Bottom line: Baidu’s reorganization of its mapping unit reflects growing competition in the space, and could ultimately end in a shuttering of the service if its usage continues to decline.
Baidu mapping service charts new direction
The wheels of restlessness at online search leader Baidu(Nasdaq: BIDU) are grinding into motion once more, with word that the company has made a major shift in its popular mapping division. Company watchers will know the restlessness to which I refer is a direct reference to Baidu’s founder Robin Li, who is famous for getting into new businesses, only to tire of and ultimately jettison them after just a few years.
In this case it’s probably far too early to say if that’s the case for Baidu’s mapping unit, which has been one of its most popular products for quite some time, thanks in no small part to its dominance in online search. The problem is that Baidu has failed to keep pace with more nimble competition, most notably from the Alibaba-owned (NYSE: BABA) AutoNavi. What’s more, an equally large potential rival is looming in the form of global giant Google(Nasdaq: GOOG), which has recently begun updating its previously dormant China mapping service. Read Full Post…
Bottom line: Alibaba’s combining of its mapping and web browser units under a single leader marks the start of a necessary rationalization of its many acquisitions over the last 2 years, which could produce some odd pairings.
Alibaba combines UCWeb, AutoNavi units
After nearly 2 years of making billions of dollars in strategic acquisitions, we’re finally seeing an attempt by e-commerce giant Alibaba (NYSE: BABA) to integrate and rationalize some of those purchases through new tie-ups and other pooling of assets. In this case the integration is coming in an executive move, which is seeing the founder of its AutoNavi online mapping division leave the company. His former position will be taken over by the founder and head of Alibaba’s UCWeb browser division, combining the 2 units under the leadership of a well-respected tech leader named Yu Yongfu. Read Full Post…
Bottom line: The sale of a major stake in Bitauto reflects a growing alliance between buyers Tencent and JD.com, and could be followed by a similar sale of a stake in Bitauto rival Autohome.
JD, Tencent buy into Bitauto
A newly announced deal that will see Internet giants Tencent (HKEx: 700) and JD.com (Nasdaq: JD) buy nearly a third of online auto specialist Bitauto (NYSE: BITA) is filled with intriguing implications for China’s consolidating online sector. The deal further cements a growing alliance between Tencent, China’s largest social networking (SNS) operator, and JD, the second largest e-commerce firm. At the same time, the tie-up with Bitauto has fueled speculation that the country’s other major listed online car specialist, Autohome (NYSE: ATHM), could become an acquisition target by one of China’s other leading Internet firms. Read Full Post…
E-commerce leader Alibaba is forming some interesting new tie-ups with major multinationals, including a new strategic partnership with Dutch electronics giant Philips (Amsterdam: PHG) and a pairing between its recently acquired AutoNavi (Nasdaq: AMAP) online mapping division and leading German automaker Volkswagen (Frankfurt: VOWG). I’ve previously said I’m not a big fan of Alibaba’s recent M&A binge, as it looks a bit lacking in focus and could lead to operational headaches as the company tries to integrate so many different businesses. But these latest non-acquisitive tie-ups with major global partners look like a smarter strategy for expanding its reach as it prepares for a multibillion-dollar New York IPO. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 30. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on April 12-14. To view a full article or story, click on the link next to the headline.
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Jumei.com Files For New York IPO To Raise Up to $400 Mln (Chinese article)
Sina (Nasdaq: SINA) Announces up to $500 Mln Share Repurchase Program (PRNewswire)
AutoNavi (Nasdaq: AMAP) Agrees to Be Acquired by Alibaba (English article)
Sohu (Nasdaq: SOHU) CEO Zhang Prepares For Change, Eyes Common Netizens (Chinese article)
Trina Solar (NYSE: TSL) Updates Q1 2014 Guidance (PRNewswire)
Anti-monopoly regulator may need to brandish veto stamp
After years of fragmentation, China’s Internet has undergone a sudden and radical overhaul over the past year, with 3 major firms emerging as major consolidators. The frenzy of new tie-ups and acquisitions has been a welcome development, helping to cool overheated competition in a wide array of sectors where most companies were losing money.
But with the emergence of Alibaba, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU) as the 3 major consolidators, China’s anti-monopoly regulator should start to give closer scrutiny to future deals to avoid too much reduction in the competition necessary to ensure future innovation and consumer choice. Such scrutiny could and should ultimately lead to the veto of some future deals, especially larger ones, by regulators who need to become more assertive in the space. Read Full Post…
Shanda’s Chen throws in the towel with company sale plan
I’ve followed online entertainment entrepreneur Chen Tianqiao for quite some time now, and can completely understand the latest news that he may be ready to throw in the towel by selling his flagship company, Shanda Interactive Entertainment. I remember first running into Chen in Hong Kong back in 2004 at an investor event, shortly before Shanda become China’s first publicly listed online gaming company later that year. Shanda was briefly on top of the world as China’s top Internet gaming firm for a few years after that; but it has run into a non-stop series of headaches since then, causing its value to stagnate as it got passed by more nimble rivals like Tencent (HKEx: 700) and NetEase (Nasdaq: NTES). Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 11. To view a full article or story, click on the link next to the headline.
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Alibaba Offers $1.6 Bln For Digital Mapping Firm AutoNavi (Nasdaq: AMAP) (English article)
China’s Dongfeng (HKEx: 489) Says Held Talks With Peugeot, No Deal Yet (English article)
Chinese Internet companies have never been afraid to venture outside their core business areas, and that trend continues with word that e-commerce heavyweights Alibaba and Suning (Shenzhen: 002024) are making new forays into education and finance, respectively. Frankly speaking, this recent venturing of some companies so far outside their core competencies doesn’t look all that smart to me, and is the result of a “follow the herd” mentality that’s being driven by a few companies with lots of cash that they want to invest. But that said, these 2 latest cases do look relatively logical and probably have good chances for success. Read Full Post…
Internet leaders Baidu (Nasdaq: BIDU) and Alibaba are in a recent war to see who can win the most headlines for online M&A, which has suddenly accelerated in China after years of inactivity. In the last 24 hours alone, media are reporting that Alibaba has finalized a deal to team with Hunan Satellite Television to purchase PPTV, one of China’s top video sharing sites. Not to be outdone, Baidu was reported earlier this week to be in late-stage talks to buy group buying site Nuomi (previous post), and has just announced the finalization of its previously announced $1.9 billion plan to buy online app store 91Wireless. (company announcement) Read Full Post…
