Chen Yi Zhou Manifesto interpretation: Buy hard to dominate the game split "too Much Trouble"

Traffic continues to decline, the number of advertisers has decreased, earnings continued to lose money, share prices continue to slump. Facing the heavy haze on the head of everyone, Chen a boat began to hand, for the company a strong change issued a declaration of battle.

In mid-November, the company's internal earnings communication Everyone company CEO Chen a high profile declared that the future to play "a battle and three battles": that is to speed up the pace of the game, split the listing as soon as possible, group buying business glutinous Rice Network to do the first; In addition, Howe launches killer mobile apps in the next 4 months.

This is the first High-profile statement by Chen after everyone goes public, and this discourse even informs all employees of the company by radio.

It is true that at the moment everyone really needs to fight a battle to sweep away the haze, but the business is not just shouting slogans. At the heart of this battle is the mobile end, where everyone is speeding up the layout of the moving end, and will it have a chance to play a turnaround in the foreseeable future?

Group purchase beyond the dream of short-term difficult round or to take a shortcut to buy

Could the idea of a "Battle of three battles" Chen be truly tenable?

In particular, Chen a boat mainly in the game, group buying and business social three major business. From the current point of view, Chen a boat is not sure to win.

At present, the group buying area shuffle is staged, the industry watershed has entered the middle, from the multifaceted into only a few games left.

According to group buying navigation Group 800 statistical reports show that this September, glutinous rice net sales ranked four in the industry, lower than the United States, the public comments and litters Regiment, only 45% of the United States Regiment. From this data, the sticky rice net in a relatively short period of time than the United States Regiment hope is relatively slim.

A PE partner believes that group buying cannot exist independently as a separate business model. "Domestic group buy main revenue from restaurants and movie tickets, which can be SNS user relations to pull revenue business, to Renren SNS Social users + Corps buy glutinous rice, increase the user monetization is a feasible way." ”

But "Renren is not a cornerstone of the network, its operational capacity is poor, and its users home to push the glutinous rice group user experience is not good, coupled with the general public comments on group buying, these to the sticky rice network to form a certain impact." "A company insider tells the problem of the sticky rice net.

In the long run, glutinous rice Network to achieve "group leader" dream still need to walk a distance. However, the current glutinous rice network operating momentum.

Everyone reported that in the past year, the net loss of glutinous rice net gradually narrowed: from the fourth quarter of last year to the third quarter of this year, the loss figure is 9.1 million U.S. dollars, 8.2 million U.S. dollars, 7.2 million U.S. dollars, 6.3 million U.S. dollars. In addition, the third quarter of glutinous rice net operating income increased to 4.6 million U.S. dollars, the year-on-year growth of 171%, the chain growth of 28%.

And Chen said at the three quarterly earnings meeting this year, everyone is considering acquisitions, group buying companies will be the focus of attention, which means that everyone or will be a capital means to capture the throne area.

Game split accelerates privatisation prelude?

In the game business, everyone presents a growth trend: from the fourth quarter of last year to the third quarter of this year everyone online game income is 12 million U.S. dollars, 17.5 million U.S. dollars, 22.5 million U.S. dollars, 24.2 million dollars.

It is worth mentioning that, July 2, 2012, everyone company to make money pillar business everyone game officially from Beijing Jingan Zhuang Company headquarters relocated to Jiuxianqiao Country Investment creative Information Industry Park. This is interpreted as a prelude to the spin-off of everyone's game.

The claim was denied by public relations. With this new boat of "everyone game will speed up the pace of movement, as soon as possible to split the listing" speech again thrown, can be judged Chen game for all the split listing of capital operation is already in progress.

Some analysts speculate that the current capital market is bleak, the future of Chen a boat or privatization of everyone to retire, and then wait until the economy improves, then the game will be split into public.

Indeed, as early as August this year, Seekingalpha, the investment information website, said that everyone could take the step of privatization.

At present, the company has a total of 101.8 million dollars worth of repurchase of about 24.2 million U.S. stocks. Before the deadline, everyone's share price was 3.3 dollars (low), and everyone had huge cash, which made it possible for everyone to be privatized.

In Chen's view, "Privatization is too troublesome". The ultimate way to run this capital is inconclusive.

