until May 2013 and wholly owned under common control thereafter.

Schedule of significant related party transactions

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Transactions with SINA
Revenue billed through SINA(1)	$	851	$	4,057	$	22,114
Deemed contribution from SINA(2)	$	13,092	$	61,176	$	—
Legal transfer of Weibo Interactive and recognition of due to SINA(3)	$	10,080	$	—	$	—
Legal transfer of Weibo Funds and recognition of due to SINA(4)	$	17,506	$	22,565	$	—
Costs and expenses allocated from SINA(5)	$	44,305	$	42,360	$	24,678
Interest expense on amount due to SINA	$	6,709	$	2,838	$	—
Repayment of amount due to SINA(6)	$	159,816	$	276,614	$	2,863

(1)

For the years ended December 31, 2013, 2014 and 2015, the Group billed $0.9 million, $4.1 million and $22.1 million to third parties through SINA.

(2)

(3)

The $10.1 million related to the consideration paid to SINA in exchange for 100% equity interest in Weibo Interactive in December 2013 (see Note 1).

(4)

The $17.5 million and $22.6 million for fiscal 2013 and 2014 related to the amount paid by SINA for the Weibo Funds. (see Note1).

(5)

(6)

For the year ended December 31, 2014, the Company repaid approximately $276.6 million for a loan and related interests to SINA (see Note 3).

	Year Ended December 31,
	2013		2014		2015
	(In thousands)
Transactions with Alibaba
Advertising and marketing services provided to Alibaba	$	49,135	$	107,587	$	143,650
Deemed contribution from Alibaba(7)	$	—	$	15,300	$	—
Services provided by Alibaba	$	—	$	128	$	4,515

(7) The $15.3 million for the year ended December 31, 2014, represents the discount borne by Alibaba upon the settlement of investor options (see Note 3).

Schedule of outstanding balance due to or from related parties

	As of December 31,
	2014		2015
	(In thousands)
Amount due to SINA	$	24,279	$	12,188
Accounts receivable due from SINA(8)	$	3,151	$	31
Accounts receivable due from Alibaba	$	64,725	$	54,052

(8) The Group settles customer and supplier balances with SINA when the third-parties settle such amount with SINA. Any uncollectible losses arising from the accounts receivable due from SINA are passed on to the Group.

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Net Income (Loss) Per Share

Schedule of basic and diluted net income (loss) per share

	Year Ended December 31,
	2013			2014			2015
	(In thousands, except per share data)
Basic net income (loss) per share calculation:
Numerator:
Net income (loss) attributable to Weibo	$	(39,790	)	$	(65,325	)	$	34,745
Denominator:
Weighted average ordinary shares outstanding	146,820			186,878			208,163
Basic net income (loss) per share attributable to Weibo	$	(0.27	)	$	(0.35	)	$	0.17


Diluted net income (loss) per share calculation:
Numerator:
Net income (loss) attributable for calculating diluted net income (loss) per share	$	(39,790	)	$	(65,325	)	$	34,745
Denominator:
Weighted average ordinary shares outstanding	146,820			186,878			208,163
Weighted average ordinary shares equivalents:
Effects of dilutive securities
Stock options	—			—			8,572
Unvested restricted share units	—			—			1,183
Shares used in computing diluted net income (loss) per share attributable to Weibo	146,820			186,878			217,918
Diluted net income (loss) per share attributable to Weibo	$	(0.27	)	$	(0.35	)	$	0.16

Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Information

Summary of revenues

Revenues	Advertising & Marketing		Other		Total
	(In thousand)

Year ended December 31, 2013	$	148,426	$	39,887	$	188,313

Year ended December 31, 2014	$	264,782	$	69,390	$	334,172

Year ended December 31, 2015	$	402,415	$	75,476	$	477,891

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

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 Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of December 31, 2014:
Bank time deposits*	$	396,364	$	—	$	396,364	$	—
Available-for-sale securities**	13,029		13,029		—		—


Total	$	409,393	$	13,029	$	396,364	$	—


As of December 31, 2015:
Bank time deposits*	$	149,532	$	—	$	149,532	$	—
Available-for-sale securities**	12,831		12,831		—		—


Total	$	162,363	$	12,831	$	149,532	$	—

* Included in cash and cash equivalents and short-term investments on the Group’s consolidated balance sheets.

** Included in long-term investments on the Group’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	0.30		%
Expected volatility	53		%
Expected life (in years)	1.40
Fair value per ordinary share	$	14.10

Schedule of reconciliation of the fair value measurements using significant unobservable inputs

	Investor option liability
	(In thousands)
Balance as of April 29, 2013 (Transaction Date)	(50,568	)
Gain on fair value change of investor option liability	21,064
Balance as of December 31, 2013	(29,504	)
Loss on fair value change of investor option liability	(46,972	)
Option fully exercised	76,476
Balance as of December 31, 2014	—
Balance as of December 31, 2015	—

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies

Schedule of future minimum rental payments

Operating lease commitments	Total		Less than One Year		One to Three Years		Three to Five Years		More than Five Years
	(In thousands)
As of December 31, 2015:	$	8,612	$	7,166	$	1,446	$	—	$	—

Schedule of purchase commitments

Purchase commitments	Total		Less than One Year		One to Three Years		Three to Five Years		More than Five Years
	(In thousands)
As of December 31, 2015:	$	71,586	$	64,455	$	7,020	$	111	$	—

Additional information-condensed financial statements of Weibo Corporation (Tables) - Weibo Corporation

12 Months Ended

Dec. 31, 2015

Balance sheets

Balance Sheets

	As of December 31,
	2014			2015
	(As adjusted*)
ASSETS
Current assets:
Cash and cash equivalents	$	229,950		$	60,810
Short-term investments	166,253			98,284
Prepaid expenses and other current assets	229			5,905


Total current assets	396,432			164,999
Long-term investments	13,029			256,059
Investment in subsidiaries and VIE	156,500			210,325
Amount due from SINA	—			1,002


Total assets	$	565,961		$	632,385


LIABILITIES AND SHAREHOLDERS’ EQUITY
Accrued liabilities	$	6,543		$	10,666
Amount due to SINA	214			—
Long-term Liabilities	—			1,047


Total liabilities	$	6,757		$	11,713


Commitments and contingencies

Shareholders’ equity:
Shareholders’ equity:
Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated)authorized; 203,658 and 212,177 shares (including 96,168 Class A ordinary shares and 116,009 Class B ordinary shares) issued and outstanding as of December 31, 2014 and 2015, respectively.	$	51		$	53
Additional paid-in capital	904,402			938,922
Accumulated other comprehensive loss	(2,836		)	(10,635		)
Accumulated deficit	(342,413		)	(307,668		)


Total shareholders’ equity	559,204			620,672


Total liabilities and shareholders’ equity	$	565,961		$	632,385

Statements of Income (Loss) and Comprehensive Income (Loss)

