Netease 14.9 billion cash deposit bank ding at etc. What?

as the third quarter of the domestic Internet launches of listed companies, the company’s financial data are reserved in public, in the measure of cash flow, tencent to ranking topped 23.4924 billion yuan, 212.87 yuan, followed by baidu netease is RMB 14.9 billion occupy third, surplus cash flow because of the gap is more, other companies not listed. However, netease on the fund use policies with tencent, baidu.

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is well known, tencent in 3 q war to the open road, investment in the industry also huayi, buy good joy, cosette, blue diamond, jinshan, and many other enterprises, and even the acquisition, such as flash elves, DNSPod to reach out to small businesses; Baidu has also been gradually get rid of the single mode search engine, gradually increased to iQIYI overweight, where investment, housing and its net, etc. Tencent and baidu have walked out of the nation’s road map.

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however, for ding under the control of netease, but significantly more cautious conservative, even “stingy”, these a few years to earn money is largely in the bank.

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ding “stingy” price

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red wine, in addition to his pig and investment industry which never coming out of his investment company, to carry out what mergers and acquisitions. Said he was “stingy” for a reason, let’s look at the following example:

1, a former netease portal deputy chief editor of keen had a presentiment weibo to fire, and in 2009 began a secret research in December. It’s a pity that the operation of the ding not give money, finally living is sina weibo first.

2, netease public class until performance reach the level of industry knowledge to the operating costs 1 million yuan.

3, once a netease a high-end camera photo editor application, then got a call from the ding: “I have never used such a high-end camera!”

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his cautious and conservative not only reflect on the company’s business operations, more prudent in add on the investment strategy. At the end of 2010 was asked why don’t holding large cash investment, ding seem to be some “angry”, “apple’s $50 billion in cash are not in a hurry with investment, we only have $1 billion, why will rush roar?”

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according to the analysis, this also is associated with him in netease holding too much, from the 2011 annual report disclosure, ding in netease holding 44.5%, compared with other Internet company founder holding proportion is low, which makes limited his own adventure impulse and risky investment.

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in fact, from 2005, ding has become more and more cautious, especially in the past few years the Internet companies have opened up a new battlefield, netease always stick to their game, mailboxes and portal operations. According to the thinking of ding, let others to do first, observing and thinking pattern and style, such as pattern gradually clear, preliminary market cultivation period is over, the risk is reduced gradually, and then netease. Netease phone project is ding has yet to see the results of the real market, he in internal called for a mobile phone plan.

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as a consequence, a conservative strategy, netease have missed electricity, SNS, video and other opportunities, testing the waters of weibo, search, dating is tepid, game status more and more strong, the portal business stagnated even frequent phenomenon of a large number of executives.

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netease signal adjustment

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however, with the advent of the era of mobile Internet, netease released slowly adjusting signal, ding must also adjust, after all, tencent has WeChat and mobile phone QQ, sina weibo, sohu sogou, and netease have not have lead to the mobile bon “tickets”.

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so, since this year netease what are the changes?

set up investment funds: netease in April this year, 2 billion money to set up venture capital fund “netease capital”, will focus on investment in the early Internet project, which is unprecedented in the history of netease.
ding style change: since this year’s low-key norm, appeared frequently in product launches, products for the company.

promotion news influence: during the Olympic Games, netease investing to vigorously promote netease news client, and in more into advertising plan. Recently, began to promote “attitude” series brand portal.

improved mobile game: ding said already think of some solution to the PC game with mobile terminal to a better combination, netease is also attempt to this aspect of the development, the first quarter of next year will launch new products. In terms of pages to swim, netease is more cautious.

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mobile applications: as smart phones are increasingly popular, netease began to enhance investment in the development of mobile applications and, at present, netease news client lead has been made.

increase product research and development : after leading research institute in hangzhou, ding will spend most time here, there will be an important product of netease future output window.

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14.9 billion cash will how to spend?

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first look at netease share price, as of writing, $38.53, which is still low in close to a year, and lowest for three years. In the face of such a share price performance, then compare the company store 14.9 billion cash, ding to investor must have a replacement.

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although this year to buy back the shares have been, but has little effect on stock prices, road is in front of ding, dividend, layout of new business and investment in mergers and acquisitions.

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on the new business, in addition to the game product expansion, ding plan should be mobile aspect, it is master mobile portal as soon as possible, occupy vantage point.

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client game search ding good profit margins have been the most significance of the business, and insists on the operation of independent research and development + agent work train of thought, in the case of tencent dominance, ding should adjust the train of thought, perhaps consider the industry joint, after all, with its huge funds acquired or in two or three tier of potential game business is entirely possible.

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another is in terms of mobile, in front of tencent’s powerful business layout, style is totally different from PC, ding must also take entrance carrier of mobile applications and good projects, such as flash, marketing channels are probably in ding sight.

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although this assumption and ding style different over the years, but he moved must adapt to the new situation.