9158: waiting while running

9158 is scheduled to be listed on the Hong Kong Main Board on July 9, with a proposed maximum capital raising of HK $ 1.6 billion. The IPO introduced a total of 10 cornerstone investors such as Qihoo 360, the subscription of shares accounted for about 38% to 45% of the shares for sale.

iDoNews industry insiders said No. 364 on July 3 (WeChat iLoveDonews)

Six months after its listing, Cornerstone investors' shares will be lifted. In the face of limited coverage of the cornerstone of investment, facing several risks and uncertainties (show floor mode bottlenecks and legal risks, YY and other competitors, the limited revenue into a dependent, PC users to the mobile transfer problem), 9158 in order to smooth Transition, successful transition, will have to race against time, but at the same time have to wait for the test of time.

9158 listing itself is a race against time. If you do not speed up the run-up, the capital required to raise funds for the transition from Listing to IPO will not be dropped into the cliff due to "Tightropes" (balance of revenue and legal risks) Firm but fragile profit sharing structure collapse and burial, more likely in the wave of mobile Internet, due to PC-side users can not be timely and smooth transfer to the mobile terminal, missed the development opportunity.

Although from the perspective of user spending, 9158 market share of 33.9%, temporarily listed first, YY accounted for 23%, ranked second. After the listing, 9158 and YY will be on the same starting line in the capital market. With market position, it seems that it is easier to suppress YY after 9158 and sit tight on the boss.

However, YY first listed, restructuring and differentiation first. According to iDoNews, YY three major business directions: music shows, games and online education. Among them, the first two currently account for 81.6% (55% + 26.6%) of the total revenue, and YY is heavily involved in the music performance to create the 1931 Women's orchestra. Such a star-building project is characterized by transformation and upgrading and seeking for differentiation.

At the same time, YY involved in online education before listing, and split online education this year, the establishment of an independent business unit, the introduction of "100 education" brand. In the next two to three years, it will invest 1 billion yuan for education, research and development and operation, and vigorously develop mobile terminals. Therefore, even if the market position of 9158 is temporarily ahead, the difference between the two has emerged. In general, there is no trend that 9,158 will suppress YY and even YY will throw off 9,158 in the future.

The 9158 video community accounted for over 95% of revenue. In addition to a single income, 9158 is also heavily reliant on distributors. Distributors divided into nearly 70%, 9158 is about 30%. So 9158 urgent listing, in addition to the pressure of major shareholders Sina and IDG, itself also has to seek differentiation and income diversification.

9158 The main purpose of this fund-raising: 20% for research and development, 20% for the development of mobile phone business, 10% for game input, 20% for marketing expenses, 20% for potential future acquisitions, the remaining 10% Used for general operating expenses. 9158 will be in mobile games, offline KTV and other directions force.

20% of the research and development will be used to improve the existing platform and develop new platforms, investment in technology and network maintenance and security, etc., indicating that the 9158 will maintain and consolidate the original advantages of the listed, will continue to adhere to real-time social video as the main source of income.

10% of the game investment, and 20% of marketing and publicity, intended to increase the proportion of hand-travel revenue. It is estimated that an additional six to eight mobile games will be released this year and the cooperation with 360 will be promoted. At the same time all games will access the video, follow the beauty anchor and user interaction, increase user stickiness and consumption. Explain 9158 transformation is not completely abandon the main industry, but to abandon the shortcomings and risks of show floor mode, the use of social video transformation of the advantages of mobile phone games, the game is not only a game, you can also be social. Just how the game will react, yet to be tested, although the hand travel 'money unlimited "9158 has a larger user base, but mobile games is still a high failure rate areas.

However, mobile traffic only accounts for 10% of the total traffic of 9158. Meanwhile, the development of high-traffic mobile video is subject to the development or popularity of 4G in China, and the popularization of 4G involves the development of 4G network base stations and 4G handsets. 2014 Year is considered to be China's "4G first year," its development is still in its infancy, this is not 9158 hurry to come. Therefore, while accelerating the 9158 running at the same time have to wait for the synchronization environment, mobile power can only play limited music and sharing, but must layout in advance, invest the appropriate funds for specialized design and development.

KTV for offline, only avoid the light, KTV software through the connection under the KTV, the profit model still can not afford to abandon social videos, singing the user rating will be ranked to stimulate user interaction and competition, and through the participation of virtual gifts, etc. into the share . And 20% of the acquisition of funds, acquisition direction there is music, interactive related upstream and downstream industries, including related KTV hardware products, which is also prepared for its offline KTV cause. However, in this respect, it has to face the competition of its own imitators, "sing it". Although there are attractive prospects for the offline KTV market of billions of billions, both are in a groping phase.

The transformation of 9158 is very urgent, the purpose of the financing of the funds, but with an emphasis on force average stress, the transformation of the way is to avoid weaknesses, throwing stone to ask for directions while running while waiting will be 9158's future normalcy.

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