Good data only good "dry father"

Text / Xu Guoyun

The ancient "reluctantly with princes to make princes," now throwing princes to encircle the Three Kingdoms.

On the evening of June 27, 58 city issued a notice saying that Tencent invested 736 million U.S. dollars to acquire 19.9% ​​of the shares after the city completely diluted 58 and Tencent's social commercialization took the next "city."

Affected by this favorable stimulation, 58 cities today closed at 54.90 U.S. dollars, up 2.68 U.S. dollars, or 5.13%.

58 CEO Yao Jinbo CEO apparently confident, after the announcement straight microblogging achievements: "736 million US dollars case, from the beginning to talk about done 10 days."

According to the 58 city announcement, in this transaction, Tencent will buy 36,805,000 Class A and Class B ordinary shares at a price of 20 dollars per share.

Since each ADR of 58 is equivalent to 2 ordinary shares, this means that Tencent's purchase price is equivalent to US $ 40 per ADR, equivalent to 20% of the US $ 50 per share prior to the close of trading yesterday Shares.

According to the most crowned understanding, this is following the public comment, drop-taxi, Jingdong, Locke investment, Tencent once again expand O2O and e-commerce ecosystem, however, behind this ecology, but also Tencent social commercialization of anxiety and ice breaking 58 Local service transactions closed loop.

First, good data only good "dry father"

First talk about 58 city, 58 city in the first quarter earnings report is very brisk, year-on-year loss is not the core point, the core point is 58 city quarterly revenue of 48.2 million U.S. dollars, an increase of 103% over the same period in 2013, that is, turned over Double

This doubled performance is a very positive sign for the 58 cities already listed. Separately, the number of paid members increased by 77% in the first quarter of 2008, contributing directly to the income of 27.5 million U.S. dollars. The more rapid growth is Online promotion in the first quarter of this year increased by 146.8% over the same period of last year.

Look at the mobile terminal, after the Spring Festival, 58 city traffic soared, the monthly excess of 200 million users for the first time, mobile page views over the PC side, and 51% of page views from the mobile terminal.

At the time, Yao Jinbo revealed at an analyst executive meeting that "according to the third-party data we have, we are getting a bigger lead from our competitors in terms of traffic and market share."

Yao Jinbo on the market share of digital expectations, 2014 is full year for "dominant market share" of the year.

There is no doubt that in the field of local living information services, 58 cities opened up the gap with their competitors, the data is run out of Ten days to finalize the deal within 10 days of the fundamental.

Second, Penguin uncle social commercial how to break?

In fact, Tencent this year's investment can be seen, whether it won the public comment, or strategic investment Jingdong, Tencent finally loaded the current market expectations of the WeChat entrance.

Similarly, in this $ 736 million investment in 58 cities, 58 city also said there will be opportunities to get from Tencent qq, WeChat, qq.con and qq browser and other platforms traffic.

From a single point of view, this obviously includes the public comments, a taxi hit, Jingdong and 58 cities are joined the penguin army, but from another perspective, this is penguin social networking in the destruction of ice hole.

According to the latest Tencent's financial results for the first quarter of 2014, the combined active monthly accounts of WeChat and WeChat reached 396 million, up 11% sequentially and up 87% year-on-year. In addition, QQ monthly active accounts reached 848 million, an increase of 3%.

So, such a huge user traffic in the end can bring what come? To Jingdong, for example, in June this year, Jingdong officially access the WeChat entrance, but so far, both Jingdong and Tencent have not announced the accession to WeChat entrance after the flow of cash.

An interesting signal is that in the WeChat on the open Jingdong shopping interface, the final payment link or through WeChat payment, rather than Jingdong own payment system - online banking wallet. That is to say, the basic level of payment links, and Jingdong can not get through.

Therefore, Tencent CEO Liu Chi-ping in the first quarter earnings report also said that the WeChat and mobile qq realization, Tencent's priority is not to make more money from the platform, but invested a lot of resources to continue to build the platform to interact with the user more .

And with 5 million users of local life information service platform - 58 city, will be Tencent platform to interact with users, will be the future of social business to maximize the benefits of a large layout.

Third, the transaction closed-loop penguin and 58 want to go

Yao Jinbo had a Wall Street analyst in the Q & A share such a set of data: 58 city currently has more than 500 million users on the platform using 58 city, but only 8% of paid membership, membership using online service penetration rate of only 21 %.

In addition, in an interview with the media, Yao Jinbo also disclosed that closed-loop transactions completed in 58 cities accounted for about 10%. This means that as the local life information service provider, there is still a huge market space to complete the final transaction.

In the same city listing 58, Yao Jinbo said that in the future 58 city business model will be closed-loop development, from the information released to the whole process of the transaction, which will be the development of the next 10 years.

Take a look at the action of 58 cities in 2014, in order to increase the penetration rate of online members, 58 cities to send sales staff to focus on sales in this user base.

In addition, Yao Jinbo has said that this year will continue to increase the number of mobile phone users, the next two years will be more radical in the commercialization of some. In addition, closed-loop services are also explored by exploring other services.

To complete the closed-loop, there is a very important part is to pay, and at this point, 58 City and Tencent is even more thought of going together.

For Tencent, TenPay has always been its pinnacle of business, WeChat payment also needs more scenes to meet, and 58 city, there are rented, there are second-hand goods for sale, including looking for piano teachers, these payment scenarios undoubtedly Tencent Fat WeChat payment business is a rare resource.

Similarly, for the 58 city, go reconstructing a set of similar Alipay, WeChat payment system has little effect, so the radical approach is directly involved in WeChat payment, a key to complete the closed loop from the information to the transaction.