	Year Ended December 31,
	2013			2014			2015
	(As adjusted*)			(As adjusted*)
Operating loss	$	(522	)	$	(1,086	)	$	(1,279	)
Interest and other income (expenses), net	(2,051		)	5,034			4,759
Change in fair value of investor option liability	21,064			(46,972		)	—
Other income (loss), net
Share of income (loss) of subsidiaries and VIE	(58,281		)	(22,301		)	31,265


Net income (loss)	(39,790		)	(65,325		)	34,745


Other comprehensive loss
Currency translation adjustments	(431		)	(1,227		)	(7,601		)
Available-for-sale fair value change	—			(2,067		)	(198		)


Total comprehensive income (loss)	$	(40,221	)	$	(68,619	)	$	26,946

Statements of Cash flow

	2013			2014			2015
	(As adjusted*)			(As adjusted*)
Net cash provided by (used in) operating activities	$	(12,320	)	$	(627	)	$	5,317

Purchase of short-term investments	(250,000		)	(230,161		)	(148,863		)
Maturity of short-term investments	117,564			321,208			218,762
Investments and prepayments on equity investments	—			(15,096		)	(247,200		)
Investment in subsidiaries	(93,781		)	(68,873		)	(4,978		)

Net cash used in investing activities	(226,217		)	7,078			(182,279		)

Proceeds from issuance of preferred shares and ordinary shares to Alibaba	585,799			—			—
Proceeds from IPO, net of commission	—			301,270			—
Repayment of amount due to SINA	(117,564		)	(255,688		)	—
Others	(46,865		)	(4,954		)	7,822

Net cash provided by financing activities	421,370			40,628			7,822


Net increase (decrease) in cash and cash equivalents	$	182,833		$	47,079		$	(169,140	)


Cash and cash equivalents at the beginning of year	$	38		$	182,871		$	229,950
Cash and cash equivalents at the end of year	$	182,871		$	229,950		$	60,810
Supplemental schedule of non-cash investing and financing activities
Investment in subsidiaries and VIE directly financed by SINA	$	17,090		$	6,413		$	17,582

Operations and reorganization (Details)

1 Months Ended

8 Months Ended

12 Months Ended

Apr. 17, 2014

Apr. 29, 2013

USD ($)

Apr. 30, 2014

USD ($)

Dec. 31, 2013

USD ($)

May 31, 2013

USD ($)

Dec. 31, 2014

USD ($)

Dec. 31, 2015

USD ($)

Vote

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Apr. 30, 2013

Proceeds from IPO

^[1]

$ 306,491,000

Interest expense

$ 0

2,838,000

$ 6,709,000

$ 24,279,000

^[2]

12,188,000

24,279,000

^[2]

2,863,000

269,042,000

^[1]

159,816,000

^[1]

Interest expense

2,838,000

6,709,000

Interest waived

8,500,000

24,279,000

12,188,000

24,279,000

$ 2,863,000

276,614,000

159,816,000

Cash consideration for the remaining 45% equity interest

4,600,000

SINA | Amount due to SINA

Interest rate, minimum

2.55%

Interest rate, maximum

3.05%

Interest expense

$ 0

2,800,000

6,700,000

Interest waived

$ 8,500,000

$ 250,000,000

$ 285,200,000

24,300,000

$ 12,200,000

$ 24,300,000

285,200,000

Interest payable

$ 4,800,000

SINA | Transfer of Equity Interest in Weibo Interactive

$ 276,600,000

Consideration for transfer of equity interest to Group

100.00%

$ 10,100,000

Alibaba | SINA

Number of ordinary shares acquired by investor | shares

23,990,778

Class A ordinary shares

Shares issued from conversion of preferred shares (in shares) | shares

30,046,154

Number of votes each share is entitled to | Vote

Number of Class A shares converted from Class B shares

Class A ordinary shares | Alibaba

Issuance of shares (in shares) | shares

4,800,000

Number of ordinary shares acquired by investor | shares

29,990,778

Class A ordinary shares | Alibaba | SINA

Number of ordinary shares acquired by investor | shares

21,067,300

Class B ordinary shares

Number of votes each share is entitled to | Vote

IPO | Class A ordinary shares

Issuance of shares (in shares) | shares

19,320,000

Proceeds from IPO

$ 306,500,000

IPO | Class A ordinary shares | Alibaba

Number of ordinary shares acquired by investor | shares

6,000,000

Weimeng

Percentage of Direct/Indirect Economic Interest in VIEs

100.00%

Weibo Interactive

Percentage of Direct/Indirect Economic Interest in VIEs

100.00%

Weibo HK

Percentage of Direct/Indirect Economic Interest

100.00%

Weibo Technology

Percentage of Direct/Indirect Economic Interest

100.00%

Equity interest percentage owned by parent

55.00%

Remaining equity interest acquired (as a percent)

45.00%

Cash consideration for the remaining 45% equity interest

$ 4,635,000

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Operations and reorganization (Details 2)

1 Months Ended

12 Months Ended

Jun. 30, 2015

USD ($)

Partnership

fund

Jun. 30, 2015

USD ($)

Partnership

fund

Dec. 31, 2013

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Jun. 29, 2015

Dec. 31, 2012

USD ($)

Interest-free loans to the VIE's shareholders

$ 24,678,000

$ 42,360,000

$ 44,305,000

10,000,000

10,500,000

Aggregate accumulated losses

32,800,000

22,200,000

Assets and liabilities of the VIEs and their subsidiaries

Cash, cash equivalents and short-term Investments

335,879,000

451,279,000

22,850,000

30,874,000

^[1]

$ 7,517,000

11,117,000

11,652,000

^[1]

7,517,000

Intangible assets

1,966,000

3,539,000

^[1]

22,255,000

294,679,000

63,777,000

^[1]

22,255,000

$ 16,050,000

154,964,000

87,595,000

12,188,000

24,279,000

^[1]

Results of operations of the VIEs and their subsidiaries

39,091,000

20,957,000

^[1]

Net revenues

477,891,000

334,172,000

^[2]

188,313,000

^[2]

34,745,000

(65,325,000)

^[2]

(39,790,000)

^[2]

Net cash provided by operating activities

181,971,000

(19,412,000)

^[3]

(1,950,000)

^[3]

Net cash used in investing activities

(228,310,000)

13,917,000

^[3]

(161,647,000)

^[3]

Net cash used in financing activities

4,959,000

43,663,000

^[3]

408,214,000

^[3]

Assets, except for registered capital of VIEs, that can only be used to settle obligations of the respective VIEs

Registered capital and non-distributable reserve funds of VIE and its subsidiaries

