360 return to a A-share, Zhou Hongyi to bat and millet plugging

Lined up in the list of domestic listed companies, finally more than Qihoo 360 name.

Qihoo 360 announced today that the company's board of directors has received a privatisation offer from chairman Zhou Hongyi, Citic Securities and its subsidiaries, Golden Brick Capital Private Equity Fund I L.P, huaxing Capitals or its subsidiaries, Sequoia Capital and its affiliates, per share ADS quotes $77. In an internal letter, Zhou Hongyi said:

The company ended last year at the end of the total assets of 20.6 billion yuan, cash more than 10 billion yuan, the overall financial health ... 360 Current market capitalization of $8 billion does not fully reflect the value of 360 of the company ... Privatization is a prudent decision that we have repeatedly considered in the current global and Chinese capital market environment.

Zhou Hongyi: 360 was underestimated.

For the "later" in any field, the choice of a large company with a similar pattern to its "shadow" is the quickest way to be recognized by the capital market. But in the United States, Qihoo 3,601 can not find the object of the target. None of the American capital Markets has had a huge success as an internet company that started with antivirus.

And starting from 360, he has a pair of targets in the capital market: Baidu.

360 Search since the launch of a good performance, by the beginning of this year has accounted for the domestic search market 30% of the market share. However, its revenue share in the search market is less than the user's share, and it seems to have been unable to find a good enough commercial rhythm.

That makes 360 of the stock price hovering. In 2013, it was argued that the fourth seat after BAT in the Chinese Internet should be Qihoo 360 or Xiaomi, when both had a market capitalisation and valuations of about 10 billion respectively. By the end of last year, Xiaomi had announced $45 billion worth of $1.1 billion in financing, compared with a 360 per cent market capitalisation of about $7 billion.

Recognition in the capital market is not high enough, the direct result is 360 long-term "lack of money." According to Sohu IT reports, 360 of the investment style to "stingy" mainly, the investment amount is usually over tens of millions of U.S. dollars. This can be seen in the case of its investment in 9158, Dee and invest in the long-bang digital IPO.

This is a dead loop. If you don't have enough cash flow, you won't be able to carry out large-volume strategic acquisitions, and you'll be hard-hit in the capital markets once you miss the opportunity to inflate your business quickly through mergers and acquisitions.

In less than half a year before buying a stake in the cool, Qihoo announced the issuance of convertible bonds 3,602 times, worth $900 million. It was then added to $1.035 billion.

BATM, be careful.

Although the 360 privatization statement did not explicitly mention going back to domestic listings, it was almost without suspense the next step.

Anti-virus, browser, mobile phone assistant, game transport, application distribution ... From PC to Mobile, Qihoo 360 is almost all of the major businesses that the US capital markets do not understand, but China's capital markets ' favorite Internet business. So after the return to a-share, Qihoo 360 of the market value is bound to rise, which is no suspense.

The only suspense is, how much?

We can look at "the Shadow of Millet", le vision. The latest market capitalisation of the network is 125.7 billion yuan, which does not include sports, music, music, and video. With that in mind, le Vision is already touching the 30 billion dollar side. This and the shadow of the "main", the valuation of the 45 billion-dollar millet, the difference is not too big.

A bit more intuitive: according to the Lego 327 times-fold ratio of earnings, Qihoo 360 after the return of a-share, the market value will exceed 600 billion yuan. In this year's China capital market, we have witnessed the storm technology in 3 months, the share price soared more than 40 times times the story, there is no reason to believe that "only the sky is the limit of 360."

A rich 360, how big a threat?

Millet just put the lowest end of the red rice 2A price to 499 yuan, Zhou Hongyi followed, the great God reduced to 399 yuan. Xiaomi announced that the red rice note to reduce to 699 yuan, Zhou Hongyi on the same price on the introduction of a higher-profile big God F2. The "pregnant model" of the 360 router also sparked a spat between Xiaomi and millet. After the addition of ammunition, the Zhou Hongyi can make a more aggressive attack on millet.

We can imagine that two years ago in the summer, 360 have enough cash to win Sogou, to obtain more than 30% of the market share, then the search engine market today will be what? Assuming that at the time 360 had enough cash to take 91 faster, 360 would be the absolute first place in the app distribution market.

But, no if.

So over the past two years, it has been said that Zhou Hongyi is old. But Zhou Hongyi says:

like me so stubborn people, will come back, hehe.

360 return to a A-share, Zhou Hongyi to bat and millet plugging