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Tencent Ties Up With Korean Gamer, Eyes Youku Tudou
After WhatsApp Buy, Facebook Faces Stiff Competition From Tencent's WeChat
- Facebook will face considerable competition from competitors in the East.
- WeChat's footprint is greater than that of WhatsApp.
- Even with FB's acquisition of WhatsApp, FB continues to lag in the message space.
Tencent Holdings: Emerging Market Stock Of The DayEmerging Money • Nov. 15, 2012
TCEHY vs. ETF Alternatives
Wednesday, Apr 169:18 AM
Wednesday, Apr 169:18 AM| Comment!
- KING Digital is partnering with Chinese gaming/messaging giant Tencent (TCEHY) to bring Candy Crush Saga to the Middle Kingdom. The game will be distributed via both Tencent's QQ (PC messaging, 808M MAUs) and WeChat/Weixin (mobile messaging, 355M MAUs) platforms.
- Candy Crush was responsible for 93M of King's 128M average Q4 DAUs. But bookings and unique payers started to slip in Q4 after seeing meteoric growth over much of 2013.
- King is counting on newer titles such as Pet Rescue Saga and Farm Heroes Saga - they're promoted via Candy Crush and have moved up Facebook charts, but are nowhere are large right now - to help pick up the slack.
Wednesday, Mar 269:19 AM
Wednesday, Mar 269:19 AM| Comment!
- A source close to Youku (YOKU) tells Marbridge Consulting Tencent (TCEHY) has reached a tentative deal to buy a 20% stake in the Chinese online video platform for at least $300M in cash. Tencent would merge its own sizable online video business into Youku as part of the deal.
- Marbridge has a mixed track record with M&A rumors. Youku rallied last July on a rumor from a Chinese site regarding a Baidu stake purchase.
- Helping Marbridge's report appear plausible: Tencent has already spent nearly $400M this month to buy stakes in e-commerce firm JD.com and real estate site Leju, as it battles with Baidu and Alibaba for Chinese Web/mobile supremacy on a number of fronts.
Friday, Mar 219:01 AM
Friday, Mar 219:01 AM| Comment!
- E-House Holdings (EJ) is ahead 8.6% premarket after Tencent (TCEHY) pays $180M for 15% of E-House's online real estate services provider Leju Holdings. Tencent will add to its stake once Leju's proposed IPO takes place.
- The investment - expected to close by month's end - gives Leju a valuation of about $1.25B.
- Previous: Leju files for IPO and announces partnership with Tencent.
Monday, Mar 1010:26 AM
Monday, Mar 1010:26 AM| Comment!
- As rumored, Tencent (TCEHY) is buying a 15% stake in top Alibaba (ABABA) rival JD.com ahead of its IPO.
- Tencent is paying $214.7M in cash. The company is also transferring its QQ Wanggou and Paipai e-commerce platforms, and a minority stake in its Yixun marketplace.
- The assets, along with the massive scale of Tencent's QQ, Qzone, and WeChat messaging/gaming/social networking platforms, should give a boost to JD.com's traffic and marketing reach.
- JD.com, which (unlike Alibaba) depends heavily on direct e-commerce sales, filed for a $1.5B IPO in January. Alibaba took aim at Tencent last year by acquiring an 18% stake in Sina's Weibo microblogging platform (an indirect rival to WeChat).
- The Tencent/JD.com deal could also spell tougher competition for Vipshop (VIPS -4.4%) and Dangdang (DANG -4.9%), both of whom are joining other Chinese Internet stocks in seeing profit-taking.
Friday, Feb 282:16 PM
Friday, Feb 282:16 PM| 2 Comments
- Over the last 48 hours, Baidu, Dangdang, Youku, and 58.com have all posted Q4 beats and provided strong Q1 guidance. The numbers are giving a lift to a slew of Chinese Internet stocks.
- Notable gainers: SOHU +6.5%. PWRD +13.2%. VIPS +4.3%. YY +2.2%. RENN +3.8%. GOMO +5.5%.
- In Sohu's case, the rumor mill might also be helping out. A source tells Marbridge Consulting Sohu CEO Charles Zhang and Tencent (TCEHY +1.2%) CEO Pony Ma have talked about merging their companies' online video units. Both Sohu and Tencent trail market leaders Youku and Baidu in China's burgeoning online video market.
- Dangdang (DANG +8.6%) is adding to yesterday's big post-earnings gains after Oppenheimer hiked its PT to $15. The firm likes Dangdang's improved efficiency and partnerships with e-commerce rivals (inc. Alibaba's Tmall), and the fact mobile accounted for 13% of Q4 orders.
Thursday, Feb 272:21 PM
Thursday, Feb 272:21 PM| Comment!
- Sources tell Marbridge Consulting Alibaba (ABABA) is talking with Ctrip (CTRP +6.9%) about a possible investment.
