Tag Archives: Changyou

INTERNET: Sohu Brings Home Changyou, LeEco Slashes Jobs

Bottom line: Sohu could privatize and sell itself after its Changyou buyout, while LeEco’s mass layoffs could presage a shuttering of all its newer operations as it reverts to its original online video business.

LeEco slashes jobs

Two relatively large pullbacks are in the headlines as we reach the midpoint of the week, led by the latest privatization bid for online game specialist Changyou (Nasdaq: CYOU) by parent Sohu (Nasdaq: SOHU). That news is coupled with the unrelated by equally large retrenchment by struggling online video company LeEco (Shenzhen: 300104), which is making mass layoffs in its bid for survival.

Each of these stories is interesting because the future existence of a major company is at stake. In the first case, the Changyou privatization could signal a future privatization and sale of the company’s parent, Sohu, one of China’s oldest Internet players. The LeEco story represents the latest twist in the downward spiral for this company, which appears to be rapidly slimming down or closing most of its operations outside its original core online video service. Read Full Post…

INTERNET: Sohu Playing Video with Tencent?

Bottom line: Sohu is likely to combine its online video service with Tencent’s in an ongoing consolidation of the Chinese sector, and the tie-up could presage a Tencent-backed privatization bid for Sohu later this year.

Sohu, Tencent in video merger?

More consolidation could be coming in China’s online video sector, with word that web portal Sohu (Nasdaq: SOHU) may soon sell a major stake in its video service to social networking giant Tencent (HKEx: 700). The move would follow a similar tie-up between this pair in the online search space, and might lead some to wonder if Tencent may even be preparing an eventual bid for Sohu itself. I’ll end the suspense on that matter by saying such a sale seems unlikely, for reasons I’ll explain later. But the pair could still ultimately do more deals together

This particular tie-up would mean that China’s online video sector is firmly consolidating around the country’s 3 biggest Internet companies and a handful of others. Leading search engine Baidu (Nasdaq: BIDU) is closely associated with Qiyi.com, a leading player, while Alibaba (NYSE: BABA) last year purchased Youku Tudou, another leader. The other major player is LeEco (Shenzhen: 300104), formerly known as LeTV, and state-owned broadcasters in Shanghai and Hunan are also making big pushes into the space. Read Full Post…

News Digest: November 19, 2015

The following press releases and media reports about Chinese companies were carried on November 19. To view a full article or story, click on the link next to the headline.
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  • Tongwei Group Plans World’s Biggest Solar-Cell Plant in Sichuan (English article)
  • Ctrip (Nasdaq: CTRP) Reports Unaudited Q3 Financial Results (PRNewswire)
  • Kee Everbright Abandons Acquisition of Changyou (Nasdaq: CYOU) Unit 7Road (English article)
  • Weibo (Nasdaq: WB) Reports Q3 Results (GlobeNewswire)
  • Geely (HKEx: 175) Aims for 90 Pct of Sales to be Green Energy Cars by 2020 (English article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

News Digest: July 28, 2015

he following press releases and media reports about Chinese companies were carried on July 28. To view a full article or story, click on the link next to the headline.
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  • China Minsheng Investment to Acquire Sirius Int’l Insurance for $2.2 Bln (English article)
  • Baidu (Nasdaq: BIDU) Announces Q2 2015 Results (PRNewswire)
  • Delta Air Lines to Buy China Eastern (HKEx: 670) Stake for $450 Mln (English article)
  • Shanghai Traffic Regulator Gives Clear Road to Legality for Private Car Services (Chinese article)
  • US-Listed China Stocks in Monday Sell-Off, Changyou (Nasdaq: CYOU) Dips 11 Pct (Chinese article)

IPOs: Sohu Shops Tired Sougou For 2015 IPO

Bottom line: Sogou is likely to list in the second half of the year, but will get a lukewarm reception from investors due to its status as a solid second-tier player without hopes of ever becoming a sector leader.

Sogou eyes H2 IPO

Some 3 months into the New Year, we’re still waiting for the first New York IPO by a Chinese Internet company after a blockbuster year in 2014. Now we’re getting word of a listing that could come in the second half, with news that portal stalwart Sohu (Nasdaq: SOHU) is planning an IPO for its decade-old Sougou search engine in that time frame.

