Sohu Zhang: Now is the easiest moment in history

In the technology and product line of solid operation, so that the founder of Sohu ushered in the most relaxed time since the start-up.　　-Is it a lighter mood now?　　-The easiest time in history.　　-What do you think about this position now and when?　　-When it does not matter, a group of people (the backbone of the promotion of the year) up, I spent less time in the work, to hold a few important directions, important aspects can be.　　-Are you enjoying your current status?　　-close to enjoyment and begin to enjoy. The above question and answer occurred on the afternoon of May 21.　　Charles Zhang, who returned from the peak of the mountain in Sichuan and 5588 metres to the top of the snow treasure, received an interview with reporters in his office.　　As the intoxication of oxygen has not completely disappeared, he seems to have just woken up from deep sleep and often subconsciously closed his eyes to the photographer's lens, but he still works hard with the photographer's shutter rhythm, and occasionally poses several unexpected pose. Do not know is not intentionally to show their relaxed mood, Zhang Chaoyang arranged the company's internal mountaineering activities just caught up with Sohu (Nasdaq:sohu) disclosed the first quarter of 2009 financial results, he and several senior executives at the foot of the mountain through a conference call to answer the questions of investment banking analysts. Obviously he doesn't have to do anything special to deal with analysts ' tricky questions, and the performance analyst has no reason to be dissatisfied. In the first quarter of 2009, the company's total revenue was $115.7 million, up 36% from a year earlier, above the company's expected cap. Brand advertising revenue was 39.1 million dollars, up 18% from a year earlier. Online gaming revenues of $61.6 million, up 6% from the previous quarter, Rose 50% from a year earlier, and 1.6 million dollars higher than the company's expected cap. During the financial crisis season, Sohu's performance makes investors feel exceptionally warm. On April 2, one months ago, Sohu's gaming subsidiary, Nasdaq::cyou, was able to split and make a successful listing.　　is one of the most successful IPOs in the U.S. Nasdaq market in nearly a year. In the one-month period after Zhang's return to Beijing, Sohu's share price has risen about 20%, up to $70.　　Approaching last year's Olympic Games to reach the highest price of more than 80 dollars. Indeed, as Zhang said, it is now the easiest time for him to create the internet company. [Page] Enjoy the peak in fact, even in the past 8 years, Sohu can be counted in the Nasdaq-listed China concept of the best performance of a company. Starting around the second quarter of 2007, the company's market capitalisation began to rise sharply, with more than 1.5 times times more in two years.　　Sina in the same period has fallen, Baidu Rose 1.2 times times, and after the second quarter of 2008, the rise has been under Sohu. The successful IPO is undoubtedly a new step for Charles Zhang. On the one hand, it retains talent,Provides the best incentive for the game team locked their future peace of mind for Sohu to raise money bags of the expectations and mission; On the other hand, it provides sufficient funds for Sohu's main business investment to ensure that Sohu can seize the new opportunities for the future development of network media, comprehensively surpass the old rival Sina, catch up with the new rival Baidu,　　Tencent is ready. From the perspective of the entire Sohu company, the key words of the swimming market or the "media", retain talent, to attract funds, are just means, not a lofty goal, all means are futile, Sohu's lofty goal is the media. Sohu's internal past and the recent continuous mention is to do "China's Time Warner or News Corp." The swim listing has increased the cash and cash equivalents of Sohu accounts to $314.4 million trillion, up nearly 200 million dollars from the end of last year's closing balance.　　This for Sohu to achieve this goal prepared sufficient ammunition, but also Zhang Zhang Zhang can maintain a good status of one of the important emboldened. In fact, before the listing, swimming has become Sohu's money bag. In the first quarter of the 2009-year earnings, the tour brought Sohu income of 61.6 million U.S. dollars, in fact, this part of the income in the second quarter of 2008 in the earnings of Sohu's advertising revenue, the current game to the income of Sohu has accounted for excluding value-added services outside the income of about 60% ( The revenue from the IPO to Sohu will be reflected in the second quarter report. For the purpose of the financing, Zhang said that half of the tour financing will be used to swim itself, half into the construction of the media platform.　　In fact, in the first quarter, Sohu spent 9 million of dollars in marketing, the portal and gaming businesses accounted for 6 million and 3 million dollars respectively. Media brand Marketing investment is only the surface, all over the street bus ads "on Sohu, know the world" behind, in fact, Sohu content, products and technology changes. Zhang has always believed that the Internet is a natural communication platform, Internet companies need to do online brand promotion, improve visibility, but more important is the direct face of the user's products, because the product is too easy to direct access, delivery cost is zero, so the product has become the best advertising.　　