Li big and Zhou Hongyi charade

this paper dragon hunting cloud network readers all contribute 】 【

yesterday, li to sign the final deal with net dragon, fuzhou acquisition adjusted total amount to $1.85 billion. The same day, Zhou Hongyi how revealing himself in baidu again in Internet conference 91 acquisition of indirect “bid”, the implication, baidu get lost.

in fact, zhou said baidu is everywhere spend over $900 million by 360 spoiler, sneer at baidu did not buy, it exposes its own realm – heavy enough tactics, strategy of light.

first, baidu acquisition after 91, superposition of the two channels of distribution and application of distributed capacity has more than 360 mobile phone assistant. In July 2013, according to domestic users through baidu and 91 wireless platform download application total daily average of 69 million, and 360 mobile phone assistant is the daily average of 56 million times.

the mobile application distribution was 360 advantage position, but now I have one more larger rivals. Zhou Hongyi merely to make baidu more than hundreds of millions of dollars, by rival challenge ourselves, to unite is penny wise and pound foolish.

second, if the Zhou Hongyi that li as he will haggle over every ounce to hundreds of millions of dollars worth of gain and loss, also see li too narrow.

for baidu, the value of 91 never check of $1 billion. If only see 91 as an isolated product, and could be worth less high; But given its business with the buyer integrate resources, strategic screens, if just the fit, the energy released is very alarming. This is week, gaps Li Erren to judge investment value of mergers and acquisitions.

91 is an important link in baidu mobile Internet strategy. We all know that baidu is a “flow” entrance control, in PC occupying most of the market share, nature also wants to get the advantages of translation to the mobile terminal. At present, mobile search, baidu more than one hundred million active users per capita, the concrete application of mobile search baidu baidu APP on active users also successful breakthrough, day over 20 million active users. Based on the APP store entrance construction, baidu mobile assistant is implemented on the PC and android end universal coverage, one of the top three in the android APP store on the Chinese market, for the distribution of the APP is already three consecutive quarter to rise by more than 50%. Plus 91 wireless application of distribution channels, baidu will strengthen distribute mobile search + app two entrance layout.

and 91 on the profit model, business cash already has a mature system, games and advertising is 91 two major source of income, 100000 developers gathered by dividing into the model. Baidu to buy 91, not only won the entrance and traffic, also will receive 100000 developers. 91 developer community, portal, access, Push, cross-platform, social, monetization, data statistics, etc of developer support services, with baidu mobile cloud BAE development engine, MTC mobile cloud testing center, the cloud Push, media cloud solutions, together form a powerful closed-loop for developers. After the takeover, baidu will form in the mobile Internet search + app store, a complete ecological cloud platform.

from this perspective, the price of 91 is your hundreds of millions of dollars, completely will not affect the baidu’s acquisition of determination. Because Mr. Li is a long-term layout: for baidu, the meaning of 91 mergers and acquisitions as 2004 acquisition of hao123: baidu was spent tens of millions of yuan to buy grassroots hao123 site, is actually bought a PC Internet portal, hao123 until now still occupies a lot of computer user’s homepage, contributing to baidu flow entrance and 400 million annual revenue; Nine years later, baidu and spend 1.9 billion to buy a mobile Internet portal, plus 100000 developers, brings to the industry and investors in the imagination of space is immeasurable. (in fact, alibaba has bid for 91 wireless, bid $2.2 billion, but in the end make a is the 91 wireless for $1.85 billion to sell to baidu, have higher expectation of baidu + 91)

sogou CEO wang xiaochuan has comments on zhihu: mobile phone assistant of PC browser, baidu this is for your own wireless strategy into strong foundation, once the wireless strategy is successful, will be back to the market value of billions.

after the acquisition of 91 a month, baidu’s share price rose out of the 7 91 wireless:

on July 15, baidu’s share price: $101.59, total value: 35.556 billion

on July 16, baidu to buy 91 news

on August 14, baidu’s share price: $141.53, total value: 49.493 billion

baidu at this time, as well as necessary and Zhou Hongyi break even chi didn’t buy expensive? It is 360, with 91 m&a cases before, and don’t take out $2 billion, still eat sogou?