Tag Archives: Qihoo

Get detailed financial information on Qihoo 360 Technology Co provided by Doug Young business expert in Chinese High Tech Company

INTERNET: Baidu’s Woes Grow, A China Opening for Bing or Yahoo?

Bottom line: Baidu will suffer more damage to its revenue and profits after new actions by China’s Cyberspace Administration, creating a potential opportunity for Bing or even Yahoo in China’s lucrative search market.

Baidu’s search woes offer opportunity for Bing, Yahoo

The woes for Internet search giant Baidu (Nasdaq: BIDU) continue, with word that China’s Internet censor is ordering the already hobbled company to cleanse itself of inappropriate sites in its search results. But whereas previous crackdowns have focused on politically sensitive content, this latest crackdown focuses on sites of companies that may be engaged in fraud or making inflated or bogus claims. The entire situation looks set to make a major dent in Baidu’s growth story, and could even see the company’s revenue shrink as it finds a new equilibrium. Read Full Post…

China News Digest: June 29, 2016

The following press releases and news reports about China companies were carried on June 29. To view a full article or story, click on the link next to the headline.

  • Yum (NYSE: YUM) China Stake Sale Said Delayed as Suitors Miss Deadline (English article)
  • Pfizer (NYSE: PFE) to Invest $350 Mln in China Biotech Hub, First in Asia (English article)
  • Fosun (HKEx: 656) Plans to List US Insurer Ironshore ‘As Soon As Possible’ (English article)
  • ZTE (HKEx: 763) Says Temporary License Extended for Import of US Goods (HKEx announcement)
  • Qihoo 360 (NYSE: QIHU) Receives Update on Going Private Transaction (PRNewswire)

BUYOUTS: Autohome, Qihoo Spotlight Tough Road for Buyouts

Bottom line: Autohome’s attempt at a management-led buyout failed due to difficulties financing such a large deal, and Qihoo’s new attempt to finance its buyout with crowd funding-style tactics points to similar problems.

Ping An takes over Autohome boardroom

New developments in 2 of the biggest privatizations of US-listed Chinese companies are casting a spotlight on the difficulty many of these cases face, especially bigger deals that require billions of dollars in funding to succeed. The first case has the management team at online car specialist Autohome (NYSE: ATHM) losing its battle to take the company private, following a high-profile battle with its largest stakeholder. The second has software security specialist Qihoo 360 (NYSE: QIHU) reportedly turning to crowd funding-style tactics to try and raise money for its own buyout, hinting at financing difficulties for a privatization that values the company at more than $9 billion. Read Full Post…

China News Digest: June 28, 2016

The following press releases and news reports about China companies were carried on June 28. To view a full article or story, click on the link next to the headline.

  • Autohome (NYSE: ATHM) Shareholding Settles, With Ping An as New Chairman (Chinese article)
  • A Slice of Qihoo’s (NYSE: QIHU) $9.3 Bln Buyout for Sale on China Streets (English article)
  • JD.com (Nasdaq: JD) Loses Luster as Hedge Funds Backpedal Amid Slowing Growth (English article)
  • Acquisitive Tsinghua Companies to Spend 50 Bln Yuan on R&D (Chinese article)
  • Baidu (Nasdaq: BIDU) Says Already Compliant with Most New Online Search Rules (English article)

SMARTPHONES: LeEco Ups Coolpad Stake, Eyes Silicon Valley Campus

Bottom line: LeEco will try to buy out Coolpad later this year in its new position as the company’s largest stakeholder, while its plans for a massive Silicon Valley campus stand a less than 50 percent chance of getting completed.

LeEco boosts Coolpad stake

The phenomenal but problematic entertainment superstar LeEco (Shenzhen: 300104) is in a couple of big headlines as the new week begins, led by word that a new transaction has made it the largest stakeholder in struggling smartphone maker Coolpad (HKEx: 2369). Rumors were flying thick and fast last week that LeEco, formerly known as LeTV, was on the cusp of an outright takeover of Coolpad, and this latest move certainly looks like a possible prelude to such an bid. Meantime, separate media reports are confirming news from earlier this year saying LeEco has purchased a piece of prime Silicon Valley land that it hopes to develop as a campus for its future US headquarters. Read Full Post…

SMARTPHONES: India Comes to China, Huawei Eyes Global Crown

Bottom line: Micromax’s plan to sell smartphones in China is likely to sputter due to intense competition, while Huawei stands a 50-60 percent chance of becoming one of the world’s top 2 smartphone brands by 2020.