$ 51,900,000

47,400,000

Term of loan agreements

10 years

Service fees revenue charged to VIE

$ 232,400,000

187,800,000

79,200,000

Term of trademark license agreements

1 year

Assets and liabilities of the VIEs and their subsidiaries

$ 24,678,000

42,360,000

44,305,000

SINA | Transfer of Equity Interest in Weibo Interactive

12,188,000

24,279,000

Consideration for transfer of equity interest to Group

$ 10,100,000

SINA | Transfer of Equity Interest in Weibo Funds

Number of funds purchased | fund

Consideration for transfer of equity interest to Group

$ 22,000,000

Consolidated VIEs

Assets and liabilities of the VIEs and their subsidiaries

8,400,000

16,100,000

37,200,000

Cash, cash equivalents and short-term Investments

129,154,000

10,674,000

Accounts receivable

120,937,000

118,891,000

1,277,000

2,092,000

Prepayment for long-term investments

10,821,000

11,357,000

Intangible assets

1,966,000

3,539,000

1,660,000

3,481,000

Deferred tax assets

1,493,000

31,000

38,104,000

37,594,000

26,838,000

12,409,000

332,250,000

200,068,000

66,075,000

34,439,000

Amount due to the subsidiaries of the Group

8,465,000

24,076,000

232,006,000

121,977,000

29,567,000

14,117,000

Income tax payable

3,257,000

2,000

Deferred tax liability

477,000

873,000

25,000

301,000

Results of operations of the VIEs and their subsidiaries

339,872,000

195,785,000

Net revenues

391,568,000

298,767,000

169,819,000

(10,572,000)

(6,351,000)

23,189,000

Net cash provided by operating activities

158,290,000

14,198,000

32,877,000

Net cash used in investing activities

(39,965,000)

(9,552,000)

(11,004,000)

Net cash used in financing activities

(5,997,000)

(13,037,000)

Net increase (decrease) in cash and cash equivalents

118,325,000

(1,351,000)

8,836,000

Amount of advertising and marketing service provided by the VIEs to the related parties

183,700,000

135,100,000

51,500,000

Number of limited liability partnerships | Partnership

SINA | Weibo Funds, one

Equity interest percentage owned by parent

55.00%

SINA | Weibo Funds, two

Equity interest percentage owned by parent

85.00%

Cost of revenues

14,760,000

Sales and marketing

1,263,000

17,417,000

6,074,000

Product development

General and administrative

19,531,000

18,362,000

19,256,000

Maximum period for recognition of revenues after purchase of in-game credits

$ 3,884,000

$ 6,581,000

$ 4,215,000

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Long-term investments
Impairment charge	$ 6,608	$ 2,521	$ 1,928
Property and equipment
Depreciation expenses	$ 19,500	$ 21,800	$ 21,300
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	5 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 Policies (Details 2)
$ in Thousands

8 Months Ended

12 Months Ended

Sep. 01, 2012

item

Aug. 31, 2012

Dec. 31, 2015

USD ($)

segment

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Game-related service

1 month

Data licensing arrangement term

1 year

Cost of revenues

Number of other cities and provinces in China to which the Pilot Program was expanded | item

Advertising expense

Advertising expenses

$ 81,200

$ 71,000

$ 33,200

Operating leases

Maximum initial lease term of office space

3 years

Allocated rental expenses from SINA

$ 24,678

42,360

44,305

Foreign currency

Foreign currency translation adjustments- loss

$ (7,874)

(1,450)

^[1]

(174)

^[1]

Segment reporting

Number of principal business segments | segment

Stock options

Stock-based compensation

Vesting period

4 years

Service-based restricted share units

Stock-based compensation

Vesting period

4 years

Rental expense

Operating leases

Allocated rental expenses from SINA

$ 3,500

4,000

3,200

Advertising and marketing revenues

Cost of revenues

VAT and surcharges (as a percent)

6.70%

Cultural business construction fees (as a percent)

3.00%

Business tax and surcharges (as a percent)

5.60%

Taxes on advertising and marketing revenues

$ 35,300

$ 23,200

$ 12,500

Advertising and marketing revenues | Maximum

Revenue recognition

Period over social display ad arrangements allow customers to place advertisements on particular areas of the Group's platform in particular formats

3 months

Other revenues

Cost of revenues

VAT and surcharges (as a percent)

6.70%

Business tax and surcharges (as a percent)

5.60%

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Significant Accounting Policies (Details 3)

12 Months Ended

Dec. 31, 2015

USD ($)

Agency

Dec. 31, 2014

USD ($)

Agency

Dec. 31, 2013

Agency

Cash, cash equivalents and short-term investments

$ 335,879,000

$ 451,279,000

Current liabilities denominated in RMB

208,775,000

135,251,000

^[1]

Cash, cash equivalents and short-term investments | Concentration of credit risk | China

Cash, cash equivalents and short-term investments

$ 334,600,000

448,500,000

Maximum term of original maturity of time deposits

12 months

Cash, cash equivalents and short-term investments | Concentration of foreign currency risks | RMB

Cash, cash equivalents and short-term investments

$ 157,900,000

$ 10,400,000

Percentage of benchmark derived from specified source

47.00%

2.00%

Consolidated net revenues benchmark | Customer concentration risk | Alibaba

Percentage of benchmark derived from specified source

30.00%

32.00%

26.00%

Consolidated net accounts receivables benchmark | Concentration of credit risk | Alibaba

Percentage of benchmark derived from specified source

45.00%

54.00%

Consolidated net accounts receivables benchmark | Concentration of credit risk | A customer

Percentage of benchmark derived from specified source

16.00%

Consolidated net accounts receivables benchmark | Concentration of foreign currency risks | RMB

Accounts receivable denominated in RMB

$ 120,100,000

Current liabilities | Concentration of foreign currency risks | RMB

Percentage of benchmark derived from specified source

95.00%

94.00%

Current liabilities denominated in RMB

$ 197,900,000

$ 127,500,000

Advertising & Marketing | Consolidated net revenues benchmark | Customer concentration risk | Top 10 advertising agencies | China

Percentage of benchmark derived from specified source

15.00%

14.00%

20.00%

Number of advertising agencies | Agency

Early Adoption | Accounting Standards Update 2015-17 [Member]

Current DTA reclassified

$ 18,000

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Investment in Weibo (Details) - USD ($)
$ in Thousands

1 Months Ended

12 Months Ended

Apr. 30, 2014

Apr. 17, 2014

Apr. 29, 2013

Apr. 30, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Apr. 16, 2014

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

$ 26,399

$ 13,779

$ 31,242

Gain (Loss) on fair value change of investor option liability

^[1],[2]

(46,972)

21,064

12,188

24,279

^[3]

IPO

Convertible preferred shares

Amount invested in Weibo

301,278

Class A ordinary shares | IPO

Carrying Amount

$ 479,612

Shares outstanding

30,046,154

Issuance of shares (in shares)

19,320,000

Number of shares repurchased

2,923,478

Payment for repurchase of ordinary shares

$ 42,200

^[1]

61,176

13,092

SINA | Amount due to SINA

$ 12,188

24,279

Interest amount waived

8,500

Interest rate, minimum

2.55%

Interest rate, maximum

3.05%

Loan payable to SINA

$ 250,000

250,000

$ 12,200

24,300

285,200

Interest amount waived

8,500

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

Amount invested in Weibo

42,224

39,038

27,100

Deemed contribution from Alibaba

^[1]

15,300

Ownership interest on a fully diluted basis (as a percent)

