Sina "Chao-built"

Keung

Chao made the second big thing in Sina's history.

Sina's first big event is the merger of the four-sinanet, which is December 1, 1998, the birth of Sina, the Internet began to enter the territory of China's media industry.

10 years later, through the acquisition of the core outdoor advertising business, Sina out of the portal competition in the Red Sea, began to restructure the Chinese media industry map. Since then, no advertiser can ignore the existence of Sina.

　　Change

1999, after the birth of Sina, once became the spokesperson of China's internet industry. When NetEase, Baidu, Tencent, Sohu and many other companies rely on other businesses to grow up, Sina's business in recent years has been "thin body", has become a pure portal network.

At this time to change, for Sina, more reasonable. After the completion of this round of acquisitions, the two companies will be combined to report the media revenue into the Sina net. According to the 2007 annual report, the total media revenue is 506.6 million U.S. dollars, compared with 2006 of 211.9 million U.S. dollars, 2007 annual net profit of 144.4 million U.S. dollars. According to the Sina 2007 annual report, the annual revenue amounted to 246.1 million U.S. dollars, according to the U.S. General accounting standards, SINA achieved net profit of 57.7 million U.S. dollars.

China Ecapital Corporation Capital CEO Wang Ran said that Sina's acquisition can be seen as the expansion of its own media assets and rich in the future for their advertisers to provide a better integrated marketing platform. Wang ran calculates, according to 52% of sales, the distribution of the business can reach 420 million U.S. dollars, plus Sina's own 260 million U.S. dollars of sales, Sina sales can reach 680 million U.S. dollars. Public data show that CCTV in the 2007-year advertising revenue breakthrough 10 billion Yuan Mark, 2008 Gold resources advertising bidding has exceeded 8 billion yuan.

After the acquisition is completed, Sina will become the second largest advertising platform in China after CCTV. Plus the distribution of media revenue and profits, Sina, whether the revenue or net profit will be a big increase.

Luebbe, chief analyst at the consultancy, said that this would provide both beautiful financial statements and the sustainability of Sina's advertising strategy.

In an analyst meeting held yesterday, Chao pointed out that the merger will integrate both the network and outdoor advertising advantages, share users, gain cross Media advantages, create new media solutions, and form the advantages. Cao said that this has a catalytic effect on both sides ' income.

In this way, Chao said, two companies have more likely to play a synergistic role. When the Sina agent can not reach, the audience in the country's advertising sales force could be supplemented.

Chao also said that Sina currently has 2,500 employees, the media has more than 3,000 employees, of whom 2000 are engaged in sales, management work, 1000 people engaged in asset maintenance work. The total number of new companies will be more than 5500 after the merger.

　　Blue Ocean

In China's internet companies, Sina used to be the boss. But now, although the brand is still in the forefront of visibility, performance development has remained stable, but has entered the conventional development stage.

In recent quarters, due to the success of online games, Sohu has been leading Sina in performance, and in Sina's core advertising business, in addition to the challenges of Sohu, Sina will also welcome Tencent's Step-by-step press.

After countless times "slimming", Sina's future becomes the chief problem in front of Cao Chao and other senior leaders.

Before Chao became CEO in 2006, Sina had tried many things in terms of tourism, online gaming, instant messaging and search, but most failed. According to Internet analyst Luebbe, how to find new business growth is the key to Sina's ability to reshape its competitiveness.

In fact, Chao long believed that Sina has recognized its core competitiveness, that is content and advertising, in addition to these, Sina is not good at anything else.

and mergers and acquisitions of the outdoor digital advertising business, in addition to network advertising, Sina suddenly entered a new blue sea, become a new media platform.

In fact, the current division of the business has begun to decline. According to a former senior executive of the media, the focus of all the business is only the framework and the development of LCD advertising business is relatively good, other such as store advertising, itself there is a congenital model of the problem, and Internet advertising, golf course Advertising division of the original commitment to create a full media form, Its media value has been challenged in the current situation.

Luebbe that although the business model of the public has begun to decline, but with the strong content of Sina after the combination of continuous optimization between the synergies, may be able to save these businesses, so that Sina into a new blue ocean.