From the business level to analyze, before the outside world to question the most of the game split out of the market is "everyone game and Renren user group linkage is very high", after the split users will have conflict.

But everyone game an internal operator told Tencent Science and technology: "Renren users do not have the lifeblood of everyone's game, everyone game players mainly from the introduction of the game's official website and its acquisition of MOP, donews and overseas and many other platforms, and Renren users only occupy about 30%, The split will not have a big impact on users. ”

These make it possible for everyone to run the game of capital.

However, there are people in the game industry who are not optimistic about the operation. "Even if everyone is a spin-off of the game, it is difficult to become the next Sohu swim, to die in the industry is the second echelon." ”

Compared to the 2009 Sohu Tour and Shanda game split before the listing of quarterly revenue scale (61.6 million U.S. dollars and nearly 170 million U.S. dollars), the third quarter of everyone game income of 24.2 million U.S. dollars only for the time Sohu swim 39%, the grand game of 14%.

In addition to group buying and game business, a source said, next year, the pressure on everyone's advertising revenue will be transferred to the 56 network of the merged video site, 4 months ago, everyone launched the mobile business social products Jingwei Business Card pass will focus on exerting force.

But mobile business is still in the water Test stage, Chen a boat to win a battle is not easy.

How to break through the mobile end business of PC Terminal main station

Chen a boat in the next 4 months launched killer mobile applications, to fight a battle. What is the specific application? Everyone tight-lipped about it.

Tencent technology to find out that the product is also a social application, or mobile phone-side real-name social networking, or to the micro-letter competition, or launch similar to the current hot pop and so on. Exactly why the application is unknown, but the fact is that everyone is changing the business model to move the end of the force.

Chen said in an internal meeting: "The mobile internet ticket only Ali and Tencent got, which Ali realized the mobile business transaction closed loop, more prospects." And everyone wants to have a ticket like this. ”

According to Tencent Science and technology learned that this year, everyone PC end of the main station showing signs of contraction, the user accelerated to move to the mobile end, currently, more than 60% users per day will be logged through the Mobile client network, and nearly half of all employees of the business are moving end.

Analysts point out that more and more users are appearing on the mobile side, and if they can successfully migrate this part of the user to the newly launched killer mobile apps, everyone may step up to a new level.

But a noticeable problem is that mobile-end screen restrictions, money is becoming more and more difficult to earn, and Renren mobile right encounter micro-Bo and micro-letter users streaming.

So far, Chen also did not want to know how to get the mobile internet this ticket. Despite the frequent movements and huge costs involved in the mobile business, the gains were quite minimal.

2011, everyone has developed a similar to Tencent micro-letter products "letters", the final miscarriage; in May this year, Renren developed a custom ROM based on the Android operating system, and then in July, everyone launched a product like singing K King, and currently did not receive the same popular singing effect.

Chen has disclosed that the mobile business to everyone's revenue contribution is only 10%. In the second quarter of this year, total income of 44.8 million U.S. dollars, which means that its mobile business income of nearly 5 million yuan, but Chen a boat into the mobile end of the research and development to reach 17.8 million.

Together with the increase in the number of research and development staff, the overall research and development costs for everyone in the third quarter of this year were 132 million, up 102% from a year earlier. All this makes life difficult for everyone.

In fact, this is not the case where Chen encounters the confusion of the mobile end. Foreign Facebook also admits that its business is far more difficult than PCs to sell ads on mobile, and that mobile advertising is cheaper than the web, and Facebook has been out for six months from the first mobile ad to advertisers.

Today's Facebook mobile ads are beginning to show results. The specific presentation is: First, sponsored content, Facebook inserts ads into user Content, recommends brand homepage and content based on user behavior, and recommends games and apps to users; third, "promotional ads".

In addition to the previous acquisition of Instagram,facebook also accelerated the expansion of social power providers, the frequent introduction of the app, accelerated image reading speed, and in its iOS version of the new photo filter, friends online list, allowing users to pack upload multiple photos and gifts such as the Android version of the features, Defuse its challenges in mobile Internet.

Four months, Chen a boat will be able to find a killer application? It was called a gimmick by Chen. High-profile, it is estimated that Chen a boat their own emboldened is not so full. and see how the future Chen a boat fencing, and Facebook on the mobile side of the above operation, or can give him some inspiration.