The buying binge by China’s 3 leading Internet companies continues this week, with news that social networking (SNS) giant Tencent (HKEx: 700) is purchasing 11.3 percent of mobile mapping firm NavInfo (Shenzhen: 002405) for 1.17 billion yuan ($183 million). Anyone who thinks I may be mistakenly recycling an old report with this news isn’t too far from the truth, as this particular deal looks quite similar to a different recent investment by e-commerce leader Alibaba in online mapping firm AutoNavi (Nasdaq: AMAP). Read Full Post…
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…
A couple of Internet M&A deals are in the news as we head into the final days before the Lunar New Year, with word that leading search engine Baidu (Nasdaq: BIDU) has purchased more of group buying site Nuomi, while top Internet company Tencent (HKEx: 700) may be eying restaurant ratings site Dianping. The first deal could reflect a new pattern for Baidu, which has mostly bought controlling stakes but made few outright acquisitions in its recent spree of major purchases. Meantime, the latter deal would look good for Tencent if it was really happening, though I have major doubts about whether it is. Read Full Post…
This year’s shake-up of the online video space is taking yet another turn, with word that Sohu (Nasdaq: SOHU), one of China’s top 3 services, has agreed to buy rival Xunlei’s service called Kankan. If true, this development would be quite exciting, as it would mark the rise of a third major player in the space that is undergoing a major consolidation. Youku Tudou (NYSE: YOKU) remains the industry leader after its formation last year with the merger of China’s 2 largest video sites. Baidu’s (Nasdaq: BIDU) iQiyi is emerging as a strong number 2 after its acquisition of PPS in May for $370 million. Sohu previously operated China’s second largest video sharing service, and a purchase of Xunlei Kankan would comfortably bolster its place as one of China’s top 3 sites. Read Full Post…
Barely a month goes by these days without rumor of a new acquisition target for Baidu (Nasdaq: BIDU), which suddenly seems anxious to buy up major assets in its bid to diversify beyond its core search business. The latest rumors say Baidu is close to a deal to purchase Nuomi, the group buying unit of social networking leader Renren (NYSE: RENN). As one of China’s most profitable Internet companies, Baidu is hoping to take advantage of low valuations of Chinese Internet firms, many of which are running low on cash and have had trouble attracting interest from foreign investors. Baidu, by comparison, has plenty of resources to make such purchases, including $2.5 billion in cash from 2 recent major bond sales. Read Full Post…
A new announcement by online gaming and mobile app store operator NetDragon (HKEx: 777) is raising the possibility of further talks with leading search firm Baidu (Nasdaq: BIDU), just a week after the pair agreed to a major asset sale. This new announcement is headlined with a recent share buyback by NetDragon, whose stock plummeted 20 percent last week after it announced it would sell its controlling 57 percent stake in app store 91Wireless to Baidu for $1.1 billion. (previous post) But a closer reading of the announcement seems to contain some other implications, including closer tie-ups with Baidu and even a potential renegotiation of the 99Wireless deal. Read Full Post…
Consolidation in China’s crowded Internet is moving ahead full steam these days, with the latest reports indicating that online matchmaking site Jiayuan.com International (Nasdaq: DATE) may be the latest takeover target. If the reports are true, the talks would mark the latest tie-up that has seen cash-rich Internet giants including Baidu (Nasdaq: BIDU), Alibaba and Tencent (HKEx: 700) embark on a recent buying frenzy for undervalued and cash-starved smaller Internet firms. Jiayuan certainly seems to fit that description, as the company’s shares have languished since its IPO 2 years ago. Read Full Post…
After disappearing from the headlines for a few months, the ongoing search war between industry leader Baidu (Nasdaq: BIDU) and challenger Qihoo 360 (NYSE: QIHU) has jumped back into the news with reports that the former has sued the latter. This new lawsuit is most likely just the first phase in a new stage of the battle between these 2 companies, and I fully expect Qihoo to file a countersuit within the next few weeks. I could even be a bit sarcastic and express my surprise that Qihoo didn’t file the first suit in this rivalry, since the software security specialist is notoriously litigious and has probably sued just about every major Chinese Internet company at some point. Read Full Post…
Just 2 weeks after reporting that web portal Sohu (Nasdaq: SOHU) had broken off talks to buy PPTV, a sudden flurry of new reports have appeared saying several other companies are bidding for the online video company, including leading e-commerce firms Alibaba and Suning (Shenzhen: 002024). Rather than reflecting PPTV’s attractiveness, I suspect this sudden flurry of talks is being driven by a impatience among its shareholders who have pumped big money into the money-losing company but have received little returns so far. If that’s the case, I would expect to see PPTV acquired most likely by the end of this month, though perhaps at a far lower price than the investors were originally seeking. Read Full Post…
I have to commend Alibaba founder Jack Ma for his ability to keep his company in the headlines with growing frequency lately, as he seeks to build hype in the run-up to the e-commerce leader’s massive IPO. At the same time, however, Ma runs the very real risk of media burnout if his company continues to flood the market with this steady stream of news bits, even if many of them are truly newsworthy. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 28. To view a full article or story, click on the link next to the headline.
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EU Duties On Chinese Solar Panels Losing Member State Support (English article)
Lashou in Acquisition Talk with Renren’s (NYSE: RENN) Nuomi – Source (English article)
Japan’s Line Aims For No.2 in China’s Mobile IM Market (English article)
