Author: Liu Jia Qiu Zhili editor: Liu Jia
On November 17th, Baidu chairman Robin Li received an unexpected Q3 report and a gift of $3 billion 600 million on his 52 th birthday: YY live.
Under the final binding agreement signed between Baidu and Gyu Group, a wholly owned acquisition of the Group's domestic live broadcast business
According to the first financial reporter, Baidu's acquisition includes but is not limited to YY mobile applications YY.com Website, YY PC client, etc. After the transaction is completed, YY live will join Baidu. Baidu shares rose 1.9% to close at $147.84. Huanju shares rose 1.55% to $95.58.
Baidu's focus on the deal is YY set of mature live broadcast systems, a Baidu executive said in an interview with First Financial. Li Xueling, chairman and chief executive, said today,
Zhang Yi, CEO of AI media consulting, said in an interview with first finance and economics that the deal had an impact on YY To Baidu, cash out is a good way. In addition to improving its income structure and laying out new strategic businesses in the short term, more importantly, Baidu will expand its old business relying on search to more realizable new business channels through such a heavyweight acquisition.
Baidu fans live, happy sword refers to globalization. Whether the deal will enable technology, traffic and ecology to help Baidu find a new story and focus its efforts on overseas markets is an underdog
The inevitable choice of live shuffle
Zhuang Minghao, former vice president of Panda Live, said:
As early as 2008, the voice software YY, is the live broadcast industry's old players, its show mode is still profitable today, but in live games, live streaming and short video
Compared with the game live broadcast, the show live broadcast has a lot of profits, but it also faces some problems, such as difficult social relationship precipitation, poor user stickiness, low competition threshold, fierce competition between the host and the guild. More Kwai's problem is growth and user churn. Many people are gathering money and gathering money to tiktok, and many of the hosts are streaming short, fast and vibrant.
this problem is particularly evident in YY financial data. Q2 from 2019 to Q2,2020 YY payers grew by 19.1%,14.4%,9.8%,-3.6% and -2.2% respectively, And in Q3 results, YY lump-sum payments fell 4.7 per cent to 4.1 million from a year earlier, 4.3 million for the same period in 2019, Growth slowed markedly.
Compared with the domestic live broadcasting business, which has fallen into the red sea battle, the overseas market has become the business focus and the second growth curve. According to the financial data of the third quarter released by huanju today, the operating revenue of bigo reached 3394.8 billion yuan, an increase of 120.8% year-on-year. Thanks to bigo business, the net income of huanju group increased by 36.1% to 6.286.4 billion yuan, and the live broadcast income increased by 40.1% to 6.049.1 billion yuan. In the overseas market, the live and short video products of huanju group have always been tiktok's strongest competitors, ranking second in China's live and short video products.
For Baidu, the latecomer of the live broadcasting industry, the biggest value of YY may come from a whole set of live broadcasting ecology, including anchor echelon, anchor cultivation, operation experience and even technical ability, which will provide great support for Baidu to create a live ecological closed loop. YY and Baidu are expected to introduce small amount of traffic, and can not make up for the difficulty of live broadcast.
In addition to grasping the time window as soon as possible, baidu is expected to form a complementary chain between the live broadcasting field of the show and the content live broadcasting and e-commerce live broadcasting that are being built.
For Baidu's main business search, YY live broadcast will enrich its search content orientation, at the same time, it can also help Baidu to supplement the content form beyond graphics and short video, and improve the user experience and user stickiness of search information flow service.
What's more, unlike Baidu's cash burning emerging businesses such as takeaway, the acquisition of YY can provide Baidu with additional free cash flow, thus supporting the development of other capital intensive businesses, such as AI and long video. At the same time, the acquisition of YY can also meet Baidu's diversified cash flow requirements and further expand the commercial space of mobile terminal.
Live broadcast industry enters overtime
Driven by capital and industry, live short video has almost become a battle for Internet giants. During the past year, some of the most popular losers have left the scene, with quick hands, shaking sounds, B stations around short videos and live broadcasts
Before the end of the live broadcast, baidu bought YY live to drag the industry into an extra time race.
If the acquisition is completed, baidu app, good-looking video, Baidu Post Bar and other terminals are expected to access into YY's traffic entrance. Whether the combination of Baidu's knowledge live broadcast and YY's accumulation on the show live broadcast will give birth to a brand-new live e-commerce play method and realize differentiated station, the integration effect of the two still needs time.
Behind each live broadcast war, the live broadcast industry is not only the demand flow entrance, but also the transaction service carrier, which carries the possibility of game and social interaction. A baidu executive told first financial reporter that the live e-commerce industry is a very convenient, close to money and potential industry. At present, e-commerce industry payment, express delivery, supply chain and other macro infrastructure has been fully mature,
However, live broadcasting depends not only on traffic, but also on anchor, supply chain and basic skills. Jitter and Kwai have already been messed up live broadcast of the electronic business platform, and knowledge seeding is also inflow into the Bureau. Whether the YY showcase entertainment mode will turn smoothly to tiktok and other diversified live broadcast modes is still unknown.
Return to the essence, whether live or short video, the core depends on fine operation, superior content and commercial realization, the competition between platforms mainly lies in quality and diversification. Who can meet the diverse and personalized needs of users, who can break through in the live short video track.