Seeking Alpha

Sky News: Yahoo puts in bid for Youtube network Fullscreen

  • Yahoo (YHOO) is looking to buy YouTube content provider Fullscreen, and has put in a bid for $250M, Sky News reports. Fullscreen has 380M subscribers and draws over 3B monthly video views on YouTube.
  • Fullscreen is backed by Peter Chernin, who is said to have the right to purchase the company at a previously negotiated price, unless another bidder offers over $300M. Fullsceen generated $50-70M in revenue last year.
  • YHOO +0.1% AH
Comments (14)
  • dealjunky
    , contributor
    Comments (5) | Send Message
     
    Full screen is better than makers
    That's a good call
    Maybe 1 st good one by MM
    Maybe she is of the sleep
    27 Jun, 01:48 AM Reply Like
  • dealjunky
    , contributor
    Comments (5) | Send Message
     
    Having bought yahoo at 40
    I hope I can recover my money some day
    Alibaba is breaking all hopes
    I use alibaba so much that I just believed it
    But didn't realize that it's being valued at 10 times sales which for a chinese company is too steep as they will never be international
    Let's hope for the best now
    27 Jun, 01:53 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    BABA is international. It is very much in use in Europe, for example.
    27 Jun, 02:05 AM Reply Like
  • Aries Wu
    , contributor
    Comments (44) | Send Message
     
    Alibaba will be international, they have strategic plan for US and south east asia already. They aim globally because they have the resource to do so. Amazon and ebay cant go globally. Why? Because they have the customers base but not the sellers base. And seller is what's attract customers. Any ecommerce giant with links and connection to manufacturer will be the future winner. Take my point.
    28 Jun, 05:19 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    Ebay and Amazon feature a wealth of sellers in Europe and South America. They are operating globally.
    28 Jun, 05:27 AM Reply Like
  • Aries Wu
    , contributor
    Comments (44) | Send Message
     
    Yes, but depend on what kind of products. Euro, latin america seller if they get their product manufacture in China, non patent goods, then directly from China will be cheaper compare to seller from Euro or latin america. If the seller in ebay or amazon is just a middleman, not manufacturer, then they do not possess competitive advantages. For example, there is arbitrage opportunity now on ebay to sell products that you bought on chinese site, and sell it higher on ebay or amazon. Because western buyer relying on these two site, they couldnt lower their cost further using chinese site. Yup, amazon and ebay operating globally, but will face massive pressure if alibaba fully expand their global footprint. They invested in Singpost, a logistic move for them to expand to southeast asia, future will be more logistic investment in other part of country. eBay cant do that because of their profit maximize, democracy corporate structure. Amazon able because jeff bezos control the company...but at the moment, I didnt see amazon have any global strategic move as yet compare to ambitious alibaba.
    28 Jun, 05:38 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    The majority of 1st and 2nd tier branded consumer products on offer on Ebay and Amazon in Europe are sourced globally and produced globally.

     

    If you want to buy a Swisss leather sofa, a British toaster or Japanese video camera, you go to specialist online shops or Amazon and Ebay as a consumer to make your individual purchase, not Alibaba which is still an unknown quantity among average consumers; it currently looks very rudimentary, like this http://bit.ly/1nRIyX7

     

    Alibaba will win direct consumer business in Europe and the Americas only once Alibaba has a well-functioning and well-designed online shop for consumers. Currently, Alibaba is trying consumer sales in the U.S. via its offspring 11 MAIN http://bit.ly/T2fLa6

     

    One has yet to see how that one works out...
    28 Jun, 08:23 AM Reply Like
  • Aries Wu
    , contributor
    Comments (44) | Send Message
     
    Yes, you are exactly saying my point, the link that you posted is their B2B site, they do not have present at the moment for consumers, what I said is that they have strategic plan that can potentially causing trouble to amazon and ebay with their competitive advantages, which is cost.
    Again, do not try to think ecommerce is a single body industry, there are many type of ecommerce site that offering different thing to consumers.

     

    Branded goods like dyson vacuum cleaner, ikea furniture etc can be sell on specialist online shops or Amazon and Ebay, it can also be on alibaba havent existed site, who knows...they have their logistic plan on US using shoprunner, europe at the moment still no plan.

