We’re getting a better picture of the latest online advertising trends with the recent release of earnings from 3 leading web portals, revealing a looming slowdown for names like Sina (Nasdaq: SINA), Sohu (Nasdaq: SOHU) and Phoenix New Media (NYSE: FENG). Sina and Sohu could offset the slowdown through growth in their newer businesses, which includes Sina’s Weibo microblogging service and Sohu’s search and video services. But everyone could also face more challenges from newcomers like Qihoo 360 (NYSE: QIHU), which is under intense pressure to start monetizing its highly-hyped and fast growing So.com search service. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 26. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Apple (Nasdaq: AAPL) Sues Chinese Government Over Siri (English article)
Tencent (HKEx: 700) Video to Announce M&A Deal in H1 2014 – Source (English article)
Lenovo (HKEx: 992) Needs 4-6 Quarters To Turn Motorola Profitable – CEO (Chinese article)
Phoenix New Media (NYSE: FENG) Reports Q4 and Fiscal Year 2013 Results (PRNewswire)
China Mobile (HKEx: 941), France Telecom Develop TDD/FDD-LTE Smartphone (Chinese article)
Shanda’s Chen throws in the towel with company sale plan
I’ve followed online entertainment entrepreneur Chen Tianqiao for quite some time now, and can completely understand the latest news that he may be ready to throw in the towel by selling his flagship company, Shanda Interactive Entertainment. I remember first running into Chen in Hong Kong back in 2004 at an investor event, shortly before Shanda become China’s first publicly listed online gaming company later that year. Shanda was briefly on top of the world as China’s top Internet gaming firm for a few years after that; but it has run into a non-stop series of headaches since then, causing its value to stagnate as it got passed by more nimble rivals like Tencent (HKEx: 700) and NetEase (Nasdaq: NTES). Read Full Post…
Leading web portal Sina (Nasdaq: SINA) is rushing ahead with plans to separately list its Weibo microblogging unit, with word that it’s taken the first major step towards a New York IPO by formally hiring investment banks for the deal. I’ve previously said Sina was likely to accelerate its listing plan, amid growing signs that Weibo’s growth was slowing and users were abandoning the service in favor of Tencent’s (HKEx: 700) more mobile-friendly WeChat. The latest quarterly earnings report just out from Sina adds further reason for pessimism about the upcoming IPO, showing Weibo remains highly dependent on advertising for most of its revenue. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 25. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China’s Sina (Nasdaq: SINA) Plans $500 Mln US IPO For Weibo (English article)
Shanda Interactive To Sell 5 Units To Alibaba For $3.2-$3.5 Bln – Sources (Chinese article)
ZTE (HKEx: 763) Launches Two New Firefox OS Phones in the ZTE Open Series (Businesswire)
Autohome (NYSE: ATHM) Announces Q4 and Full Year 2013 Financial Results (PRNewswire)
I don’t usually write about the same news twice in a single week, but in this case reports with new details on looming tie-ups involving 4 of China’s top e-commerce firms seem to justify an update. In the larger of the deals, the latest reports say top Internet firm Tencent (HKEx: 700) is nearing a deal that would see it buy 6-20 percent of JD.com, forging a partnership that would create a major new e-commerce contender to rival industry leader Alibaba. In the second update, 2 smaller e-commerce firms, Yihaodian and Dangdang (NYSE: DANG), have confirmed earlier reports that they will announce a major alliance early next month. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 21. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Tencent (HKEx: 700) In Talks For 6 Pct Of JD.com, No Agreement Yet (Chinese article)
InterDigital (Nasdaq: IDCC) Says Won’t Charge High Royalty Fees To Chinese Firms (Chinese article)
Genetically Modified Ingredients Found In KFC (NYSE: YUM) Soy Milk (Chinese article)
Reports of major new funding for online travel site Tongcheng are casting a spotlight on a sudden rise in competition for the sector, which for years was dominated by industry leaders Ctrip (Nasdaq: CTRP) and eLong (Nasdaq: LONG). The trend looks a bit worrisome to me, hinting at a new looming round of price wars and potentially some consolidation. Ctrip could well become a leader of such consolidation if it occurs, since the company now has a huge cash pile of nearly $2 billion following its raising of $800 million through a highly popular convertible bond offer last fall. Read Full Post…
UPDATE: Since originally writing this post, Tencent has announced it will purchase 20 percent of Dianping for an undisclosed amount. (company announcement)
Talk involving major new investments in online clothier Vancl and restaurant ratings site Dianping was buzzing through the blogosphere this past week, reflecting the many new partnerships that are quickly forming amid intense competition plaguing the overheated Internet space.
Vancl has been racing to find profits before it runs out of cash, and recently received a lifeline in the form of $100 million in new funding from a group led by Lei Jun, the marketing-savvy co-founder of trendy smartphone maker Xiaomi. Lei Jun and Vancl CEO Chen Nian engaged in a round of online banter this week on their microblogs that could hint at some of the new directions and tactics that Vancl will take as it searches for the elusive business model that can move it into the black. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 20. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Tencent (HKEx: 700) To Buy 20 Percent Of Restaurant Ratings Site Dianping (HKEx announcement)
Dongfeng (HKEx: 489) To Pay 800 Mln Euros For 18 Pct Of Peugeot (Paris: PEUP) (English article)
MIIT: China’s 4G User Base To Reach 30-50 Mln In 2014 (English article)
Xiaomi Enters Singapore To Kick Off Global Expansion (Chinese article)
Qihoo 360 (NYSE: QIHU) To Introducing Free Security Services To The World (PRNewswire)
Tie-up talk swirls around Tencent-JD.com, Dangdang-Yihaodian
It’s a new day on the Chinese Internet, which is as good an excuse as any to talk about rumors of the latest tie-ups in the overheated e-commerce space. One of the latest pieces of gossip has a partnership taking shape between JD.com and Tencent (HKEx: 700), China’s second and third largest e-commerce operators. The other has an alliance forming between Dangdang (NYSE: DANG) and Yihaodian, 2 smaller players at the bottom of the list of the country’s top 10 e-commerce firms. I’ll offer my own guess that there’s a 50-50 chance the first rumor is true, while chances of Dangdang-Yihaodian tie-up look much smaller, perhaps around 20 percent. Read Full Post…