Amount invested in Weibo

$ 585,800

18.00%

Maximum percentage of ownership interest to be reached under option granted

30.00%

Threshold percentage of sale of shares including prior sales considered for expiration of option to increase ownership interest

25.00%

Gain (Loss) on fair value change of investor option liability

$ 50,600

$ 76,500

$ (47,000)

21,100

Alibaba | Convertible preferred shares

Issuance of shares (in shares)

30,000,000

Alibaba | Class A ordinary shares

Issuance of shares (in shares)

4,800,000

Initial fair value of ordinary shares recognized as non-controlling interest

29,990,778

$ 54,200

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

$ 27,100

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

Alibaba | Class A ordinary shares | IPO

6,000,000

Alibaba | SINA

Percentage discount to IPO price applied to the shares acquired

23,990,778

15.00%

Alibaba | SINA | IPO

Percentage discount to IPO price applied to the shares acquired

15.00%

Alibaba | SINA | Class A ordinary shares

Alibaba | SINA | Class A ordinary shares | Private placement

21,067,300

Percentage of discount applied on IPO offering price per share to calculate exercise price of option

2,923,478

15.00%

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Cash, Cash Equivalents and Short-term Investments (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

^[2]

Cash and cash equivalents:

Cash

$ 186,347

$ 54,915

Cash equivalents:

Bank time deposits

51,093

229,950

Total cash and cash equivalents

237,440

284,865

^[1],[2]

$ 249,099

^[2]

$ 4,351

Short-term investments:

Bank time deposits

98,439

166,414

^[1]

Total cash, cash equivalents and short-term investments

335,879

451,279

Interest income

$ 5,500

$ 8,300

$ 3,800

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Cash includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid Investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Short-term investments, exclusive of cash equivalents, generally consist of marketable securities intended to be sold within one year (or the normal operating cycle if longer) and may include trading securities, available-for-sale securities, or held-to-maturity securities (if maturing within one year), as applicable.

Long-term Investments (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 63,777

^[1]

$ 22,255

$ 16,050

Loss from equity method investment

252,256

47,666

16,503

(6)

(5)

^[2],[3]

(1,236)

^[2],[3]

Impairment on investments

(6,608)

(2,521)

(1,928)

Transfer from long-term investments to a wholly owned subsidiary

^[2],[3]

3,116

Disposal of investments

(13,134)

(585)

(1,189)

(10,080)

Unrealized loss

(198)

(2,067)

(1,408)

(362)

415

294,679

63,777

^[1]

22,255

8,005

2,521

^[2],[3]

2,526

^[2],[3]

Cost Method

50,594

22,255

12,485

Impairment on investments

252,256

32,412

11,868

(6,608)

(2,521)

(1,928)

Disposal of investments

(13,134)

(585)

Transfer from long-term investments to a wholly owned subsidiary

(1,189)

(1,401)

(363)

415

281,707

50,594

22,255

Equity Method

154

3,565

Loss from equity method investment

158

4,635

(6)

(5)

(1,236)

Transfer from long-term investments to a wholly owned subsidiary

3,116

$ (10,080)

(7)

Available-for-Sale Securities

141

154

13,029

15,096

Unrealized loss

(198)

(2,067)

Didi and Kuaidi Taxi | Cost Method

12,831

$ 13,029

A company developing social applications | Cost Method

142,000

$ 70,000

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Acquisitions (Details) - USD ($)
$ in Thousands

1 Months Ended

12 Months Ended

Dec. 31, 2013

May 31, 2013

Dec. 31, 2013

Dec. 31, 2015

Dec. 31, 2014

^[3]

^[1],[2]

$ 3,116

SINA | Transfer of Equity Interest in Weibo Interactive

$ 7,517

7,517

$ 11,117

$ 11,652

Consideration for transfer of equity interest to Group

100.00%

$ 10,100

Weibo Interactive | SINA

Cash consideration for the remaining 45% equity interest

$ 4,600

Remaining equity interest acquired (as a percent)

45.00%

Equity interest previously held (as a percent)

55.00%

Cash consideration for the remaining 45% equity interest

$ 3,100

4,635

Fair value of previously held 55% equity interest

5,445

10,080

Tangible assets

3,560

Liabilities assumed

(1,095)

7,517

SINA | Weibo Interactive | Minimum

$ 10,080

Estimated useful life of identifiable intangible assets acquired

2 years

SINA | Weibo Interactive | Maximum

Estimated useful life of identifiable intangible assets acquired

5 years

SINA | Weibo Interactive | Customer list

SINA | Weibo Interactive | Game platform technology

$ 2,100

SINA | Weibo Interactive | Non-compete agreement

1,000

$ 500

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Acquisitions (Details 2)
$ in Thousands

1 Months Ended

Jun. 30, 2015

USD ($)

fund

Jun. 30, 2015

USD ($)

fund

Oct. 31, 2014

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

^[1]

Dec. 31, 2013

USD ($)

Transfer of Equity Interest in Weibo Funds | SINA

$ 11,117

$ 11,652

$ 7,517

Number of funds acquired | fund

Consideration for transfer of equity interest

$ 22,000

Transfer of Equity Interest in Weibo Funds | SINA | Weibo Funds, one

Transfer of Equity Interest in Weibo Funds | SINA | Weibo Funds, two

55.00%

85.00%

Gametree

Equity interest acquired (as a percent)

84.00%

Cash consideration

$ 3,062

Non-controlling interests

292

3,354

Tangible assets

1,518

1,688

Liabilities assumed

(3,692)

3,840

Gametree | Game platform technology

$ 3,354

Estimated useful life of identifiable intangible assets acquired

4 years 3 months 18 days

$ 1,700

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Acquisitions (Details 3) - USD ($)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 11,652,000

^[1]

$ 7,517,000

Balance at the end of the period

295,000

11,117,000

11,652,000

^[1]

$ 7,517,000

Period decrease in Goodwill balance

535,000

Weibo Interactive

7,517,000

Gametree

3,840,000

Advertising & Marketing

Balance at the end of the period

Advertising & Marketing | Weibo Interactive

Advertising & Marketing | Gametree

Other

$ 11,652,000

7,517,000

Balance at the end of the period

295,000

11,652,000

7,517,000

Other | Weibo Interactive

$ 7,517,000

Other | Gametree

$ 3,840,000

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Acquisitions (Details 4) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Total expected amortization expense

Intangible assets, net

$ 1,966

$ 3,539

^[1]

Amortization expense

1,500

$ 1,200

$ 200

761

677

528

$ 1,966

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Stock-Based Compensation (Details) - USD ($)		1 Months Ended		12 Months Ended
Stock-Based Compensation (Details) - USD ($)	Jan. 01, 2015	Mar. 31, 2014	Aug. 31, 2010	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
2010 Plan
Stock-based compensation
Term of share incentive plan			10 years
Ordinary shares reserved for issuance			35,000,000
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
2010 Plan \| Stock options
Stock-based compensation
Percentage of ordinary shares outstanding, granted				0.00%	0.00%	1.70%
Estimated fair value of options at grant date				$ 0	$ 0	$ 16,900,000
2014 Plan
Stock-based compensation
Term of share incentive plan				10 years
Ordinary shares reserved for issuance		4,600,000
Number of additional shares for the plan		1,000,000
One-time percentage increase on January 1, 2015 for maximum aggregate number of shares which may be issued	10.00%

