PPS speech right out of control: Investor game start-up team

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

Newspaper reporter Lowey Beijing report

Youku Potato Chairman Koo's video boss status may face challenges, and the challenger is the Chinese search for many years Robin Li. Since the end of last year, Baidu accelerated in the video field of action, first buy back its Archie art stake, further increase the holding status, and now to buy network TV well-known manufacturers pps. The Noisy Network video field appears to have a new pattern.

Shot PPS?

"It may have been pretty." "April 25, an industry personage in the network video industry accepts" Huaxia Times "reporter interview said.

What the person said, is that day industry rumors of Baidu acquisition of well-known network television manufacturers PPS. The news said that Baidu's acquisition of network television PPS has been basically heard, the acquisition price will be in the 300 million-400 million dollar range, and another news that the specific 350 million-400 million dollars between. The acquisition is considered to be the second largest takeover case in the domestic video industry.

April 25, "Huaxia Times" reporters to Baidu, Archie Art, pps tripartite verification, three parties have not confirmed. The former two said that there was no official news at the moment. PPS said, do not know, at present all work as ever.

Earlier, the shock of the domestic video industry merger case for Youku and potato merger. At that time, the merger was considered to be the video boss acquisition of the second, the new Youku Potato Group Network video users total coverage of nearly 80%, through the acquisition of potatoes, Koo has been the video boss of the flag firmly grasp in the hands.

But now it seems that the domestic video pattern is still changing, and now Li's shot of PPS is an example.

As we all know, Baidu's video business is mainly Archie Art in operation. Data show that Archie was founded in April 2010 by Baidu, in the industry to the Web page correct version of film and television drama content, founded when the U.S. private equity investment fund Providence Capital of 50 million U.S. dollars investment. At the end of last year, Baidu announced that from the Providence capital repurchase held by the love of the odd art stake, after the repurchase of the original possession of Archie 53% shares of Baidu has a greater share of Archie art. Baidu was holding a 53.05% per cent stake in Archie Art, according to a paper submitted to the Securities and Exchange Commission (SEC) in March this year.

Like other video sites, Archie has been performing poorly since its inception. According to Baidu's 2012-year earnings report, Archie Arts first three quarterly net losses of 86.543 million yuan, 108 million yuan, 130 million yuan, the fourth quarter, as a result of Baidu increased Archie Art will be its combined earnings, did not disclose the profit and loss situation alone.

PPS is a network of television client products, was born in June 2005 by the number of thunder, Zhang Hongyu Two research and development, that year September Xu Wei joined, officially entered the commercial operation, and in January 2006 formally set up a company, known as the world's largest network television service provider.

Data show that in July 2012, PPS clients to 32.21 million of the daily average number of users, leading the video client camp, beyond the second pplive more than 5 million, is the third popular 2.5 times times. In September of that year, PPS announced that the PC client installed capacity has exceeded 500 million, at the same time two quarter revenue of more than 180 million, the scale of the first super potatoes.

"The acquisition of PPS in order to accelerate the video business profit cycle, the video industry, such as the natural development of mergers and acquisitions, the profit forecast will still be postponed for 1-2 years, so Baidu has to buy back Archie Art Equity, the acquisition of PPS and a series of activities to accelerate the realization of new business profits." "For Baidu's action, Analysys international analyst Pang billion Ming April 25 to" Huaxia Times "reporter Analysis said," In addition, video as an important brand display advertising market, the future broad prospects will be Baidu's original search business, as well as Archie video business cross integration. ”

Video industry is shuffling

Looking back at the domestic video industry in recent years, after a long period of intense competition, the aggregation phenomenon appeared successively.

First November 2009 Grand Group of Friends of China (Nasdaq:hray) announced, and video site 酷6网 Equity merger, and then September 2011 Everyone announced that the company will be 80 million U.S. dollars wholly-owned video sharing site 56 net, followed by the domestic video field, the number one merger case, Youku merges potatoes.

