58 city and Tencent is very familiar with the two companies, a field of classified information is my deep understanding, see Tencent dilution acquisition of 58 city 19.9% of the shares, I think I was one of the most suitable people to comment about this case.
due to disclose some reason, I know a lot of 58 city, go to the market and other classified information in the field of arena situation, their business is also very familiar with the details, I have very good friends or have served as executives at the two companies.
58 city why Tencent, rather than Ali or Baidu?
in the past few years, 58 city in Baidu’s advertising spend at least tens of millions every year, and with 58 listed, 58 have gradually become the life entrance website, Baidu has become an important competitor in a way 58. Baidu also launched a brief bid Yellow Pages advertising model, past Baidu also tried to set up the classification of information project, but has not completed the wish, but once the classified information website advertising in Baidu declined sharply, may sex will suddenly deepen Baidu products do classification information services increase.
Baidu Nuomi, public comment, 58, the U.S. group group purchase group purchase, Amoy little is competing, Baidu Nuomi also recently increased the promotion efforts, the main action is listed after the 58 city to strengthen their financial capacity and electric properties, in the local electricity supplier dimension of life, the 58 city in order to consolidate and expand the income scale. Electricity providers and refinement is bound to category. Overlapping competing business decision to maintain the independence of the 58 city, will not be bound to Ali and Baidu, and the Tencent strategic investment public comment, gave the city a case reference 58.
as a technology company, sales of 58 city so strong heavy business model for Baidu, one level is a supplement, but the local sales team Baidu betting on the rice, and Baidu do not love investment strategy. At the same time, the size of 58 city revenue in Baidu’s eyes is too small, there is likely Baidu itself into the field of classified information, but not great, I saw some of the products people network and Baidu cooperate more closely, do not know whether they form investment relationship.
Tencent why buy 58 city shares, rather than buy ganji.com
listed 58 city, facing some past investors out of the question, the Tencent is to seize this opportunity to cut, 736 million dollars is not a small number, because the 58 city fiscal year 2013 total revenue of $145 million 700 thousand, a net profit of $19 million 600 thousand, according to the needs of twenty years are not making profits to return capital investment. So, the Tencent investment is a strategic investment, is also pay for the Tencent Twitter Life failure, with ecological construction investment for their own electricity supplier in the field of life to pave the way for O2O.
58 city accepted Tencent equity