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Tag Archives: iQiyi
iQiyi, is China’s leading advertising supported online television and movie portal.
Overview of the expert of Chinese high Tech company expert Doug Young
Bottom line: Baidu could soon make big cuts at Nuomi and sell or spin off the unit by year end, while it will also put its takeout dining unit on a strict diet that forces it to show a clear path to profitability by year end.
Nuomi set for haircut in 2017?
After years of hemorrhaging money from its newer online-to-offline (O2O) businesses, leading search engine Baidu (Nasdaq: BIUD) may finally be saying enough is enough. That seems to be the message coming from new reports that say the company has launched a campaign to improve performance at its massive businesses that combine real-world services like watching movies and buying restaurant food with web-based ordering systems.
The reports point to Baidu’s Nuomi group buying site as a particular center where the clean-up campaign has begun, but I also suspect a similar move may be taking place at its equally massive and money-losing takeout dining service. That pair of new businesses are massive cash-burners at Baidu, alongside the company’s iQiyi online video service and its Qunar (Nasdaq: QUNR) online travel agent. Read Full Post…
Bottom line: iQiyi won’t make an IPO next year even though Baidu would like to get the company off its books, while Renren’s privatization marks one of the last buyouts for a US-listed Chinese firm from a wave dating back to last year.
iQiyi reportedly eyes 2017 IPO
The year 2016 is winding down as an unmemorable one for Chinese IPOs, thanks to a rocky start that cast a chill over the entire space. That said, the new year could be a bit more lively, amid signs that China’s securities regulator is opening the gates a bit wider to new offerings. That signal could bode well for offshore listings as well, with word that loss-making online video site iQiyi, controlled by online search leader Baidu (Nasdaq: BIDU), is contemplating such an offering next year. Read Full Post…
Bottom line: Wanda will look for new Hollywood assets after being rejected in the bidding for a stake of Paramount, while the departure of a member of the group buying Baidu Video is a minor setback and a new investor will be easily found.
Paramount abandons stake sale plan
A couple of headlines are showing that China’s love affair with the film and video industries isn’t always so smooth, with the collapse of 2 major deals involving cinema giant Wanda and online search leader Baidu (Nasdaq: BIDU). The far larger of the 2 developments has seen leading Hollywood studio Paramount scrap plans to sell a strategic stake in itself, ending a deal that reportedly had seen Wanda emerge as one of the most likely buyers. The Baidu deal is quite a bit smaller, and has seen one of the buyout partners withdraw in a plan to spin off its relatively minor Baidu Video business. Read Full Post…
Bottom line: Rumors that Baidu may be planning to merge its take-out dining and group buying units with Meituan-Dianping are consistent with recent market trends, but are less likely to be true due to Baidu’s strong denial.
Baidu denies merger plan for group buying, dining units
I normally try to avoid writing about rumors that lack strong foundation, but the latest gossip about a potential new mega tie-up between 2 non-core units of online search leader Baidu(Nasdaq: BIDU) and group buying giant Meituan-Dianping look too spicy to ignore. Baidu came out with a statement late on Tuesday denying any talks were taking place to combine its take-out dining and Nuomi group buying services with Meituan-Dianping. But that said, any veteran China watcher will know that companies frequently deny such rumors even when they’re true. Read Full Post…
Bottom line: Baidu and Tencent’s new co-investment in Bitauto’s Yixin could be followed by other similar tie-ups between the pair for assets in their non-core areas if they work well together.
Tencent, Baidu co-invest in Bitauto’s Yixin
The past week has been a turbulent time for China’s “Big 3” Internet companies, which have been thrown into uneasy partnership with the surprise mega merger between hired car services leaders Didi Chuxing and Uber’s China operations. Now a new wrinkle has emerged in an unusual story that made headlines in June, when 2 of the Big 3, Baidu (Nasdaq: BIDU) and Tencent (HKEx: 700), jointly invested in Bitauto (NYSE: BITA), a provider of car-related online services. The latest development is seeing Baidu and Tencent co-invest again in a car financing venture backed by Bitauto. Read Full Post…
Bottom line: China Telecom’s sale of its online video business looks like an exit from the space under its new chairman, while Wanda’s purchase of an online movie site could mark the start of a major new round of investment in online video.
