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Tag Archives: 58.com
China 58.com latest Business & Financial news from Doug Young, the Expert on Chinese High Tech startups, (former Journalist and Chief editor at Reuters)
The following press releases and media reports about Chinese companies were carried on October 13. To view a full article or story, click on the link next to the headline.
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Tsinghua’s Latest Deal Is Adding Chairman of Micron (Nasdaq: MU) Venture (English article)
JD.com (Nasdaq: JD) Opens First US Office in Silicon Valley (company announcement)
Baidu (Nasdaq: BIDU), Taikang Life Lead $200 Mln Series C in E-tailer Womai (English article)
58.com (NYSE: WUBA) Unit 58 Home Raises US$300 Mln Series A Funding (PRNewswire)
China RE IPO Raises Nearly $2 Bln, Shares to Debut on Oct 26 (Chinese article)
Bottom line: 58.com’s buying binge and LightInTheBox’s cost-cutting drive are both risky strategies that could boost profits if they succeed, but also stand a sizable chance of backfiring if they become too excessive.
Buying binge pushed 58.com into the red
When the history books are written, “turbulence” and “volatility” are 2 words likely to get liberal usage when describing the second half of 2015 for Chinese companies. Two mid-sized Internet names are in the headlines this week as they face their own separate headwinds, pressuring the profits and stocks of leading online classified site 58.com (NYSE: WUBA) and struggling e-commerce company LightInTheBox (NYSE: LITB).
The first story quotes 58.com’s CEO saying he’s engaged in a buying spree this year that could result in $200 million in losses for his company. The news around LightInTheBox stems from reports saying the company has embarked on a major cost-cutting campaign that has seen numerous employees leave and also suppliers express dissatisfaction over slow bill payments. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 23. To view a full article or story, click on the link next to the headline.
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LSE’s Sale of Russell Investments to Citic Securities (HKEx: 6030) May Collapse (English article)
58.com (NYSE: WUBA) to Invest in 100 O2O Firms This Year, May Lose $200 Mln – CEO (Chinese article)
Boeing (NYSE: BA) Plans 737 Plant in China, Pledges No US Layoffs (English article)
LightInTheBox (NYSE: LITB) Caught in Whirlpool of Unpaid Bills (Chinese article)
China Three Gorges Weighs $2.3 Bln Wind Investments (English article)
Bottom line: Baidu could buy a small stake in Xunlei but is unlikely to acquire the company outright as part of their new alliance, while 58.com’s plan to rebuild its newly acquired job site should have good chances of success.
58.com goes to work on ChinaHR
I’ve been predicting a marriage for a while for online video orphan Xunlei (Nasdaq: XNET), even as it remains stubbornly single despite its lack of scale to survive as an independent company. First it appeared the company might get bought by smartphone sensation Xiaomi after the pair boosted their strategic tie-up in May, but then nothing more happened. Now the gossip mills are likely to start turning again, following the latest announcement of a major partnership between Xunlei and Baidu’s (Nasdaq: BIDU) iQiyi online video service.
58.com
Meantime in another Internet news bit, the top executive at leading online classified ad site 58.com(NYSE: WUBA) is saying he will need 2 years to turn around the underperforming online job site ChinaHR, which he acquired earlier this year. His assessment comes after the site laid off nearly all of its staff as part of the deal that saw 58.com buy ChinaHR from its Irish owner. Read Full Post…
Bottom line: New buyout bids for Dangdang and YY look opportunistic due to a recent sell-off in their shares, while Baixing.com could lead a new wave of domestic IPOs for Chinese Internet firms next year.
Dangdang gets buyout offer
A few lingering buyout offers for US-listed Chinese firms are trickling in after Thursday’s market rally in China, with e-commerce stalwart Dangdang (NYSE: DANG) and the newer social networking site YY (Nasdaq: YY) both announcing new privatization plans. These 2 announcements look quite opportunistic, as they come after a sell-off that has seen Dangdang and YY’s shares plunge over the last 2 weeks, but right after a major one-day China rally that spilled over into the US.
At the same time, online classifieds site Baixing.com is charting a path for the future, with word that it’s scrapping its variable interest entity (VIE) structure that is typically used for Chinese firms looking to list in New York. The company is reportedly making the move as it eyes a domestic Chinese listing instead, and also as it receives new funding from online search leader Baidu (Nasdaq: BIDU). Read Full Post…
Bottom line: A worker rebellion over layoffs at an online recruitment site being bought by 58.com underscores the company’s inexperience at M&A, even though the purchase itself looks like a good move.