Stock-Based Compensation (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock-based compensation
Stock-based compensation expense	$ 26,399	$ 13,779	$ 31,242
Amortization period	4 years
Stock compensation expenses related to the grants	$ 26,400	13,800	4,100
Alibaba
Stock-based compensation
Stock-based compensation expense			27,100
Cost of revenues
Stock-based compensation
Stock-based compensation expense	1,196	755	4,253
Sales and marketing
Stock-based compensation
Stock-based compensation expense	3,209	1,583	6,150
Product development
Stock-based compensation
Stock-based compensation expense	10,210	4,392	9,209
General and administrative
Stock-based compensation
Stock-based compensation expense	$ 11,784	$ 7,049	$ 11,630

Stock-Based Compensation (Details 3) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of shares available for issuance
Outstanding number of shares available for issuance at the beginning of the period	2,738,000	4,648,000	8,086,000
Addition	21,684,000	1,000,000
Granted (in shares or equivalent shares)	(4,851,000)	(2,951,000)	(4,772,000)
Cancelled/expired/forfeited (in shares)	646,000	41,000	1,157,000
Repurchased (in shares)			177,000
Outstanding number of shares available for issuance at the end of the period	20,217,000	2,738,000	4,648,000	8,086,000
Aggregate Intrinsic Value
Fair value per ordinary share (in dollars per share)	$ 19.50	$ 14.24	$ 14.10
Stock options
Assumptions used to value the option grants
Expected volatility, minimum (as a percent)			54.00%
Expected volatility, maximum (as a percent)			61.00%
Risk-free interest rate, Minimum (as a percent)			0.50%
Risk-free interest rate, Maximum (as a percent)			1.20%
Expected dividend yield (as a percent)			0.00%
Number of shares available for issuance
Granted (in shares or equivalent shares)			(1,400,000)
Options Outstanding
Outstanding at the beginning of the period (in shares)	14,330,000	18,561,000	23,469,000
Granted (in shares)	0	0	3,372,000
Exercise (in shares)	(7,309,000)	(3,697,000)	(3,449,000)
Cancelled/expired/forfeited (in shares)	(718,000)	(534,000)	(1,157,000)
Repurchased (in shares)			(3,674,000)
Outstanding at the end of the period (in shares)	6,303,000	14,330,000	18,561,000	23,469,000
Vested and expected to vest at the end of the year (in shares)	6,237,000	14,261,000
Exercisable at the end of the period (in shares)	5,649,000	11,446,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 1.28	$ 1.17	$ 0.69
Granted (in dollars per share)			3.38
Exercise (in dollars per share)	1.11	0.52	0.38
Cancelled/expired/forfeited (in dollars per share)	3.22	2.84	2.49
Repurchased (in dollars per share)			0.45
Outstanding at the end of the period (in dollars per share)	1.26	1.28	$ 1.17	$ 0.69
Vested and expected to vest at the end of the period (in dollars per share)	1.24	1.27
Exercisable at the end of the period (in dollars per share)	$ 1.01	$ 0.76
Weighted Average Remaining Contractual Life (in years)
Outstanding at the end of the period	2 years 4 months 24 days	3 years 2 months 12 days	4 years 3 months 18 days	4 years 7 months 6 days
Vested and expected to vest at the end of the period	2 years 4 months 24 days	3 years 2 months 12 days
Exercisable at the end of the period	2 years 2 months 12 days	2 years 8 months 12 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 114,975	$ 185,684	$ 239,975	$ 60,226
Vested and expected to vest at the end of the period	113,909	184,937
Exercisable at the end of the period	104,473	154,235
Total intrinsic value of options exercised	106,200	65,700	37,300
Cash received from the exercise of stock option	7,800	1,500	$ 1,000
Unrecognized compensation cost	$ 3,900	$ 11,300
Weighted-average period of unrecognized compensation cost	1 year 8 months 12 days
Stock options \| 2010 Plan
Options Outstanding
Granted (in shares)			3,400,000
Stock options \| 2014 Plan
Options Outstanding
Granted (in shares)	0	0
Stock options \| Minimum
Assumptions used to value the option grants
Expected term (in years)			3 years 6 months
Stock options \| Maximum
Assumptions used to value the option grants
Expected term (in years)			4 years 9 months 18 days
Restricted share units
Number of shares available for issuance
Restricted shares units granted (in shares)	4,900,000	3,000,000	800,000

Stock-Based Compensation (Details 4) - Stock options - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Range of Exercise Prices
Options Outstanding (in shares)	6,303	14,330
Weighted Average Exercise Price (in dollars per share)	$ 1.26	$ 1.28
Options Exercisable (in shares)	5,649	11,446
Weighted Average Exercise Price (in dollars per share)	$ 1.01	$ 0.76
Weighted Average Remaining Contractual Life (in years)	2 years 2 months 12 days	3 years 2 months 12 days
$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)	4,167	9,337
Weighted Average Exercise Price (in dollars per share)	$ 0.36	$ 0.37
Options Exercisable (in shares)	4,167	9,337
Weighted Average Exercise Price (in dollars per share)	$ 0.36	$ 0.37
Weighted Average Remaining Contractual Life (in years)	1 year 8 months 12 days	2 years 3 months 18 days
$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)	406	844
Weighted Average Exercise Price (in dollars per share)	$ 1.24	$ 1.19
Options Exercisable (in shares)	406	764
Weighted Average Exercise Price (in dollars per share)	$ 1.24	$ 1.18
Weighted Average Remaining Contractual Life (in years)	2 years 3 months 18 days	3 years 1 month 6 days
$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)	682	2,542
Weighted Average Exercise Price (in dollars per share)	$ 3.32	$ 3.29
Options Exercisable (in shares)	519	1,345
Weighted Average Exercise Price (in dollars per share)	$ 3.33	$ 3.30
Weighted Average Remaining Contractual Life (in years)	3 years 6 months	4 years 9 months 18 days
$3.43 - $3.50
Range of Exercise Prices
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	$ 3.43	$ 3.43
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)	$ 3.50	$ 3.50
Options Outstanding (in shares)	1,048	1,607
Weighted Average Exercise Price (in dollars per share)	$ 3.48	$ 3.48
Options Exercisable (in shares)	557
Weighted Average Exercise Price (in dollars per share)	$ 3.48
Weighted Average Remaining Contractual Life (in years)	4 years 7 months 6 days	5 years 6 months