Therefore, Sohu to do large-scale ground marketing before, in fact, the product has been a lot of improvement and virtually behind the upgrade technology. A few years, whether it is the technology driven by Zhang, Sohu Matrix, Sohu 3.0, or blog year, Olympic year, and to today's media-driven, in fact, is a consistent line, a cycle or reincarnation.　　Technology development, multiple business and product lines are ultimately built for a core media, is to allow users to contact the media through more points to Sohu content, and contact the process through continuous improvement of technology to maintain a better experience, this is the most effort Sohu marketing, is based on the most straightforward marketing products. By contrast, the old rival Sina adopted the way is further excavation of advertising sales channels, including the integration with the Division, are to strengthen the advertising sales capacity, control channel resources, increase the price of the right to speak and ensure the brand advertisingBoss position.　　However, if the long-term innovation in content and products, lack of investment in new technologies, resulting in the loss of users and influence, a strong channel may one day collapse, thus losing the ability to gain advertising revenue. Zhang was already aware of this, although up to now, Sohu still in the Internet brand advertising market ranked after Sina, but Charles Zhang took the "slow roast whole sheep" way to consistent to continue to invest in the future to combat the frequent capital operation, the urgent pursuit of short-term performance Sina,　　Expect opponents to make mistakes and vulnerable time to attack, such as the financial crisis, Sohu rapid expansion, expand offline promotion, for more users. Sohu and Sina This pair of portal enemies, fully embodies the founder and professional managers at the helm of the company reflects the different strategic thinking and management style. [Page] Slow roast whole sheep Sohu, after all, is Zhang Chaoyang Sohu. All of the above Sohu performance, obviously and Charles Zhang's own thinking and ideas inseparable. It can even be said that Charles Zhang himself in the past few years, the external and internal often said words and commonly used words, to today a little bit in Sohu company to cash, realize. As a result, he declared, "the last to share the Chinese Internet 80% market share of the company is only two or three, and they must be founder-led companies." The role played by Charles Zhang as a founder is most evident in the game business. Sohu starting from 2002 to do the game, but has not done enough success, 2004, "fell two falls, but also want to continue to do" Charles Zhang found just from Sina frustrated leaving the Wang Yu. "I can do the Sohu game!"　　After listening to the money, bandwidth, server and environment that Charles Zhang gave him, Wang Yu, obsessed with technology and poor speech, was excited and photographed his chest in the presence of Zhang. "If I can do to let Sohu game 50,000 people at the same time online, can you get a certain reward?" Wang Yu asked, slightly shyly. Charles Zhang listened to the exultation, to know that Sohu game at that time performance better "sword" is also the highest when more than 10,000 people at the same time online, 50,000 at that time is simply astronomical.　　Zhang Lookout's Zhang is readily innonode, and this innonode has also achieved the success of today's Sohu game and Wang Yu personal wealth. Charles Zhang later confirmed his own understanding, he told reporters, cultural and creative industries need first-class talent to succeed. And 2004, in the net swims just when the time recognizes this, and really to implement, it is not easy. Imagine if Charles Zhang said at the time that there would be rewards, but the company invested so much in online games that the rewards were limited.　　Maybe there won't be a swim today. Take a deep look at this successful example, there are two indispensable conditions, one is wise leadership, he is not only wise, but also founder, if the professional managers, not to the company is particularly large, there are more complex considerations, will not think of the most profitable business spin-off; the other is, of course, a first-rate creative talent, And the success of this creative industry,More and more will be born in the local game talent, Wang Yu is typical--Charles Zhang so-called not to mention English can be listed in the United States, and this person's body also has to flow the blood of entrepreneurs, this incentive is the most effective. Charles Zhang in 2004 proposed technology-driven, product transformation, the promotion of all initiatives based on the above two points of understanding. First, the founder of the company's control, Zhang in the board of Directors to take the Oriental wisdom to gradually clear the international forces, to obtain the right to speak, not superstitious Western management model and discourse system, the second is to promote the local elite. In his view, localization not only applies to traditional industries, but also the most important direction and strategy for Internet media companies dealing directly with local users.　　