Tag Archives: Sohu

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

News Digest: December 17, 2015

The following press releases and media reports about Chinese companies were carried on December 17. To view a full article or story, click on the link next to the headline.

  • Baidu (Nasdaq: BIDU) Plans Russia Entry in Tie-Up with Yandex – Reports (Chinese article)
  • Taiwan opposition leader calls China’s Unigroup investment plans “a huge threat” (English article)
  • Sohu (Nasdaq: SOHU).Receives Proposal For Investment In Stock And Convertible Notes (PRNewswire)
  • Japan’s Rakuten to Open Flagship Store on JD (Nasdaq: JD) Worldwide (GlobeNewswire)
  • Bona Film (Nasdaq: BONA) Enters into Merger Agreement for Going Private (PRNewswire)

News Digest: October 27, 2015

The following press releases and media reports about Chinese companies were carried on October 27. To view a full article or story, click on the link next to the headline.

  • Ctrip (Nasdaq: CTRP), Qunar (Nasdaq: QUNR) Swap Shares, Form Partnership (English article)
  • WeChat’s Daily Active Users Hits 570 Mln in September (English article)
  • Canadian Solar (Nasdaq: CSIQ) Raises Q3 Shipment, Revenue Guidance (PRNewswire)
  • Sohu (Nasdaq: SOHU) Reports Q3 Financial Results (PRNewswire)
    China Re (HKEx: 1508) Makes Modest Debut in HK After $2 Bln IPO (English article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

INTERNET: US Trade Group Steps Up Alibaba Piracy Attack

Bottom line: A major US trade group’s new call for censure of Alibaba over piracy will bring more negative publicity, though the company’s name is unlikely to reappear on the next edition of Washington’s “notorious markets” list for trade in counterfeit goods.

Group says Taobao still plagued by fakes

A major US trade group that launched an assault on Alibaba (NYSE: BABA) earlier this year is ratcheting up the volume of its attack, calling for direct censure of the Chinese e-commerce giant for not doing enough to fight piracy. The American Apparel & Footwear Association (AAFA) was quite scathing in its earlier criticism of Alibaba back in July, blasting the company for its flawed approach and lack of transparency in tackling piracy on its Taobao C2C marketplace.

At the time of that critique the AAFA said it was sending a letter detailing its concerns to the US Trade Representative’s office, which compiles an annual list of “notorious markets” where piracy is rampant. Now the AAFA, which represents more than 1,000 American clothing and shoe makers, is being even more direct by specifically calling for Alibaba to be included on the next edition of the “notorious” list that is likely to be published in the next 2-3 months. (AAFA announcement; English article) Read Full Post…

ENTERTAINMENT: Baidu Eyes Sale of Piracy-Plagued Music Unit

Bottom line: Baidu’s reported plan to sell its online music unit looks like a smart way to rid itself of a controversial piracy-plagued business that holds little value for its main strategic focuses going forward.

Baidu set to dump music unit?

In what could be a move that’s long overdue, leading search engine Baidu (Nasdaq: BIDU) is reportedly eyeing a sale of a music division that was once one of its major attractions but in recent years has become more a liability due to frequent accusations of copyright violations. Baidu wasn’t commenting on the reports, but such a move would be consistent with its recent diversification into a range of new areas, none of which include music as part of their core business.

Such a deal, if it’s really in the works, probably wouldn’t be worth too much, perhaps in the $100-$500 million range at the very most. More significantly would be the disposal of a unit that in the past has come under fire for allowing rampant piracy through illegal peer-to-peer (P2P) trading of copyrighted music. Read Full Post…

MEDIA: Luxury Slowdown Clips Phoenix’s Wings

Bottom line: Sputtering demand for luxury goods and cars is likely to hamstring Phoenix Satellite TV’s earnings for at least the next year, as the company increasingly loses ground to new media rivals.

Sliding luxury demand undermines Phoenix

The recent slowdown in China’s luxury goods market is claiming one of its first victims in the media realm, with Phoenix Satellite TV (HKEx: 2008) warning that a sudden chill in luxury ad sales has wiped out its profits in the first half of the year. The news certainly doesn’t bode well for traditional media companies, which are a favored place for luxury goods makers to advertise. Car makers are another major source of ad revenue for these older media companies, and rapidly slowing sales in that sector also means that names like Phoenix and even some new media high-flyers like Baidu (Nasdaq: BIDU) and Sina (Nasdaq: SINA) could be looking at a difficult period ahead. Read Full Post…

MEDIA: LeTV, iQiyi, Youku Snared In Crackdown — Again

Bottom line: Beijing’s latest online video clean-up is part of its drive to guide a bigger transition from a traditional TV to an Internet-based broadcasting landscape, with more similar moves likely over the next 1-2 years.

Beijing cracks down on cartoons

It’s been at least a month or two since Beijing’s latest crackdown on unhealthy Internet content, so it should come as no surprise that the morality police have launched yet another campaign, this time targeting cartoons. The latest dragnet has snared video superstar LeTV (Shenzhen: 300104), Baidu-backed (Nasdaq: BIDU) iQiyi and most other top industry players, who are among 29 companies being investigated in this latest web clampdown.

