360 Mergers and acquisitions A8 music rumors behind: Mobile Internet wave and music industry

360 to purchase Sogou thing has not settled, now and A8 music group outgoing gossip.





Media quoted the "Hong Kong Economic daily" reported that the transmission of A8 Media (hereinafter called A8) by the Qihoo acquisition, Qihoo plan to spend 200 million of dollars revenue A8 media, mobile phone music in the field layout, the media also today A8 the price of electricity shares rose 20.37% as anecdotal evidence.





in Monday, just outgoing 360 to acquire hand tour company Touch control technology News, touch control technology CEO Chenhao Zhi stand out to "not for sale" rumor; After a few days, 360 and then aimed at the music industry?





Zhou became Tong Pak-Fu Point Chou-Heung, "Beauty point again." But is it the ambition of Qihoo to plot the mobile-end market? or the music industry pioneer A8 Group is also in grabs? Among the falsehoods, the wave of mergers and acquisitions seems unstoppable to the music industry.





A8 's pains and ambitions





News, Titanium Media The first time to call A8 Music group responsible to verify this matter, get negative answer. Subsequently, today noon A8 Electric Media official issued a rumor, denied the acquisition rumors.





and the industry's comments naturally focus on the buyer and seller mentality. The Qihoo started to cast nets and "shopped" on a large scale?





Both sides are not without the truth, A8 the main reason for the loss of electricity 2012 years from the company's strategic level, that is, to give up the lucrative traditional SP business, strategic transformation, belong to the typical potential stocks, and for Qihoo 360来 said, lack of diversification strategy of competitive capital, Betting on mobile internet value-added services is worth a bo.





A8 in Hong Kong listed in 2008, the main business is in China to mobile phone ringtones, ring-back tone and interactive voice response music, such as the form of sales of music content. According to A8 's earnings in the first half of this year, A8 was profitable in the three years of 2009-2011, mainly benefiting from the explosion of SP business, and since 2012, the company has shifted from profit to loss. According to Hong Kong media reported that A8 in the end of June just released a profit warning, the company is expected to have a loss of 30 million yuan a year.





Titanium Media learned that A8 a few years ago, mainly due to the operator model of the SP business model, enterprises have been rapid growth. The popularity of smart devices has already ended the Golden age of SP business. So the transition is inevitable, last year's loss of pain is also a necessity.





A8 's attitude towards the outside world has been relatively low-key. A8 aspect of this was pushed on the wave of public opinion, quite a suspect in the gun. However, A8 's ambition to seek transformation has long been a news story.





A8 Market, said the titanium media, cut off the SP business, the company's strategic center, has shifted to the music industry chain and wireless internet in the rapid layout, although the unfortunate gun, but the rumored valuation at least let A8 the competitiveness and potential value of the media has emerged.





as the Hong Kong media evaluation, "there is a danger of its own machine." By the end of 2012, A8 's cash and cash equivalents amounted to $375 million; early this year, A8 Media music successfully completed the financing.





According to A8 insiders, "We have prepared enough ' bullets ', with 100 million of dollars in cash, to meet the challenges of the future." ”





Mobile Device Market growth, the user side of the rich demand is not the SP era can be compared, which is still in the transition period of A8, the challenge is not small.





Mainland Music industry policy environment is imperfect, the network music income is difficult to quantify, is the Hong Kong media questioned up to 68% of the premium (200 million U.S. dollars) the purchase price is higher than the two major reasons. Indeed, the network music market, due to the low threshold, the vast majority of enterprises in the cost of paying to the record company's copyright fee, the music of the legitimate program has been delayed.





now, the music industry, which is mainly under the copyright, expands the channel is the inevitable outlet. It is understood that A8 's original music network a8.com not only accumulated a large number of independent musicians, original music works, and has begun to help creators to promote their works.





A8 insiders said, A8 Media chairman and chairman Liu Xiaosong to employees of the letter requested, "adhere to their dreams!" Rely on their own entrepreneurial spirit to create great enterprises, not to ignore these rumors. ”





A8 began to invest in the multi-meter music in September 2011 (a year later A8 a 46.8 million Hong Kong dollar to increase the number of music shares, accounting for 37.4%), has accumulated 150 million users, has become one of the largest music service providers, but also become an important domestic app portal.





In addition, A8 's music recommendation Radio application Jing.fm also brings imagination to the music market. At the moment, this recommended music application based on intelligent fuzzy algorithms is also exerting its force on iOS and Android platforms to grab the eye of the trendy people and scramble for mobile high-end users.





A8, chairman and chairman of the Liu Xiaosong has publicly said that, in addition to creating the music industry chain, has also been involved in mobile phone game business, through its company "refers to travel-inch" engaged in hand travel agent operating business. The Pine Fund, which is owned by the parent company A8 Group, has also gained some influence in gaming, entertainment and mobile power companies. Arcade Three is a successful case of green Pine Angel investment.