Most of the world is buzzing with speculation about what prompted a top Google (Nasdaq: GOOG) executive to defect to Chinese smartphone maker Xiaomi, but few are giving much credit to one of China’s hottest tech companies for luring Hugo Barra to join its ranks. Most media are focusing instead on an apparent love triangle between Google co-founder Sergey Brin and an unnamed current love interest, who just happens to be an ex-girlfriend of Barra. (English article) But instead, I would venture to guess that Barra’s departure has less to do with this titillating love story, and more to do with Xiaomi’s aggressive global aspirations, including its recent receipt of $2 billion in new funding — the most ever for a privately funded China tech firm. (previous post) Read Full Post…
When is the merger of search sites operated by 2 major media and a top telco not a very big news story? The answer: When all 3 of those companies are big state-run behemoths that have a poor track record for innovation in the fast-moving Internet world. That’s my personal assessment on reading news that Panguso and Jike, the respective online search sites of the Xinhua news agency and People’s Daily newspaper, have merged their operations to form a new company. (English article) In addition to its Xinhua backing, Panguso counts dominant mobile carrier China Mobile (HKEx: 941; NYSE: CHL) as its other major stakeholder. Read Full Post…
Just days after making its first acquisition in China under a new CEO, faded US search giant Yahoo (Nasdaq: YHOO) is reportedly in talks to re-acquire the Chinese rights to its brand from former China partner Alibaba. The reports, if true, would be the latest signal that Yahoo is gearing up for a major new attempt to become a player in China’s huge Internet market, following 2 failed previous attempts. If such a new foray really comes, Yahoo would join other major US Internet giants such as eBay (Nasdaq: EBAY) and Google (Nasdaq: GOOG), which also look set to make big new pushes into China following earlier failures. Read Full Post…
Yahoo makes first China purchase with Ztelic under new CEO
If Yahoo’s (Nasdaq: YHOO) new chief executive Marissa Mayer wanted to confuse the market about her China strategy, she’s doing a good job with the company’s latest move in the market. Just 3 months after shuttering its China email service, in what looked like the prelude to a withdrawal from the market, Yahoo has announced its purchase of a Chinese R&D startup. (English article) In all fairness, Mayer has only been on the job for a year and these kinds of little strategic moves are relatively common for incoming executives. But this kind of mixed signal could also auger a confused strategy in China, similar to Yahoo’s previous strategy that ultimately led to its failure twice in the complex market. Read Full Post…
I’m not the biggest fan of software security specialist Qihoo 360 (NYSE: QIHU) due to its sometimes dubious business practices that often result in lawsuits and other complaints against the company. But I do have to admire the creative ways it finds to secretly install its products on people’s computers, which I suspect is the main motivation for its newly announced wireless router that carries a very low price tag. Of course all this stealth activity is just slightly ironic for a company like Qihoo, whose core product is software that’s supposed to make users’ computers more secure. Read Full Post…
Google’s new “good value” site shows continued China commitment
Six months after abruptly shuttering its China-based e-commerce search business, global Internet titan Google (Nasdaq: GOOG) is reportedly rethinking that decision with plans to re-enter the market. The decision looks like the latest acknowledgement by Google that China is simply too big to ignore, following its high profile shuttering of its China-based general search business in 2010 after a spat with Beijing over censorship. If this latest story is true, the next logical question might be whether we could see Google return to the general China search market, where competition is suddenly starting to heat up after years of dominance by market leader Baidu (Nasdaq: BIDU). Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 1-3. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Google (Nasdaq: GOOG) China To Resume Online Shopping Search Service – Source (English article)
Lenovo (HKEx: 992) Proposes Offer Of Dollar-Denominated Debt (HKEx announcement)
China Mobile (HKEx: 941), Vodafone Withdraw Myanmar License Bid (HKEx announcement)
Banks Said To Lend China’s Shuanghui $7 Bln For Smithfield (NYSE: SFD) Deal (English article)
China Mobile (HKEx: 941) New Jego App Eyes WeChat, Overseas Users (Chinese article)
After repeatedly criticizing China’s anti-monopoly regulator for its slowness in approving global M&A, I finally have to congratulate the Chinese Commerce Ministry for improving its record with the relatively fast approval of a major deal. In this case, the ministry has given its official approval just over 3 months after Warren Buffett’s Berkshire Hathaway announced it would partner with private equity firm 3G Capital to buy US ketchup giant H.J. Heinz (NYSE: HNZ) for $28 billion. Read Full Post…
A new crackdown on Chinese websites that traffic in pirated material is coming as welcome news to China’s struggling online video sharing sector, where companies are still struggling to find success in a tough market. But while it’s easy to blame the pirates for their woes, China’s money-losing video sharing sites are also simply victims of choosing a sector where earning profits is extremely difficult if not impossible. That reality is reflected in the fact that sector pioneer YouTube still struggles to earn money, even some eight years after it was first established. Read Full Post…
When in doubt, regulate. That seems to be the growing attitude in Beijing these days towards China’s tech sector, following the latest media reports that one government agency is getting ready to tackle the problem of mobile spam, while another prepares rules for the newly emerging industry of apps that help people call taxis. I do agree that many problems like mobile spam need to be controlled, and that emerging sectors like taxi apps could always use some guidance to promote orderly development. But China’s growing tendency to try to regulate all things in the tech realm is a bit worrisome, and reflects a broader national love of rules, regulations and bureaucracy. (previous post) Read Full Post…
The headlines are buzzing today with news that Yahoo (Nasdaq: YHOO) will formally close its China-based email service, in the latest sign that the company may soon withdraw from China completely. Such a move wouldn’t come as a big surprise, since Yahoo’s recently named new CEO has been making some major changes in a bid to revive the struggling former Internet pioneer. One of those moves is likely to see Yahoo withdraw from many of its secondary markets to focus on its core operations in the US. Read Full Post…
