B station, Kwai Hou wave strong, “fish tiger” merger avoid internal friction

On August 11, Huya announced the second quarter of 2020, with revenue of 2.697 billion yuan and net profit of 351 million yuan. In the second quarter of 2020, the revenue of Betta is 2.508 billion yuan, and the net profit is 323 million yuan. In terms of revenue and net profit, the gap between Q2 Betta and Huya is small. < p > < p > the daily economic news reporter has noticed that, no matter in terms of income structure or operation mode, tiger teeth and Betta are very similar in terms of similarity; whether they pay more attention to E-sports or overseas markets, their strategies are also very similar. Tencent to promote the “fish tiger” merger, it seems that the most important purpose is to increase efficiency and reduce costs. < / P > < p > every reporter has noticed that tiger tooth is ahead of Betta in Q2, but it has not opened a huge gap. The revenue of Betta Q2 was 2.508 billion and the net profit was 323 million. The revenue of Huya Q2 was 2.697 billion and the net profit was 351 million. From the perspective of user data, the latest Mau of Betta is 165 million, with 58.4 million mobile Maus and 7.6 million paying users. Overseas Maus have not been released. Huya’s latest Mau is 168.5 million, with 75.6 million mobile Maus, 6.2 million paying users and 27 million overseas Maus. < p > < p > for a long time, the Mau of Betta has surpassed that of Huya, but this time, in terms of Mau in China, Huya has surpassed that of douyu for the first time. At the same time, it is better than Betta in terms of revenue and profit. However, from the perspective of paying users, there is still a gap between Huya’s paid users and Betta. < / P > < p > in terms of performance, Betta and Huya have been chasing each other. For example, in the first quarter of 2020, the revenue of Betta is 2.278 billion yuan, and the net profit is 297 million yuan; the revenue of Du Huya is 2.412 billion yuan, and the net profit is 263 million yuan. In the first quarter, the revenue of Huya was better than that of Betta, but the net profit was inferior to that of Betta. According to the current market value and stock price, as of August 12, the share price of Betta is 14.43 US dollars, the market value is 4.581 billion US dollars, the stock price of Huya is 24.06 US dollars, the market value is 5.281 billion US dollars. < p > < p > from the perspective of revenue structure, both of them adopt the mode of live broadcasting and advertising. Meanwhile, the revenue of live broadcasting is absolutely large, and the advertising revenue is not equal to that of live broadcasting. The two companies have similar ideas after listing. They are trying to improve the operation efficiency and make the content realization more efficient. < p > < p > Huya is a live game platform hatched in the era of reunion, but it was launched earlier. In 2018, Tencent invested $461.6 million and $630 million in Huya and douyu, respectively. At that time, the investment in Huya had laid the groundwork for the subsequent acquisition of Huya. Some analysts told reporters that Tencent faces two obstacles to promote the merger: one is the parent company’s gathering time before Huya; the other is that the senior management of douyu is not keen on the merger. < p > < p > Tencent has taken back Yuewen’s holding right from the founding team, which indicates that Tencent will strengthen the resource integration of the acquisition company. Considering the internal consumption of resources in the live game industry, Tencent will continue to promote the merger of these two live game platforms. < / P > < p > on the merger, Betta executives also answered analysts’ questions on the financial report telephone conference. Cao Hao, vice president and CFO of Betta, said that the board of directors had just received Tencent’s proposal and had not had time to assess the relevant details or make any decision. However, he believes that Tencent has made live games a more important strategy, which is conducive to the future development of Betta. Cao Hao said that at present, Betta is working with Tencent to explore new tasks and plans that may be implemented in the future. “For example, there are permanent entrances for games in the database. If these can be generally implemented, I think it can promote the number of mobile terminals and further increase the market penetration rate.” Dong Rongjie, CEO of Huya, also said in an open letter: the board of directors of the company has not made any decision on the merger of douyu and Huya, but said that he would consider issuing additional shares and buying all shares of douyu with Huya shares. In response to analysts’ questions, Dong Rongjie said that after Tencent took control of Huya, there were more possibilities for cooperation. For example, in a number of Tencent games and products, it is expected that more game content will be accessed in the next few quarters. Tencent and Tencent will conduct in-depth discussions on E-sports events, copyright content, commercial cooperation and anchor cultivation. < / P > < p > in the financial report telephone conference, analysts are very concerned about the market penetration, user activity and user stickiness of douyu and Huya, and the signals revealed by senior executives’ reply are also very positive. They think that the deep binding with Tencent will bring some increment. However, it is undeniable that whether the game is live or put on the whole live track, the rapid growth of users has passed the dividend period. < / P > < p > no matter for tiger teeth or Betta, new performance increment points and better stories are needed. Merger may not provide a good story, but the benefits are also obvious. For the game live broadcasting industry, the merger of the two leading companies can avoid internal friction to the greatest extent. For example, in the future, events such as job hopping of game anchors and sky high liquidated damages will be relatively reduced. < / P > < p > in addition to the self driving demand of the old platform, the external competition of live game is also very fierce, and the performance of afterwave is very strong. On August 4, fist game and station B jointly announced that they had reached the strategic cooperation in China for the global events of the League of heroes. Station B officially won the exclusive copyright in the field of live broadcast platform for the 2020 global finals to 2023 mid season Championships in mainland China. Kwai also announced that as of May this year, the number of monthly active users of its live video games has exceeded 220 million, and the number of active users in the short video games has exceeded 300 million.

also has a lot of feedback on the competition between B and fast hands. Dong Rongjie also said that Kwai Kwai and B have increased their investment in the live broadcast business, but the impact on tiger teeth is not very big from data point of view. He also revealed that tiger tooth is still negotiating with B station and other relevant parties about the broadcasting rights of the League of heroes and other issues. ASMC, a lithography maker, was one of TSMC’s 14 top suppliers last year