To be the biggest deal in the history of Chinese Internet

"We have to do not only the largest deal in the Chinese internet history, we have to do the most successful Chinese internet deal! This is our determination! "August 14, Baidu and 91 wireless formal signing of the merger agreement, Baidu chairman and CEO Robin Li in Fujian 91 wireless headquarters, said.

91 Wireless is not the only target of Baidu acquisition. August 14, there is news that Baidu will buy Renren's website of the group buy glutinous rice Network, the purpose is to build O2O business.

For whether to buy glutinous rice, Baidu, Renren net two companies have not confirmed, but the capital market was once bullish on the acquisition. Stimulated by the above news, Baidu, Renren Company's recent stock prices have been rising trend.

Acquisition layout O2O?

For the future of Glutinous Rice Network, Chairman and CEO of Renren Chen in the second quarter of this year, interviewed by analysts, said two points, a optimistic about the future of group buying, in the O2O market, group buying is an indispensable link, increase the investment in glutinous rice network; the second is to continue to implement the expansion plan for glutinous rice NET, The city has expanded from 59 last year's fourth quarter to 82.

Chen said that China's E-commerce market is expanding, Renren will continue to invest to benefit from it.

Over the past years, Baidu has also been trying to expand its territory to E-commerce, has set up a website "there ah", and Japan Lotte Group joint Venture cool days, investment Yao Point 100 and other companies, as well as the establishment of Baidu Electric Business division.

As of now, Baidu's attempt in the field of electric business is not ideal. The acquisition of glutinous rice Network may change this situation, the first is glutinous rice in the field of buying a place, followed by group buying in the O2O field of importance, conducive to Baidu layout o2o business.

In the past, Baidu has been the biggest beneficiary of China's rapid development of E-commerce. In order to obtain traffic, E-commerce site must be purchased through Baidu traffic, from the electric business of advertising investment has become the highest revenue in Baidu, one of several industries.

Baidu has been thinking about the problem is to be able to sell traffic to raise the east, where guests, when, excellence, such as e-commerce companies, why can not raise a big one belongs to Baidu's E-commerce company? The conclusion is "certainly can", just like the love of the Baidu investment art, through Baidu Diversion, plus the acquisition of PPS, Baidu's video business has become China's video industry, "The two giants" one.

August 14, Li, after 91 wireless full meeting, also summoned 91 wireless executives to meet. Li said: "I know that in the past some time, 91 in order to go public, revenue pressure, the future of our revenue may be to reduce the target." ”

' Building a powerful application distribution capability is the 91 real priority, ' says Mr. Li. ' Baidu investment is for better returns, for long-term development, not for short-term revenue.

Acquisition 91 Wireless has a big goal, is the powerful application distribution ability, simply said, is the entrance; the acquisition of Glutinous Rice also has a goal, is O2O.

Now, the problem is, Li and Chen a boat need to find a mutual recognition, the E-commerce business bigger program.

Two elements of merger and acquisition

Baidu's desire for electricity is not the only reason for the deal. Another reason is that the industry is cold, group buying needs to "hug the thigh", such as China's largest group buying site United States group Nets hug the thigh is Ali.

Everyone net once was glutinous Rice's thigh. Renren on the market, Chen to accept this reporter interviewed said, Renren is a huge source of traffic, can be a certain way to accurately import flow of glutinous rice network.

Now Renren's traffic is being taken away by social services such as Sina Weibo, Tencent Micro-mail and so on. As China's largest "flow distributor", Baidu is the highest quality source of traffic, thicker "thigh."

The merger of Glutinous Rice network, but also conducive to the formation of Baidu's own product gradient: The past Baidu's core products are search, product 0 gradient. If the acquisition of glutinous rice nets, search is a first-class product, glutinous rice for grade two products, first-class products for the two-level product diversion.

Search engine as a product to provide customers with marketing value, the profit model by the number of clicks, received is advertising fees, the latter for the offline businesses to provide services, the profit model is to withdraw the Commission, the service charge, the two business fully complementary.

In the process of speaking to 91 employees, Li said that there are two reasons for the success of the merger, one is the complementary synergy between products and services, and the other is the active cooperation between the teams. Robin Li believes that Baidu's search engine business and 91 wireless business is highly complementary, this is Baidu acquisition 91 wireless reasons.

Baidu search engine is traffic distribution, 91 wireless is the application of distribution, in the PC Internet era is the flow distribution as the leading, in the wireless internet, application distribution plays an increasingly important role.

91 Wireless and Baidu search engine in the import strategy complementary, glutinous rice nets and Baidu in the product gradient complementary, which will become the basis of mergers and acquisitions.