Video field buyers reduce 56 net or discount to sell to Sohu

Source: Internet
Author: User
Keywords Video site Sohu Youku video field

The video market is releasing the takeover signal again. Recently, the industry has news that Guangzhou Local video Enterprise 56 network will be 12.9 million U.S. dollars priced, sold to Sohu. South reporters from close to traders learned that the two sides are indeed negotiating, but the price is undecided, the news is expected to be released by the buyer.

Prior to that, the 56 network has been a total of 80 million U.S. dollars in the price of the purchase, but has been in the second-line video site camp, difficult to make achievements. To this year, the 56 network has been out or be love odd art, Mango TV acquisition. As of yesterday's deadline, 56 nets, Renren and Sohu all said they did not respond to rumors.

The price hasn't been discussed yet.

People familiar with the matter told reporters that the 56 network has been in contact with a number of buyers this year, including the previous release of Mango TV, but ultimately because the price is not suitable for the final deal. "Sohu Indeed and 56 network in contact, but the price is undecided, the outgoing Low-cost acquisition is one of the means of negotiation process." ”

56 Network was established in 2005, since its inception has been adhering to the location of video sharing, the main U G C and P G C routes.

In the video field of mergers and acquisitions in the early 2011, 56 net to 80 million U.S. dollars in the price was wholly-owned by Renren, but after three years, Renren Chen may be sold at a discount of 56 net.

"There have been two trends in the video field this year: one is the Archie of the potato, the acquisition of PPS, Sohu Tencent each backed up the tree, the pattern of the video field has been basically determined, interested in buying the same assets of the buyer has not much, the entire investment trend to the content industry; second, the video industry, although revenue in the accelerated growth, But content spending is still growing, and continuing profitability is unclear after a short-lived profit. The unnamed person briefed on the report said that, from the buyers and sellers, the company's business operations in recent years is not ideal, the possibility of the sale of assets. "While Renren achieved a net profit of $31.3 million in the second quarter of this year, compared with a net loss of $9.3 million for Renren last year, the shift from net losses to net profits was mainly attributable to the 86 million dollar income from the sale of short-term investments, In the same period, Renren's operating loss has reached $30.4 million trillion. ”

August 2014 China online video website Active users statistics show that 56 network has 46.2826 million active users, ranked first Youku has 15404 330,000 active users, while the second Sohu video has 143.84 million active users.

Trading three-party abacus

The report showed that in the 2nd quarter of 2014, China's online video market advertising revenue of 4.1 billion yuan, compared to the 1th quarter of 2014, the quarter-on-quarter growth of 38.3%, compared with the same period last year 42.6%. From the overall market share, the 2nd quarter of 2014, excellent soil, Archie pps, Sohu Video listed in the Chinese network video market advertising revenue of the top three.

Video site in operation embodies two characteristics, one is the copyright content is still attract users and advertisers key, the scramble continues to heat up. In the content still occupy the core competitiveness of the situation, the major video manufacturers to seize high-quality content, through the copyright alone to reflect the content of the differences, to attract users, the second is the strategic upgrade, the market performance is good.

56 net in the prostitution of everyone company, once by virtue of the small cost of the UGC model to maintain the status of the lake. In an interview with reporters in the south, the Analysys analyst, UGC, said the investment was a way to invest in upstream industries because the current high quality U G C was produced mainly by small studios. "UGC can improve user stickiness, for Sohu, U G C can enrich its profit model." 56 nets and Youku potatoes, they will and the U G C and PG C team to reach a cooperative model, that is, the content to the site, and then by the site to talk about advertising, and divided. ”

Further said, "56 and Sohu two sides in the platform positioning on a great difference, Sohu has a lot of long video copyright and homemade content, 56 is the U G C as the main content, so both sides have obvious differences in positioning, cooperation can form a better effect." And for Renren, the original 56 of Renren acquisition is from the user growth, the two sides can from the user traffic on each other, user similarity is very high. But at present Renren's user flow, stickiness and the same year has not been the same, Renren's value of 56 is also a big discount. "Pang billion plainly.

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