Beneficiary Jinshan Risk

Absrtact: Qihoo 360 's opponents have made new progress in their alliance against 360. A few days ago, Baidu will take a stake in Jinshan Network, the recent Baidu is with Jinshan network and related investors to negotiate. Baidu and Tencent have not responded to this matter, but Jinshan software

Qihoo 360 's rivals have made new progress in their alliance against 360.

A few days ago, Baidu will take a stake in Jinshan Network, the recent Baidu is with Jinshan network and related investors to negotiate. Baidu and Tencent, although not in response to this matter, but Jinshan software, a bulletin shows that this matter is not groundless. As a company listed in the Hong Kong capital Market, Jinshan Software (03888.HK) issued a notice saying that the company is currently in initial consultation with an independent third party on a possible sale.

In fact, the Tiger 360 "attack" Tencent, Baidu, Jinshan, rising and other companies, has long been in the "one ship." September 2012, Baidu led the establishment of Internet Security Alliance, the company's high-level contacts between many. And with 360 in the search field to launch a direct challenge to Baidu, Baidu to support 360 in the security field rivals Jinshan, is also logical.

But the news shows that Baidu is also developing "Baidu security defender." Before Kingsoft software to provide cloud security services Tencent Computer Butler has formed a homogeneous competition, Jinshan and Baidu's cooperation or repeat the same.

Containment 360

Baidu has earlier started investing in security software. In the first half of 2012, Baidu low-key acquisition of domestic security companies "Super Patrol." Super Patrol is a anti-virus software, can kill a variety of Trojans, rogue software and other malicious code. It is reported that as early as in June 2007, Baidu Investment department has even suggested the acquisition of Jinshan Poison PA will be converted into free advertising mode.

But let Baidu in the security software domain really nervous up, is 360 on-line search website, directly eats up its market share. Last August, the 360 search was launched, with its browser advantage to quickly win 10% of the market share. In the near future is a continuous introduction of image search, music search, map search and other services, and Google to reach a cooperation, in all parts of the country low-key contact and recruitment channel agents, its search and Baidu's competitive situation is increasingly fierce.

By this effect, Baidu's share price from more than 130 U.S. dollars fell to below 100 U.S. dollars. and 360 search security card, directly to Baidu search results unsafe, also stimulated Baidu in the security field counterattack.

The takeover rumors have prompted Kingsoft software rally, as of January 17, Jinshan software 6.76, compared to January 14 before the closing price of 6.08 Hong Kong dollar has risen 11.5%, but in the past two trading days, the news on Baidu's share price has been a decline in the status.

"This does not have a very direct relationship with stock prices. "Bo, a well-known it personage, told the investor newspaper," Look at the current stock price changes too realistic and too immediate, in the long run, the inhibition of 360 will certainly occur, especially when the big internet companies under 360, the need for a third party market to balance. ”

In the habit of calling security software the "Armed Forces," Bo, security software runs at the bottom of the system, involving not only the privacy of users, but also the possibility of interfering with the business of a large company. If a certain security software in the market occupies a monopolistic position, it will pose a great threat to enterprises, including large internet companies. "Support Jinshan software, in the security market to create constraints, so that 360 do not dare to do, if jinshan too small, can not form such a restrictive effect." ”

Earlier, in July 2011, Tencent through Kingsoft software shareholder transfer, access to Kingsoft software 15.68% Equity, Tencent also invested in Jinshan network. But a report by Credit Suisse, the investment bank, says that Baidu's investment in Jinshan is fundamentally different from Tencent's investment in Jinshan.

Credit Suisse believes that Tencent's investment in Jinshan is mainly to ensure that the latter's anti-virus software can provide protection for QQ instant messaging software and related integrated applications. and Baidu Investment Jinshan is hoping to use the latter's products and Qihoo 360 anti-virus software competition, so hope that the 360 browser market share decline, and thus led to the Qihoo search engine market share decline.

However, it is also pointed out that the PC-side security software market has been relatively stable, the security market will increasingly shift to the mobile internet. "As Google improves the system, the security on the phone is not as serious as it used to be." Bo to reporters.

Beneficiary Jinshan Risk

Whether it is the 3Q war, or 3B War, Jinshan network as 360 of the competitors have benefited. In the past six months, Jinshan Software has doubled its share price. But Jinshan software, which acts as a "hatchet player", is also at risk of being exploited by large internet companies.

Jinshan Network CEO Fu Shenzhen Frankly, 360 each step of development, in fact, is to drive the development of Jinshan network. "Today this industry, have the ability to challenge 360, or have the courage to challenge 360, may be we, only we in and 360 positive fight, this fight bring us a lot of benefits." ”

After the 3Q war, Tencent High-profile shares, Jinshan Network rapid development, Jinshan Network CEO Fu in the Internet conference, said the company in August, the Internet year-on-year income growth of nearly 10 times times.

However, industry observers pointed out that because of the same quality competition, Tencent QQ computer Butler and Jinshan network between the contradictions are also difficult to avoid. Tencent QQ Computer Butler has been quietly equipped with "small red umbrella" and "bit van de" two foreign anti-virus engine, with a certain virus killing ability, which allows Tencent to provide cloud security technology Jinshan is very embarrassing. Because of the relative uniqueness of anti-virus software, Jinshan poison PA has been replaced by the potential of QQ computer Butler.

In the first half of China's top ten security protection software list, QQ computer Butler monthly coverage of the number after 360 security guards and 360 antivirus, ranked in the Golden Hill related software before.

And this situation, very likely in Jinshan and Baidu cooperation on the replay. It is reported that entering the security field has become the next target of Robin Li. Like Tencent, Baidu, in addition to investment acquisitions, also intends to independently develop security software. News show, "Baidu Security Guardian" project team has been set up 2011 years, this security product also dozen free card, at the same time implanted Jinshan cloud security technology. Coupled with the acquisition of the security company "Super Patrol", Baidu has completed its own development in the field of security software layout.

In addition, in the browser and navigation Web site, Jinshan and Baidu also have a competitive relationship. Insiders pointed out that how to balance the interests of all parties to maintain an independent development space, is also facing the problem of Jinshan.