"The new round of shuffling is about to begin, and eventually the industry will be left with no more than four major players, and the likelihood of Youku becoming 1/4 is finally over 50%." "Youku merger potato Day, Ecapital Capital CEO ran in its microblog so remind the industry," do not underestimate ' Teng hundred fox Wave ' (note: Tencent, Baidu, Sohu, Sina) The stamina, do not ignore the TV screen and user pay market. ”

Youku combined with potatoes, the industry generally believe that Sohu video, Archie Art, Tencent Video these three will become video "second" fierce competition. Surprisingly, 1.5 months after the combination of Youku and Tudou, April 24, the three companies suddenly announced a joint "video content Partnership" (cooperation: VCC) to collaborate deeply in copyright and broadcasting. The move was considered by the industry to be a sniper against youku potatoes.

Analysys International analyst said that the reporter analysis, "On the Youku potato will have an impact, especially in the future of the group of video site competition gradually fierce, the leading position of Youku potato impact." ”

Now Baidu's shot, just confirms the RAN previous analysis, Baidu's "stamina" to come. The market generally thinks, Archie Art main audience group in the one or two line city, and PPS by virtue of the first advantage and early client mode, already in the domestic two or three line or even three or four line city occupy huge installed capacity.

Pang Ming April 25 Further to the "Huaxia Times" reporter analysis, said, because Archie Art and PPS in the network video of the different camps, that is, the Web page and the client camp, although both in the mainstream business model are from advertising, but the client camp business model to expand the capacity of the web end of the flow of liquidity above, Therefore, the business model of the small differences will promote the business complementarity between the two, compared to the excellent soil model, client + Web business model to expand the capacity of the more powerful.

For Baidu this possible action, Koo April 25 external said, integration for the entire industry is a good thing, will bring the whole industry healthy and orderly development. He believes that video is a very broad field, no one company can integrate three nets, multiple screen integration and other fields can do well, Youku potatoes, although in the industry leader, but still need to cooperate with a lot of companies, "everyone is a competing relationship, there is cooperation, there is competition." ”

And for the development of the entire video industry, Pang billion a

Recently Baidu completed the network television operators PPS wholly-owned acquisitions. The economic Observer reported that Baidu in the way of cash acquisition, the bid and the previous outgoing 350 million U.S. dollars, the highest will not exceed 400 million U.S. dollars. "It's not possible that we were earning several billion last year. PPS Sales Staff Zhang Hong (alias) to be Baidu acquisition was very surprised. The employee's department has a team of only a few people, bringing tens of millions of of the company's advertising revenue each year. And it seems to her that this is only the edge of the PPS sector.

As Zhang Hong said, PPS continued to profit, there is no shortage of cash. But it doesn't matter anymore. Why should a "potential unit" for a large number of mobile users be sold? "Investors are anxious," admits one person close to PCCW. ”

Sprint IPO failed, after four rounds of financing, the equity has been diluted to single-digit number of PPS founding team has no autonomy.

At the same time, pps similar companies pplive to seek buyers news also intensified. PPLive chief executive Tao, in an interview with the Economic Observer, said that we would keep an open mind whether we would consider strategic mergers and acquisitions in the future or in the future.

As a former dominant user of the supremacy of the desktop player, pps and pplive have too many similar places: equity diversification, IPO stranded, financing multiple rounds. and hidden in the internet companies behind the capital of the big crocodile has been forced to the edge of the market.

The right to lose control of speech

Youku combined with potatoes played a scene in the PPS repeat. Prior to the IPO, the Potato CEO Wang had only 12.7% personal holdings, with the main body holding more than 80%. After the IPO, Wang's shares were further diluted to 8.6%.

And after four rounds of financing PPS, the founding team's equity has been fully diluted, and does not occupy a controlling power. "The executive team has less than 10% shares." A person close to PPS said.

At the beginning of 2011, PPS had attempted to launch the IPO. But in the middle of a slump, the Youku has not given overseas investors much imagination about the story of Chinese video companies. After the IPO, the stock market is fully ushered in the window period, including Thunder, Shanda Literature, easy media, including a number of domestic internet companies listed plans stranded.

Xiongfei, a video analyst, believes that listing is one of the best ways to return, both for investors and entrepreneurs, and to improve the brand and image of the company. Once the plan goes public, investors will opt out of mergers and acquisitions.

and Archie Art, Youku potato, music video network is different, PPS has game business income. And last year PPS in the game revenue of 2.3 billion yuan. In the copyright investment, PPS action compared to other video sites are much smaller. In addition, PPS Cumulative installed user has reached 500 million, monthly active a more than billion. According to the data of January this year, the monthly active number of PPS mobile phone was 27.5838 million.