Stock-Based Compensation (Details 5) - Service-based restricted share units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares Granted
Outstanding at the beginning of the period (in shares)	3,507	800
Awarded (in shares)	4,851	2,951
Vested (in shares)	(1,211)	(203)
Cancelled (in shares)	(646)	(41)
Outstanding at the end of the period (in shares)	6,501	3,507
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 16.44	$ 13.19
Awarded (in dollars per share)	12.41	17.11
Vested (in dollars per share)	14.69	13.19
Cancelled (in dollars per share)	14.18	17.23
Outstanding at the end of the period (in dollars per share)	$ 13.98	$ 16.44
Unrecognized compensation cost	$ 73.0
Expected weighted-average recognition period for unrecognized compensation cost	3 years 2 months 12 days
Total fair value vested	$ 17.8	$ 2.7

Other Balance Sheet Components (Details) - USD ($)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 121,605,000

$ 122,650,000

Balance at the beginning of the year

(2,440,000)

(3,242,000)

$ (897,000)

Reversal (additional provision) charged to expenses, net

368,000

(2,138,000)

(2,345,000)

Write-off

697,000

2,940,000

Balance at the end of the year

(1,375,000)

(2,440,000)

$ (3,242,000)

Prepaid expenses and other current assets:

120,230,000

120,210,000

Rental and other deposits

3,636,000

3,319,000

Input VAT

443,000

1,526,000

Prepayment for investments

25,574,000

4,037,000

Advertising prepayment

3,531,000

3,936,000

Prepayment to outsource service providers

5,422,000

1,730,000

Prepayment for license fee

1,872,000

3,689,000

1,937,000

42,295,000

18,357,000

^[1]

33,961,000

18,648,000

Balance at the beginning of the year

(139,000)

Balance at the end of the year

(139,000)

33,961,000

18,509,000

^[1]

54,052,000

64,725,000

54,052,000

64,725,000

^[1]

33,592,000

39,277,000

Balance at the beginning of the year

(2,301,000)

Balance at the end of the year

(1,375,000)

(2,301,000)

$ 32,217,000

$ 36,976,000

^[1]

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Other Balance Sheet Components (Details 2) - USD ($)
$ in Thousands

Dec. 31, 2015

Dec. 31, 2014

Less: Accumulated depreciation

$ 101,515

$ 96,795

(78,665)

(65,921)

Amounts owed on option/share repurchase

22,850

30,874

^[1]

Accrued liabilities:

Payroll and welfare

25,972

19,686

1,203

Content fees

1,267

1,005

Marketing expenses

35,715

19,806

Internet connection costs

7,673

6,834

Employee payroll withholding taxes

3,547

Sales rebates

19,593

14,126

Professional fees

3,127

3,138

Revenue share

9,071

3,057

VAT and other tax payable

29,955

6,629

Payable to other service providers

2,673

1,074

Payable to outsourced service providers

2,382

1,375

Total Accrued liabilities

13,989

6,115

154,964

87,595

Computers and equipment

93,947

89,069

Leasehold improvements

4,795

4,944

Furniture and fixtures

1,309

2,052

Other

Number of taxable jurisdictions | jurisdiction

$ 1,464

$ 730

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Income Taxes (Details)
$ / shares in Units, $ in Thousands

12 Months Ended

Feb. 22, 2008

Dec. 31, 2015

USD ($)

jurisdiction

$ / shares

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Income taxes

Income (Loss) before income tax expenses

$ 36,780

$ (64,340)

^[1]

$ (40,664)

^[1]

Loss from non-China operations

(28,016)

(54,073)

(13,341)

Income (Loss) from China operations

64,796

(10,267)

(27,323)

Income tax expenses applicable to China operations

$ 2,591

$ 1,128

^[1]

$ 271

^[1]

Effective tax rate for China operations (as a percent)

4.00%

(11.00%)

(1.00%)

Loss from the change in fair value of investor option liability

^[1],[2]

$ 46,972

$ (21,064)

Income tax rate (as a percent)

25.00%

Net operating loss carryforwards

$ 160,500

$ 169,300

Composition of income tax expenses for China operations

Deferred tax expenses (benefits)

(977)

866

$ 271

Current income tax expenses

3,568

262

Income tax expenses

$ 2,591

$ 1,128

^[1]

$ 271

^[1]

Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations

Statutory EIT rate (as a percent)

25.00%

Effect on tax holiday (as a percent)

(24.20%)

Permanent differences (as a percent)

0.50%

2.20%

0.50%

Change in valuation allowance (as a percent)

2.70%

(38.20%)

(26.50%)

Effective tax rate for China operations (as a percent)

4.00%

(11.00%)

(1.00%)

Deferred tax assets:

Net operating loss carry forwards

$ 41,604

$ 42,347

Less: valuation allowance

(41,604)

(42,347)

Depreciation, accounts receivable, accrued and other liabilities

4,550

8,386

Less: valuation allowance

(3,057)

(8,355)

Net deferred tax assets

1,493

Deferred tax liabilities:

Acquired intangible assets

477

873

Depreciation

295

Total deferred tax liabilities

566

$ 1,338

873

Historical rate for valuing deferred tax assets (as a percent)

25.00%

Weibo Technology

Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations

Effect of tax exemption

$ 15,700

Effect of tax exemption on basic net income per share (USD per share) | $ / shares

$ 0.08

Non- China

Loss from the change in fair value of investor option liability

$ 47,000

Hong Kong

Income tax rate (as a percent)

16.50%

Net operating loss carryforwards

$ 1,200

Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations

Statutory EIT rate (as a percent)

16.50%

China

Income tax rate (as a percent)

25.00%

Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent)

10.00%

Maximum percentage of withholding income tax on dividends distributed by subsidiaries to its immediate holding entity 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%

Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations

Statutory EIT rate (as a percent)

25.00%

China | Software enterprise

Period of incomel tax exemption

2 years

Reduction in preferential tax rate (as a percent)

50.00%

Preferential statutory rate (as a percent)

12.50%

Period of reduced preferential income tax rate

3 years

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Related Party Transactions (Details) - USD ($)

1 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Legal transfer of investee and recognition of due to SINA

^[1]

$ 10,080,000

Costs and expenses allocated from SINA

$ 24,678,000

$ 42,360,000

44,305,000

Interest expense on amount due to SINA

2,838,000

6,709,000

Outstanding balance due to or from related parties

2,863,000

269,042,000

^[1]

159,816,000

^[1]

12,188,000

24,279,000

^[2]

Due to related parties

16,000,000

5,800,000

Revenue billed through SINA

22,114,000

4,057,000

851,000

Costs and expenses allocated from SINA

^[1]

61,176,000

13,092,000

24,678,000

42,360,000

44,305,000

Other costs and expenses billed by SINA

29,400,000

Interest expense on amount due to SINA

2,838,000

6,709,000

Outstanding balance due to or from related parties

2,863,000

276,614,000

159,816,000

Interest waived

8,500,000

12,188,000

24,279,000

SINA | Transfer of Equity Interest in Weibo Interactive

31,000

3,151,000

Legal transfer of investee and recognition of due to SINA

10,080,000

SINA | Transfer of Equity Interest in Weibo Funds

100.00%

Legal transfer of investee and recognition of due to SINA

22,565,000

17,506,000

Consideration for step-up acquisition

4,600,000

Advertising and marketing revenues from related party

143,650,000

107,587,000

^[3]

