Bottom line: Effects of the short-seller attack on Vipshop are likely to die down soon and the stock should stabilize, while Jiayuan is likely to get bought out for a figure close to its latest stock price following receipt of a new bid.
VIP short seller attack continues
New developments are occurring in 2 stories involving less-followed Chinese Internet companies, led by a fresh assault in an ongoing short-seller attack that is eroding shares of discount e-commerce site Vipshop(NYSE: VIPS). Meantime, shares of online matchmaking site Jiayuan (Nasdaq: DATE) have soared, after it announced it has received new buy-out bids for the company. That development would come nearly 2 months after Jiayuan received an initial buy-out offer that some complained vastly undervalued the company. Read Full Post…
Bottom line: Momo’s shares could take a hit as Beijing pressures it to clean up its reputation as a “one night stand” app, while a group trying to buy out Jiayuan could raise its bid slightly in response to investor pressure.
Momo warned in Beijing clean-up
A pair of stories involving online matchmaking services are in the headlines as we begin the new week, with Jiayuan (Nasdaq: DATE) and Momo (Nasdaq: MOMO) facing resistance on 2 very different fronts. The first story has a Jiayuan investor crying foul over a recent buy-out offer that it says vastly undervalues the online service that engages in traditional match-making. The second story has Momo coming under fire from puritanical Beijing regulators for its more casual form of dating, which encourages short-term, one-night-stand relationships, similar to the popular US service called Tinder. Read Full Post…
Bottom line: 55Tuan’s IPO plan has a less than 50 percent chance of succeeding as a deadline looms, while Jiayuan.com is likely to de-list later this year after its investors accept a so-so buyout offer.
Clock ticks down on 55Tuan IPO plan
Time is quickly running out for a planned IPO by group buying site 55Tuan, as a deadline approaches that will nullify the company’s application earlier this year for a New York listing. Meantime, time is also running out for another Chinese Internet company, Jiayuan.com (Nasdaq: DATE), as a private equity firm launches a bid to privatize the neglected online dating site.
Both 55Tuan and Jiayuan represent a group of decidedly second-tier Chinese Internet companies that probably would have been acquired long ago in a more mature western market. But in the less developed Chinese market, the pair have managed to stay independent. The second-tier status of such firms often leads investors to question their longer term viability, dampening enthusiasm for their stocks when they list overseas. Read Full Post…