     

    What about others, like wire extension, HDMI cable, novelty items, toy, goods that are bought on walmart (a lot of them is even cheaper if directly bought from china inclusive delivery cost), things that you doesnt mind in brand such as rattan chair, gardening tools etc. Or branded goods that is selling cheaper in developing nations, eg US movie title that sell cheaper in singapore than in france (inclusive delivery still significantly cheaper) etc etc. Future ecommerce will be more on cross border transaction, and manufacturing powerhouse China cheapstake product will be even cheaper if alibaba plan to bring them onshore.

     

    You did mention an important point, which is trusthworthiness issue, I posted a comment earlier,
    http://seekingalpha.co...
    scroll down and read my view on 11main.com
    All i tried to say is, all of it is can be possible, not some daydream although now it seem like one, and looking down on alibaba ability to took down amazon's market share can be dangerous albeit not so soon.
    28 Jun, 09:38 AM Reply Like
  • Aries Wu
    , contributor
    Comments (44) | Send Message
     
    In addition to my post, a lot of Europe US branded goods are govern by big corporation entity, ability to attract them to sell on their site can be quite easy, for example shoprunner attracted and still more branded shop coming in to open store. So amazon ebay, if alibaba wish to set up one B2C store, can be relatively easy. The competitive advantages I am saying is the SME produced goods, or those SME offshore their production to China for cost cutting purpose, all the while alibaba's B2B site is working on this area, something ebay or amazon do not compete in. For example US SME made LED lighting system produce in China selling on walmart for 300USD, amazon crazily selling it at 215USD, or buy from China via alibaba for 120USD+35USD delivery. Amazon cant compete for this instance because they are still an online retailer. It still a step more. US SME goods in China->amazon->c... vs US SME goods in CHina->consumer. Who will be cheaper?
    28 Jun, 09:55 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    For SME's in Europe, it is still not always easy to do a lot of quality B2B business via Alibaba. Often, you have to go to China to check quality issues or you receive a 20ft container with the wrong parts although the order was clear.

     

    What I'm saying is that it will take time and investment to really get things going smoothly in Europe, not the least because of all the different languages and B2B cultures about how to do business, varying quite considerably from country to country. Things are easier with the Northern American English speaking block, Australia and the UK.
    28 Jun, 10:11 AM Reply Like
  • Aries Wu
    , contributor
    Comments (44) | Send Message
     
    And none of the SME able to outsource and cost cutting by making things in English speaking block ...what I said is an example, it can be China, Vietnam, Laos etc SME that used alibaba to make goods and sell online. The point is, which ecommerce giant closer to manufacturer, will have ultimate competitive advantages in cost for many items, something that amazon and ebay does not possess. And it can be crucial and determining factor in future B2C or C2C global ecommerce war (yes, very far fetched, no in at least 10 years I think, and no immediate threat for amazon or ebay now), who will have this competitive advantages, who will be the likely winner.
    At now, at least it seem to me, amazon is consumer side based (pro-consumer), while alibaba is sale side based (manufacturer, many business using it). Future ecommerce war will be looking which side consumer vs seller will be the likely winner. If amazon unable to compete in price, what can they compete? Will consumer loyalty stay if they cost more. Some interesting thing to see in future.
    28 Jun, 12:42 PM Reply Like
  • JamesBower
    , contributor
    Comment (1) | Send Message
     
    I'm confused. You said it's valuation is 10 times sales. It has 85 billion in sales. I haven't seen anything suggesting alibaba is seeking 850 billion... Here's a link if you want to read for yourself http://bit.ly/1mBBNfN
    27 Jun, 02:14 AM Reply Like
  • ajblo1
    , contributor
    Comments (113) | Send Message
     
    looks to me like 4-5 times revenues, not 10 times! can you explain your confusion?
    27 Jun, 10:13 AM Reply Like
  • Manitobatex
    , contributor
    Comments (476) | Send Message
     
    If YHOO! divulged their offering price for YouTube full screen it only goes to show how poorly Mayer has managed the YHOO! brand. Inviting bids from its competitors is really a bright move.
    28 Jun, 08:22 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|