Home > News content

Long video changes? Alibaba Tencent acquisition of iqiyi, official response!

via:博客园     time:2020/11/27 20:26:21     readed:127

On november 27th, media reported that alibaba and tencent suspended talks to buy baidu's iqiyi stake, while byte beat internally assessed the feasibility of acquiring iqiyi shares. In response to this, iqiyi responded to NetEase Technology:

Related Reading:

Alibaba and Tencent suspended talks to buy Baidu's shares in iqiyi, according to Reuters on November 27. Iqiyi plans to raise at least $1 billion over the next few months. Alibaba and Tencent have disagreements on iqiyi's valuation of about $20 billion, but they are also facing adverse regulatory factors.

Subsequently, in response to the postponement of the acquisition of iqiyi with Alibaba Tencent, baidu responded that the rumors were not true. Iqiyi is an important part of Baidu's content ecological strategy, and Baidu will support the development of iqiyi as always.

On the afternoon of June 16, Reuters quoted two people familiar with the matter as saying that Tencent plans to become iqiyi's largest shareholder. One of the people familiar with the matter said Tencent had approached Baidu, which owns 56.2% of iqiyi, to buy shares of undetermined size, but whether Tencent has contacted iqiyi is still unknown.

The plan is still in its early stages and is subject to change at any time, the people familiar with the matter said.

Tencent Holdings Ltd. plans to become iqiyi's largest shareholder to reduce costs and enhance its competitiveness in online video, Reuters quoted two people familiar with the matter. The above-mentioned people said:

Tencent and iqiyi responded to the news on june 17


On the day of the news, Tencent's share price rose, Baidu's share price also rose, and iqiyi's share price rose by 25%. The capital market was happy.

However, with the popularity of small screen and short video, the living environment of long video platform is still severe. Zhao Gang, general manager of Tencent's video living room business department, said at the eighth China Network Audio-visual Conference that the emergence of short video subverted the audiovisual industry and even seriously threatened the survival of long video.

At the same time, iqiyi, Tencent and other traditional long video platforms still do not find a way to profit at this stage. According to the third quarter performance report, iqiyi's total revenue in the quarter reached 7.2 billion yuan, a year-on-year decrease of 3%; and the net loss reached 1.2 billion yuan, which was narrowed compared with 3.7 billion yuan of the same period last year.

From 2015 to 2019, iqiyi lost nearly 29 billion yuan. In the first half of this year, iqiyi launched some popular dramas and variety shows such as "secret corner", "youth has you 2" and "I am a singer writer 2". However, the net loss in the first half of this year still reached 4.3 billion yuan, an increase of 4.5% compared with the same period in 2019.

Iqiyi also fell into the plight of weak growth of its members. As of September 30, the total number of subscription members of iqiyi was 105 million, of which 99.5% were paid subscription members, with a month on month decrease of 100000 and a year-on-year decrease of 1 million. The number of members showed negative growth both year-on-year and month on month.

Before that, Tencent video also announced the third quarter results. As of September 30, the number of Tencent video service members has reached 120 million, an increase of 20% over the same period of last year. Although no specific member income figures have been released, Tencent's value-added service revenue has reached 69.802 billion yuan, up 38% year-on-year, mainly due to the increase in the number of video and music content service members.

If iqiyi and Tencent video join hands, the two sides will probably end the passive situation of the long video platform which has been playing more and more losses for many years, and it will be possible to reshape the current competitive pattern.

In addition to Tencent, iqiyi buyers exposed also include millet and byte jump.

According to AI financial news agency, many years ago, iqiyi introduced a new strategic investor, Xiaomi, under the leadership of Baidu, and Xiaomi also had a heated discussion on the possibility of cooperation between Xiaomi film and iqiyi's original film business.

In the third quarter of 2019, byte jump CEO Zhang Yiming and Gong Yu met. After the negotiation, Zhang Yiming promised to continue to give iqiyi certain funds and resources every year in the future, in addition to the capital invested in this time.

However, in the end, the two investments on millet and byte skipping did not succeed.

Recently, the field of long video waves surge. From member price rise to head video platform share merger, it seems that long video is about to change.

On November 13, iqiyi announced an increase in member prices. Specifically, the monthly, quarterly and annual cards increased by 5.2 yuan, 10 yuan and 50 yuan respectively, and the continuous monthly and annual cards also increased correspondingly, with the price increase range of 30% - 50%.

Although Tencent video did not disclose the specific member price, it said that the current subscription price of 20 yuan per month is low and will be adjusted in the future.

It is worth noting that this is another big move of the video platform in the member business after the advance demand storm and the upgrading of Star Diamond members. It is also the first price increase of video platform members in the past nine years.

In the two major platform price dispute has not subsided, Ali and mango super media burst out big news. On November 17, Mango Super Media announced that Alibaba's Ali Venture would take a 5.26 percent stake in the company for 6.2 billion yuan, or become the second largest shareholder of Mango Super Media. Ali and Mango Super Media

For the rising mango TV, compared with the price rise, seeking breakthrough in content has become the focus of its layout. Relying on the rich content resources of Hunan Satellite TV, as well as variety shows such as "sister riding the wind and waves", "big escape from the secret room" and "star detective", the number of users of mango TV began to grow rapidly in the first half of this year. In August this year, the dau (number of daily active users) of mango TV has surpassed that of Youku, ranking the third in the market share. According to the performance report, mango super media's revenue in the third quarter was 3.697 billion yuan, an increase of 35.53% over the same period of last year; the net profit attributable to shareholders of listed companies was 509 million yuan, with a year-on-year increase of 197.41%.

It is worth noting that if mango hypermedia successfully introduces Ali venture capital as a strategic investor, it will help it to strengthen its content cooperation with Youku and strengthen its content advantages.

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments