M&A Tragedy and Comedy about Video Industry

Domestic and foreign video site mergers and acquisitions can currently be divided into two categories: the same industrial platform-style "horizontal mergers and acquisitions" and the upstream and downstream industry chain "vertical mergers and acquisitions." Since the beginning of this year, the increasing number of transactions in the M&A case indicates that the Internet video industry will accelerate into deep integration in 2013.

However, looking back at the video website mergers and acquisitions in recent years, the bright dream of “kicking and banging off firecrackers” at the time of the merger was actually not completely fulfilled with the brutal reality of the merger. I know myself hard.

Puda Xi Ben! There are three good mergers and acquisitions: save time, effort, promotion of magical use of the four words to summarize the mood of mergers and acquisitions companies, it must be "proudly rush." On the one hand, mergers or acquisitions in the same industry are the most direct and fast way for the growth of video websites, which can bring a qualitative leap forward for companies in terms of capital size, content resources, user groups, advertisers, and cooperation negotiation prices, such as May this year. After the iQiyi and PPS marriages, the overall strength has leapt to the second place in the industry, and it is not difficult for us to understand how Sohu Video envyed hatred and fidgeting.

On the other hand, given the difficulty and cost of getting started from scratch, the most convenient way for outsiders who do not have experience in video operations but want to quickly step in and gain a place is the acquisition. As early as 2008, Google bought YouTube with a huge sum of US$1.65 billion. YouTube has helped Google to obtain 25% of the mobile Internet traffic in the North American market, and Google’s YouTube sales in the first quarter of 2013 were US$12.95 billion. Sharing and mobile services together contributed 15% of the share. In addition, in many cases such as Shanda’s acquisition of Cool6, and the acquisition of 56 networks by all, non-video companies have repeatedly staged videos of video companies.

In addition, improving the industry and the attention of users is a beautiful thing that any company can do. Every merger and acquisition in the industry can attract a lot of reports and concerns, and parties need not rack their brains to carry out any promotion. Still taking iqiyi and PPS as examples, the news that the two sides merged in May brought the attention of their respective users to the second place in the industry.

Do you think that there are a few money on the cattle? Scattered boy comes!

It is a tragedy to say that M & A is a tragedy, because the "Millions of people are stupidly coming" M&A game has caused many buyers to vomit with no end of bitterness.

There is no doubt that although Google’s acquisition of YouTube is a worthwhile investment, it is worth the money, and domestic video site acquisitions are not so lucky. In recent years, domestic video websites have never been fuel-efficient lights, and buyers have paid a lot of money before and after the acquisition.

Back in 2009, Shanda’s Huayou merged with Cool 6 equity. Industry insiders speculated that the transaction value was around US$45 million. It is expected that this seemingly bad deal was only the beginning of a nightmare. In the following years, Shengland continued to invest more than US$200 million to boost Cool 6 video business. Cool 6 development path is confusing, and revenue has not improved. From the copyright warfare to the homemade content, Cool 6's financial report in the first quarter of 2013 showed that its total revenue was only US$3.07 million, a year-on-year decline of over 30%. 1.67 million U.S. dollars. In the face of such achievements, if time goes by, will Chen Tianqiao kick himself?

In 2011, 56.com commissioned Renren.com for 80 million US dollars and was once sighed as a "selling sale." However, it turned out that Renren did not find it cheap. In the past two years, 56 networks have really left Chen Youzhou worrying: In 2012, Renren added an additional 60 million to 70 million U.S. dollars to 56 networks. However, Chen Yizhou, who was very self-aware, didn’t think about Profitable in 2012. In the first quarter of 2013, Renren’s financial reports were ugly. The 56-net’s revenue was even more ugly. In the latter’s quarterly revenue of nearly US$5 million, nearly US$3 million in revenue came from the virtual talent show “My Show”. Income I'm so embarrassed to do subtraction. The 56-net CEO Zhou Juan claimed on different occasions that he would not rule out further acquisitions. Hey! Before that, I bought "a" once. Now "Enough!"

After Baidu purchased iQiyi, it caused its 2012 Q4 financial report to not look good. The most obvious is that the quarterly net profit fell by 7%. Recently, Baidu bought PPS for US$370 million. Under the condition that it has two large-scale video sites, we see that iQiyi is still purchasing copyrighted content, and we will enter the smart TV field in August, which will make Baidu The field has to invest heavily. Come, let's pray for Baidu's wallet.

In short, the results of mergers and acquisitions in the online video industry may not necessarily be hens like YouTube. They may be chicks that need to be cultivated for a long time. To be profitable, they must invest in content, technology, and channels. However, for many Internet buyers in China, the decision-making for quick success and instant benefit, and the change of coaching in a flashing light, all lead to a video website that looks more like a broiler who cannot even feed ordinary eggs. Even the opportunity to kill chickens and eggs is not available. The wealthy people have the money to spend no time looking for video sites, they are excellent scattered boy.