China Telecom sells TV189 online video unit
Just days after search giant Baidu (Nasdaq: BIDU) abandoned plans to spin off its iQiyi video unit, 2 more online video headlines are reflecting the rapid changes taking place in the space. The larger will see China Telecom (HKEx: 728; NYSE: CHA), the smallest of China’s 3 telcos, sell its online video unit TV189 to a hotel operator called Besttone Holdings (Shanghai: 600640) for 3.9 billion yuan ($580 million). The smaller will see the fast-growing Wanda Group buy the online movie site Mtime for $280 million. Read Full Post…
Bottom line: Baidu could get a new higher offer for iQiyi later this year after a former deal collapsed due to undervaluation, while a new Chinese group led by deal maker Sonny Wu is likely to buy a majority stake of AC Milan later this year.
Baidu’s iQiyi sale collapses
Online search leader Baidu(Nasdaq: BIDU) is in a couple of major headlines, each marking a setback in the company’s aspirations to diversify into entertainment. In the larger item, Baidu’s previously announced sale of its iQiyi online video unit has collapsed, after a minority investor complained the sale price was too low. The second headline has Baidu chief Robin Li’s name suddenly disappearing as leader of a group trying to buy European soccer club AC Milan, with reports that another major Chinese deal maker has emerged as head of the group. Read Full Post…
The following press releases and news reports about China companies were carried on July 26. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) Says Group Withdraws Offer to Acquire iQiyi (PRNewswire)
Wanda’s AMC (NYSE: AMC) Raises Bid for Carmike (Nasdaq: CKEC) to $1.2 Bln (Chinese article)
Chinese Dealmaker Sonny Wu Said to Lead Takeover of AC Milan (English article)
Bottom line: Baidu will raise the valuation of iQiyi as it sells the unit to outside investors, in a bid to avoid insider dealing accusations, while it will also suffer a revenue hit as it evicts advertisers who operate illegal gambling sites.
Baidu under fire for low iQiyi valuation
Internet search giant Baidu (Nasdaq: BIDU) can’t seem to catch a break over the past week. First the company was hit by reports of a major rejection in Hollywood, and then an investigative report revealed it was hosting links to illegal gambling sites. Now the company is being rejected again by US investors, who are complaining that Baidu is grossly undervaluing its iQiyi online video service as it prepares to sell the unit to a group led by company chief Robin Li. At the same time, the earlier gambling site scandal is taking a new twist, with the Internet regulator reportedly opening an investigation into the matter. Read Full Post…
The following press releases and news reports about China companies were carried on July 20. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) Criticized Over Proposed Valuation for iQiyi Sale (English article)
China Revenue From iOS Games Passes US for First Time (Chinese article)
Babytree Completes 3 Bln Yuan Funding, Casts off VIE Structure (Chinese article)
Chinese Venture Fundraising at Three-Year Low as Startups Hurt (English article)
Ballard (Nasdaq: BLDP) Surges on Deal to Build Fuel Cell Factory in China (English article)
The following press releases and news reports about China companies were carried on May 25. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) in Talks to Buy Supercell Stake From SoftBank, WSJ Says (English article)
Huawei Sues Samsung (Seoul: 005930), Demands Royalties on Phone and Tablet Tech (English article)
Chinese Billionaire Chen’s Shanda Buys 11.7 Pct of LendingClub (NYSE: LC) (English article)
Tesla (Nasdaq: TSLA) May Push Back Plan for China Manufacturing (Chinese article)
Baidu-Affiliated (Nasdaq: BIDU) iQiyi Plans Backdoor A-Share Listing Next Year (Chinese article)
