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Highlights
- Justin Sun is mulling buying Chinese social media firm Weibo
- His projections takes similarities to Elon Musk and X acquisition playbook
- Sun plans to grow Weibo and potentially incubate other businesses
Tron Founder Justin Sun has triggered a conversation on X in what appears he is mulling buying the social media platform’s rival. Justin Sun is one of the most prolific investors in the market with a record of buying viable startups in the past.
Justin Sun Touted as Low-Key Elon Musk
As the founder of Tron, Justin Sun has maintained a reputation as a top crypto investor. He maintains a public profile as the majority of his trades get reported by mainstream crypto media. Considered one of the richest in the space, he has set his eyes on the Chinese social media application Weibo.
According to the Translation of his post on X, Justin Sun presented the prospects of Weibo. First he noted that the social media is outfit is worth just about $2 billion. Despite this relatively low valuation, the platform rakes in an annual revenue of $300 million. The Weibo app, according to Justin Sun has a price-to-earnings ratio of only 6 times.
微博现在市值确实是不高，20亿美元，一年还赚3亿美元，市盈率才6倍，而且护城河还可以，流量很大，未来以此还可以孵化别的业务，大家觉得买过来繁荣共建怎么样
— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 12, 2024
While Justin Sun is the brain behind the Tron DAO, he has also acquired BitTorrent file sharing protocol. Besides this, his portfolio extends to HTX Exchange where he claimed he only serves as an Advisor. He is also the face of Poloniex, the protocol that suffered a hack worth $123 million in December last year.
Despite the wealth of knowledge running different successful crypto ventures, the business of social media is different. He might be looking to borrow a leaf from Elon Musk who acquired X for $44 billion in 2022.
The Attractions of Weibo
Besides the low valuation and high turn-over of Weibo, Sun noted that the platform has a high traffic. He also noted that the platform can incubate other businesses in the long term.
There are many reasons why this sounds a lot like Elon Musk’s move for X. Incubating other businesses is similar to the push for X Payments and XMail by the X app. While his post on acquiring the platform should be taken with a pinch of salt, the update has triggered the community as a whole.
Pending when new updates on the Weibo acquisition will come, Justin Sun has denied he long Bitcoin in a suspicious trade reported earlier.
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