Zhang Zhaoyang: I Bet My Money On Search.

Not only that, the search "national team" also began to exert force at this time, it seems that the attraction of search market has become bigger and bigger.

"I will gamble with my money".

"At the beginning of this year, Google withdrew from China, leaving a huge market opportunity for the Chinese search engine market. The expansion of Sogou input method and the initial success of Sogou browser made Sogou search an opportunity only after Baidu in the search market."

In August 9th, Zhang Zhaoyang said so.

On the same day, Sohu officially announced that the company reorganized its search business - Sogou, and introduced Alibaba group and Yunfeng fund as strategic investors.

According to the industry's general view, this means that Sogou will be split from a department under Sohu company to an independent operation company.

"Sohu did search in the early days. The name of early Sohu came from navigation and search, but at that time China's Internet needed information and portals, so we turned to the portal and missed the opportunity for the rise of search engines."

Zhang Zhaoyang introduced to the outside world, "later we started the search team from Wang Xiaochuan in 2003. We have taken a lot of detours and accumulated a lot of experience and lessons. Until today, Sogou does not have the share of the export share in the market, and it also has something to do with our mistakes."

However, Zhang Zhaoyang disclosed that on the development of search, it was not consistent with some investors' views of Sohu.

"I am a long-term advocate for search. I believe that search is sometimes not understood by Wall Street, so when Sogou has not been able to break through in search, but with the success of Sogou input method, I would like to gamble with my own money."

He further said, "Sohu has so many investors in Wall Street. They are more concerned about the income of each quarter, but they do not agree with me in this respect."

Win over IT celebrities

According to the terms of the letter of intent issued by Sohu, Sogou will issue a 16% stake on Alibaba group and Yunfeng fund.

At the same time, Zhang Zhaoyang's personal investment fund will also invest the same funds and get another 16% shares, while Sohu still keeps 68% of Sogou shares and occupies the position of large shareholders.

Statistics show that Yunfeng fund is chairman of Alibaba group board chairman Ma Yun, giant network chairman Shi Yuzhu, and founder of Yu mass media, Yu Feng and others. This year, the fund has been established mainly for investment in the three fields of Internet, consumer goods and new energy.

When explaining why he introduced new investors, Zhang Zhaoyang said Sohu itself had a lot of cash, but if we put these cash into Sogou, Sohu's profits would be reduced. This is a problem.

"So now that my funds and Alibaba funds come in, so that when Sogou is developing, the funds for Sohu can be used less."

It is reported that Sohu contacted Alibaba about one and a half months ago about investment matters.

However, the amount and pricing of the planned investment has not been announced by Sohu.

"Because we will publish the pricing in a certain period of time."

Zhang Zhaoyang explained so.

He also said that Sogou will further establish equity incentive plans for management teams, key employees and some Sohu management.

He also said that the board of directors of both sides had approved the investment portfolio and is expected to make a detailed disclosure of the paction before the Q4 earnings report.

And he may well become chairman of the new company, but Sohu has not disclosed the proportion of seats on the board.

It is understood that the incumbent CTO Wang Xiaochuan will be the new company CEO after reorganization.

"When Sogou is a department of Sohu, there is no way to compete with Baidu, and when Sogou develops independently, it has the ability to compete with Baidu."

Zhang Zhaoyang further said.

Google runs away and leads to many contenders.

Although Zhang Zhaoyang has always had a liking for search, the real decision to make a decision in search market is Google's China strategy shift.

Zhang Zhaoyang said: "after Google moved to the Chinese market in Hongkong, Sogou is determined to become the second largest search engine in China, and has a fairly speaking and respectable market share."

"Google quit is the main fuse of Sohu's restructured Sogou."

"But from the current data, Sogou's market share is still in a smaller position and needs more action," Jin Naili, an analyst with the search for the search, said in an interview with China times in August 11th.

However, in addition to Google's exit, perhaps Zhang Zhaoyang's search for gambling is even more important because of the hot and lucrative profits of the search market.

Robin Li, founder, chairman and CEO of Baidu Inc, once said: "Baidu's profit model is very clear. Competitive bidding is the most profitable mode for Baidu."

With the growth of Baidu in recent years, it shows the profitability of search business.

And seeing this situation far more than Zhang Zhaoyang, the Xinhua news agency and other search "national team" also began to exert force.

In August 12th, Xinhua news agency and Chellona Mobile Communications Corporation Cmcc signed a framework agreement in Beijing. The two sides will work together to set up a new international media company for search engines.

It is worth noting that although Google has withdrawn, the "lean camel is bigger than the horse". It may take a long way to go beyond the Google search engine except Baidu.