- Alibaba took stakes in AutoNavi and Sina's Weibo microblogging platform last year. Marbridge's track record with investment/M&A rumors is mixed, but it has made some accurate calls in recent months.
- Ctrip has rallied above $55, and Chinese online travel rivals Qunar (QUNR +3.3%) and eLong (LONG +8.3%) are also posting sizable gains.
- Separately, the WSJ reports Chinese messaging/gaming giant Tencent (TCEHY) is looking to buy a stake in top Alibaba rival JD.com, which recently filed for a $1.5B IPO.
Monday, Feb 2410:56 AM
Monday, Feb 2410:56 AM| Comment!
- The WSJ reports Sina (SINA +4.5%) is planning a $500M Q2 IPO for Weibo, and has hired hired Credit Suisse and Goldman to handle the offering.
- The paper adds Alibaba (ABABA) will likely up its stake in Weibo to 30% from its current 18% (purchased last year for $568M) in the event of an IPO. Sina currently owns 71% of Weibo, a stake Barclays thinks is worth $4.1B; the company's total market cap currently stands at $5.1B.
- Sina has made huge strides in monetizing Weibo in recent quarters. The microblogging service's ad sales rose 46% Q/Q and 125% Y/Y in Q3 to $43.7M, and its value-added service revenue rose 26% Q/Q and 121% Y/Y to $9.7M.
- At the same time, Weibo's engagement rates have been pressured by the manic growth seen for Tencent's (TCEHY) WeChat mobile messaging platform. Weibo had 60.2M daily active users at the end of Q3, +11% Q/Q. WeChat ended Q3 with 271.9M monthly active users, +15% Q/Q.
- Sina might make an official announcement in tandem with this afternoon's Q4 report.
Thursday, Feb 201:28 PM
Thursday, Feb 201:28 PM| 32 Comments
- TD Securities has doubled its estimated valuation for BBM to $800M following the Facebook/WhatsApp deal, and raised its BlackBerry (BBRY +5.5%) PT to $10.50 from $9.50.
- TD observes Facebook is paying $42/user for WhatsApp ($19B for 450M MAUs), and that assigning a similar multiple to BBM's 80M MAUs would make the business worth $3.36B ($6.41/share). But (while believing the deal highlights the value of messaging platforms) it doesn't think BBM and WhatsApp's valuations are "really comparable," given the latter's smaller scale.
- Wells Fargo notes another messaging platform, Viber, was recently sold at a price of $8.57/user ($900M for 105M MAUs), and is skeptical BlackBerry will try to sell BBM rather than monetize it.
- While BlackBerry rallies on account of the deal, WhatsApp rivals Tencent (TCEHY -3.2%) and Naver (NHNCF -8.1%) have sold off overseas on worries about tougher competition. Tencent's WeChat is the dominant mobile messaging platform in China, and Naver's Line rules the roost in Japan.
- Yesterday: BlackBerry rises AH due to Facebook/WhatsApp
Thursday, Jan 1611:59 AM
Thursday, Jan 1611:59 AM| Comment!
- Chinese government agency CNNIC estimates Sina's (SINA -3.9%) Weibo user base fell 9% in 2013 to 281M, thanks to tough competition from Tencent's (TCEHY) WeChat mobile messaging platform.
- Sina, which has admitted in the past WeChat's rapid growth is pressuring Weibo engagement, had 60.2M Weibo daily active users in Q3. WeChat had 271.9M monthly active users as of Q3 (not an apples-to-apples comparison), and has 600M+ registered accounts, including over 100M outside of China.
- Altogether, CNNIC estimates China had 617.6M Internet users at the end of 2013, and 500.1M mobile Web users.
Wednesday, Jan 811:54 AM
Wednesday, Jan 811:54 AM| Comment!
- Alibaba (ABABA), whose ambitions have been steadily expanding beyond e-commerce, plans to launch a mobile gaming platform for 3rd-party titles.
- The service will be aimed squarely at Chinese online/mobile gaming leader Tencent (TCEHY), and will give developers a hefty 70% cut. Alibaba also plans to integrate the service with its Laiwang messaging app (competes with Tencent's dominant WeChat) and the mobile app for its Taobao e-commerce platform.
- In addition to Tencent, Alibaba will be taking on a slew of other mobile game distributors, including NQ Mobile's (NQ +1.7%) FL Mobile unit.
- Chinese game developer Perfect World (PWRD +10.1%) has skyrocketed in morning trading. Peers Changyou (CYOU +4.1%) and NetEase (NTES +3.5%) are also up sharply.
- Also: Alibaba's Alipay online payments unit has struck a deal with Sina (SINA +1.5%) to allow Weibo users to make online and offline payments via Alipay. Sina investors have been expecting the company's partnership with Alibaba (bought an 18% stake last year) to yield service launches that would improve Weibo monetization.