Why should a "potential unit" for a large number of mobile users be sold? "Investors are anxious," admits one person close to PCCW. ”

The PPS management team, which lost control, did not seem to have much enthusiasm for the takeover. "PPS does not want to be sold at this time. People close to PPS said.

March 23, including PPS President Xu Wei, co-founder Zhang Hongyu, including many of the company's top executives have stood up to publicly refute. At that time, pps in an interview with this newspaper also said: "This is a rumor." ”

However, it is noteworthy that Gan Jianping, the managing director of Qiming Ventures, said in an interview with the company that it is normal for enterprises to develop to a certain scale and make any financial investment or strategic investment.

Qiming VC invested a total of two rounds of PPS. It is also the only video company that Qiming Ventures invests in the video industry. The money comes from the first fund set up in 2006 by Qiming venture. Gan Jianping told the newspaper, "We invest in the enterprise dilution of the shares are relatively large." ”

Like PPS, PPLive also experienced 4 rounds of financing. It is worth mentioning that pplive in the third round of financing the introduction of the Shanghai municipal Government investment. When the fourth round of financing, Sun Justice settled pplive board.

A person close to Baidu said, in contact with PPS, Baidu also contacted PPLive, but finally gave up. "The price of pplive is not only high, but also more dispersed. ”

No surprises.

However, the demands of PE are different.

Since the acquisition is based on cash acquisitions, it also makes the attitude of investors different. "PCCW is not short of cash," the person close to PCCW said. ”

This seems to be no longer the concern of investors. "In the domestic internet market, almost all the sectors have been oligopoly, the future of the Internet will appear more investment mergers and acquisitions." Gan Jianping thinks, this also gives PE exit one channel more.

Tao that some people choose to withdraw from the present, some people choose to continue to struggle. The general failure in the process of mergers and acquisitions is a management choice to withdraw.

The waves are scouring the sand. In a few short years, the domestic video site from the peak of more than 300, to today's more than 10, and the success of the capital market is rare.

Up to now, only backdoor century listed cool 6 media, Youku, three of potatoes landed in the United States capital market, le Vision network by way of a domestic a-share, become the first listed Internet video company.

As the first Chinese video company to go public in the U.S., Youku has not done a good role model.

Even after the combination of potatoes, the price of Youku is still not more than 20 dollars, which is not as good as the two separate shares. Today, Youku potatoes are worth about 2.8 billion dollars. Even so, Thor, managing director of Highland Capital, remains adamant that Youku's valuations are too big. He is not bullish on a business model that is not profitable by the massive burning of money.

Gan Jianping that the capital market to the domestic video site attached a lot of imagination, now these stories can not be achieved. More importantly, the domestic video market competition is fierce, there is no absolute gap between video sites. This has also led to a plunge in the share prices of listed video sites.

In the loss of the "concept" and "story" of the US capital market, video stocks bring investors the predictable growth "ceiling". Some listed companies due to financial fraud caused by the trust crisis, the short institutions frequently do aerial stocks, let some listed Chinese Internet companies listed plans stranded.

Plateau Capital has invested in two video companies, one is the main network TV leisurely network, the other is and Youku the same video site 6 rooms. Now the net is still in the loss, 6 rooms have been completely transformed into a video dating site.

Thor frankly, for the former has basically abandoned investment. The timely transformation of the 6 rooms was relatively successful. "We invested very early in the network and now no longer invests, it is hard to make money in this area." ”

Although the video industry is no longer the way investors look. But for the previous years of the project, PE/VC hope to be able to find a chance to exit successfully. But not all buyers are willing to take it.

In fact, prior to PPS has been and including Youku, potatoes, Sohu Video and music network, including the first-line video portal has had contact, but the negotiations failed.

The reason why PPS by Baidu and Archie Art Fancy, is because of mutual complementarity is very strong. Coupled with PPS in the mobile end of the entrance advantage is obvious, "PPS is integrated, to some extent, can speed up the process of Archie Art listing." "A person close to Archie art analysis.

The

says, "If you want to speed up your profits, the most important way is to enhance the advertising premium capacity, that is, brand value, accelerating industry integration is the most effective means to enhance the brand premium capacity, when the market for less than the need to appear, the demand side (ie advertisers) will pay more attention to the value of the media, thus providing new opportunities for the media The