5d 1m 3m 1y 5y 10y
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.
Thursday, Mar 272:15 PM
Thursday, Mar 272:15 PM| Comment!
- Tencent (TCEHY) is continuing its torrid investment pace by pouring $500M into major Korean game developer CJ Games for a 28% stake.
- Tencent is by far China's biggest gaming firm; its Q4 online gaming revenue totaled $1.4B. But the company's PC gaming growth has been pressured some by high penetration rates for its social networking/IM platforms, as well as the mobile shift.
- This month has already seen Tencent invest in #2 Chinese e-commerce firm JD.com and real estate site Leju. The company is also rumored to be near a deal for a 20% stake in Chinese online video leader Youku.
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.
Wednesday, Mar 196:35 PM
Wednesday, Mar 196:35 PM| 1 Comment
- A 39% Y/Y jump in sales/marketing spend led Tencent's (TCEHY) Q4 net income to come in at RMB3.91B ($631M), below a consensus of RMB4.1B. While net income rose 13% Y/Y, revenue rose 40% to RMB17B ($2.74B). (PR -. pdf)
- Value-added services revenue (inc. gaming and subscriptions), pressured some by the mobile shift, rose 21% Y/Y to RMB11.9B, and made up 70% of revenue. Online ad sales rose 58% to RMB1.5B, and e-commerce transaction revenue nearly doubled to RMB3.3B.
- Monthly active users for Tencent's WeChat mobile messaging platform (dominant in China) totaled 355M, +6% Q/Q and +121% Y/Y after accounting for a methodology change. That makes WeChat's MAU base nearly 3x that of Sina's Weibo, and 24% smaller than WhatsApp's 465M (as of February).
- Not surprisingly, Tencent's PC platforms (huge Chinese penetration rates) are seeing little user growth. MAUs for Tencent's Qzone social networking platform rose 4% Y/Y to 625M, and instant messaging MAUs rose 1% to 808M.
- Shares fell 4.4% in OTC trading today. Tencent's report arrived after overnight trading in Hong Kong ended.
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.
Thursday, Jan 93:23 PM
Thursday, Jan 93:23 PM| Comment!
- Tencent (TCEHY -2.1%) hopes to make a strategic investment in Chinese e-commerce platform Jingdong, although its intention has been rebuffed thus far, BrightWire writes citing a source.
- Jingdong reportedly generated 28.6% of all Chinese B2C e-commerce site traffic in 2013 to Alibaba's 39.2%, making an investment in the company valuable for Tencent's position vs. its rival.
- At issue is Tencent's modus operandi of taking a majority position in its investments, with Jingdong reluctant to cede autonomy according to market watchers.
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.
Friday, Dec 272013, 5:52 PM
Friday, Dec 272013, 5:52 PM| 23 Comments
- Two months after BlackBerry (BBRY) officially launched iOS and Android BBM apps, the apps are still appearing the iPhone's top-5 free download rankings for the U.K. and Argentina, and have topped iPhone free download charts in Indonesia, Nigeria, and South Africa. The app has also reached #24 in India.
- Indonesia, Nigeria, and South Africa have long been BlackBerry strongholds. The company's Indian smartphone share has been relatively small.
- Meanwhile, mobile analytics firm Mobidia estimates BBM's weekly usage in markets falling into its "Other Asia-Pac" segment (excludes China, Korea, India, and Japan) is above 100 minutes. That puts it ahead of major rivals such as Tencent's (TCEHY) WeChat, Line, Viber, and Kakao (curiously, no numbers are given for the wildly popular WhatsApp).
- In China, where WeChat claims hundreds of millions of users, Tencent's app fares notably better, sporting average usage above 150 minutes.
- BlackBerry disclosed last week it has added 40M+ registered iOS/Android BBM users since October. However, the company is taking a gradual approach to monetization; CEO John Chen says he expects "reasonably good revenue" from BBM around the FY16 timeframe.
Thursday, Dec 262013, 1:08 PM
Thursday, Dec 262013, 1:08 PM| Comment!
- Tencent (TCEHY +0.2%) will launch a smart TV in China that features controls and payment integration with the Chinese version of WeChat, Weixin. Tencent has poured $260M thus far in developing its financial services offerings, including WeChat Pay - the new product launch seems to be a move to monetize the app's enormous (and exploding) user base.
- No details on pricing have been released, but the company notes the TV will be released before the Chinese New Year (Jan. 31).
- Looking ahead, Tencent plans to introduce content-sharing features and roll out user-generated content on the platform.
Tuesday, Dec 102013, 2:08 PM
Tuesday, Dec 102013, 2:08 PM| Comment!
- Tencent (TCEHY +1.1%) has invested RMB1.6B ($260M) in multiple of its companies in the Qianhai Shenzhen-Hong Kong Economic Zone involved in internet finance, Tencent's WeChat Pay, equity investment, and forex exchange services.
- Tencent has further plans to invest no less than RMB10B ($1.65B) in the economic zone.
- As SA contributor Fusion Zone wrote last week, SINA and Baidu are lurching into financial services as well.
- View all 1 replies
Philberg:: do you know when the JD.com IPO could be?