What is the social media distributor equal to?

In the new economic era dominated by the internet, there is never a lack of imagination and the expectation of fresh models. Now, to micro-Bo as the representative of the social media in full swing, the development of the electricity business is hot, the social power of the exploration has been all the people relish, then, to social media for the label of Sina Weibo plus the electricity quotient for the pronoun of Ali is equal to the social power quotient?

There is no doubt that Ali's shares of Sina Weibo have become the headlines of the major technology sectors in the last two days.

Alibaba has been close to or has reached an investment-equity agreement with Sina Weibo, according to a variety of sources. More and more information shows that Alibaba investment Sina Weibo is a foregone conclusion. After the investment is completed, Alibaba will hold a 15%-20% stake in Sina Weibo, which will value as much as 203 billion dollars. In this calculation, Alibaba will invest in Sina Weibo 4.6 billion U.S. dollars.

Whether the capital market or enterprise management, when the enterprise as an individual encountered problems or obstacles, will seek a new breakthrough at the same time to promote new opportunities, the market in this resource reconfiguration and optimization played an important role.

All along, Sina's commercial prospects are not clear, Sina's own advertising business and micro-Bo commercial right-hand "mutual bo", micro-bo profit pressure is huge, at this time Sina must change, seek breakthroughs. In the product innovation and development also did encounter some problems.

In answer to the Sina SME advertising system progress, Chao said frankly:

Small and medium-sized enterprises in the new advertising system input results need time, we want to give small and medium-sized enterprises enough advertising, test the new recommendation engine, improve its accuracy. Our information based advertising system will be very suitable for small and medium sized enterprises, we are testing and have not generated much revenue.

But it depends more on the data, we need a lot of data, personal data and the micro-blog relationship map, so this recommendation engine takes a long time to fine-tune. Of course, small and medium-sized customers pay more attention to the problem of precision, big customers pay more attention to social effects, the two requirements are very different, we will try to balance.

The data shows that the percentage of Sina Weibo users logged in by mobile clients is growing rapidly, and Sina has developed a "promoted Feed" advertising system for mobile clients. The microblogging data should be linked to the advertising needs of advertising system companies. The content that the user publishes can be converted to the advertisement, and is distributed to the friend of the user. Facebook has quickly solved the problem of advertising revenue with a similar advertising system. Since the adoption of the system in 2012, the Q2 has generated 90 million of billions of dollars in revenue, Q3 150 million.

The predicament of Sina

Sina's share price from the historical highest point of 142 U.S. dollars quickly fell to the current 45 U.S. dollars, market capitalisation from the peak of 8 billion to the current 3.011 billion U.S. dollars, micro-blog growth is weak.

According to Sina's latest earnings, as of September 30, 2012, the number of Weibo users has reached 424 million, but the average daily active users only 42.3 million, active users accounted for only about 10% of total users. Revenue, Sina Weibo advertising revenue of about 20 million U.S. dollars, accounting for only 16% of Sina's advertising revenue. Sina CEO Cao Chao also admits that Sina Weibo has made some progress in monetization, but the portal business and Sina Weibo exist left-right mutual stroke.

Sina 2012 Q3 Earnings show, its third quarter net revenue 152.4 million US dollars, year-on-year increase 17%, net profit 9.9 million dollars, fall 70%, this group of earnings disclosed, Sina stock price tumbled 15.12%. For investors, the current decline in financial statements will not be ignored because of the potential commercialization prospects of Sina Weibo.

As the hottest Internet product of the two years, Sina Weibo in the process of commercialization of the messy pace, the prospect of worry, nor for Sina to bring more advertisers, but also by the capital market is a huge challenge. The crisis and challenges facing them both inside and outside are becoming more and more, the content of hydration and activity decline; Sina, which is known for its portals and media, lacks technological innovation and technology drive.

Ali shares the "imaginary" of Sina Weibo

From the profit-driven capital markets and business operations, all the cooperation is "to the point".

For Sina, based on the entire Internet industry ecological chain Angle, Alibaba, 360, and Tencent are potential investors, but why Ali? First, the small and medium-sized advertising system needs a large number of advertisers, and Ali's 10 million small and medium-sized enterprises are ready-made resources, and secondly, as Sina and Ali common rivals, Tencent in the electric business, payment, mobile Internet, O2O, social media and other fields of all layout, join Ali is the best choice. In addition, in the large data environment, the data analysis and mining capacity is also needed to strengthen Sina.

Ali's investment has won more capital and exploration time for the commercialization of Sina Weibo.

Uary, has been emphasizing the development of the Internet ecosystem, social power has always been Ali a complex, whether to take cooperation or "self", have been constantly moving. This is also Ali's social Electric quotient (sns+) field made another attempt.

2009, is regarded as "big Taobao" user platform SNS products "Amoy Lake" online. But time proves, "Amoy River Lake" became Alibaba in socialization attempt of the first failure. In addition, Mushroom street, beauty, such as shopping guide Web site, Taobao's conversion rate is getting lower, advertising revenue plummeted, to Sina Weibo mainly social media diversion role can not be underestimated, at this time shares, this is a strategy.

Last week, Sina shares plunged 15%, Sina Weibo's commercial prospects are worrying, micro-letter-oriented mobile internet impact, and other factors, investors on Sina gradually lose patience, capital market valuation was low, this is the best time, not only "cheap" can also effectively prevent competitors, reduce the possibility of generating potential opponents, It is a stone three birds.

Due to the author, Sina by "Alibaba shares" good news stimulation, the stock price rose 10%, this kind of cooperation effect highlighted, but also confirms that the capital market for SINA changes the urgent expectation, whenever, change is always more reasonable than sitting ducks.