Source: Beijing Business Daily
Original title: 3.6 billion US dollars swallow YY, can baidu catch up with the live air outlet
On November 17, Baidu and huanju announced that Baidu would purchase huanju’s domestic live video entertainment business (YY live) at a price of about $3.6 billion, including but not limited to YY mobile applications YY.com Website and yypc, etc. The deal is expected to close in the first half of 2021, although the two sides did not disclose specific plans.
Apart from the amount of the deal, the official disclosure is almost the same as the version that came out in late October. Industry insiders focus on whether $3.6 billion is worth it? Can baidu rely on acquisition after live track? Compared with YY’s revenue and total number of paid users in many quarters, the performance is not brilliant, but considering the technology and talents, the quantitative performance may not be the only consideration for Baidu.
It will be finished next year
When the news of Baidu’s acquisition of YY was broadcast in late October, huanju’s share price had risen by about 5%, reaching the highest value in a month at that time. On November 17, when Baidu and huanju officially announced its announcement, the shares of huanju were also reflected after hours, rising 5.67% to $101. Based on this, the total market value of huanju was $7.723 billion.
According to the final binding agreement signed between Baidu and huanju, Baidu will wholly acquire YY live broadcasting, including but not limited to YY mobile applications, mobile applications, mobile phones, mobile phones, mobile phones, mobile phones, mobile phones, etc YY.com The transaction is expected to be completed in the first half of 2021. After the transaction is completed, YY live will join Baidu. In the future, the two sides will realize mutual empowerment in technology, flow, ecology and other aspects, forming a scale effect.
As for whether the two sides have begun to prepare for the integration and how to plan personnel integration, Beijing Business Daily reporters interviewed huanju and Baidu related people respectively. The party said that “the acquisition matters shall be subject to the announcement”. As of the press release, baidu did not respond.
After the completion of the transaction, Baidu will gain an independent live app. The live broadcast platform bigo and short video platform like, which focus on overseas markets, will become the core products of the gathering.
In evaluating the deal, Li Xueling, CEO of huanju, said, “YY live broadcast is a domestic pan entertainment live broadcasting platform. It has a complete set of process system and experience in live broadcast ecology, live broadcast technology, content operation, revenue and play methods, and the incubation and cultivation of anchor echelons. As an Internet integrated service company with information and knowledge as its core, Baidu has established a huge mobile Internet ecosystem. In this transaction, there will be an opportunity for YY live broadcast service to access Baidu’s huge flow pool, realize the closed-loop of diversified realization in a larger ecosystem, accelerate business growth and release greater value. “.
What do you like
At the same time, both huanju and Baidu released the third quarter of 2020 financial reports, which gave the industry a chance to see the value of YY from the latest performance of huanju.
According to the financial report, huanju’s revenue in the third quarter of 2020 was 6.286 billion yuan, an increase of 36.1% year-on-year; under the non US GAAP, the net profit was 809 million yuan, up 64% year on year. In this quarter, the revenue of huanju was still supported by YY and bigo, of which YY contributed 2.892 billion yuan and bigo contributed 3.395 billion yuan.
Focusing on YY, the revenue of 2.892 billion yuan in the third quarter of 2020 decreased by 6.1% year-on-year and increased by 4% compared with the same period of last year. For two consecutive quarters, YY has been the largest revenue source of huanju.
At the user level, YY has bright spots and hidden worries. Affected by the epidemic situation, YY’s total number of paying users in the third quarter of 2020 is 4.1 million, which is 4.7% lower than that of 4.3 million in the same period of last year. However, from the perspective of the average mobile Mau (monthly activity) of real-time streaming media services, in the third quarter of 2020, the number was 94.1 million in the world, of which 41.3 million came from YY, with a year-on-year increase of 3.4%.
If the standard pan live broadcasting industry, the old platform YY is not as fierce as the latecomer. For example, for the betta, which released financial reports last week, in the third quarter of 2020, the overall Mau of the platform was 194 million, with a year-on-year growth of 18.6%; and the paid users were 7.9 million, with a year-on-year growth of 12.7%. Hu ya, which was separated from the party not long ago, has a slightly lower revenue than YY, but Mau has left YY behind.
In terms of market value, as of November 16, US Eastern time, the total market value of tiger tooth was 5.082 billion US dollars, which was much higher than YY’s value of 3.6 billion US dollars.
“To be honest, YY can not be regarded as the head platform of the live broadcasting industry. Its value lies more in experience and accumulation, because YY is the first batch of live broadcasting trade unions in China, and it is very brilliant in the PC era. As far as Baidu is concerned, the focus of live broadcasting is on Baidu app rather than external independent app. The technology precipitation and synergistic effect brought by YY are more important. ” Bida consulting analyst Li Jinqing told Beijing Business Daily reporters.
Tiktok, Kwai, and fast hand
Baidu CEO Robin Li’s statement also released similar signals. “YY will bring great synergy to Baidu, which will benefit from Baidu’s traffic and mobile ecosystem. Baidu will gain immediate operational experience and expertise, and can be used for large-scale video based social media development. Baidu hopes to work with YY team to explore the next generation of real-time streaming media and video based social media, which can expand from entertainment to diversified vertical markets on Baidu platform. “.
Since Baidu Kwai YY is pursuing technology and synergy, the direct broadcast rate will not directly compete with the jitter and tiktok. At present, live broadcasting has become the standard configuration of Internet enterprises in the head. Wechat’s live video number and Taobao’s live broadcast are based on the core business of wechat and Taobao. Baidu is also the same logic, which is the mobile ecology that Baidu has always emphasized.
However, Baidu has only begun to strengthen its live broadcasting layout since this year, but “the acquisition of YY shows that Baidu attaches great importance to the live broadcasting business and has a flow basis. It is better to try later than not to do nothing, and not to take risks is the biggest risk,” Wang Chao, founder of Wenyuan think tank, told Beijing business daily.
According to the financial report of the third quarter of 2020 released by Baidu on November 16, in September, the number of daily active users of Baidu app was 206 million. Based on Baidu app, baidu live and short video content is also developing rapidly. In the third quarter, Baidu’s live broadcasting of knowledge products reached 8 times of the previous quarter. This growth of data, the side reflects Baidu’s achievements in live collaboration.
Wei Wei, reporter of Beijing Business Daily