49,135,000

^[3]

Deemed contribution from Alibaba

^[1]

15,300,000

Services provided by Alibaba

4,515,000

128,000

Outstanding balance due to or from related parties

Alibaba | Strategic cooperation with Alibaba

54,052,000

64,725,000

Advertising and marketing revenues from related party

137,400,000

107,600,000

49,100,000

Other related parties

Advertising and marketing revenues from related party

29,200,000

27,600,000

2,300,000

Outstanding balance due to or from related parties

Other revenues from related party

2,100,000

1,500,000

Amount of promotional services from related parties

7,800,000

11,200,000

$ 900,000

Due from related parties

$ 33,900,000

$ 15,400,000

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[3]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
China Contribution Plan
Employee Benefit Plans
Employer contribution under China Contribution Plan	$ 29.7	$ 27.2	$ 18.3

Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Anti-dilutive share

Number of preferred shares included in the calculation of diluted net income (loss) per share

Numerator:

Weighted average ordinary shares outstanding (in shares)

$ 34,745

$ (65,325)

^[1]

$ (39,790)

^[1]

Denominator:

208,163,000

186,878,000

^[1]

146,820,000

^[1]

Basic net income (loss) per share attributable to Weibo (in dollars per share)

$ 0.17

$ (0.35)

^[1]

$ (0.27)

^[1]

Numerator:

Net income (loss) attributable for calculating diluted net loss per share

$ 34,745

$ (65,325)

$ (39,790)

Denominator:

Weighted average ordinary shares outstanding (in shares)

208,163,000

186,878,000

^[1]

146,820,000

^[1]

Weighted average ordinary shares equivalents:

Effects of dilutive securities

9,800,000

Shares used in computing diluted net income (loss) per share attributable to Weibo (in shares)

217,918,000

186,878,000

^[1]

146,820,000

^[1]

Diluted net income (loss) per share attributable to Weibo (in dollars per share)

$ 0.16

$ (0.35)

^[1]

$ (0.27)

^[1]

Stock options

Weighted average ordinary shares equivalents:

Effects of dilutive securities

8,572,000

Restricted share units

Weighted average ordinary shares equivalents:

Effects of dilutive securities

1,183,000

Options and RSUs

Anti-dilutive share

Anti-dilutive share excluded from the calculation of diluted net income (loss) per share

17,800,000

52,600,000

Convertible preferred shares

Anti-dilutive share

Anti-dilutive share excluded from the calculation of diluted net income (loss) per share

30,000,000

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Segment Information (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

segment

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Summary information by segment

Number of principal business segments | segment

Revenues

$ 477,891

$ 334,172

^[1]

$ 188,313

^[1]

Advertising & Marketing

Summary information by segment

Revenues

402,415

264,782

148,426

Other

Summary information by segment

Revenues

$ 75,476

$ 69,390

$ 39,887

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Profit Appropriation and Restricted Net Assets (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) fund	Dec. 31, 2014 USD ($)
Profit Appropriation and Restricted Net Assets
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 \| fund	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%
Reserves made to non-distributable reserve fund	$ 7.1	$ 0.1
Net assets subject to restriction for the Group	$ 218.7
Percent of restricted net assets of total consolidated net assets	35.00%

Financial Instruments (Details) - Financial instruments measured on a recurring basis - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Fair Value of Financial Instruments
Bank time deposits		$ 149,532	$ 396,364
Available-for-sale securities		12,831	13,029
Total		162,363	409,393
Quoted Prices in Active Market for Identical Assets (Level 1)
Fair Value of Financial Instruments
Available-for-sale securities		12,831	13,029
Total		12,831	13,029
Significant Other Observable Inputs (Level 2)
Fair Value of Financial Instruments
Bank time deposits		149,532	396,364
Total		$ 149,532	$ 396,364
Significant Unobservable Inputs (Level 3) \| Alibaba
Fair Value of Financial Instruments
Percentage of ownership interest in subsidiary to be reached if fully exercised	30.00%

Financial Instruments (Details 2) - USD ($)
$ / shares in Units, $ in Thousands

8 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2015

Apr. 16, 2014

Apr. 29, 2013

Key inputs used in investor option liability valuation

Fair value per ordinary share (in dollars per share)

$ 14.10

$ 14.24

$ 14.10

$ 19.50

Gain (Loss) on fair value change of investor option liability

^[1],[2]

$ (46,972)

$ 21,064

Key inputs used in investor option liability valuation

Gain (Loss) on fair value change of investor option liability

$ 21,064

(46,972)

Financial instruments measured on a recurring basis | Investor option liability

Key inputs used in investor option liability valuation

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 (in dollars per share)

$ 14.10

Gain (Loss) on fair value change of investor option liability

$ 76,500

$ 50,600

$ (47,000)

$ 21,100

Financial instruments measured on a recurring basis | Investor option liability | Alibaba

Key inputs used in investor option liability valuation

Minimum percentage of shares sold (as a percent)

25.00%

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Financial Instruments (Details 3) - USD ($)

8 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Reconciliation of the fair value measurements using significant unobservable inputs

Gain (Loss) on fair value change of investor option liability

^[1],[2]

$ (46,972,000)

$ 21,064,000

$ 8,005,000

2,521,000

^[1],[2]

2,526,000

^[1],[2]

Reconciliation of the fair value measurements using significant unobservable inputs

Beginning Balance

$ (50,568,000)

(29,504,000)

Gain (Loss) on fair value change of investor option liability

21,064,000

(46,972,000)

Option fully exercised

76,476,000

Ending Balance

(29,504,000)

Non-recurring

Reconciliation of the fair value measurements using significant unobservable inputs

Impairment loss for available-for-sale investments

Non-recurring | Certain investments under cost method and equity method were measured using significant unobservable inputs

8,000,000

2,500,000

Reconciliation of the fair value measurements using significant unobservable inputs

Fair value of investments

$ 0

[1]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Commitments and Contingencies
Lease expense	$ 15,500	$ 14,900	$ 8,800
Operating lease commitments
Total	8,612
Less than One Year	7,166
One to Three Years	1,446
Three to Five Years	0
More than Five Years	0
Purchase commitments
Total	71,586
Less than One Year	64,455
One to Three Years	7,020
Three to Five Years	111
More than Five Years	$ 0
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 \| item	0

Additional information-condensed financial statements of Weibo Corporation (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Additional information-condensed financial statements of Weibo Corporation

Minimum percentage of after-tax profit to reserve fund

10.00%

Cash and cash equivalents

$ 237,440

$ 284,865

^[1],[2]

$ 249,099

^[2]

$ 4,351

^[2]

Short-term investments

98,439

166,414

^[1]

42,295

18,357

^[1]

Total current assets

498,404

589,846

^[1]

LIABILITIES AND SHAREHOLDERS' EQUITY

839,189

703,514

^[1]

154,964

87,595

12,188

24,279

^[1]

Long-term Liabilities

2,385

873

^[1]

Commitments and contingencies

211,160

136,124

^[1]

^[1]

Shareholders' equity:

Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated)authorized; 203,658 and 212,177 shares (including 96,168 Class A ordinary shares and 116,009 Class B ordinary shares) issued and outstanding as of December 31, 2014 and 2015, respectively.