China’s broader Internet clean-up campaign is now actually entering its second year, and dates back to April last year when leading web portal Sina (Nasdaq: SINA) had its video license revoked for hosting pornographic content. (previous post) Since then, nearly ever major video site has been investigated and punished at one point or another, and social networking sites (SNS) like Tencent (HKEx: 700) WeChat have also embarked on clean-ups of controversial content. Read Full Post…

News Digest: April 28, 2015

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

  • iPhone Sales, China Boosts Apple (Nasdaq: AAPL); Shares Up Modestly (English article)
  • Lenovo (HKEx: 992) Eyes 100 Mln Cellphone Sales In New Fiscal Year – CEO (Chinese article)
  • Huawei CEO Says Chinese Cybersecurity Rules Could Backfire (English article)
  • Trina (NYSE: TSL) Signs Agreement In Hefei Zone for 300 MW DG Solar Power Plant (PRNewswire)
  • Sohu.com (Nasdaq: SOHU) Reports Q1 2015 Unaudited Financial Results (PRNewswire)
  • Latest calendar for Q1 earnings reports (Earnings calendar)

INTERNET: Baidu Stock Beat Up In Hospital Brawl

Bottom line: Baidu may never recover the medical advertising business it lost during a recent spat with a major hospital group, putting pressure on its stock as its revenue growth takes a hit over the next few quarters.

Baidu stock takes beating in hospital tiff

A spat between leading search engine Baidu (Nasdaq: BIDU) and one of its largest advertisers is taking a toll on the company’s stock, and also casting an illuminating spotlight on the nature of the advertising market in China. If the latest reports are correct, the boycott by members of the Putian Healthcare Industry Chamber of Commerce could be costing Baidu millions of dollars in lost ad revenue each day, underscoring the importance of such advertisers.

The tussle also reflects the strange nature of China’s advertising market, where ads making inflated claims are quite common. Many outsiders may also find it strange that hospitals are such an important source of advertising revenue in China, since such ads are far less common in more developed markets. The bottom line is that exaggerated ads and strange advertisers are the norm in China, but such revenue sources for companies like Baidu could shrink as the market starts to mature and more closely resemble the west. Read Full Post…

MEDIA: Caixin Lawsuit Takes On Pirates At Sina, Sohu

Bottom line: Caixin’s new lawsuit against leading portals Sohu, Sina and Hexun could mark the start of a much-needed clean-up that will end the practice of rampant copyright violations among major Chinese news sites.

Caixin sues Sina, Sohu for illegal copying

I’m giving this week’s special award for bravery to cutting-edge financial news publisher Caixin, which is challenging the widespread illegal copying of copyrighted articles that occurs daily on Chinese news sites. Everyone knows that this kind of piracy is rampant in China, but some might be surprised to learn that companies targeted in Caixin’s new lawsuit include some of China’s top news portals, led by Sina (Nasdaq: SINA) and Sohu (Nasdaq: SOHU). I was also just slightly embarrassed to see that one of the companies being sued is financial news and information site Hexun, which is backed by my former employer Reuters (Toronto: TRI). Read Full Post…

IPOs: Sohu Shops Tired Sougou For 2015 IPO

Bottom line: Sogou is likely to list in the second half of the year, but will get a lukewarm reception from investors due to its status as a solid second-tier player without hopes of ever becoming a sector leader.

Sogou eyes H2 IPO

Some 3 months into the New Year, we’re still waiting for the first New York IPO by a Chinese Internet company after a blockbuster year in 2014. Now we’re getting word of a listing that could come in the second half, with news that portal stalwart Sohu (Nasdaq: SOHU) is planning an IPO for its decade-old Sougou search engine in that time frame.

The offering looks very so-so, as Sougou has failed to gain much traction despite its status as one of China’s oldest search players. More broadly speaking, we can probably expect to see more of this kind of ho-hum IPO from second-tier Chinese Internet firms for the rest of the year, since the most exciting players listed during last year’s surge in new offerings. Read Full Post…

News Digest: March 21-23, 2015

The following press releases and media reports about Chinese companies were carried on March 21-23. To view a full article or story, click on the link next to the headline.

  • Bacardi Challenges Baijiu With Tea-Based “Tang” Liquor Developed For China (Chinese article)
  • Yidao Welcomes Cooperation With Uber, Sees No Need For Merger (Chinese article)
  • Sohu’s (Nasdaq: SOHU) Sougou Eyes US IPO In 2nd Half 2015, Sees Value At $3 Bln (Chinese article)
  • Reuters (Toronto: TR) Websites Blocked In China (English article)
  • Youku Tudou (NYSE: YOKU) Hits 52-Week Low on Wider Q4 Loss, SEC Probe (English article)
  • Latest calendar for Q4 earnings reports (Earnings calendar)