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Spin off NetEase news is a foregone conclusion, Ding Lei sacrifice or new chess?

via:博客园     time:2016/9/14 9:30:32     readed:1946


The science and technology Tencent Fang Yan

Strong performance benefit Mobile Games business, NetEase official market capitalization exceeded 30 billion dollars. The NetEase is planning to completely get rid of his old portals image, strengthen the game company's brand image.

According to Bloomberg News yesterday, informed sources, the NetEase will seek to finance $300 million in the spin off of the news business, so as to focus on the core of online gaming business.

The background of the story is this year since the NetEase in the capital market is quite good performance. In this month's Q2 earnings report, the NetEase's total revenue reached 8 billion 953 million yuan, an increase of 96%, net profit of 2 billion 721 million yuan, an increase of 91%.

However, a NetEase earnings this year Q2 advertising revenue is 531 million yuan, even without considering the addition of other sources of advertising business portal, portal advertising accounted for less than 8 billion 953 million yuan 6%. total revenue compared to NetEase's core current income - online game revenue reached 6 billion 438 million yuan, accounting for up to 72%.

At least in the financial performance of the NetEase has become a NetEase on the edge of the business.

In the NetEase news on the issue of the assets, the insider said, may form of financing in the United States through IPO (IPO), but may also sell directly. But no matter how, for the news NetEase senior business attitude is no longer variable.

As one of the four major portals have all-powerful, NetEase news after the spin off will decide on what path to follow?

Why be marginalized?

NetEase news in the internal status has been declining.

Although the portal news in the early establishment of the NetEase in 1997 was one of its most important business, but with the continuous development of the game business grew, the news business weight also declined.

Not only that, the media industry is increasingly weak environment has exacerbated the NetEase news disadvantage. This can be remarkable news from NetEase frequent high-level changes: since the former NetEase portal division president Li Yong left office in April 2012, to the nearest Chen Feng leave, NetEase has been in a short period of four years in the replacement of the editor in chief of the four any portal.

An old employee told the Tencent and NetEase, NetEase portal business long-term contradiction is between sales and content management, portal responsible person cannot be weighed two forces and pressure. At the same time, the portal or in the content level has been quickly realized continuously in the swing.

But in any case, the content of the game is difficult to a large number of characteristics, and ultimately make the news business has become a tasteless piece of the NetEase system of heart disease.

Get rid of this hot potato action seems to have been in progress.

According to the Tencent of science and technology understanding, NetEase executives for news business or not started this year, as early as last year, there are insiders claimed that the NetEase has split the parent company NetEase NetEase news media and brokerage contacts.

In this one of the most significant change is that the origin of the sales system of NetEase CEO Li Li took over the media power, after the competent content editor Chen Feng left. With the original sales department and the content of the balance was broken, the more obvious the sales oriented NetEase news.

These moves are now seems to come up with a dazzling financial performance in the financing or sale.

Why choose the United States stock market?

It is worth mentioning that, the latest news shows that the NetEase news of the choice of financing market is not before the market rumors of domestic A shares, but the U.S. stock market.

A person familiar with the U.S. stock market insiders told Tencent technology, NetEase news selection of U.S. stocks may not be considered for the valuation of the main reasons are the following:

1, the NetEase in the United States listed on the capital market, from the company's structure, by the NetEase and the NetEase split news does not require too much program will be able to visit the capital market. The NetEase to get rid of desire more urgent business news, U.S. stocks directly from the peel to city is obviously the most fast way.

2, the NetEase in recent years the stock price performance is quite outstanding, has accumulated a high reputation in the Wall Street, the NetEase news in U.S. stocks will also benefit from. Now, after stripping the NetEase will continue to occupy a larger share of NetEase news news, NetEase are unlikely to be renamed.

3, domestic market channels. Although the NetEase news of the financial data of the outside world is not clear, but the reference to similar media company, its financial data is likely to be not too good. If the market for home, landing gem NetEase news only certain requirements for profitability, profitability will remain under pressure.

Obviously, get a higher valuation is not expected to press the company NetEase NetEase, NetEase and the company is likely to expect too much of this report are not from the acquisition of larger interests. This deal with the previous hope to return to A shares to obtain higher valuation of the shares is significantly different.

As soon as possible, it seems that the NetEase is stripping the news business key words.

Peeling is a good thing?

However, by the NetEase as

According to Peng Bo reports, by virtue of entertainment and business news and other channels, the NetEase in July this year, the amount of page visits more than 10 billion 300 million times, becoming China's second largest web portal, ranking after the Tencent.

In the NetEase in recent years mobile featured on the third party according to the data released by BigData "China Mobile information distribution platform Market Research Report", until the first quarter of 2016, the Tencent news 58 million 773 thousand active users, ranked first, NetEase news 22 million 873 thousand active users, ranking fourth; single count four portal, the mobile terminal number of NetEase second.

From this view, the NetEase news in the portal area still has a certain competitiveness. When the NetEase news from everywhere subject to the NetEase system is stripped, maybe not a bad thing.

First of all, to outside investors will obviously bring financial help. In fact, the NetEase investment in the business of news has been unsatisfactory, even for news executives distribute stock issue, is not willing to distribute the NetEase shares, then the NetEase directly to the media shares do instead.

Second, the external capital or to bring some new ways. Mean investment, to some extent hindered the development of NetEase, the news at the same time, the news department of culture has become increasingly out of NetEase in this industry, and ultimately reflected in the reaction, business innovation is inadequate. At this time, the injection or external investment into a living water for the combination of NetEase at present in the field of media resources accumulated over the years, or there will be some new chemical reactions.

Third, independent listing will help retain talent. Since Ding Lei himself did not pay attention to innovation of the portal, the media NetEase executives, option awards also get NetEase listed companies, leaving the editor in chief of NetEase Chen Feng this year, it is held by the media sector but before listing options, these options and no value.

On the one hand, as a new media access to the latest industry information and resources, on the other hand, also facing innovation space inside the narrow, from the NetEase will continue to run the portal, Li Xueling, Li Yong, Tang Yan and other side of salmon, entrepreneurs. Reported that Tang Yan in the NetEase during the initiation of a mobile the idea of social products, when Tang Yan took this product to the idea of Ding Lei to millions of dollars upfront investment, Ding Lei didn't think it was worth the investment, this product will give up. This eventually led to the departure of Tang Yan and the unfamiliar street.

Clearly, the spin off of the listing of the media sector to improve staff income, encourage internal innovation will be helpful.

Of course, the more good for stripping the news business of NetEase, obviously: the NetEase will no longer need to carry out blood transfusion on the news business, the cost of human resources NetEase media will be stripped from the NetEase system, the NetEase's gross margin or will rise. And the NetEase will be more focus on its core business of online games.

Perhaps there are no losers in the deal.

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