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Competition Between YY Inc. (YY:US) And New Oriental (EDU:US) Sharpened

|Includes: EDU, YY Inc. (YY)

YY Inc. entered online education industry and generated competition with New Oriental, a traditional education and training institution. YY Inc. claimed to poach 2,000 employees from New Oriental.

  • Education business split from YY Inc. as independent sector. YY Inc launched the independent online brand "" on February 25. According to its plan, YY will continue to invest 1 billion yuan in online education in 2 to 3 years. In addition, TOEFL and IELTS intensive training lessons will be permanently free and a scholarship system will be established that students can obtain one hundred yuan as attendance bonus.
  • Forever free TOEFL and IELTS lessons haven't been launched yet. The company website shows that TOEFL, IELTS free intensive projects are open for registration now. The deadline for registration is March 30, and now there are about 17,900 reservations.
  • Education business hasn't brought large scale of profit to the company. YY Inc. started YY education business in 2010. But its financial data shows that education business hasn't had real contribution to the company's profit. The company's most profitable "Internet value-added service" is mainly composed of the online music and entertainment, online games, membership programs and live broadcast of games.