Tag Archives: Sohu

Sohu latest Financial News and Financial report overview of the Chinese Market expert Doug Young, Former Reuter Journalist and Chief Editor

IPOs: Sogou Tests IPO Market, But Does Anyone Care?

Bottom line: Sogou is unlikely to make an IPO this year, despite new talk of potential for such a plan from its CEO, and may ultimately never list due to its lackluster performance. 

Sogou floats another IPO plan

Online search engine Sogou is testing the market yet again for a potential IPO, hoping to spin a story of opportunity to grab market share from scandal-tainted industry leader Baidu (Nasdaq: BIDU). That story may sound attractive to investors unfamiliar with this perennial number-three in China’s search market, whose main shareholders are web portal Sohu (Nasdaq: SOHU) and Internet titan Tencent (HKEx: 700).

The only problem is that Sogou’s credibility is nearly nil these days, a direct result of the equally low credibility of controlling shareholder Sohu, which seizes on any opportunity to talk up IPOs for its various units. Accordingly, I will quite definitively go on the record saying this particular IPO won’t happen this year, and possibly not ever, regardless of what anyone at Sohu or Sogou says. Read Full Post…

INTERNET: Sohu Runs Out of Steam, Borrows from Game Unit

Bottom line: Sohu may be forced to separately sell off its portal, video, search and gaming units over the next 1-2 years, or risk seeing them gradually fall in value as the company’s losses mount.

Sohu plunges after latest results

After running for years as a solid second-tier player, Internet veteran Sohu (Nasdaq: SOHU) is finally showing signs of running out of steam, based on its latest quarterly results and word of a major new loan to the company from its cash-rich but fading Changyou (Nasdaq: CYOU) gaming unit. This kind of turn isn’t all that surprising, since status as a second-tier player should only be temporary and such companies should either aspire to top-tier positions or sell themselves to rivals to ensure their longer term survival.

But Sohu has defied such pressures, largely due to the fiercely independent nature of its founder Charles Zhang, who is both quite shrewd but also famously averse to giving control of his empire to others. These latest results show that Zhang may soon have no choice but to sell some or all of his company, or risk seeing it slowly relegated to oblivion due to pressure from better-run rivals. Read Full Post…

China News Digest: October 25, 2016

The following press releases and news reports about China companies were carried on October 25. To view a full article or story, click on the link next to the headline.
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  • HNA Group Acquires 25 Pct Equity Interest in Hilton (NYSE: HLT) for $6.5 Bln (Businesswire)
  • Syngenta Slumps After EU Watchdog Sparks ChemChina Deal Doubts (English article)
  • JD.com (Nasdaq: JD) Corruption Incident Nets More Than 10 Workers (Chinese article)
  • Sohu (Nasdaq: SOHU) Reports Q3 Unaudited Financial Results (PRNewswire)
  • ZTE (HKEx: 763) Replaces Head of Smartphone Division (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

INTERNET: Tencent, Alibaba Take Bite Out of Scandal-Hit Baidu

Bottom line: Alibaba is the biggest beneficiary of business lost by Baidu after a scandal earlier this year, with search rivals Qihoo and Sogou also likely to pick up new business.

Baidu loses digital ad crown to Alibaba
Baidu loses digital ad crown to Alibaba

A couple of news items are showing how Baidu’s (Nasdaq: BIDU) core search business is coming under assault from several directions, in an ominous sign for the company’s main revenue source. The first item shows that Baidu has officially lost its crown as China’s top digital adverting platform to e-commerce titan Alibaba (NYSE: BABA), following a scandal earlier this year that wiped out up to a fifth of its revenue. In the other item, reports are saying that China’s other Internet titan Tencent (HKEx: 700) has boosted its stake in Sogou, one of Baidu’s main search rivals, to 45 percent. Read Full Post…

China News Digest: Tuesday, August 2, 2016

The following press releases and news reports about China companies were carried on August 2. To view a full article or story, click on the link next to the headline.
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  • Didi Chuxing Acquires Uber China Operation, Uber Founder to Enter Didi Board (Chinese article)
  • Fantasia (HKEx: 177) to Buy Wanda Commercial Property Management Arm for 2 Bln Yuan (Chinese article)
  • Oppo Signs 3G/4G Chip Licensing Deal with Qualcomm (Nasdaq: QCOM) (Chinese article)
  • Sohu.com (Nasdaq: SOHU) Reports Q2 Unaudited Financial Results (PRNewswire)
  • Fosun (HKEx: 656) to Buy up to 30 Pct of Portugal’s Biggest Listed Bank (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

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…

BUYOUTS: iKang War Re-heats, 21Vianet in Stealth De-Listing?

