Media: Entertainment Platform smoke signals the beginning of the acquisition of Youku potatoes Ali Comment

Updated: October 19, 2015  Views: 69

Investment Highlights:

Event: October 16, Alibaba [microblogging] Group announced that the Board has Youku potatoes issue non-binding offer for the company, we intend to per ADS (American Depositary price of $ 26.60, cash in addition to Alibaba Group holding There Youku Tudou shares, the remaining outstanding shares of all the companies. round total valuation of the acquisition of excellent soil about 51 billion dollars (about 32.8 billion yuan.

Comments are as follows:

Ali wholly acquired excellent soil - long overdue, and the doctrine of the strategy expected slightly superior soil, the decline has been significant in the competition extremely intense video industry, Youku development strategy somewhat moderate, neither Tencent like that. natural entrance, nor iQIYI [microblogging] content and refined products, but not the kind of music, as determined courage longitudinal vertical integration, resulting in the competition gradually down to leeward, recent industry position, company valuation, profitability deteriorated From the mobile end user scale, Youku in 2015 from the industry to maintain rapid first slipped to third in the industry, it is not a leader, and the lack of power, but rather ranked first and second in iQIYI strong Tencent video growth (see Figure 1. From the point of view of financial data, since the market has been unable to get rid of Youku loss predicament, no profit (US GAAP quarter loss is constantly expanding since the most recent year (See Figure 2. Excellent Earth is losing its capacity of independent development.

The two sides fall in love, excellent soil will become an important part of Ali entertainment Users pay the rapid rise, the growing importance of video entertainment section highlights the layout into a group will fight a ring. Ali Ali establishing Pictures, Enlight shares and China Media After the introduction of the Lynx [microblogging] Box and network set-top box platform YunOS, already there Content, hardware, except the lack of content in the middle of the distribution and operating platform, excellent soil, it is an important piece of the puzzle before Ali 20% of shares, and can not be guaranteed to make excellent soil such as arm waving, a wholly-owned acquisitions imperative, to coincide with the development of superior Difficult soil, but also need to rely on the trees, the two sides can be said to fall in love. And the 5.1 billion dollars The valuation is also lower than the previous estimate of 6.6 billion shares while, might be a suitable trading terms for Ali.

In addition to entertainment, 'Video + electricity supplier' is also worth looking forward to. At the time of last April 28, Ali shares excellent soil, 'Video + electricity supplier' was high hopes, with complete control over depth Ali Youku, video and electronic business Cooperation ripe imperative Reference microblogging and Ali-level cooperation in the electricity business, video, whether in terms of diversion or Products, all with more prominent advantages, and the future of video content-derived electricity supplier + linkage, is also quite It is worth the wait.

Video rivers and lakes increasingly clear pattern: BAT armed party, former music as independent development of three major video sites are attributed to BAT, the industry reshuffle will continue from the music network was established in 2004, was once the world video quack independent video site, including music Watch. Youku, potatoes, 56 network [microblogging], cool six, PPTV, PPS, six rooms and so on. Now the pattern is already clear, the first group of three sites (iQIYI, excellent soil, Tencent video were BAT holding, second-tier video sites have sold themselves, the only remaining independent music as a video site, but the video industry is still at a loss among the industry reshuffle will continue.


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