Tag Archives: NetEase

NetEase latest business and financial analysis ( NetEase, Inc. (NTES)) – written by Business expert on Chinese market Doug Young

MEDIA: Tencent, Alibaba in Music Swap as Regulator Gets Involved

Bottom line: A new music re-licensing deal between Alibaba and Tencent, combined with a meeting between the copyright regulator and major online music sellers, hint at attempts to create a more level playing field in the space.

Alibaba, Tencent in music cross-licensing deal

A couple of items from the music sector are in the headlines today, showing how tricky the situation is becoming with copyrights and online licensing in China. One of those has two major players, the music services of Internet giants Alibaba (NYSE: BABA) and Tencent (HKEx: 700), signing an agreement to cross-license music to each other when one of them owns the rights to such music. The other has China’s copyright office actually calling a meeting between those two companies and two other major players, NetEase (Nasdaq: NTES) and Baidu (Nasdaq: BIDU), to discuss issues confronting the industry.

Two issues appear to be driving these two deals that appear to be related. One is concerns from the music industry that rights to their songs will become fragmented and confined to single platforms under the current licensing system, limiting consumer choice. Similar concerns might also be what’s driving the regulator to get involved as well. An interesting footnote to this might be whether the same thing could soon happen in the video licensing arena, which shares similar issues. Read Full Post…

INTERNET: Sohu Slide Continues, Time to Sell?

Bottom line: Sohu founder Charles Zhang should privatize his company in the next year and then sell off the pieces, or risk see his dwindling empire slowly become worthless.

Sohu’s incredible shrinking empire

You know you’re a CEO when you can call results like those just released by Internet company Sohu (Nasdaq: SOHU) “solid”. Of course that’s my sarcastic assessment, after reading the latest quarterly report that absolutely nothing upbeat about it from one of China’s oldest Internet companies. Nearly all of the numbers in Sohu’s latest report were down, with the lone exception of its online search business, whose anemic growth shouldn’t excite anyone.

Also down was Sohu’s stock, which slumped 6.4 percent after the results came out and is rapidly approaching lows not seen for nearly a decade. All that brings us to my assertion that perhaps it’s time for founder Charles Zhang to consider the unthinkable and break up his company and sell of the various pieces while there are still potential buyers. If he waits too much longer, those pieces will continue to diminish in value to the point where nobody wants them. Read Full Post…

GAMES: NetEase Eyes Real Journey to the West

Bottom line: NetEase’s new global expansion could stand a good chance of success due to its strong record with self-developed titles, which could help it pass Baidu in market value over the next 1-2 years.

NetEase holds developer forum in San Francisco

The company that made its name from a series of games based on the famous Chinese novel Journey to the West is trying to turn that story into reality, as NetEase (Nasdaq: NTES) eyes expansion outside its home market. The West contained in NetEase’s latest announcement is quite different from the West in the classic novel, the former referring to North America and Europe while the latter refers to India.

But other similarities between the novel and this new global expansion do abound in NetEase’s new announcement that it has just held its first-ever developer’s forum in the West. In both cases, the main character is traveling into unfamiliar terrain in pursuit of major rewards. And in both cases, each faces big challenges before attaining those goals. Read Full Post…

INTERNET: Google Seeks Partner for China Return

Bottom line: Google will get permission from Beijing to open a Chinese version of its app Play Store later this year, most likely through a joint venture with NetEase or Tencent.

Google, NetEase talk China Play Store JV

The glacial return to China for Internet titan Google (Nasdaq: GOOG) is making its debut in the 2017 headlines, with word that the company is in talks to open a Chinese version of its app store with online game giant NetEase (Nasdaq: NTES). That tidbit nicely sets the stage for what’s likely to be a banner year for Google and possibly US Internet rival Facebook (Nasdaq: FB) in their race to see who can be first to plant a tent pole in China. Read Full Post…

INTERNET: NetEase Outgames Tencent, Porks Up

Bottom line: NetEase’s finish at the top of a global ranking for mobile game downloads attests to its rising status in the sector, while the pork business of its founder Ding Lei also appears to be gaining traction after years of effort. 

