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…
I don’t usually have many positive things to say about Unicom (HKEx: 762; NYSE: CHU), China’s second largest mobile carrier that has been in a state of management gridlock for most of the last 4 years after its formation through the merger of 2 smaller telcos. But I commended the company earlier this year for its stance on WeChat, the popular mobile messaging service operated by Internet giant Tencent (HKEx: 700), and am praising it once again for its new market-oriented tie-up with WeChat. At the same time, we’re seeing other interesting news on the WeChat front with word that Alibaba has recently stopped offering its e-commerce services over the popular social networking (SNS) platform. Read Full Post…
After a false start earlier this year following their landmark equity tie-up, top web portal Sina (Nasdaq: SINA) and e-commerce leader Alibaba are reportedly preparing for a second bid to combine online shopping with social networking. This second initiative involves the roll-out of a completely new platform that will try to bring Alibaba’s e-commerce services to the more than 500 million registered users of Sina’s popular Weibo microblogging service, often called the Twitter of China. We’ll have to see the actual product before drawing any major conclusions, but I do think this approach looks better than other initial clumsy efforts after the pair announced their tie-up back in April Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 31. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Apple (Nasdaq: AAPL) CEO Cook Visits China Telcos As iPhone Sales Drop (Chinese article)
Sina (Nasdaq: SINA) Weibo, Alibaba to Launch Social E-Commerce Platform (English article)
Suntech (NYSE: STP) Adds 2 New Board Members (PRNewswire)
Glaxo (London: GSK) Sacks 100 Chinese Sales Reps in Bribery Case (English article)
Huace Film (Shenzhen: 300133) To Buy Croton Media for 1.65 Bln Yuan (English article)
Consolidation in China’s crowded Internet is moving ahead full steam these days, with the latest reports indicating that online matchmaking site Jiayuan.com International (Nasdaq: DATE) may be the latest takeover target. If the reports are true, the talks would mark the latest tie-up that has seen cash-rich Internet giants including Baidu (Nasdaq: BIDU), Alibaba and Tencent (HKEx: 700) embark on a recent buying frenzy for undervalued and cash-starved smaller Internet firms. Jiayuan certainly seems to fit that description, as the company’s shares have languished since its IPO 2 years ago. Read Full Post…
A small brouhaha has broken out in the Chinese media these last few days over what looks like perhaps the clumsy beginning of a takeover attempt involving Zoomlion (HKEx: 1157; Shenzhen: 000157) and Sany Heavy (Shanghai: 600031), China’s 2 top construction equipment makers. I’m not quite convinced that this was a real takeover attempt, as the numbers involved are quite small. But whatever happened, the instance was a reminder that Chinese firms are still quite clumsy at unsolicited M&A, especially the hostile type. Read Full Post…
Sina’s (Nasdaq: SINA) Weibo microblogging platform is moving in many different directions these days, this time adding a major video component through a new tie-up with online video leader Youku Tudou (NYSE: YOKU). This new tie-up looks smart in some ways, as it pairs 2 leaders in online entertainment spaces that look complementary. But at the same time, Sina needs to be careful in its zealous campaign to commercialize Weibo, or risk alienating its millions of users and eventually driving them away to a growing array of rival products entering the market. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 11-13. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China Eyes EU Luxury Cars As Trade Dispute Rages (English article)
Apple’s (Nasdaq: AAPL) iOS 7 Will Play Nice With Tencent, Sina Weibo (English article)
Censorship Lawsuit Against Baidu (Nasdaq: BIDU), China Gets New Life In US (English article)
China Pulls ‘The Croods’ From Cinemas 2 Weeks Early (English article)
Camelot Information Systems (NYSE: CIS) Announces Unaudited Q1 Results (PRNewswire)
The following press releases and media reports about Chinese companies were carried on June 8-10. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
UK Lawmakers Say Huawei-BT (London: BT) Deal Exposes Flawed Security Controls (English article)
Youku Tudou (NYSE: YOKU), Sina (Nasdaq: YOKU) Collaborate On Content Promotion (PRNewswire)
Amazon (Nasdaq: AMZN) Kindle Reader Makes Formal China Launch (Chinese article)
Sohu’s (Nasdaq: SOHU) Sogou Denies Reports Of Acquisition By Alibaba (Chinese article)
US Food Workers Union Comments On China Poultry Plant Disaster (Businesswire)
I have to commend Alibaba founder Jack Ma for his ability to keep his company in the headlines with growing frequency lately, as he seeks to build hype in the run-up to the e-commerce leader’s massive IPO. At the same time, however, Ma runs the very real risk of media burnout if his company continues to flood the market with this steady stream of news bits, even if many of them are truly newsworthy. Read Full Post…
The inevitable has happened as soaring discount online retailer Vipshop (NYSE: VIPS) finally became too irresistible a target for short sellers, who sensed the company’s stock had become a little too overinflated. This kind of attack doesn’t surprise me at all since Vipshop shares have risen more than 7-fold over the last 8 months. I’m not a big fan of short sellers in general, but I might even have to commend the attacker in this case for spotting an easy target and most likely making some big money with relatively minimal effort. Read Full Post…
