from studying abroad to overseas, the development of China’s Internet companies over the past ten years, witnessed our age the most romantic and most hard entrepreneurial story. Hope that more and more Chinese enterprises can be in a voice in the world, and put up the banner of China’s Internet.
the author: jian-ping lei source: tencent technology
is in the midst of the listed key crossroads of alibaba group’s “red is more people,” the recent half a month, its telecommunications applications Line have been involved in taking a stake in Japan and the United States, “burn after reading” photo sharing service Snapchat the two popular overseas companies. Although the last, according to various sources has not really investment Line and Snapchat, alibaba group, but also from the side confirmed that the Line or Snapchat indeed there has been contact with alibaba, is not necessarily an investment agreement.
behind with the Line and Snapchat spread gossip, alibaba group has increased the pace of overseas investment, this year have investment chat application Tango, hand tour development quotient Kabam, Singapore postal, etc., the total capital cost more than $700 million. One analyst pointed out that the alibaba group, merger and acquisition of domestic has been crazy this time overseas mergers and acquisitions also, this is not only the electrical business overseas natural extension of the business, and, more importantly, it wants to express to the world: alibaba group has not only in China to build huge electric business empire, also in overseas have deep tentacles, eventually expect to promote alibaba group IPO valuations.
the current layout and invest overseas is not obviously a ali, just yesterday, ctrip to accept a stake in the global tourism industry leading Priceline strategy, Chinese overseas tourism market is a big cake, ctrip will use better expand the overseas market for resources. Earlier, the Portuguese version of baidu search, launched in Brazil, integrate Hao123 affiliated, Spark browser, baidu baidu antivirus product lines, such as by artificial intelligence and big data infrastructure for Portuguese search services to provide technical support.
after the previous time, 360 has been set up venture capital firms in silicon valley in the United States this year, investment has strategic significance on 360 start-ups, now also completed $360 and $900 million convertible preferred bills out of private placements to prepare for mergers and acquisitions. Tencent is the earliest domestic enterprises layout in overseas markets, as early as 2013 overseas investment over $2 billion. Analysts to tencent technology, said Chinese Internet companies to invest in overseas layout is trial and error from the original small step into the new stage big investment.
from the specific layout overseas, both money and the number of mergers and acquisitions, tencent and alibaba are at the forefront, especially the ferocity of the alibaba for the domestic investment, the overseas investment projects of over 6, the amount is not low.
march this year, alibaba for $215 million, the investment company Tango instant messaging applications. In addition, alibaba participation in sports memorabilia online retailers Fanatics of another round of financing $170 million investment. In August of this year, video gaming start-up type Kabam also announced that the company received from the alibaba group’s $120 million investment.
alibaba have done some overseas investment associated with the company’s business is not very series, such as the great market sentiment and began to run in New York Lyft rental application, as well as the electronic commerce delivery start-ups ShopRunner investment, etc. Alibaba also supported on silicon valley startups, for these enterprises, a large number of knowledgeable financial experts can help alibaba attention or acquisitions that have yet to become mainstream, but the future smartphone applications or had the potential to organ hair e-commerce company.
alibaba in accelerating into silicon valley at the same time, also actively absorb a lot of big talent in silicon valley, such as recruitment of Liberty Media, electronic Commerce Department’s former director Michael ze (Michael Zeisser) led to invest, appointed former Google spokeswoman Jane Penner (Jane Penner) vice President and head of investor relations. These hands can bring good connections resources in silicon valley.
tencent’s first overseas investment, its set up $2011 in 760 million to invest in start-up fund, and from Goldman sachs hired James Mitchell (James Mitchell), as the company’s chief strategy officer of tencent, responsible for overseas investment. Tencent fruits overseas investment, investment Snapchat, Fab, South Korea KakaoTalk, anonymous social Whisper, couples social applications such as picking, extensive social tools Everyme, overseas investment amount accumulative total more than $2 billion over the past two years.
tencent’s overseas investment mainly concentrated in the field of Games, social networking and electricity ShangSanDa, of course, 70% of overseas investment is focused on the game field, notably in 2012 $231 million acquisition of Riot Games and spend $330 million to buy a 40% stake, Epic 2013, tencent and huge investment of $1.4 billion for a 6% stake in activision blizzard.
since 2014, tencent and overseas mergers and acquisitions. Some analysts to tencent technology, said the main reason is that tencent will be a large part of energy into micro letter overseas promotion and the development of mobile games. , baidu are relatively lags behind alibaba and tencent in the overseas layout, the overseas investment is not much over the years, the development of little window, the current in addition to the Portuguese search online, mainly in the overseas promotion of hao123 and baidu baidu guard and other security products.