Workers rebel over layoffs at ChinaHR
Chinese media are flocking to news that leading online classified ad site 58.com (NYSE: WUBA) has begun slashing jobs at its newly acquired ChinaHR, just days after it announced it would purchase the struggling online recruitment site. The move looks a bit hasty and perhaps extreme, and also comes across as just slightly ironic since many people now losing their jobs may soon have to use rival services to find new work.
But irony aside, this particular story looks quite similar to something that happened just 2 years ago at the very same ChinaHR. In that case workers mutinied and even briefly held an executive hostage after its then-owner, US online recruitment giant Monster Worldwide (Nasdaq: MWW), also tried to lay off employees as part of its own plans to sell the company. If history repeats itself, which is showing early signs of happening, 58.com could be looking at some turbulent times ahead over the next week or two. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 13. To view a full article or story, click on the link next to the headline.
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Xiaomi Begins First Official Offline Sales As It Chases High-End (Chinese article)
58.com (NYSE: WUBA) Lays Off More Than 3,000 From Newly Acquired ChinaHR (Chinese article)
Meraas, Alibaba (NYSE: BABA) In Middle East Big Data And Cloud Computing JV (Businesswire)
Apple’s (Nasdaq: AAPL) Cook Says Aims To Bring Apple Pay To China (Chinese article)
Uber Says Has Reached Consensus With Chengdu Government, Following Probe (Chinese article)
Bottom line: 58.com’s new purchase of an online job site extends its spree of recent acquisitions and partnerships, which looks like a focused, well-conceived plan that could position it to emerge as a leading Chinese Internet advertising specialist.
58.com gets into jobs space
The savvy online classifieds site 58.com (NYSE: WUBA) is back in the headlines as we close out the week, with word that it’s signed a deal to purchase online job specialist ChinaHR. If true, the deal would mark the latest in a steady stream of acquisitions for 58.com, which looks well positioned to become a truly diversified leader in online classified advertising services.
Such a focused strategy looks much better than the more diversified M&A being practiced these days by China’s largest Internet companies, which are all venturing far beyond the core businesses that brought them their initial success. Of course it’s much easier for companies like 58.com to keep their focus due to their small size. Compared to names like Tencent (HKEx: 700) and Alibaba (NYSE: BABA), which are each valued at around $200 billion, 58.com still has a relatively small market value of about $7 billion. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 8. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Names New CEO As Revenue Tops Views (English article)
58.com (NYSE: WUBA) To Acquire Online Recruitment Site ChinaHR – Report (English article)
Canadian Solar (Nasdaq: CSIQ) Signs $250 Mln Loan With Minsheng Bank (PRNewswire)
Chinese Authorities Visit Uber’s Chengdu Office (English article)
Chinese Real Estate Site Aiwujiwu Closes $120 Mln Series D Funding (English article)
Bottom line: 58.com’s new Ganji tie-up looks like a smart partnership that should create a clear industry leader with a strong strategic partner in Tencent, though the stock could be set for a short-term correction due to overvaulation.
58.com buys 42 pct of Ganji
China’s Internet has just gained a major new player through the combination of online classified sites 58.com (NYSE: WUBA) and Ganji, which together will have a market value approaching the $10 billion level. Few companies outside the “Big 3” of Baidu (Nasdaq: BIDU), Tencent (HKEx: 700) and Alibaba (NYSE: BABA) can boast such valuations, and this particular deal seems to mark the emergence of a new sector leader that could even become an acquirer on the global stage.
Of course it’s easy to talk about going global, but actually doing that has been far more problematic for China’s booming field of Internet players. Still, this latest deal appears to show that 58.com may have the savvy that some of its larger rivals lack to make the global push, perhaps using this Gangji deal as a template for more strategic acquisitions in developing markets similar to China. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 18-20. To view a full article or story, click on the link next to the headline.
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58.com (NYSE: WUBA) Acquires Strategic Stake In Ganji, Investment by Tencent (PRNewswire)
E-Commerce Trust Services Firm Baozun Files For $200 Mln US IPO (Chinese article)
Bond Interest Default Looms For Solar Products Maker Baoding Tianwei (Chinese article)
After 8 Years Of Failing, Baidu (Nasdaq: BIDU) Shuts Japan Search Engine (English article)
China Minsheng Investment Corp To Invest 15 Bln Yuan In 2 GW Solar Farm (Chinese article)
