Comment on Internet acquisition chaos

In recent days, around the Internet giant’s acquisitions, there have been endless rumors of rumors and various rumors that are difficult to distinguish between authenticity and falsehood. In fact, most of the rumors are inevitably unfounded, but they also contain many apocryphal elements. Even if the manufacturers want to achieve certain strategic goals and deliberately let go of the wind, the following writer tries to show you how to analyze the recent chaos.

Iqiyi + PPS: The Life of Parents, The Word of Matchmaking
The merger and acquisition of iQiyi and PPS have all been completed. Due to its completeness, the outside world can further analyze its reasons.

As early as the time when Iqiyi and PPS were merged and merged, the founder of PPS, Zhang Hongxuan, jumped out and denied the authenticity of the news. However, the average person perceives that Zhang Hongshun’s words did not directly deny the rumors of Baidu’s acquisition. Many of these discerning people have It is the "secret work" of both parties.

iQiyi integrated PPS, but the money was Baidu; PPS is a startup company, but after many rounds of financing, investors are very hopeful that they will get a reasonable price, which will make the promotion of this negotiation a huge problem. It is reported that the deal was already planned as early as a year ago. However, due to the need to balance the interests of all parties, it was not until this year that the deal was discussed.

As we all know, PPS has played a major role in the mobile sector and UGC content-based love channel since last year. Its intention is to use its emerging business to enhance its valuation to sell a good price. Since last year, PPS has encountered many copyright attacks. Intrinsic bottoms with investors' interest disputes, among which there are also some picks. The sniper against piracy is mostly for competitors to hype themselves, and to suppress the means of PPS valuation; for investor interest disputes, there is no lack of competitor's means of mulberry, after the advertisers and media people pre-existing its negative factors.

One transaction, mergers and acquisitions, less than the last minute, both parties need to be tense, I think the joint presentation of iQiyi and PPS, Xu Weifeng and Gong Yu et al. relaxed expression is not contrived, but really put down the heart of the big stone, The infighting behind it is also a last resort.

Sogou for PPTV?

PPS sought to sell, and PPTV with corresponding video business and brand influence was also put on the shelves to judge, but this time the relevant rumors appeared to be a lot of explosive. Many internet giants were involved. The current rumor is roughly that Sohu wants to sell Sogou in exchange for funds to purchase PPTV. Sogou buyers include Tencent, 360, and Baidu.

Let's talk about Sogou. Recently, it was rumored that Baidu's $2 billion bid for Sogou to increase its market share. However, in the eyes of the outside world, this is mostly self-promotion of Sogou. Last year, Sohu repurchased Sogou shares held by Ali. Sogou’s valuation was less than US$300 million. Now it’s transformed into a US$2 billion valuation. Potential buyers will not be moved by it. However, the success of Sogou lies in its involvement of the giants such as Baidu, Tencent, and 360, which have successfully used their various valuation relationships to increase their valuations.

At present, the author gets the news that Sohu will not fully sell Sogou. At most, it only sells some shares to seek strategic cooperation, or even completely self-promotion. Among the many buyers, Baidu is absolutely impossible.

In contrast, another major player in this acquisition, PPTV, currently has the biggest selling point in terms of its leading mobile market layout and 8 years of branding. Brand advertising revenue is much higher than that of PPS, and the parent company sits in Shanghai, in the south. The foundation is deep, this is complementary to the Sohu video. In addition, PPTV is currently in the leading position in the mobile video commercialization process. Its 2013Q1 advertising revenue has exceeded 2012, and it is of great strategic significance in the future video market of mobile video engine flag.

However, it is not difficult for a searcher looking for PPTV's recent news to find that the shortage of fund chain, piracy, and other issues were suddenly filled with eyeballs. The source of the search came from the anonymous submission of second-tier media. Recall that PPTV's problematic report was so intensive before the acquisition information was disclosed? Why does the crusade against piracy and other issues just now? The reason behind this is nothing more than the operation behind the stakeholders.

From a competitor's point of view, as long as you are better than I am, I can't stand it. It's best to mess up your trades. You can't mess it up and leave you uncomfortable. In addition, once the transaction is shaped, PPTV's advantages in user groups in the South and mobile video share are exactly complementary to Sohu's video. This is undoubtedly a brand-new backbone. As an acquirer, it is intimidating by some means to suppress the confidence of PPTV investors. Depressing valuations is equally common.

Comments: The purchase of this matter, the price is close together, the safety of life, such as Ali, the acquisition of Friends of the League, Tencent to buy some of the shares of Diqi taxi, etc., are completed in quietly. However, if the birth is not uniform, the relatives and brothers must make good use of the accounts, and it will cost a great deal of money to scribble up, and in particular, the words of the parents will make the match, that is, both sides have the most behind-the-scenes operating forces. Even if both sides of the merger and acquisition are happy, "one wants to buy, one wants to sell", but it is essentially different from "one wish and one wish." Zhou Yu hits Huang Gai. If you are safe, it is a sunny day. The relationship between the two parties is more filled with the mentality of “if you are well and spare tires are old”, the interests are first.