Bottom line: A new China Life bid for iKang could trump Yunfeng, while 21Vianet could be mounting a stealth privatization bid that would see it slowly sell most of its shares to big buyers before mounting a formal de-listing attempt.

China Life eyeing bid for iKang?

A few strange twists are taking place in the story that has seen some 40 US-listed Chinese companies launch privatization bids since the start of last year, led by the surprise re-heating of a bidding war for private clinic operator iKang (iKang). In a separate headline, data center operator 21Vianet (Nasdaq: VNET) gave a new signal that it will abandon a previous buyout offer and may launch a stealth de-listing bid instead. And in the strangest development, the board of web portal operator Sohu (Nasdaq: SOHU) has rejected an investment plan by the company’s founder that looked like a prelude to a possible buyout offer at the time. Read Full Post…

China News Digest: June 17, 2016

The following press releases and news reports about China companies were carried on June 17. To view a full article or story, click on the link next to the headline.
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  • Sohu (Nasdaq: SOHU) Rejects Investment Proposal From CEO, Seeks Other Options (PRNewswire)
  • Japan’s Rakuten (Tokyo: 4755), NetEase (Nasdaq: NTES) in E-Commerce Tie-Up (Chinese article)
  • 21Vianet (Nasda: VNET) Announces Addition To Board, Gets $388 Mln Investment (GlobeNewswire)
  • China Life (HKEx: 2628) to Challenge Yunfeng in Bidding for iKang (Nasdaq: KANG) (Chinese article)
  • Berlin Approves Midea (Shenzhen: 000333) Bid for Kuka (Frankfurt: KU2) (English article)

 

INTERNET: Baidu Pays $1.3 Bln Price for Transparency

Bottom line: Baidu’s long-term revenues will decline by 15-20 percent from current levels as a result of a cut-back in sponsored links and new transparency policies that will scare away some of its advertisers. 

Baidu cuts Q2 revenue outlook

What’s the cost of being honest, or at least a little more honest? If your name is Baidu (Nasdaq: BIDU), apparently the answer is about $400 million, which is how much China’s leading search engine has just lowered its latest quarterly revenue forecast after taking steps to become more transparent. Put differently, the figure is about one-eighth of Baidu’s previous revenue forecast for the quarter, meaning it would translate to lost revenue of about $1.3 billion of the $10.25 billion it generated for all of last year. Read Full Post…

China News Digest: May 20, 2016

The following press releases and news reports about China companies were carried on May 20. To view a full article or story, click on the link next to the headline.
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  • Temasek, CIC-KKR Advance to 2nd Round of Yum (NYSE: YUM) China Stake Sale (English article)
  • BT (London: BT) Applies for Telecoms Value Added Service License In Shanghai FTZ (Chinese aticle)
  • Sohu’s (Nasdaq: SOHU) Sogou Integrates Bing’s English Search Results (English article)
  • One Year After Trading Suspension, What Has Happened to Hanergy (HKEx: 566)? (Chinese article)
  • Bank of China (HKEx: 3988) Plans 1st Bad Loan Securitization Since 2008 (English article)

INTERNET: Xunlei Swings to Loss, Where’s Xiaomi?

Bottom line: Xunlei’s performance and stock price could come under pressure over the next year due to stiff competition in China’s consolidating online video market and lack of support from struggling strategic partner Xiaomi.

Xunlei swings to quarterly loss

As rumors swirl of a potential merger between the online video services of Tencent (HKEx: 700) and Sohu (Nasdaq: SOHU), smaller rival Xunlei (Nasdaq: XNET) has just announced its latest quarterly results that show why it may be difficult for the company to remain independent in the rapidly consolidating sector. Xunlei swung to a loss in the quarter and saw its revenue contract — hardly encouraging signs for a company that’s already quite a small player in China’s fiercely competitive online video market.

The big “elephant in the room” in this instance is struggling former smartphone sensation Xiaomi, which purchased 30 percent of Xunlei around the time of its 2014 IPO for a reported price of about $200 million. Xiaomi went on to form a content distribution service with Xunlei last summer, leading me to predict that it could make an offer to buy the company outright. (previous post) Read Full Post…