Tag Archives: LeTV

LeTV Internet Information Technology is a Chinese leading entertainment company and the largest online video company in China

CELLPHONES: Xiaomi On Defensive As Momentum Slows

Bottom line: Xiaomi’s latest moves and remarks reflect attempts to rekindle its fading momentum, as its growth slows and it faces a rising challenge from LeTV and a resurgent Apple.

Xiaomi battles slowing momentum

Sputtering smartphone sensation Xiaomi is in a flurry of headlines as we go into the weekend, spotlighting the recent challenges it is facing as it tries to maintain its breakneck growth and live up to huge expectations it created for itself. The most revealing of those portrays Xiaomi’s charismatic chief Lei Jun in a rare defensive posture, at a company event where he took aim at the increasingly threatening LeTV (Shenzhen: 300104).

The second headline comes from the same event, and boasts of Xiaomi’s heavy spending on content for its online services over the last 2 years, again taking aim at LeTV. Lastly there’s the news that US chip giant Qualcomm’s (Nasdaq: QCOM) China chief has jumped ship to take up an executive position at Xiaomi. Again, this looks like Xiaomi’s attempts to portray itself as a hot company that can still attract top talent away from leading western companies. Read Full Post…

News Digest: June 11, 2015

The following press releases and media reports about Chinese companies were carried on June 11. To view a full article or story, click on the link next to the headline.
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  • Towers Watson, Shanda, Citic Vying for Russell Investments – Sources (English article)
  • Hunan TV’s Mango TV Raises 500 Mln Yuan, Valued At More Than 7 Bln Yuan (Chinese article)
  • LeTV (Shenzhen: 300104), Unicom (HKEx: 763) Offer 4G Deals With Free Phone (Chinese article)
  • Renren (NYSE: RENN) Announces Receipt of “Going Private” Proposal (PRNewswire)
  • General Mills (NYSE: GIS) Launches Yoplait Yogurt Brand in China (Chinese article)

MEDIA: LeTV, iQiyi, Youku Snared In Crackdown — Again

Bottom line: Beijing’s latest online video clean-up is part of its drive to guide a bigger transition from a traditional TV to an Internet-based broadcasting landscape, with more similar moves likely over the next 1-2 years.

Beijing cracks down on cartoons

It’s been at least a month or two since Beijing’s latest crackdown on unhealthy Internet content, so it should come as no surprise that the morality police have launched yet another campaign, this time targeting cartoons. The latest dragnet has snared video superstar LeTV (Shenzhen: 300104), Baidu-backed (Nasdaq: BIDU) iQiyi and most other top industry players, who are among 29 companies being investigated in this latest web clampdown.

China’s broader Internet clean-up campaign is now actually entering its second year, and dates back to April last year when leading web portal Sina (Nasdaq: SINA) had its video license revoked for hosting pornographic content. (previous post) Since then, nearly ever major video site has been investigated and punished at one point or another, and social networking sites (SNS) like Tencent (HKEx: 700) WeChat have also embarked on clean-ups of controversial content. Read Full Post…

News Digest: June 9, 2015

The following press releases and media reports about Chinese companies were carried on June 9. To view a full article or story, click on the link next to the headline.
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  • LeTV (Shenzhen: 300104), iQiyi, Others Probed For Pornographic Cartoons (Chinese article)
  • Social Security Fund Buys 640 Mln Citic Securities (HKEx: 6030) Shares In Tie-Up (Chinese article)
  • Baidu (Nasdaq: BIDU) Acquires Local Japanese Advertising Firm PopIn (Chinese article)
  • Shunfeng (HKEx: 1165) to Boost Suntech Solar Factory Capacity by 1 Gigawatt (English article)
  • Indonesia’s Bank Windu Says Pursuing ‘Corporate Action’ With CCB (HKEx: 939) (English article)

News Digest: June 4, 2015

The following press releases and media reports about Chinese companies were carried on June 4. To view a full article or story, click on the link next to the headline.
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  • Alibaba (NYSE: BABA) To Invest 1.2 Bln Yuan In Financial Newspaper CBN (Chinese article)
  • BYD (HKEx: 1211) To Raise Up To 15 Bln Yuan Through New A-Share Issue (HKEx announcement)
  • LeTV (Shenzhen: 300104) to Invest HK$6 Bln in Hong Kong TV Market (English article)
  • Ctrip (Nasdaq: CTRP) Says No Longer Wants M&A With Qunar (Nasdaq: QUNR) (PRNewswire)
  • European Business Lobby Slams China’s Draft National Security Law (English article)

CELLPHONES: LeTV Raises Funds, Lenovo Changes Mobile Chief

Bottom line: LeTV’s impressive first fund-raising for its new smartphone unit reflects big hopes due to its earlier success with Internet TVs, while Lenovo’s replacement of its mobile chief reflects concerns about its smartphone unit.

LeTV mobile unit raises big cash

A trio of new smartphone stories are highlighting rapid changes in the highly competitive landscape, where a steady stream of new entrants is creating constant challenges for existing players. Many of the newest entrants aren’t really worth mentioning, as they come from state-run backgrounds and have little or no chance of success.