NetEase mobile games top Tencent in October

Perennial runner-up NetEase (Nasdaq: NTES) has suddenly vaulted into the champion’s spot on China’s mobile game leader board, unexpectedly passing Tencent (HKEx:) in an important metric for their industry. The surprise move is probably a fluke, and I expect Tencent will retake the top spot in the next rankings for most sales from online mobile game app downloads compiled by App Annie. Still, it does underscore why I’ve previously said that NetEase is probably the most underappreciated company among China’s top Internet players. Read Full Post…

China News Digest: October 15-17, 2016

The following press releases and news reports about China companies were carried on October 15-17. To view a full article or story, click on the link next to the headline.
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  • ChemChina, Sinochem in Talks on Possible $100 Bln Merger: Sources (English article)
  • Tencent (HKEx: 700) to Sign $3.5 Bln Loan to Finance Supercell Purchase (Chinese article)
  • Weibo (Nasdaq: WB) Has Nearly Eclipsed Twitter (NYSE: TWTR) by Market Value (English article)
  • Smartisan Denies Rumors to be Aquired by NetEase (Nasdaq: NTES) (Chinese article)
  • Tongcheng Eyes IPO in 3 Years After Merger with Wanda Travel (Chinese article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

China News Digest: October 12, 2016

The following press releases and news reports about China companies were carried on October 12. To view a full article or story, click on the link next to the headline.
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  • Yum (NYSE: YUM) Details Transformation Plans after China Separation (Businesswire)
  • SF Express Backdoor Listing Plan Approved by China Securities Regulator (Chinese article)
  • NetEase (Nasdaq: NTES) Breaks into Smart Device Market (English article)
  • Solar Panel Maker LDK Bankruptcy Approved; Creditors Take Huge Losses (English article)
  • Shanyang (Shanghai: 600146) Buys US Apparel Brand Oneworld Star for $280 Mln (Businesswire)

IPOs: NetEase Media Eyes NY Listing; ZTO, Recurrent Energy Vanish

Bottom line: NetEase could abandon a newly announced New York IPO plan for its media arm if it can find a suitable buyer, while a previously announced New York listing plan by ZTO Express could be revived before year-end.

NetEase news unit makes filing for NY IPO

What’s shaping up as a quiet year for Chinese IPOs in New York has just gotten a small boost, with word that online gaming giant NetEase (NYSE: NTES) has made an initial filing to list its respected but financially-challenged news portal business. Meantime, rumors are building for what’s likely to be one of next year’s biggest offerings from Ant Financial, the financial services affiliate of e-commerce giant Alibaba (NYSE: BABA) and owner of the Alipay e-payments service. But in this case, Ant is shooting down the latest buzz that specific plans are in place for a Hong Kong IPO next year. Read Full Post…

China News Digest: October 8-10, 2016

The following press releases and news reports about China companies were carried on October 8-10. To view a full article or story, click on the link next to the headline.
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  • Lenovo (HKEx: 992) in Talks to Take Over Fujitsu’s PC Business: Source (English article)
  • NetEase (Nasdaq: NTES) Media Arm Submits Draft Registration to SEC for US IPO (PRNewswire)
  • Wal-Mart (NYSE: WMT) Doubles Stake in JD.com (Nasdaq: JD) Moving Further Into China  (English article)
  • It’s Official: LeEco (Shenzhen: 300104) Will Break US Boundaries on October 19 (English article)
  • Hollywood’s Digital Domain Takes Citic and SoftBank China as Strategic Investors (Businesswire)

GAMES: NetEase Keeps Warcraft, New Giant Buys Playtika

Bottom line: Giant Interactive is banking on Playtika to jump-start its stalled growth, while NetEase’s extension of a major licensing deal will further consolidate its position as China’s second largest online game firm.

NetEase extends Blizzard agreement

A couple of gaming stories are making headlines as we head towards the long Chinese national day holiday, with NetEase (Nasdaq: NTES) and Giant Interactive both inking major deals that should help cement their place as 2 of China’s top players. The first deal has NetEase extending its long-running licensing deal with top global game designer Blizzard Entertainment (Nasdaq: ATVI) for some of its most popular titles, including the World of Warcraft series. The second has Giant buying Israeli social game maker Playtika, in a deal that was previously reported to be worth around $4.4 billion. Read Full Post…

China News Digest: September 28, 2016

The following press releases and news reports about China companies were carried on September 28. To view a full article or story, click on the link next to the headline.
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  • Lenovo (HKEx: 992) Cuts 1,000, Including More than Half of Motorola Staff (Chinese article)
  • Blizzard, NetEase (Nasdaq: NTES) Renew Operation Agreement in China (PRNewswire)
  • Paid Q&A Service Fenda Reappears After 47 Day Pause, Only Offers Medical Advice (Chinese article)
  • Starbucks (Nasdaq: SBUX), Master Kong in Tie-Up for Drinks from 10 Yuan (Chinese article)
  • Xiaomi Guns for Apple (Nasdaq: AAPL) With Latest Premium Smartphone (English article)