, analysts said baidu’s overseas investment is very important reason is that its search to liquidate ability is very poor, do more harm than good. In addition, baidu like full acquisition, once the overseas acquisition of the company, the plight of the baidu, didn’t have the talent to manage overseas projects.
baidu more overseas layout, increase investment in technology, and from institutions such as Google introduced a large number of overseas high quality talents, such as baidu, one of the most authoritative scholar named the field of artificial intelligence – Wu En da (Andrew Ng) for baidu’s chief scientist, Dr Will be entirely responsible for baidu institute. Baidu institute have lab in silicon valley and Beijing.
UC gifted as CEO ucweb CEO at the end of 2013 there was a wonderful expression, according to China’s Internet sector has been largely determine, 2013, 2014 between the giants and other Internet companies will be more competitive, “plate motion” will eventually form “plate conflict”.
now more than half 2014, look, alibaba has investment in sina weibo, youku, potatoes, buying gold, UC, and many other enterprises, baidu’s acquisition of PPS video, 91 wireless, glutinous rice, sogou, jingdong, public comments on the ranks to tencent, the Internet really leave big mergers and acquisitions and investment has not much, BAT, especially the competition between tencent and alibaba.
the red sea fight than domestic, abroad have great opportunities, Tango co-founder said: “when you are in China’s e-commerce market share (45%), and hope to continue to grow, to expand the international market will be you can chase a new domain.” Through these activities, alibaba can get a lot of high quality products and visibility, it is essential that alibaba can therefore establish trust and contact among venture capitalists, also can do for the IPO of is very good.
GGV capital management, a partner at tung to tencent said science and technology, mobile Internet is already with the concept of cross-border, in addition to the Chinese market has a lot of distribution channels, the rest of the world only the apple App Store and Google play, the product is easy to put out to sea. In addition, China’s Internet often rely on advertising to earn revenue, but the income in the United States has more than one way.
tung said, more importantly, in overseas without government interference, in a global perspective, the strongest of the two countries is a Chinese, one is the United States, the overseas Chinese are many, many people for many years, China’s enterprises can go out. People, who himself was qiming cooperation in October 2013 after joining GGV capital started in both China and the United States investment career, its recent investment in the project, including the United States cross-border electric business platform online game operators Curse Wish and the United States.
there are some Chinese Internet companies working in China, but it succeed in overseas, such as the long bond digital relying on the GO series, has been trounced 360 cheetahs relying on cheetah cleaning master gains the market capitalisation of nearly $3 billion. When it comes to successful overseas operations, long bond digital xiang-dong zhang, President of tencent technology, said China mobile Internet competition has to “heat”, is the excessive competition, for the placeholder, rob channels, poaching, etc, have no to its extreme, foreign competition is relatively rational. The comparison, the Chinese market again big, still appear small compared with the whole world market.
xiang-dong zhang said, “there is one thing about doing business in overseas, the logic is simple, do not need so many treat, dinner, fellowship, as long as the model healthy, efficient, without harm to do things, on the contrary, China sometimes more ruthless and personal interests.”
analysis comparison, alibaba and tencent to invest abroad, all have a special liking to social software, especially in alibaba, as can be seen from the alibaba will invest Snapchat rumours, alibaba would like to make in the social field. Perhaps that is because the rise in IM form letter, the extension of the function to pay gradually, games, electrical contractor, O2O, surround type attack on ali electricity, prompting alibaba to block micro letter outside the chain, prevent businesses and consumers move positions.
in the overseas market, alibaba’s continued investment in social software, is certainly don’t want to run into the second micro letter, even want to replicate an own in the overseas markets “micro letter”. One analyst pointed out that, from another point of view, the overseas market, after all, inadequate competition, alibaba won’t encounter strong competitors like tencent, alibaba ‘wild originally is very big, maybe new moon made another tencent is unknown.
from the objective conditions, Chinese Internet companies to invest in overseas companies have a purpose, is to obtain technology and cooperation, such as 360 investment the four companies in silicon valley and cover a large data application, intelligent hardware, home security and other fields. Biometric EyeVerify company would like to have extracted from eye picture data points, to replace the password and fingerprint. Qihoo 360 technology integration of the company to 360 about 50 games in the app store, security, mobile banking and other types of applications.
red children Xu Peixin founder of tencent technology, said the world is flat, not lonely lonely look at China, China’s Internet industry is incomparable to other countries so tencent, baidu, ali do internationalization is imperative. Of course, Google and yahoo have hit China’s Internet market, overseas not smooth, Chinese Internet companies abroad the biggest problem is lack of management.
, Xu Peixin pointed out that who says Chinese companies cannot overseas success, haier, huawei, petrochina do overseas is pretty good, not all American companies operating in China also do bad, like KFC, McDonald’s operation as well. Any national enterprises in overseas in the process of success or failure, China’s Internet companies should be brave to go out into a heaven and earth.