Alibaba's Joseph Tsai joins Momo board, reviving buyout wagers

New York

MOMO Inc surged after naming Alibaba Group Holding's vice-chairman to its board, stoking speculation that the Chinese maker of a dating app may be able to complete a management-led buyout with help from the country's biggest online retailer.

The American Depositary Receipts (ADR) of Momo rose 20 per cent to US$12 in New York on Tuesday, the most since May 2015, as Momo said that Alibaba co-founder Joseph Tsai has joined its board as a director. The e-commerce company invested in Momo before the company went public in December 2014.