Ma Huateng: it’s time to end the “fish tiger” battle

On August 10, Tencent issued merger offers to douyu and Huya respectively. Douyu said that its board of directors had received a non binding preliminary proposal to propose that douyu and Huya should carry out share exchange merger in accordance with applicable laws. Through the exchange, tiger tooth or its subsidiaries will acquire each outstanding ordinary share of douyu, and the betta shareholders will receive the agreed number of new class a common shares issued by Tiger tooth in exchange for their respective Betta shares. At the same time, huanju times also announced that the company has reached a final share transfer agreement with linen Investment Limited, a wholly-owned subsidiary of Tencent holdings. The company will transfer 30 million class B ordinary shares of Huya to Tencent, with a total value of $810 million. Affected by the news, douyu rose 4.44% and Huya rose 3.11% on Monday. Then, douyu and Huya both dived and fell. As of the end of the day, Huya fell 9.83% to US $24.04 and douyu fell 8.51% to US $13.97. < / P > < p > in the wake of rumors of merger, Betta also released the financial report for the second quarter of 2020 as of June 30 in the dispute. From the data, this financial report can be said to be mixed. What is gratifying is that the revenue and profit of Betta hit a new record in the second quarter, which is also the sixth consecutive quarter profit of Betta. Data show that the total revenue of Betta in the second quarter reached 2.508 billion yuan, up 33.9% year on year. Net profit was 319 million yuan, an increase of 1276% compared with 23.2 million yuan in the same period of last year. Under the non US general accounting standards, the net profit was 323 million yuan, with a year-on-year increase of 513.7%. < / P > < p > for this seemingly good report card of Betta, Cao Hao, vice president and CFO of Betta, said in the subsequent financial report conference call that it should be attributed to the refined operation of Betta, the improvement of the efficiency of anchor operation and management, and the increasing investment in E-sports and entertainment, of course, including the diversified construction of live content, and This improves the liquidation efficiency and revenue contribution of non game partition. It is understood that in the non game section, the current content ecology of Betta includes food, life, show, outdoor, quadratic and other plates. < p > < p > from the financial report data, we can see that among the main revenue of Betta, the direct broadcast income is still the main source. From 1.708 billion yuan in the same period of 2019 to 2.320 billion yuan, an increase of 35.8%. Advertising and other revenue increased by 14.5% from 164 million yuan in the same period of 2019 to 188 million yuan. < p > < p > in May this year, the first quarter financial report released by Huya showed that in the first quarter of 2020, its total revenue increased by 47.8% year-on-year to RMB 2.412 billion, and the income from live broadcasting was RMB 2.275 billion, an increase of 46.5% compared with RMB 1.553 billion in the same period of 2019. < p > < p > therefore, for Tencent, there is no need for both sides to fight each other. Therefore, it is imperative to end this homogenized competition. < p > < p > as early as August 5, according to a report by Peng Bo, Tencent is actively promoting the merger of douyu and Huya. After the merger, the brand remains and the two operate independently. After the merger, the market value of Betta and tiger teeth will be around 10 billion US dollars, according to Bloomberg. According to the Beijing News, if the acquisition is made, the betta executive team will become the senior management team of the new company. < / P > < p > in the conference call on August 10, although we had not had time to evaluate the details of Tencent’s proposal, and had not made any decision, the betta management said, “we think Tencent has taken the live game as a more important strategic position, which is the best for our future development, and then we have been working with Tencent’s game Zhongtai and other items In the early stage, we and Tencent have made a lot of new exploration in the construction of China Taiwan < / P > < p > the implication is that we agree with Tencent’s suggestions and will actively implement them. In this situation, although tiger tooth appears to be passive, it can not control Tencent’s will. After all, Tencent is now the largest shareholder of tiger tooth, accounting for 36.9% of shares and 50.1% of voting rights. < / P > < p > shows that, in terms of market share, the current market share of Betta is 36.5% and that of Huya is 45.9%. Although Tencent is the major shareholder behind them, the two sides have never stopped competition from business ecology to head anchor contest and even in listing time since the thousand broadcast war. Tencent is in a dilemma due to the situation of fighting between the left and the right. < / P > < p > but after several years of development, the two sides have not been able to get rid of the original business and find another growth curve to rely on. Kwai tiktok and other short video platforms are also playing an important role in this. According to questmobile’s report, the number of new users of douyu and Huya began to show a year-on-year decline due to the impact of the length of users competing for short video platforms. < / P > < p > another data has to scare Tencent. According to Guosheng securities statistics, the number of monthly live users of the Kwai Chung platform has exceeded 300 million in early 2020. The number of live users on live broadcast has exceeded 100 million. Among them, the number of live live broadcast days is nearly 51 million, not only the absolute number exceeds that of fighting fish and tiger teeth, but also accounts for nearly 17% of the total live broadcast market. < / P > < p > in addition, the rising star station B has become the fourth force in the field of live game broadcasting. In December 2019, station B spent 800 million yuan to reach a three-year exclusive live broadcast agreement in China. At the same time, fengtimo, the fish anchor, was poached. It can be seen that station B is determined to make efforts to live the game. According to the financial report data of station B in the first quarter of 2020, its game business revenue is 1.15 billion yuan, with a year-on-year growth of 32%.

although the overall weight ratio, the fighting fish and tiger teeth still lead many positions, but according to the statistics of Kwai Tai big data platform, in March 2020, the gift income of fighting fish, tiger tooth, B station and fast hand were 974 million yuan, 818 million yuan, 1 billion 5 million yuan and 1 billion 749 million yuan respectively, and the gift income of fighting fish, tiger tooth, B station and Kwai Fu in April 2020 were 719 million yuan, 803 million, 8 respectively. The power of the latecomers can not be underestimated. < / P > < p > and from this year on, byte skipping has also increased investment in the game field. In April this year, Yan Xun, vice president of byte jump and head of game business, said on the public relations platform that “we are still recruiting more than 1000 people in 2020. A lot of big game bulls have joined our game business. ” < p > < p > from all aspects, Tencent, which seems to be stable, is already in crisis under the influence of powerful enemies. However, Tencent has no more time to wait. Therefore, it has to strengthen the integration of Betta and tiger teeth to maintain its absolute position in this field. Continue ReadingIqoo5 series debut strength interpretation of “120 super full mark flagship”

Author: zmhuaxia