The offering looks very so-so, as Sougou has failed to gain much traction despite its status as one of China’s oldest search players. More broadly speaking, we can probably expect to see more of this kind of ho-hum IPO from second-tier Chinese Internet firms for the rest of the year, since the most exciting players listed during last year’s surge in new offerings. Read Full Post…

INTERNET – Results Show Sputtering Sohu, As Search Picks Up

Bottom line: Sohu’s latest results hint at lingering weakness in online games and Internet advertising, while online video also continues to suffer amid a regulatory crackdown. 

Sohu looks weak in games, advertising

The latest results from diversified web portal Sohu (Nasdaq: SOHU) are quite a mixed bag, with its lackluster search business finally showing some promising signs of accelerating growth, even as its core advertising and online gaming businesses sputter. Then there’s its money-losing online video business, which is facing a growing number of hurdles due to a regulatory crackdown, just as the unit looks set to make a minor acquisition that probably won’t add very much to its future prospects. Read Full Post…

News Digest: November 4, 2014

The following press releases and media reports about Chinese companies were carried on November 4. To view a full article or story, click on the link next to the headline.
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  • Xiaomi Said To Seek Funding At Valuation Of About $50 Bln (English article)
  • Sohu (Nasdaq: SOHU) Reports Q3 Results, Changes at Changyou (Nasdaq: CYOU) (PRNewswire)
  • Lenovo (HKEx: 992) Set To Move Motorola Production To Wuhan (Chinese article)
  • E-cars: Market In Seach Of A Jolt (English article)
  • VNOs To Offer 4G After China Telecom, Unicom Get FDD-LTE Licenses (Chinese article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

News Digest: July 17, 2014

The following press releases and media reports about Chinese companies were carried on July 17. To view a full article or story, click on the link next to the headline.
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  • WTO Rules Against US Import Tariffs On China Steel, Solar Panels (English article)
  • GAPPRFT to Regulate Internet TV Platform License Holders (English article)
  • Sohu (Nasdaq: SOHU) Online Game Unit Changyou To Invest $91 Mln In MoboTap (PRNewswire)
  • Yum’s (NYSE: YUM) China Rebound Dimmed By India, Pizza Hut Weakness (English article)
  • Wanda Group Seeks Partners To Form E-Commerce Unit (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

Giant Buy-Out: Paving Way For A Real Gaming Giant?

Giant finalizes buy-out plan

The ongoing cleanup of neglected Chinese firms from US stock exchanges continues, with word that online game developer Giant Interactive (NYSE: GA) has finalized its plan to go private. A report on the bid says that several other Chinese online game firms are also planning privatizations, as former industry leader Shanda Games (Nasdaq: GAME) is also in the midst of its own such bid. It’s not hard to see why these companies are going private, as their shares have gone nowhere for years due to anemic growth. But what’s interesting here is the prospect that some of the private equity firms funding this wave of buy-outs could finally force a few of these companies to merge and create a more vibrant major new player with real growth potential. Read Full Post…

Tencent Eyes Sohu Video, Merger Ahead?

Sohu eyes video tie-up with Tencent

Just a half year after pooling their online search assets, leading web firm Tencent (HKEx: 700) and the much smaller Sohu (Nasdaq: SOHU) are reportedly in talks to also merge their video businesses amid a broader wave of consolidation sweeping China’s Internet. I have some doubts about whether this new deal will happen for reasons I’ll explain shortly, though I’m far less skeptical now than I would have been at this time a year ago. If such a deal does happen, it could mark the latest step in what could become Tencent’s eventual acquisition of Sohu, one of China’s oldest Internet companies. Read Full Post…

Baidu Buys Into Literarture, Sohu To SNS

Baidu reportedly near deal to buy Zongheng literature site

Internet stalwarts Baidu (Nasdaq: BIDU) and Sohu (Nasdaq: SOHU) are back in the M&A headlines with news of relatively small acquisitions, indicating the market may be running out of big targets as we prepare to end a landmark year for major deals in China. I’ve been reporting on Chinese Internet companies for more than a decade, and during most of that time would be lucky to see 1 or 2 major acquisitions or equity tie-ups in any single year. But all that changed this year, with top Internet names like Baidu, Alibaba and Tencent (HKEx: 700) emerging as major buyers in a series of deals collectively valued at billions of dollars. Read Full Post…