Sina Shares $40 Million To Get 4% Stake In Tudou

Yesterday, people close to the potato net told the "first finance daily" that Sina's investment agreement on potatoes has recently been signed.

Sina won about 4% of the potato net, with a price of about $40 million.

The person also said that at the same time, Sina may also make strategic cooperation with potatoes, and turn its own small video business to Tudou.

Sina did not comment on the above news.

On Friday, potatoes fell another 7.54%, at $19.24 a share, with a market capitalization of only $550 million, which is nearly half the valuation of sina's $1 billion.

Before IPO, Tudou came out or the Internet giant became a shareholder.

Last Thursday, sina CEO Cao Guowei said at the two quarter earnings conference that video will become an important part of sina's "overall media platform" and an important part of the overall revenue model.

Despite the two quarter Sina video advertising revenue grew 110% over the same period, the overall share is still small.

Cao Guowei said, "we do not exclude the possibility of investing in other video companies and concluding strategic cooperative relations."

Video vertical domain advertising network providers, sharing media CEO Jiang LAN believes that Sina's choice of Tudou may be due to its low valuation considerations.

Youku and potatoes rank the top two in the industry, but the market value of potatoes is not as good as Youku's 1/4 at the moment.

At the same time, Sina can save some of the cost if it can deliver the video business with low market share to Tudou.

That sounds like Sina's acquisition of Mcglaughlin 19% earlier this year.

Compared to shares Mcglaughlin, shares potatoes or to Sina's immediate "heart meat" Sina micro-blog.

Sina reported that the second quarter advertising revenue hit a new high, an increase of 26% over the same period.

Cao Guowei attributed Sina's brand advertising business to its strong strength in the second quarter, thanks to micro-blog's over two hundred million users.

It is worth noting that at present, Sina micro-blog upload video content has not been allowed to load advertising.

Jiang LAN believes that on the one hand, Sina micro-blog is still cautious about promoting the commercialization. On the other hand, Sina micro-blog is playing the role of traffic channel, and it is difficult to get video ads before it is fully determined.

And after joining the stock market, Sina micro-blog can consider opening this threshold, because they can easily get the advertising revenue by using potato net, and expand the traffic flow pipeline.

At the same time, Tudou will also bring more large brand advertisers to Sina micro-blog, after micro-blog advertising mainly comes from e-commerce and small and medium-sized enterprises.

In fact, Mcglaughlin has a cooperative relationship with micro-blog.

Previously,

Vertical and horizontal

This year, China's Internet industry capital has entered the collective excitement period, and the industry giants have launched the investment layout war.

Tencent has brought 5 billion yuan industrial fund to continuous large-scale "sweeping" in many fields such as electricity, tourism, games, film and television, and Baidu, Ali and Sohu have also launched investment and acquisition.

It seems that the current boom has also extended to the field of video.

The day before the launch of potato net, Youku also heard rumors of giant shareholders.

It is reported that Tencent will stake Youku and turn its video business to Youku trust.

Affected by this, combined with the industry attention raised by the potato net listing, the Youku share price rose 12%.

Liu Guanwu, chief analyst of Analysys capital, told this newspaper that "compared to VC/PE, industrial capital is seeking financial returns from investment, while also emphasizing the complementarity of business segments."

Informed sources said, in the acquisition of sina's capital and traffic, potatoes and Sina may also through strategic cooperation, the integration of the two advertisers resources, joint packaging to attract advertising orders, catch up with Youku status.

Jiang LAN believes that Tencent video has just announced a high-profile video service this year, and the investment disclosed has exceeded 1 billion yuan, of which CDN network infrastructure investment has already been over 100 million. In addition, Tencent's effort video is intended to cooperate with Tencent portal and Tencent micro-blog to enrich the media layout, and the trust is inconsistent with the original strategy.

However, if we consider Sina's stake in potatoes, Youku will be able to take stock and try various forms of cooperation.

At the moment, regardless of P2P mode,