India’s Micromax eyes China smartphone market

It seems the smartphone road connecting China and India isn’t just one-way, with word that leading Indian brand Micromax is planning to enter the intensely cut-throat Chinese market. Meantime, Chinese leader Huawei is looking beyond its home market and to the rest of the globe, with its brash smartphone chief declaring his target of passing Apple (Nasdaq: AAPL) and Samsung (Seoul: 005930) to take the world’s smartphone crown within 5 years. Read Full Post…

INTERNET: Regulator Rebukes Baidu for Malicious Apps

Bottom line: Baidu’s stock won’t suffer more short-term damage from a recent series of transparency scandals, but its reputation could suffer over the longer term.

Baidu software under fire
Baidu software under fire

Leading search engine Baidu (Nasdaq: BIDU) is fast becoming synonymous with the word “opaque” due to long-standing practices that have helped it become one of China’s most valuable Internet companies, often by exploiting unsuspecting consumers. Following a recent series of scandals involving various opaque practices, the company is back in the headlines after a number of apps from its mobile assistant store landed on a malware black list from China’s telecoms regulator. Read Full Post…

SMARTPHONES: Coolpad in Denial on LeEco Takeover Talk

Bottom line: Rumors that LeEco is in talks to take over Coolpad are probably true, with a deal likely in the next few months that would see the former buy a controlling stake or even purchase the latter outright.

Coolpad to be acquired by LeEco?

I don’t usually write about rumors, but I just couldn’t resist opining on new market talk saying that struggling smartphone maker Coolpad (HKEx: 2369) may become the first major player to get swallowed up in a looming industry shakeup. In this case Coolpad is denying the rumors, which say it will be acquired by online video superstar LeEco (Shenzhen: 300104), which is already a major stakeholder and now pays Coolpad to manufacture its recently launched line of smartphones. Read Full Post…

TRAVEL: Anbang Plays Hide-and-Seek with Beijing in Canadian Hotel Bid

Bottom line: Beijing regulators should take a more hands-off approach to outbound M&A by major institutional buyers like Anbang, and let them take more direct responsibility for their investment decisions.

Anbang targeting InnVest?

A new showdown could be brewing between Beijing and China’s newly minted field of outbound investors, as reports emerged last week that insurer Anbang was planning a major new Canadian acquisition less than 2 months after China’s insurance regulator reportedly vetoed a previous similar plan. The latest deal would see Anbang buy InnVest Real Estate Investment Trust (Toronto: INN-UN), one of Canada’s largest hotel owners, following its failed bid in March to buy US hotel giant Starwood (NYSE: HOT), operator of the Westin and Sheraton brands. Read Full Post…

China News Digest: May 14-16, 2016

The following press releases and news reports about China companies were carried on May 14-16. To view a full article or story, click on the link next to the headline.

  • Anti-Counterfeiting Group Suspends Alibaba (NYSE: BABA) After Member Outcry (English article)
  • Apple (Nasdaq: AAPL) Invests $1 Bln in Chinese Ride-Hailing Service Didi Chuxing (English article)
  • Stock Exchange Queries LeEco (Shenzhen: 300104) Over Film Unit’s High Value (Chinese article)
  • Qihoo (NYSE: QIHU) Says Going Private Transaction Progressing as Expected (PRNewswire)
  • Fosun (HKEx: 656) Among Bidders for Singapore-Based Reinsurer ACR: Sources (English article)

BUYOUTS: Wanda Wavers, Qihoo Hits Currency Snag

Bottom line: Qihoo’s privatization from New York is likely to move ahead after it resolves a temporary impasse with the foreign exchange regulator, while Wanda’s privatization is also likely to proceed on its belief it can make a quick backdoor re-listing in China.

Qihoo shares fall on latest buyout obstacle

New ripples are spilling through the realm of Chinese companies seeking to return to China after getting lukewarm receptions with offshore listings, reflecting the complexity and difficulty of such deals. Two of the largest such deals are in the headlines as we round out the week, led by word that a privatization plan by software security specialist Qihoo 360 (NYSE: QIHU) may be running into trouble due to China’s strict foreign exchange controls.  The other major deal has real estate giant Dalian Wanda (HKEx: 3699) reportedly moving ahead with a plan to privatize the company, after indicating earlier this week it might abandon its original plan.

It’s becoming quite a challenge to write about this so-called “homecoming trend” by Chinese firms these past 2 weeks, since new obstacles seem to be popping up almost daily on this road back to China. The process was never an easy one, and involves raising hundreds of millions or sometimes even billions of dollars to take a company private. Then the buyout groups, usually led by company managers, must convince New York or Hong Kong shareholders to sell their stock, often at modest premiums. Read Full Post…