Monday, Sep 162013, 11:44 AM
Monday, Sep 162013, 11:44 AM| 1 Comment
- Though Tencent's (TCEHY.PK, TCTZF.PK) acquisition of a 36.5% stake in Sohu's (SOHU +6.9%) Sogou search unit stands to make Sogou a greater threat to Baidu (BIDU +2%), given Tencent's plans to promote Sogou throughout its messaging/gaming empire, Baidu investors appear relieved Qihoo, which was in talks with Sohu, didn't end up reaching a deal.
- Research firm CNZZ recently estimated Qihoo now has over 15% of the Chinese search market, and the company itself recently pegged its share at 20%. Acquiring Sogou (estimated 8.8% share) would've given Qihoo additional scale and resources as it challenges Baidu's dominant position.
- Meanwhile, Tencent rose 2.5% in Hong Kong overnight, before the Sogou deal was announced. The company's market cap has topped $100B.
- Chinese Web giants Baidu, Tencent, and Alibaba are increasingly stepping on each others' toes. While Tencent and Alibaba have been relying on partnerships/minority investments to grow their reach, Baidu has been more interested in acquisitions and controlling stakes.
Monday, Sep 162013, 8:23 AM
Monday, Sep 162013, 8:23 AM| Comment!
- SOHU gains 6.4% premarket after announcing a strategic cooperation deal with Tencent (TCEHY.PK, TCTZF.PK), initiated by Tencent investing $448M and the two merging their search businesses. After the deal, Tencent will own 36.5% of Sogou's equity capital, which could further increase to 40% in the near future.
- Off 5% premarket is Qihoo (QIHU) which had been speculated as the buyer of Sohu's Sogou search unit.
- Press release.
- Conference call to discuss the transaction begins at 8:30 ET.
Friday, Aug 302013, 12:48 PM
Friday, Aug 302013, 12:48 PM| Comment!
- The China mobile internet sector has collected enough users, J.P. Morgan says, and prefers Qihoo (QIHU -0.7%) and Tencent (TCEHY.PK, TCTZF.PK) because they have already amassed large mobile platforms.
- Both companies should continue to capitalize on China’s booming mobile economy, the firm says; it expects Tencent to capture 30%-35% mobile game share by the end of 2014 through content development and distribution, while QIHU could take 10% through distribution.
- The firm cuts Youku (YOKU -2.7%) and Sohu (SOHU -2.1%) to Neutral from Overweight.
- JPM also likes online real estate services platform Soufun (SFUN +4.6%) for its market leading position; users seem sticky and barrier to entry seems high.
Wednesday, Aug 142013, 8:04 PM
Wednesday, Aug 142013, 8:04 PM| Comment!
- Shanda Games (GAME +10.8%) rallied strongly after competitor Tencent (TCEHY.PK) announced gaming revenue grew 31% Y/Y in Q2 to 7.5B yuan.
- With today's move, Shanda recovered some of the losses stemming from its questionable affiliate acquisitions on July 29.
- The stock remains down 29% since the announcement.
Wednesday, Jul 242013, 2:51 PMElectronic Arts (EA +8.2%) has soared to new 52-week highs following its big FQ1 beat and in-line FY14 guidance; Activision (ATVI +1.1%) and Take-Two (TTWO +1%) are up moderately. EA managed to grow its Battlefield 3 Premium sub base by 500K Q/Q to 4M+, and mobile revenue rose 33% Y/Y to $104M (21% of total) thanks to in-app purchases for The Simpsons: Tapped Out and Real Racing 3. Home console ($191M) and PC ($175M) revenue both fell 6% Y/Y. While total revenue rose 1% Y/Y, opex fell 3% thanks to recent job cuts. Also: EA has announced it's partnering with Chinese gaming giant Tencent (TCEHY.PK) to bring FIFA Online 3 to China. Wedbush is pulling EA from its Best Ideas list, arguing a lot of good news is priced in, but maintaining an Outperform. (transcript) |Wednesday, Jul 242013, 2:51 PM| Comment!
Friday, May 102013, 9:48 AMAn upgrade to Buy from Goldman's Piyush Mubayi helps Sina (SINA +2.6%) open higher. Mubayi expects the Alibaba deal to "enable Alibaba to direct [e-commerce] demand to Weibo," thereby improving monetization. Talking more broadly about the Chinese Web services space, he declares Alibaba, Baidu (BIDU), and Tencent (TCEHY.PK) to be in a 3-way leadership battle that "will likely shape the industry landscape over the next 5-10 years." Other recent deals (I, II) also seem to bear that out. Will Baidu make a deal or two to strengthen its social networking hand in this battle? (Jefferies Sina upgrade) |Friday, May 102013, 9:48 AM| Comment!
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Philberg:: do you know when the JD.com IPO could be?