PPS Group throwing Hydrangea

Summary: First-line owners strive to win, the second line to seek prostitution, is the 2013 network video industry portrayal. The latest news shows that Archie will buy PPS for 350 million dollars. Although the parties have assumed a denial and no comment, South reporters have approached traders

First-line owners strive to win, the second line to seek prostitution, is the 2013 network video industry portrayal. The latest news shows that Archie will buy PPS for 350 million dollars. Although the parties put forward a denial and no comment, but South reporters from close to traders confirmed that Archie company Baidu has indeed been issued to PPS investment letter of Intent (Termsheet), is about to start due diligence.

This also means that since the end of last year, the group cast "hydrangea" PPS will be the main. Once the acquisition succeeds, Archie and PPS will be merged into the video group, competing with Youku Potato Group for the industry's top priority.

PPS Group throwing Hydrangea

Baidu and Archie Art are not the initial choice of PPS. According to a person close to Archie art to South all reporters, pps early last year has been to all the first-line video site has been "seeking to acquire" the invitation, in addition to Archie Art, Sohu, Tencent, music, etc. have talked about, but ultimately only Baidu bid.

The latest news shows that the deal is about $350 million trillion, most of which are paid in cash. After completion of the acquisition, Archie and PPS will be merged into the video group, with Youku Potato Group for the number one throne.

South all reporters from close to traders confirmed that Archie Art parent company Baidu has indeed been issued to PPS investment letter of intent, and will begin due diligence.

Baidu Enterprise Development Department executives have told the South reporters that the investment and acquisition process is generally divided into five links. "First look for investors, followed by valuation analysis, the determination of investment plans, signed Termsheet, after this step about 70% of the investment will eventually be achieved." "This is followed by due diligence, confirmation of the final investment agreement, final signing of the investment Agreement and an assessment report."

Although "70%" the overall situation has been set, PPS for the transaction is still in the "denial" attitude. PPS to the south, said the reporter, PPS at present independent operation Development is very good, Archie Art has passed the PPS transaction amount of 350 million U.S. dollars "pure rumor"; PPS is now well-funded and cash flow is also very good; 2012 PPS was not sold for 470 million dollars.

The second line asks for prostitution

Compared to the lucrative gaming industry, the E-commerce and video industries are boat. E-commerce addicted to price war led to the whole industry losses, and the video industry in the soaring copyright prices difficult to survive, so far there is no one has to take the "profit" data.

Analysys Video industry analyst Zhang Yi in an interview with reporters in the south, said the current second-line video site and the first line of video sites do are integrated video site, but so the content requirements are very full. Taking PPS as an example, the main advertisers in general are small and medium-sized enterprises, resulting in insufficient amount of surplus income, which also brings about considerable operational pressure. At present, PPS's profit is mainly benefited from his game and client resources. ”

One side is willing to sell also want one side willing to accept, Baidu finally why will pps? Zhang Yi that the advantage of the client, one is to see the PPS development game and video site combined experience. Baidu Audio-visual is actually based on Baidu search client. and Archie Art as a comprehensive video site needs more content exports, the first-tier city advertising inventory is gone, the money can be received, but the advertisement does not go out, so need a new carrier to complete this matter. PPS is a very good carrier, even if you do not watch the video, he can also through the client to push the ads out, this is a very direct platform. "Public data show that PPS PC Client installed capacity has exceeded 500 million."

In the industry, the current line of several video sites such as excellent soil, Tencent, Archie Arts, music, etc. are not short of money, are taking a comprehensive route, is not likely to have a single large or instant lead situation. Relatively speaking, two or three-line video site is difficult to break through, so in the short term "was acquired" is a better choice. "The first-line video site is now diversifying into a lucrative spot to scramble for territory," he said. From this angle, the PPS business model is more, the operation is fine, if the acquirer needs to expand the business model, it will elect him. And the PPLive direct seeding system and the sports class is better, the acquirer if needs the content to prevail will elect him. "The person said.