HANGZHOU-BASED Alibaba will pay US$586 million for 18% stake of Sina weibo, the twitter-like microblog service.

Alibaba enjoys the right to raise the stake to up to 30 percent in the future.

Sina surged by about 10 percent on US market opening.

Alibaba, China's largest e-commerce company will team up with Sina weibo in services including accounts sharing, data sharing, online payment and online marketing and sales.

The move is expected to bring Sina weibo US$380 million of marketing and social e-commerce revenue in three years, Sina said.