58 City CEO Yiu Jingbo: will not buy net

Absrtact: We won't buy a company that doesn't make sense. Asked whether the city will consider the acquisition of net, Yiu Jingbo answered very resolutely, net user is a subset of our users, the merchant is also our subset, the product is copy us, the acquisition of this

"We're not going to buy a company that doesn't make sense. Asked if 58 of the city will consider the acquisition of net, Yiu Jingbo answered very resolutely, "net users are a subset of our users, the merchant is our subset, the product is copy us, the acquisition of such a company does not make any sense." ”

58 City CEO Yiu Jingbo

July 24, the author visited the North American International Business Center in the 58 city headquarters. and domineering business center name does not match is, 58 the main building appearance of the city is very cock silk, inside decorate also have no beauty to say. Not only let people sigh: are listed, Yao boss should also consider changing a little tyrants office environment.

In addition to dialogue 58 with the city's star CEO (several times TV) Yiu Jingbo, a line of people are responsible for recruitment, real estate, car three product line of Wang Yi, cherlin, Xu Guipeng in-depth discussion. Gossip less, into the material link.

Won't buy net

Recently, the media have often helped old Yao out of strategies to encourage 58 of the city to buy the biggest competitor, net. One example that we often use to explore the feasibility is: In early 2012, more than a year after landing at the NYSE, Youku acquired a rival potato that had been a hit with his own.

Last October 31, 58 of the city officially landed in the NYSE, leaving net behind. Now 58 deep pockets, Yiu Jingbo claims to take 1 billion yuan for external mergers and acquisitions, why not like the Youku annexation of potatoes, the net income under the under? If the deal can be achieved, you may no longer have to look at this magical site in a variety of media and have a fight with all the sites.

However, this sounds like a good idea, Yiu Jingbo seems not too cold. "We're not going to buy a company that doesn't make sense. "He answered very firmly," net users are a subset of our users, the merchant is our subset, the product is also copy us, the acquisition of such a company does not make any sense. ”

Indeed, 58 of the city and net customer groups and business shape similarity is too high, it is difficult to achieve 1+1>2 effect. In general, a company's acquisition of another company may be due to several considerations:

1, access to a larger user groups, or cover a wider geographical area. It is clear that 58 of the same city and net of the user group and geographical distribution is highly coincident;

2, to obtain the advantages of the latter product, technology, or human resources. Products and technology is not said, the classification of information on the site's internal technical content itself is not high, external long and too alike, there is no difference can say. As for human resources, 58 of the city currently in the country more than 380 cities have more than 3,000 in charge of the ground to promote the operation of personnel, if the net of this group of people and come over, the human cost of a sharp rise, and the overall number of merchants did not increase, it is not cost-effective. Of course, mergers and acquisitions may lead to 58 of the city's bargaining power for merchants to rise, but also less than twice times, unless 58 also imagine SouFun as a total boycott;

3, malicious acquisition. Yiu Jingbo seems not so bad.

So, the 58 acquisition net this kind of thing, everybody still do not continue to fantasize, Yiu Jingbo said: "There is no doubt that we will be alone in the future." "The implication is that in the competition to kill net, and will not listen to you fooled when the money spent wrong."

So, 58 of the city's 1 billion yuan will spend the place? Yiu Jingbo says more attention will be paid to innovative companies that do local services, such as those focused on more detailed categories. In short, 58 of the city to do is a large platform, its own lack of energy to do all the breakdown of the category are done, so to use acquisitions to complement this short board.