It’s quiet outside as markets reopen on this first work day after the New Year, so I thought I’d start off 2014 with some predictions for the year ahead in the sectors that I cover. Generally speaking, I do think the first half of the year will see a continuation of strong momentum that began in late 2013 for many sectors. But that momentum will slow as we near the mid-year mark, and 2014 could end with a whimper as the Chinese economy continues to slow and Beijing pushes for higher quality growth. Read Full Post…
Online search aspirant Qihoo 360 (NYSE: QIHU) is back in the headlines, this time by boosting its targets as it gains ground on market leader Baidu (Nasdaq: BIDU). At the same time, the company is also watching its flank, launching a new war of words against a new potential rival from the newly formed combination of Sohu’s (Nasdaq: SOHU) Sogou search engine and Tencent’s (HKEx: 700) Soso. From a tactical standpoint, this kind of attack on current and future rivals probably looks like a smart move. But from a more practical standpoint, these kinds of assaults are unlikely to have any real effect on Qihoo’s search business; instead such acts of aggression give off a signal of slight desperation as Qihoo tries to justify the recent run-up in its share price resulting from hype about its year-old So.com search engine. 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…
The following press releases and media reports about Chinese companies were carried on October 9. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Yum (NYSE: YUM) Warns China Sales Unlikely To Rise In Q4 (English article)
58.com Turns Profitable Before IPO As Advertising Expenses Fall (Chinese article)
Qihoo 360 (NYSE: QIHU), Sogou Search Traffic Share Up in September (English article)
Ford (NYSE: F) Comes From Behind In China To Stun Japanese Rivals (English article)
AgBank (HKEx: 1288) Gets Approval For Frankfurt Branch (HKEx announcement)
Any semblance of harmony between Sohu’s (Nasdaq: SOHU) Sogou online search engine and spurned suitor Qihoo 360 (NYSE: QIHU) has quickly disappeared with a new series of lawsuits between the 2 sides for unfair competition and defamation. I’m not too surprised by this latest development, since Sohu and Qihoo are headed by 2 of China’s most opinionated and difficult Internet entrepreneurs, Charles Zhang and Zhou Hongyi. But I am somewhat surprised by how quickly relations have soured between these 2 companies, following Zhang’s decision last week to sell a strategic stake in Sogou to leading Internet firm Tencent (HKEx: 700). That decision, which came after months of talks, was a sharp rebuke to Qihoo, which had also been aggressively courting Zhang and Sogou. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 26. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
US To Get Coveted Alibaba IPO After Hong Kong Talks Founder (English article)
5S Accounts For 91 Pct Of New iPhone Sales In China, 5C For 9 Pct – Report (Chinese article)
Thank goodness! That’s my first and main reaction to news that after months of tortured courtship, Sohu (Nasdaq: SOHU) has finally selected Tencent (HKEx: 700) as the winning suitor of its Sogou search engine, beating out rivals Baidu (Nasdaq: BIDU) and Qihoo (NYSE: QIHU). I have to admit the selection of Tencent came as a bit of a surprise, since I had expected Qihoo to win the contest for one of China’s older and less appreciated search engines. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 17. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Anyone who believes in a bright future for security software maker Qihoo 360 (NYSE: QIHU) will probably say that buyers of $600 million worth of newly issued company convertible bonds got a great deal based on the conversion price. The bonds may indeed be a good bargain if Qihoo can come even close to realizing some of the hopes that many investors are holding for the company following its rapid gains into the lucrative online search space formerly dominated by Baidu (Nasdaq: BIDU). The closing of this bond sale looks equally interesting to me, as it could indicate that Qihoo may finally sign a deal to buy Sohu’s (Nasdaq: SOHU) Sogou search engine, significantly boosting its search presence after months of protracted negotiations. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 21. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China Mobile (HKEx: 941) On Cusp Of Deal To Sell iPhone By Year End (Chinese article)
Alibaba In Talks With HKEx On Ownership Structure Ahead Of IPO-Sources (English article)
ZTE (HKEx: 763) To Reorganize Handset Business (English article)
Trina Solar (NYSE: TSL) Announces Q2 Results (PRNewswire)
Qihoo 360, Sogou Search Traffic Share Up 1 Percentage Pt In July (English article)
It seems the word “imminent” can have several different meanings when it comes to M&A among Chinese Internet firms. In most cases, it means “very soon”, which seems to be the case with reports that a deal is imminent for e-commerce giant Alibaba to purchase video sharing site PPTV, also known as PPLive. Meantime, the word can also sometimes mean “a long time” or perhaps even “never”, which is the case for a deal that has seen reports appear several time for an imminent sale of Sogou, the search engine owned by web portal Sohu (Nasdaq: SOHU), to several different buyers. Read Full Post…
