Ali acquisition Youku potatoes: First video and electricity supplier portfolio now

Updated: October 20, 2015  Views: 38

Ali acquisition Youku potatoes: First video and electricity supplier portfolio now

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Currently, both the first camp excellent soil, iQIYI, or the second camp Tencent video, Sohu video, advertising, and paid the entire video industry's two main cash sources.

Our reporter Han-Shu Shanghai reports

In shares Youku potatoes a year and a half later, Ali Baba [microblogging] decided to this nation's largest video site to start a larger 'courtship offensive.'

October 16 afternoon, Alibaba Group announced that the Board has Youku potatoes issue non-binding offer for the company, it intends to per ADS (American Depositary Receipts) price of $ 26.60. For this acquisition, Alibaba will provide excellent soil remaining of the outstanding shares to pay $ 4.5 billion price, which after the last trading day's closing price premium of 30.2% over Youku Tudou, China's Internet has become the largest in the history of a cash transaction.

Shanghai local mobile video services in a responsible person to 21st Century Business Herald reporter said, speaking from the operation path of Ali Baba, a year and a half before the shares can be considered as both a 'trial marriage', but the results apparently makes satisfaction of both parties. 'For excellent soil, if only by their existing business, you want to achieve in a short time can stand almost impossible, the only way out is actually sold to a more resource-liquidity of the Internet giant.'

Currently, both the first camp excellent soil, iQIYI [microblogging], or the second camp Tencent video, Sohu video, advertising, and paid the entire video industry's two main cash sources. But the actual result words, these two profitable enough to counter the growing channel content costs and bandwidth costs. Although excellent soil thereafter tried electricity supplier operations, the creation of Youku potatoes mall, but not the electricity supplier strengths video sites store transactions with to profit is very limited, but Ali is likely to change this situation radically.

It is reported excellent soil more than 500 million active users, if by Ali Ali's mother flow through this 500 million outside the station drainage, to receive a larger and more sophisticated electronic business platform is full of imagination.

In addition to electricity providers and advertisers, excellent soil and Ali might be cultural entertainment industry is investing heavily in the layout of the difference in the latter.

Currently, there are three major entertainment companies Ali platform, except in the terminal part of the video site, is the absence of Ali Previously, BAT in three, Baidu [microblogging] and Tencent owned iQIYI and Tencent video, for aimed at the entire culture market giants, the Language of the video player terminal status it is essential for a site can be described as 'standard.' This is the purchase of preferred soil Ali a very important reason.

Upstream has many film and television copyright Ali Pictures, present only through their Lynx [microblogging] Box TV channels on the Internet once realized.

In June this year, the number of entertainment before Ali CEO Liu Chunning has disclosed that Ali is preparing a new online streaming video service named 'Tmall Box Office', referred to as the 'TBO', will provide domestic and international television programs and Ali Homemade content, relying on Ali's set-top boxes and smart TV broadcast, while the 90% of the content will be used to pay to watch mode.

And after the completion of the soil and the excellent marriage, it means that these resources are available through copyright video site, multi-channel layer completely realized, and excellent soil can get more and better content resources from shareholders at reducing the content acquisition cost, so as to achieve win-win situation both future pattern of cultural industries or Ali Ali Pictures and Ali will become responsible for the upstream copyright sports production and procurement, Ali number of entertainment and Youku potatoes occupied terminal channels responsible for playing.

Huatai Securities Research Institute, chief analyst Wang Yu-mei said that the rapid rise of user fees, the video entertainment sector has become increasingly prominent importance, became the Group layout will fight ring. Ali Ali establishing Pictures, Enlight shares and China Media launch Days after the cat's box and network set-top box platform YunOS, already 'we have the content, lower hardware', but the lack of content in the middle of the distribution and operating platform, and excellent soil it is an important piece of the puzzle.

(Editor: Chen Shijun)


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