Internet world, is the most not the lack of surprise .
Until last month, Tudou and youku is also seeding because of the Emperor Kangxi to the stolen things fight; on the afternoon of March 12, the day of the incident, potatoes are also busy in preparation for the exclusive play the brides how to launch. Heavy news in a move, and potatoes–cool announce merge.
This is a message that is not strange as it sounds, but enough to make the outside world shocked. Industry’s first message on youku and potatoes with, can be traced back to before and after the 2008 financial crisis. Been dismissed as a serious burn video sites when you fall down, intends to bring together the two merged news capital levels, ended rumors to Victor Koo denied this.
Once again youku merger potato news was cool after the listing. Potato listing deal, capital environment began to slump, youku results on communication, youku CEO Victor Koo playing Tai Chi when asked this question, imagine space to the outside world.
But in fact, potatoes, pre-IPO merger with cool touch, this confirmed by ECAR capital Wang Ran, ECAR capital is one of the financial advisers of this merger. According to Sina science and technology knowledge, youku CFO Liu Dele was indeed seen potato results, but because its data is more confused and give up.
But it seems the potato has been seeking an acquisition of the opponent on the left, according to Wang Ran until the potatoes and contacts such as Baidu, Tencent, seeking to merge. According to another source, youku is also seeking a takeover target, even and odd art had been negotiating, but the final price is not on the long and give up.
Why is ultimately Tudou and youku? Because one wants to buy, want to sell, and eventually youku’s price is not bad: potato premiums reached about 160% , whether potato investor, high level, employees are able to have a good price. Youku, facing continued losses and huge investment, need to integrate to create new exciting point, and through the absolute share of the expansion to achieve the purpose of promptly market position.
Merger of such a discussion for a month, the parties most unsuspecting . After the announcement, youku and potatoes separately held a staff meeting, youku insiders say the staff is very excited, because, after all, mergers and acquisitions have a strong competitor. And potatoes inside it says internal is surprised, but as a whole is still relatively calm.
According to the plan, Victor Koo as the combined company CEO, current CEO of the potato King spit joined the Board of the merged company, youku and potatoes will remain independent of both brands after the merger, as well as independent of their respective teams. This content is also on Tudou, youku in internal meetings emphasize to employees, and the merger will be completed in the third quarter.
Such a deal, was a video by industry as industry consolidation curtain began, industry also believes that pressure in the video industry, are already listed from a year ago, copyright, broadband, converted into operating pressure.
Merge on the good
Max is good, youku merged after the potatoes, without a strong competitor on the market.
First of all in the cost over the past few years increasing copyright prices, and killing crazy about video website, youku merged after the potatoes, although the industry still has opponents such as Sohu video, strange art, but there is no doubt that to a certain extent reduce the cost of copyright. Also in this part of the bandwidth, can also be optimized resource allocation between the two sides.
On the revenue side, beyond the advertisers, two brands of a company Web site, no doubt can increase bargaining power, increasing advertising revenues later, can significantly speed up the pace of earnings. Would like to see either the industry or the capital markets.
Victor Koo for a combined cost of interpretation is, in terms of content, two platforms for sharing exclusive content, for the two sites to create more traffic, clicks, and revenue. With the passage of time, and of cooperation in the area of multimedia content, as well as the consequent larger budget, more large traffic base, will enable the two platforms benefit from.
According to Analysys 2011 fourth-quarter data, Chinese online video market share, youku, 21.8%, potatoes, 13.7%, if you combine the two, both sides possess market share close to 35%.
Rapidly expanding market share, there is no doubt that is one reason why youku with potatoes. But why potatoes are sold? Youku to buy? Analysts believe that the most important cause is the pressure in the video industry, financing, copyright, bandwidth from the listing before 2010, converted into an operating pressure. And the growing gap between rising costs and difficult to profit, they need to seek change.
Ku6wang CEO Shi Yu and SINA technology line, pointed out that at present the major video sites are very difficult to purchase longer videos-the models made in selling advertising profits. In the vicious competition, both youku and the potatoes were good too, as the potatoes, market undervalued, had to face losses expanded to become reality.
Youku, top with a high market value, slowing subscriber growth on the one hand, unable to support growth, loss of income on the one hand in the expansion, merge potatoes thrown after the first concept of a stable market share in China, or to meet Wall Street expectations for the time being.
Unknown integration challenges
Bring a video signal is cool with potatoes, network video industry reshuffle will accelerate in the future, the video industry will continue to consolidate. Youku and potatoes to face, as well as two homogenization of serious enterprise integration.
According to Victor Koo’s planning, product and technical teams will integrate both sides, in terms of Administration will also be consolidated. Victor Koo considers consolidation to lower costs and consolidation held optimism. Victor Koo has not however say whether job cuts, as well as the scale of the cuts. Employees of the two companies, this sense of concern.
How can 1+1 greater than 2? There are a lot of people in the industry that is not good, the biggest reason is homogeneity between the two sides is too strong : have users share, long videos, fee videos. If you leave the two branding, you mean branding have to double investment in, increased costs, many analysts believe that the dual-brand strategy possible long-term operation.
Consolidate unsatisfactory cases are not uncommon, for example, focus media acquired 6 mass media, such as a grand to buy cool. Another concern is that after dual-branding, sold with the two platforms, advertisers on a single platform running may be diluted, but reduces the overall income of advertising.
Although Victor Koo said, in terms of content, the next two platforms to share the exclusive content, copyright does not seem to be the attitude. Until at least a cooperation agreement with potatoes plus net made it clear that, merge does not affect cooperation with the potatoes. But according to the contract, potatoes can continue in its promotional music video network has exclusive network copyright on the page content, but this cooperation does not apply for the core platform.
Facing pressure from competitors such as Sohu video, strange art, after all, they were back on the portal or search, Wang Ran in micro-bori stressed, do not underestimate the “Teng Pak Fox” stamina. While the competition on the one hand from the PPTV, depending on the layout of Internet TV and video companies such as network, this is a field can not be ignored.
Text/Sina science and technology