That’s certainly the profile for construction equipment maker Sany Heavy (Shanghai: 600031), which has no place in this smartphone race but has just unveiled its inaugural model anyhow. Meantime, the industry’s hottest new entrant is online video high-flyer LeTV (Shenzhen: 300104), whose newly formed mobile unit Leshi Mobile has just raised a cool $400 million in its first funding round. Finally there’s the struggling Lenovo (HKEx: 992), whose failure to make a strong name for itself in the space despite numerous advantages may have prompted the departure of its mobile division chief. Read Full Post…

MEDIA: LeTV Overvalued With CEO Sale, Cheap Share Placement

Bottom line: LeTV’s plans to raise new funds at a big discount and for its CEO to sell a big block of his shares reflect their belief that the company’s stock has become overvalued and could be due for a correction.

LeTV plans private placement

Online video superstar LeTV (Shenzhen: 300104) is in a couple of headlines that reflect the recent meteoric rise of its stock, with word that it’s planning a major new share placement as its CEO gets set to sell a big chunk of his shares in the company. Both news bits come amid a rally that has seen LeTV shares soar 5-fold since the start of this year, amid a broader huge rally for China’s stock markets. They also come as LeTV embarks on a major expansion that will take it beyond its core video products into a range of new areas including smartphones and smart cars. Read Full Post…

News Digest: May 27, 2015

The following press releases and media reports about Chinese companies were carried on May 27. To view a full article or story, click on the link next to the headline.
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  • LeTV (Shenzhen: 300104) to Raise 7.5 Bln Yuan Through Private Placement (English article)
  • JD.com (Nasdaq: JD) Inks 10 Bln Yuan Deal With Huawei Honor Smartphones (Chinese article)
  • Ctrip (Nasdaq: CTRP) Announces Additional $250 Mln Investment by Priceline (PRNewswire)
  • Amazon (Nasdaq: AMZN) Enters Online Grocery Business With 5 Chinese Partners (Chinese article)
  • Qihoo 360 (NYSE: QIHU) To Increase Stake In Coolpad (HKEx: 2369) JV (PRNewswire)

MEDIA: CCTV Takes Aim At LeTV, JD.com

Bottom line: CCTV’s new attacks on LeTV and JD.com reflect its growing assertiveness to counter the rise of new media, and could become more frequent in the months and years ahead.

CCTV takes aim at LeTV, JD.com

The rapid rise of new media is posing a serious challenge to China’s traditional media, which is perhaps partly behind a couple of headlines that have state-run broadcasting giant CCTV leveling separate attacks against online video high-flyer LeTV and e-commerce giant JD.com (Nasdaq: JD). The first case has seen CCTV sue LeTV for copyright infringement related to its popular Lunar New Year’s eve TV program. The second has CCTV airing an investigative report accusing JD.com of offering refurbished iPhones over its site that used unauthorized components, causing some to break down. Read Full Post…

CELLPHONES: LeTV Sells Out, Lenovo Posts Loss, ZTE Eyes US

Bottom line: LeTV’s strong smartphone launch shows that stiff competition in China won’t ease soon, which could push Lenovo’s mobile operations further into the red and prompt ZTE to further lighten its efforts in the market.

LeTV smartphones make strong debut

A series of smartphone items are in the headlines as we close out the week, spotlighting the tough situation in a China market that is at once the world’s largest but also extremely competitive. That competition just got a bit louder, with the first headline that says new arrival LeTV (Shenzhen: 300104) debuted quite strongly with when its first smartphone models went on sale this week. Meantime, industry stalwarts Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) continue to reflect the stresses of selling in China, with the former posting a big loss for its mobile business last year while the latter continues to lighten its reliance on the market by looking for growth in the US. Read Full Post…

INTERNET: Alibaba On M&A Steroids With New Series Of Deals

Bottom line: The accelerating pace of deals by Alibaba and its founder Jack Ma could be cause for concern, potentially overwhelming the company and Ma and creating headaches as they work to integrate so many new tie-ups.

Alibaba in new deal frenzy

It’s no secret that e-commerce giant Alibaba (NYSE: BABA) has been on a buying binge over the last 2 years, snapping up billions of dollars worth of smaller companies and forging new alliances as it tries to get into just about any Internet and media business it can find. But even a veteran industry watcher like myself is getting dizzy this week by the accelerating series of deals, which has seen the company and its charismatic founder Jack Ma in at least 4 headlines involving major new tie-ups in a wide variety of spaces.

One of those is coming in the logistics space, with Alibaba announcing its purchase of a stake in a major Chinese parcel delivery service. Another comes in entertainment, where the company is reportedly in talks for a smart TV joint venture with PC giant Lenovo (HKEx: 992). Yet another deal is in finance, with Jack Ma reportedly buying a stake in the Hong Kong-listed Reorient Group (HKEx: 376). And all of those deals are coming a day after media reported that Ma has become a new investor in the sports entertainment unit of online video services high-flyer LeTV (Shenzhen: 300104). Read Full Post…