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Shares of Momo briefly jumped more than 4.5 percent in Thursday morning trade. Earlier, the stock fell more than 5 percent in pre-market trade after the mobile-based Chinese social networking platform said a potential buyout group has withdrawn its offer.
The stock ended the day up more than 2 percent.
The privatization group included Momo's co-founder, chairman and chief executive officer Yan Tang and Alibaba Investment, a subsidiary of Alibaba Group. Other members were Matrix Partners China II Hong Kong, Sequoia Capital China Investment Management, Rich Moon and Huatai Ruilian, according to a Thursday release.
"With the privatization proposal from the Buyer Group behind us, we are more committed than ever to driving business growth in the interest of the Company and our shareholders," Tang said in the release.