Everyone split the game: ice-breaking advertising business tired of everyone net or be emptied

Ice-breaking advertising tired people net is emptied

In the sale of Chinaren, the acquisition of school, the promotion of everyone on the market, took 56 nets, the establishment of a beautiful legend of the branch of the series of capital, the Chen again will look at the game field.

July 2, 2012, everyone company to make money pillar business games officially from Beijing Jingan Zhuang Company headquarters relocated to Jiuxianqiao Country Investment creative Information Industry Park.

Since then, everyone game split the curtain officially opened.

Tencent Science and technology learned that the senior vice president of Hochang will be in charge of everyone after the split game, but the split is not rumored "independent listing", will not split the financial, but similar to the operation of the Independent division.

"If financial independence, the first domestic social networking will be hollowed out, short institutions will take the opportunity to enter, everyone's share price will face extinction." "People familiar with the matter said to Tencent technology," capital master Chen obviously impossible to do so, at least one or two years will not. ”

On the contrary, Chen a boat split everyone game, then for the ice-breaking everyone advertising atrophy. Moreover, everyone's game and Renren's user relationship is not as close as people think.

Listing is outside the imagination

"As soon as we heard about the break-up, we immediately associate it with the listing, which is entirely personal," he said. The people familiar with the matter stressed that the so-called spin-off is mainly independent operation, thus establishing the brand of everyone's game.

From the business data to calculate, everyone game listing speech also untenable.

Generally speaking, the company is listed mainly in order to release the main business valuation, so the former Sohu tour, the break-up of the Grand games are based on this logic.

But the status quo of everyone does not belong to this category.

May 2011, Chen will Renren, everyone game, glutinous rice Mesh, Jingwei network packaging, packaged as "China's Facebook" successfully listed in the United States, its main business is advertising.

Since the listing, corporate gaming revenue has climbed steadily. By the first quarter of 2012, net revenue for everyone was $17.5 million, up 83% from the game's revenue of $32.1 million. In terms of income composition, everyone is quietly evolving into a gaming company.

Although everyone's game is growing fast, but compared to the 2009 Sohu Tour and Shanda game split before the listing of quarterly revenue size (61.6 million U.S. dollars and nearly 170 million U.S. dollars). Everyone game only for 28% of the time Sohu swim, Shanda game 10%, far from the size of the listing.

In addition, the current capital market of the market window closed, difficult to have the capital party, split listing will face double tax pressure.

From all sorts of scenarios, everyone's game is split, but the recent listing is not reliable.

With regard to the cause of spin-off, the wording given by everyone is that the game business is developing rapidly and the opportunity to motivate employees.

But people familiar with the Chen said that Chen was not generous to the staff, before everyone listed, because the stock price all the way down, employees benefited less, wages are lower than peers. Splitting the game in order to motivate employees is not consistent with Chen's personal style.

Split will not empty everyone net

Some people in the industry worry that the games will be hollowed out later generations. There are also claims that the share price will collapse after the break-up.

The outside question is most is "everybody game and Renren's user group linkage is extremely high", the split user will have the 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. ”

One investor said the collapse of the stock price was exaggerated. "After the split, everyone's share price will not be blew, even if Chen finally play the capital, the implementation of financial independence, as long as everyone has a controlling power of more than 50%, everyone can still be merged into the game after the company's financial statements." ”

In addition, the specific plan for everyone to split the game must pass through the Board of directors, the investment institutions will naturally not lose their own interests, will inevitably let share prices to achieve a soft landing.

What on earth does everyone play?

Chen once said, "I am not a man willing to go head-to-head." If you are telling me that I do things that others can not understand, then I am too happy, it means that others can not understand my strategy. ”

In fact, everyone game is very early layout, 2005 Thousand Oak (everyone predecessor) has the Community web site World of Warcraft China received under the 2006 Thousand Oak Acquisition Network and 5Q integration, has developed "cat travels" into the online games market.

In the 2011, everyone set up branch offices in Japan and Taiwan, pushing social games and web games to overseas markets. At the same time, everyone game takes platform and product parallel mode. On the one hand, research and development of products, as a game platform, access to Third-party games. Among them, the income of independent research and development accounted for nearly 70%.

One game employee said: "Everyone's game is the biggest advantage is the acquisition of a number of companies, the accumulation of cross-platform standardization system operation experience, and this is the main driving force for the development of all pages." ”

At present, everyone games in Beijing has more than 500 employees, and in Chengdu and Suzhou game incubation.

In the company's main business, Renren basic balance of payments, everyone's game contributed more than half of the profits, the reason for the spin-off of everyone's main business ads tired state.

Game-seeking agency under weak advertising business

In the past two years, Renren users have stagnated under the impact of micro-blogging, and the flow has continued to decline.

According to Alexa statistics show that the flow of Renren in the past two years to show a downward trend

Everyone on the day, the market value was as high as 7.6 billion U.S. dollars, and to the deadline before the market value of only 1.6 billion U.S. dollars, a year time fell nearly 80%.

After the listing, everyone's advertising revenue fell for two consecutive quarters. In the first quarter of this year, the chain fell 38%, up 14.8%, far below the average internet advertising growth rate of 58%, and earlier in the first quarter of 2011, everyone's advertising growth of 100.5% year-on-year.

Everyone even warns that the future advertising business will continue to weaken.

Why is everyone's advertising business weak?

Everyone CFO Huang said the decline was mainly due to ARPU, advertisers to China's macroeconomic prospects more cautious.

But industry insiders believe that, on the one hand, the impact of micro-bo, everyone user stagnation, traffic continues to decline, the number of advertisers and the size of the constraints; On the other hand, everyone has the name of social networking sites, without the reality of social advertising. After the listing, its social advertising effect is also questioned by advertisers.

These forces Chen to create a new concept in the market to pull everyone's development, and the game split, give its more development space becomes the choice.

In the previous earnings conference call, Chen a boat even blunt, the future will be game development to offset the weakness of everyone's advertising business.

In addition, the spin-off game, Chen can also prove to the outside world in addition to social advertising this leg, everyone has game this cash cow business.

It is worth mentioning that, although everyone game cut early, but also obtained a considerable income, but its brand has been relatively weak. In the past year, everyone play the platform before the scattered integration, and do not hesitate to dig people from the perfect world to do brand positioning.

It is reported that at the upcoming 2012 Shanghai ChinaJoy game show, including Chen and other seven senior executives will attend the strategy for everyone games, for everyone's business.

Hubei people are Chen, with a wide range of interests, rarely fixed in a corner, or are being spun off to the next game in the field of new chess.

But in the industry commentator Wei Wuhui view: "Everyone basically launched is a page tour, belong to the lightweight game, short life cycle, easy to learn." And to allow a company to continuously for several years to launch a successful light game, the request is too high. ”

And the favor of the capital is far better than to build the industry Chen a boat to let the split after everyone game go far, or an unknown.