^[1]

Additional paid-in capital

938,922

904,402

^[1]

Accumulated other comprehensive loss

(10,635)

(2,836)

^[1]

Accumulated deficit

(307,668)

(342,413)

^[1]

Total Weibo shareholders' equity

620,672

559,204

^[1]

Total liabilities and shareholders' equity

839,189

703,514

^[1]

Weibo Corporation

Cash and cash equivalents

60,810

229,950

$ 182,871

$ 38

Short-term investments

98,284

166,253

5,905

229

Total current assets

164,999

396,432

Investment in subsidiaries and VIE

256,059

13,029

210,325

156,500

Amount due from SINA

1,002

LIABILITIES AND SHAREHOLDERS' EQUITY

632,385

565,961

10,666

6,543

214

Long-term Liabilities

1,047

Commitments and contingencies

11,713

6,757

Shareholders' equity:

Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated)authorized; 203,658 and 212,177 shares (including 96,168 Class A ordinary shares and 116,009 Class B ordinary shares) issued and outstanding as of December 31, 2014 and 2015, respectively.

Additional paid-in capital

938,922

904,402

Accumulated other comprehensive loss

(10,635)

(2,836)

Accumulated deficit

(307,668)

(342,413)

Total Weibo shareholders' equity

620,672

559,204

Total liabilities and shareholders' equity

$ 632,385

$ 565,961

[1]	The above consolidated balance sheets present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Additional information-condensed financial statements of Weibo Corporation (Details 2) - $ / shares shares in Thousands	Dec. 31, 2015	Dec. 31, 2014
Balance sheets
Ordinary shares, par value (in dollars per share)	$ 0.00025	$ 0.00025
Ordinary shares, shares authorized	2,400,000	2,400,000
Ordinary shares, shares issued	212,177	203,658
Ordinary shares, shares outstanding	212,177	203,658
Class A ordinary shares
Balance sheets
Ordinary shares, shares authorized	1,800,000	1,800,000
Ordinary shares, shares issued	96,168
Ordinary shares, shares outstanding	96,168
Class B ordinary shares
Balance sheets
Ordinary shares, shares authorized	200,000	200,000
Ordinary shares, shares issued	116,009
Ordinary shares, shares outstanding	116,009
Ordinary shares to be designated
Balance sheets
Ordinary shares, shares authorized	400,000	400,000
Weibo Corporation
Balance sheets
Ordinary shares, par value (in dollars per share)	$ 0.00025	$ 0.00025
Ordinary shares, shares authorized	2,400,000	2,400,000
Ordinary shares, shares issued	212,177	203,658
Ordinary shares, shares outstanding	212,177	203,658
Weibo Corporation \| Class A ordinary shares
Balance sheets
Ordinary shares, shares authorized	1,800,000	1,800,000
Ordinary shares, shares issued	96,168
Ordinary shares, shares outstanding	96,168
Weibo Corporation \| Class B ordinary shares
Balance sheets
Ordinary shares, shares authorized	200,000	200,000
Ordinary shares, shares issued	116,009
Ordinary shares, shares outstanding	116,009
Weibo Corporation \| Ordinary shares to be designated
Balance sheets
Ordinary shares, shares authorized	400,000	400,000

Additional information-condensed financial statements of Weibo Corporation (Details 3) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Statements of Income (Loss) and Comprehensive Income (Loss)

Operating loss

$ 37,503

$ (22,103)

^[1]

$ (58,608)

^[1]

Interest and other income (expenses), net

6,344

6,780

^[1]

(2,871)

^[1]

Change in fair value of investor option liability (Note 15)

^[1],[2]

(46,972)

21,064

Other income (loss), net

Share of income (loss) of subsidiaries and VIE

(6)

(5)

^[1],[2]

(1,236)

^[1],[2]

Available-for-sale fair value change

34,745

(65,325)

^[1]

(39,790)

^[1]

Other comprehensive loss

(198)

(2,067)

^[1]

Comprehensive income (loss) attributable to Weibo's ordinary shareholders

26,946

(68,619)

^[1]

(40,221)

^[1]

Weibo Corporation

Statements of Income (Loss) and Comprehensive Income (Loss)

Operating loss

(1,279)

(1,086)

(522)

Interest and other income (expenses), net

4,759

5,034

(2,051)

Change in fair value of investor option liability (Note 15)

(46,972)

21,064

Other income (loss), net

Share of income (loss) of subsidiaries and VIE

31,265

(22,301)

(58,281)

34,745

(65,325)

(39,790)

Other comprehensive loss

Available-for-sale fair value change

(7,601)

(1,227)

(431)

(198)

(2,067)

Comprehensive income (loss) attributable to Weibo's ordinary shareholders

$ 26,946

$ (68,619)

$ (40,221)

[1]	The above consolidated statements of income (loss) and comprehensive income (loss) present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).
[2]	The above consolidated statements of cash flows present the Weibo Funds acquired from SINA on June 30, 2015 as if they had been owned by the Group for all periods presented in accordance with ASC Subtopic 805-50 (See Note 6 “Acquisitions”).

Additional information-condensed financial statements of Weibo Corporation (Details 4) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Statements of Cash flow

Net cash provided by (used in) operating activities

$ 181,971

$ (19,412)

^[1]

$ (1,950)

^[1]

Purchase of short-term investments

(149,374)

(230,161)

^[1]

(250,000)

^[1]

Maturity of short-term investments

216,615

321,208

^[1]

117,564

^[1]

Investments and prepayments on equity investments

(268,758)

(54,383)

^[1]

(17,672)

^[1]

Net cash provided by (used in) investing activities

(228,310)

13,917

^[1]

(161,647)

^[1]

Proceeds from issuance of preferred shares and ordinary shares to Alibaba

^[1]

585,799

Proceeds from IPO, net of commission

^[1]

306,491

(2,863)

(269,042)

^[1]

(159,816)

^[1]

Net cash provided by financing activities

^[1]

(989)

4,959

43,663

^[1]

408,214

^[1]

Cash and cash equivalents at the beginning of the year

^[1]

284,865

^[2]

249,099

4,351

Cash and cash equivalents at the end of the year

237,440

284,865

^[1],[2]

249,099

^[1]

Weibo Corporation

Statements of Cash flow

Net cash provided by (used in) operating activities

5,317

(627)

(12,320)

Purchase of short-term investments

(148,863)

(230,161)

(250,000)

Maturity of short-term investments

218,762

321,208

117,564

Investments and prepayments on equity investments

(247,200)

(15,096)

Investment in subsidiaries

(4,978)

(68,873)

(93,781)

Net cash provided by (used in) investing activities

(182,279)

7,078

(226,217)

Proceeds from issuance of preferred shares and ordinary shares to Alibaba

585,799

Proceeds from IPO, net of commission

301,270

(255,688)

(117,564)