Archie Art said 30 days to complete the integration of PPS investors are all out

Sina technology Tracy Baidu today spent 370 million of dollars to the PPS video to the love of Qi Art, Archie, CEO of Gong and PPS founder Zhang Hongyu, Xu Wei Joint media interview, Gong said two companies business staff overlap is only 10%, an estimated 30 days to complete integration, and because this transaction is a cash transaction , PPS founder and investor in this merger all withdrew. 30 days to complete the integration as the second largest video industry after the Youku, gong in communication with the media seems secretly in the rivalry with Youku potatoes. A long time ago, Youku, a high-profile announcement of integration into the third 100 days, Gong said Archie and PPS integration will be much faster, "30 days will be able to complete the integration." Gong from the strong, potatoes and cool business almost full coincidence, while positioning long video of love and the client PPS has very obvious complementarity. Gong said that at present Archie Art and PPS respectively have more than 1000 employees, and this one of the business coincide with the staff only 10%. For how to define "consolidation completion," Gong says the key metric is "people." "The merger of two companies does not appear to be a large staff adjustment, can be a stable personnel is the integration completed." "Why Archie to acquire PPS, the biggest reason is complementary, however, in addition to improve advertising prices, reduce procurement costs to reach the scale effect, Archie Art in UGC content on the high hopes, this part of the Archie Art planning for a long time, because of PPS in this area has been the user accumulation, gong think this can start immediately. In internet television, Archie will continue to exert its force after the merger. PPS Investors all quit this deal and Youku potatoes when the merger of different shares, the use of 370 million of dollars in cash transactions. According to Gong revealed that the transaction of PPS founder and investors in the video is all set out. But this does not mean that PPS founder Zhang Hongyu, Xu Wei retired, under the arrangement that they will be in the merged new company as a joint president, continue to be responsible for PPS-related business and new business development. "In the short term we do not have any opportunity to retire, and Archie Art cooperation is the PPS team, for a long time you will see us." "Xu Wei said. Gong said the merged new company would make enough options pools for the new team to reward. There has been a news that the acquisition by the investors led the completion of management "kidnapped." In the Communication meeting site, PPS management to deny this, Xu Wei said PPS and odd art contact time up to one year. PPS Investors, Qiming Venture director Gan Jianping to Sina Technology, said that PPS two founder from beginning to end are involved in the transaction process, "There is no investor-led transaction, middle managers may not know." He also revealed that Qiming Ventures have profited 10 times times from the withdrawal. The odd PPS game business It is noteworthy that the merger of a key point is that Archie is the acquisition of PPS video business, and the PPS game business independent of mergers and acquisitions. And the PPS game business is based onVideo traffic on a joint operation, the user charges and divided. Gong's explanation is that prior to Archie Art has been and Baidu game has made some attempts, there are plans to do this part of the business, but "the main focus on video content, so does not include other business income", but the future of this business model will be included in the merger of the new company development ideas. The widespread speculation about such arrangements is "to circumvent antitrust investigations". According to the "Antimonopoly Law" of the Ministry of Commerce, if the two sides of the acquisition of each party's annual income of more than 400 million yuan, and add up to more than 2 billion yuan, it must be reported to the Ministry of Commerce for approval, to see whether there is a monopoly agreement. In the case of enterprises with VIE structure, the competent authorities will not approve any monopoly. Baidu CEO Robin Li said in March this year that "untie", "I think should be abolished, at least to relax this control." This time to look at this paragraph is not meaningful, according to Sina Science and Technology December 2011 interview Xu Wei obtained data, it is expected to PPS in 2011 Annual income can reach 400 million yuan, and one of the web game through the contribution of 20% revenue, if stripping this part of the capacity can mean to evade censorship. Gong admits that this is one of the reasons for not buying a game business, but for other reasons he laughs that everyone can "write a script". Some analysts believe that the future merger after the completion of the love of Qi art, it is likely before the listing of PPS this part of the game business also acquired in, for the IPO to make a better look at the earnings.