Introduction Of Sina, Trend &Nbsp; Mcglaughlin'S Electronic Commerce

After a period of downturn in stock prices, Mcglaughlin released heavy news.

Early in the morning of March 2nd, Beijing time.

Among them, sina will buy 76986529 shares of common stock (equivalent to 10998075 US depositary shares), about 19% of Mcglaughlin's issued shares, and China will acquire 40519225 ordinary shares, about 10% of what Mcglaughlin has issued.

The purchase price is $0.8571 / common stock, equivalent to US $6 per depositary share.

According to data provided by Google finance, in March 1st, Mcglaughlin closed at $5.68 / US depositary shares.

As a result, Sina and trend will pay about $66 million and about 35 million US dollars to Mcglaughlin's selling shareholders, respectively.

Win win for all sides

"The three party negotiations lasted for only 1-2 months, which is a hit and go."

Mcglaughlin CEO Gu Beichun said.

Gu Beichun equates "Sina + trend" with "e-plus business".

"It is important to do two aspects of online sales, media resources and product resources."

Gu said Mcglaughlin urgently needed more convenience in these two directions.

According to data from Analysys think tank, in 2010, the scale of China's online advertising market was 27 billion 520 million yuan, an increase of 76.6% over 2009.

Among them, the electricity supplier enterprises have made great contributions.

Take Mcglaughlin as an example, its March 2nd earnings report said that in 2010, with the increase of network business, the cost of network marketing was also increasing. The cost of goods sold by Mcglaughlin reached $132 million 600 thousand, an increase of 36.7% over the same period last year, accounting for 58.28% of the total revenue in 2010.

But this has also been a reason for the decline of Mcglaughlin's gross margin.

In 2010, the gross profit margin of Mcglaughlin was 41.7%, down from 45.4% in 2009.

"The electricity supplier industry is now unpopular. There is a lot of money going to it, and the resources on the Internet become very popular."

Gu's analysis shows that the media cooperation with sina has "made up for a shortage of Mcglaughlin" and helped Mcglaughlin get the window of online traffic and advertising.

Since 2010, Mcglaughlin has been building an online fashion department store platform. At present, it still focuses on "fashion women's clothing".

According to Gu Beichun, Mcglaughlin and the trend are interested in setting up a joint venture to jointly develop sports and casual clothing suitable for sale in wheat net.

For Mcglaughlin, Jingwei venture partner Shao Yibo believes that "Sina occupies a cheap".

In recent years, Internet giants such as Sina, Tencent, Sohu, Baidu and Taobao have joined the group buying business. They are regarded as "the process of cash flow" by the industry.

Sina CEO Cao Guowei believes that "e-commerce will become the driving force for China's Internet growth in the next ten years".

Mcglaughlin is only the first step in Sina's electricity supplier market, and Cao Guowei said that considering Sina's huge user and traffic base, Sina also wants to explore other ways to directly participate in e-commerce.

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