If Sohu wants to buy, how much is pplive worth?

Today there are rumors that 360 in the form of shares and some cash to buy Sogou, Sohu to Cash plus stock acquisition pplive. The price of Sohu's cash-plus stock-buying pplive is about 400 million dollars.

Baidu has just announced a 370 million-dollar acquisition of PPS video, according to Baidu has also had contact with PPLive, but because of "exorbitant price" and give up. PPLive's CEO, Tao, told the media that PPLive is open to a variety of future possibilities and that we will be able to make an independent IPO or seek strategic investors.

PPS Video sold 370 million dollars, if Sohu want to buy pplive, in the end how much money?

As a veteran of the video industry for years, I share the possibility and valuation of the sale of pplive.

First, the price of soft silver is not low. The PPLive valued $700 million trillion in 2011, with $250 million trillion of soft silver holding 35% shares. Unless soft silver admits investment failure, low-cost processing pplive, otherwise Sohu could not afford to buy pplive. Moreover, soft silver investment grand, everyone has been listed, soft silver to pplive price can not be very low.

Second, the issue of profitability. The so-called PPLive 800 million income, pplive such a video client, the revenue is nothing more than three, the largest piece is advertising; then the game combined transport, this small scale, compared with PPS, operation is very poor; These three blocks, because pplive ads than the opponent relatively weak, marketing costs are very high, every 100 dollars advertising revenue, can have 50 dollars left on the good, the game of transport and membership, basically can only walk Shi. The cost of pplive is much higher than that of PPS, even if the pplive himself said that the 800 million revenue is true, its realization of the possibility of revenue balance is very small, this is not the issue of advertising collection, pplive such companies, the advertising period and the bad debt rate must be far higher than the portal.

Third, the box business has little practical significance. The so-called box business, basically just a concept, there is no practical significance, compared with the Shanzhai box, pplive box content by copyright restrictions, less content, poor quality, in addition to the user directly to the intelligent equipment and television link, you can see all the online video resources, PPLive and other enterprises to launch the box has no practical significance, it is not possible to contribute to pplive profits.

PPLive content on the biggest advantage is in sports, but the cost is very high, and with the last year, Fujian sporting Goods enterprises shrink advertising, sports marketing has been unsustainable, and film and television, due to financial problems, PPLive has been released several times without money to buy a play, Now basically uses the same as the PPS piracy strategy

Sohu Film and PPLive from the situation, Sohu's own content strengths and pplive overlap, users are also concentrated in the one or two-line city, the significance of mergers and acquisitions can not be compared with the Baidu PPS. From the management team situation, PPLive is probably the national very rare double boss, has the founder, but also has the soft silver to send the CEO, this management structure is also a big problem for the merger. Technically, the pplive of Peer-to-peer technology has had no advantage over the years.