Now Sohu Senior Vice President Wang Xiaoquan, Vice President Fang, and many other senior executives were promoted, and then promoted the co-president and chief marketing officer Wang, co-president and Chief Financial Officer Yuchuyan, focus network into Sohu after the promotion of the chief Operating Officer gong. It is this understanding and attention to the talent and team building, so that Zhang can stay at the foot of the Snow Mountain at the time of the release of the earnings, at the mountaineering camp base easy to face the investors on the other side of the ocean to ask questions. Cruise to the site of the Nasdaq, Charles Zhang hid in the back of the team, his friend Ziyi is standing in front of his position for the tour. This is perhaps what he said, the past year, the understanding of gain and loss, the control of the figure, the state of happiness and deepened awareness.　　[Page] The battlefield transfer in the domestic Internet industry, although no Tencent's product line so complex, Sohu's product line is also relatively long, and each product links and complementary logical relationship is also relatively close, a single product user experience has done well. In fact, Sohu from the early beginning, has been extending its product line to catch netizens. Moreover, to enrich and extend the product line of every action, Sohu itself has a more thorough understanding and clear purpose. Early in order to improve the portal products, such as from Chinaren access to e-mail technology and community traffic, etc. 2003 acquisition focus and 17173.com is to see the value of vertical portal, into the real estate market and the network game market, so far 17173.com also bring platform value for the tour;　　2004 proposed technology and product transformation, in fact, in order to deal with Google and other new search engine technology to the Internet industry brought about by the changes, so began to build a Sogou this new platform must be the basic components, now has included the input method, search and browser in line with the mainstream technology trends of important products. At the same time, blogs, SNS, wireless internet, high-definition video including Peer-to-peer technology has been a significant progress. In particular, high-definition video, with the increase in content sources and the entire industry to the private film production company more free and open, the crackdown on piracy increased, Zhang said that Sohu will take out more money to buy high-quality film and television works, he is looking forward to high-definition video this piece of advertising revenue in 2010 will become Sohu new profitGrowth。 "Sohu advertising market share in different stages have different driving force, 2010 video advertising should be one of the driving force." 2010 Network Video traffic will be large to a certain scale.　　As for the advertising pattern, Charles Zhang believes that TVC's mature mode on TV can be directly used for reference to online video. Sohu also look forward to a growth point will be sogou, although now the search engine market Baidu is in a monopolistic position, but Sohu's strategy is also adjusting. In fact, Sohu began to do in the 2003 Sogou has undergone a number of adjustments, and finally because of the success of the Sogou in the client, this strategy is gradually clear, is to avoid and Baidu head-on competition, take another road. "This road is likely to go through, I still have confidence." Sogou Input method is now absolutely in the leading state, almost has been popularized, including the mobile phone Sogou input method, this is the client side of a major victory. Charles Zhang believes that the client's success may mean that a new open road is likely to go through, achieving a curve search victory, "it is possible to change the way people search, such as people in the input of a matter of concern, you can search directly, rather than open the Web page with Baidu search."　　Zhang said, of course, this innovation can not be successful also need to verify, but continue to do consistent trend of innovation must be, such as browser, is now in good development momentum, it is at least to increase the user contact Sohu This platform is a more important point. From this, you can see, Sogou or video, as well as blogs, SNS and other products, in fact, around a core is to let users do not have access to the Internet has been logged in the portal situation, for users to create more of their more accustomed to more convenient points to enter the platform, access to information.　　This touch point may be Input method, search box or browser, SNS (Sohu's white social products just on line), not only the form of text, but also includes audio, video form. In Zhang's view, video and search two areas of imagination will be very large, search is in the monopoly of Baidu's market, as much as possible to eat a part of the cake, rather than far from being dumped in the back. And video is a new imagination, is the future of media patterns, media patterns.　　It is also a new battlefield of future portal competition. Zhang has never shied from judging rivals, even if the ratings are likely to provoke a backlash. In his view, a few major portals of the competition, Sohu and Tencent's strategy is more consistent, the product line extends more widely, more comprehensive, and Sina is increasingly moving towards a single advertising model, this model will not rule out the risk of marginalization in the future. "Sometimes it's not scary to have an enemy in front of you, it's scary that you find that the enemy is gone and you're moving to the new battlefield, and it's just that you're being marginalized," he said. "Charles Zhang said. In the long run, companies that invest in the future are likely to become a great company with long term benefits, while those who tend to be short-term interests have gradually become mediocre companies that make money and lose theirRisk of influence.