Tag Archives: Twitter

INTERNET: Twitter Tweets Indecisively Around China

Bottom line: Twitter’s conservative approach to China reflects a broader indecision at the company that is limiting its growth potential.

Twitter shackled by indecision in China

While social networking giant Facebook (Nasdaq: FB) actively flirts with China in a bid to enter the world’s largest Internet market, the smaller, struggling Twitter (NYSE: TWTR) seems unable to make up its mind. That seems to be the key takeaway from a new interview on the prickly subject of China between Maya Hari, Twitter’s Asia Pacific chief, and Caixin, a well-respected Chinese financial media that also happens to be my current employer.

This particular message seems to be a recurrent theme with Twitter, which, like Facebook, doesn’t like China’s strict self-censorship policies but also finds it hard to ignore such a big market. In Facebook’s case, the company has made it quite clear it’s willing to tolerate China’s self-censorship policies for a chance to build a presence in the market, most likely through a future joint venture with a local partner. Read Full Post…

INTERNET: Whatsapp Goes Spotty in China, Headed for Shutout?

Bottom line: China’s apparent partial blockage of some Whatsapp functions for brief periods is unlikely to end with a total blockage, mostly because the service is used almost exclusively by foreigners.

Whatsapp temporarily blocked in China

Foreign media are buzzing about what appears to be the blockage of some functions on Whatsapp, with the obvious implication that a full blockage of the the popular instant messaging app could be next. This particular story has a few interesting angles, led by the fact that Whatsapp isn’t used by very many Chinese and also that it’s owned by social networking giant Facebook (Nasdaq: FB).

There are a also a number of precedents to go by, none of which looks too positive for the future of Whatsapp. Just about every other major global social networking app has been blocked in China by now, including Facebook itself, as well as Twitter (NYSE: TWTR) and Japan-listed Line (Tokyo: 3938). But there are a few notable exceptions that have been allowed to keep operating in China, one of which is Whatsapp and two others being the Microsoft (Nasdaq: MSFT) owned Skype and LinkedInRead Full Post…

China News Digest: October 15-17, 2016

The following press releases and news reports about China companies were carried on October 15-17. To view a full article or story, click on the link next to the headline.
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  • ChemChina, Sinochem in Talks on Possible $100 Bln Merger: Sources (English article)
  • Tencent (HKEx: 700) to Sign $3.5 Bln Loan to Finance Supercell Purchase (Chinese article)
  • Weibo (Nasdaq: WB) Has Nearly Eclipsed Twitter (NYSE: TWTR) by Market Value (English article)
  • Smartisan Denies Rumors to be Aquired by NetEase (Nasdaq: NTES) (Chinese article)
  • Tongcheng Eyes IPO in 3 Years After Merger with Wanda Travel (Chinese article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

INTERNET: Facebook Inches Closer to China with Tencent Poach

Bottom line: Facebook’s new hire of a top WeChat executive could be the latest signal that it expects to get permission to launch a China-based service soon, possibly by the end of this year.

WeChat exec defects to Facebook

Following several months of relative silence, social networking (SNS) giant Facebook (Nasdaq: FB) is back in the China headlines, with word of a major executive poach from China’s leading SNS company. This particular headline is filled with mixed signals. On the one hand, the hire of a former top executive from WeChat looks like a significant move closer to China, since the hugely popular Chinese SNS operator would be Facebook’s main rival if it’s ever allowed into China. But on the other hand, the executive is a foreigner from WeChat’s international division, which has been a poor performer in the service’s weak attempts to go global. Read Full Post…

China News Digest: May 12, 2016

The following press releases and news reports about China companies were carried on May 12. To view a full article or story, click on the link next to the headline.
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  • PPTV Posts Farewell Microblog Message, Website Remains Active (Chinese article)
  • Canadian Solar (Nasdaq: CSIQ) Reports Q1 Results, Raises Annual Revenue Guidance (PRNewswire)
  • Wanda Group Reconsiders De-Listing Property Unit: Sources (English article)
  • LeEco (Shenzhen: 300104) Joins Forces with Twitter for Global Brand Expansion (Businesswire)
  • Alibaba (NYSE: BABA), Gree (Shenzhen: 000651) Launch Smart Air Conditioner (Chinese article)
  • Latest calendar for Q1 earnings reports (Earnings calendar)

INTERNET: LinkedIn Networks in China with Low-Key Approach

Bottom line: LinkedIn’s rapid growth in China has been aided by its low-key approach to the sensitive market, and a high degree of autonomy for its local unit from its distant US-based parent.

LinkedIn reaches 20 mln China users

US business networking giant LinkedIn (NYSE: LNKD) is quietly emerging as one of the few foreign success stories in China’s social networking (SNS) landscape, using a low-key approach that has helped it steer clear of controversy. I haven’t written much about the company since its slightly controversial entry to China 2 years ago, when it issued a statement acknowledging it would be subject to the country’s strict self-censorship rules.

LinkedIn’s ability to avoid controversy is probably due in large part to its low-key approach, and its choice of an industry veteran with experience in both the US and China to head its local operations. True to his low-key style, company chief Derek Shen is making some minor headlines today with comments at a Shanghai event, including his disclosure that LinkedIn has signed up more than 20 million local users during its first 2 years in China. Read Full Post…

INTERNET: Twitter Flits to China with First Country Chief

Bottom line: Twitter’s naming of its first China managing director indicates the company is re-thinking its China strategy, and may mark the start of a campaign to get permission to launch a Chinese version of its service.

