Why Facebook Can't Go to China Alone
NEW YORK (TheStreet) -- Facebook
Bloomberg reported Facebook is set to open a sales office in China this year, as it seeks to work with local advertisers, according to sources with knowledge of the matter.
Facebook could not be immediately reached for comment for this story.
Currently, Facebook is banned in China and though COO Sheryl Sanberg has made inroads in the country, meeting with various Chinese officials, including Cai Mingzhao, the head of China's State Council Information Office.
Should the Mark Zuckerberg-led Facebook enter China officially, it will likely have to do so like almost every other American company, be it in the technology field or not: via a joint venture. Companies like General Motors
Perhaps Facebook gains entry into China by sharing patents, intellectual property or other methods with Renren or another Chinese social network.
Given the fact that Twitter
Weibo went public in the U.S. last month, pricing its IPO at $17 a share, selling 16.8 million American depository shares, at the low end of the expected price range.
Among others, WeChat, owned by Tencent, could be another partner, given Facebook's recent announced acquisition of WeChat-competitor, WhatsApp.