Twitter names first China chief

Nearly a year after the departure of its former CEO, social networking high-flyer Twitter (NYSE: TWTR) has just made a baby peep that indicates it may finally be contemplating a serious move into the heavily censored China market. The move comes in the form of a low-key executive appointment, which had company co-founder and current CEO Jack Dorsey announcing Twitter’s first managing director for China.

Before I predict an imminent arrival of Twitter to China with this appointment, I should stop and say that Twitter’s new path looks similar to one forged by 2 other Internet giants, Facebook (Nasdaq: FB) and Google (Nasdaq: GOOG). All 3 of these companies are currently blocked in China due to information that China considers sensitive on their online services. But Facebook has indicated it wants to launch a version of its social networking site in China, and Google reportedly is taking steps to launch a Chinese version of its Google Play app store. Read Full Post…

STOCKS: Tencent Builds Empire, Profits on Socializing

Bottom line: Tencent’s sharp focus, strong management and savvy strategic tie-ups make it China’s best Internet investment for the long term, though its shares may feel some short-term pressure due to high valuation.

Tencent builds empire on SNS

This week the series on my favorite Chinese stocks takes us to the “Big 3” of Baidu (Nasdaq: BIDU), Alibaba (NYSE: BABA) and Tencent (HKEx: 700) , sometimes called the BAT super trio because they’re the country’s biggest Internet companies by quite a large margin. I’ll end the suspense right away by saying my favorite among these 3 is Tencent, the only one that’s listed in Hong Kong.

I’ll look briefly soon at some financials comparing this trio, but will openly admit my Tencent attraction is less based on market fundamentals and instead is tied to its corporate personality that differs quite a bit from the others. These “personalities” are a direct reflection of each company’s founder, since all 3 are relatively young and the founder of each is still quite clearly in charge. Read Full Post…

INTERNET: Weibo Seeks More Relevance with Expanded Messages

Bottom line: Weibo’s elimination of the 140-character length limit for posts looks like a good strategic decision, as it consolidates its position as an alternative news source to traditional state-owned media.

Weibo lifts length limit for posts

Social networking (SNS) leader Weibo (Nasdaq: WB) is taking a radical new step and dropping the rule that strictly limits the length of microblog posts, in its bid to remain relevant and avoid being marginalized by dominant rival WeChat. The move is quite bold on the one hand, but also probably long overdue, in a world where people have many SNS options that provide more flexibility in the kinds of information and messages they share online.

The decision looks broadly positive for Weibo, which has evolved into an informal news source for many of its 200 million users. The company operates a service nearly identical to American SNS pioneer Twitter (NYSE: TWTR), and rapidly rose to become the clear leader in the space after Twitter itself was blocked in China in 2009. Read Full Post…

FUND RAISING: Weibo Backs Video, 58.com Unleashes Guazi

Bottom line: Weibo’s investment in mobile video app Miaopai looks like a smart move to build on its recent momentum, while 58.com’s spin-off of its Guazi used car service is mostly a management restructuring.

58.com spins off Guazi used car site

A couple of web-related fund-raising stories are in the headlines today, though their relatively small size reflects investor sentiment that is rapidly fading towards these money-losing Internet companies. The bigger of the 2 deals has short video app Miaopai raising $200 million, in a funding round led by China’s Twitter-like Weibo (Nasdaq: WB). The second has leading online classifieds site 58.com (NYSE: WUBA) spinning off its Guazi used car businesses, in a move aimed at giving the company more flexibility to raise money for its future growth.

The $200 million figure is one of the largest we’ve seen in recent months, but is well below mega-fundings in the first half of this year when China’s stock markets were rallying and fundings of $1 billion or more were almost ordinary. But the flow of money has slowed sharply in recent months as investors get impatient for profits, forcing a number of former rivals into mergers to accelerate their drive to profitability. Read Full Post…

INTERNET: After Youku Tudou Bid, Weibo Next on Alibaba’s Menu?

Bottom line: Alibaba could make a bid for Weibo in the next 6 months, in a deal that would share many similarities with its newly launched blockbuster offer for Youku Tudou.

Weibo next on Alibaba’s M&A menu?

China’s Internet is buzzing over the industry’s biggest acquisition to date with Alibaba’s (NYSE: BABA) offer for Youku Tudou (NYSE: YOKU), but that deal could presage an even higher-profile one that sees the fading Twitter-like Weibo (Nasdaq: WB) follow a similar fate. Or even more intriguing, Alibaba could make a potential play for Weibo’s parent and founder Sina (Nasdaq: SINA), in a move that would spell the end for China’s leading web portal and one of its oldest Internet firms.

There would be many similarities between such a deal and the Alibaba offer for leading online video site Youku Tudou deal announced late last week. Investors appear to also believe such a deal could possible, based on stock reactions to the blockbuster deal that would see Alibaba pay $4.6 billion for the more than 80 percent of Youku Tudou it doesn’t already own. Weibo shares leaped 13.4 percent after the deal was announced, second only to Youku Tudou’s own 22 percent jump. Read Full Post…