Sohu, only building left?

On August 10, 2020, Sohu released its financial report for the second quarter of 2020. Zhang Chaoyang, chairman of the board of directors and CEO of Sohu, also made a hot search for “only four hours of sleep a day”. < p > < p > even in these four hours, Zhang Chaoyang didn’t sleep continuously. For four hours of sleep, he would sleep in half. “Be sure to wake yourself up with an alarm clock”, with an hour left to stay awake. “Sleeping less and sleeping well, I suddenly found that I had a lot of time to do a lot of things.” < p > < p > according to the financial report of the second quarter of 2020, the net profit of Sohu is 12 million US dollars after deducting the influence of Sohu Changyou accrued income tax and the loss of Sogou. Compared with the net loss of 41 million US dollars in the same period of last year and 8 million US dollars in the last quarter, Sohu has turned losses into profits. < / P > < p > “Changyou has contributed 100% profit to Sohu after its return.” When Zhang Chaoyang explained the profit of Q2 in 2020, he attributed Changyou’s profit to one of two important factors. < / P > < p > Changyou is a company incubated within Sohu. It was originally the game division of Sohu. Its own “Tianlong Babu” and other game IP, like the office building in Zhongguancun, has been Sohu’s “high-quality asset” these years. < / P > < p > as early as 2017, Changyou was privatized. In 2020, Sohu is finally privatized with all cash. After that, Sohu’s control of Changyou was further enhanced, which also helped to reduce the loss of other shareholders’ sharing of the company’s benefits, and help Sohu expand and stabilize its cash flow. Another big event for Sohu occurred at the end of July when Tencent announced that it would acquire more than 30% of Sohu’s shares in Sogou. At present, the deal is likely to bring more than $1 billion in cash for Sohu, which is a major positive for the long-term development of Sohu. < p > < p > among them, search accounts for the absolute majority of revenue, which has exceeded 60%, but often loses money; brand advertising and games account for 10% and 30% respectively, but they generally contribute to positive cash flow. Among them, brand advertising business will grow by 48% in Q2 in 2020. < / P > < p > privatization of Changyou, which makes money, is expected to sell Sogou, which is “losing money”. In the future, it will pay more attention to the main business of games, information and video. Sohu’s two transactions are highly valued by the outside world. < p > < p > in the communication after the financial report was released, Zhang Chaoyang made a forecast that he would still lose money in the next quarter. After privatization, the rising cost and the decrease of revenue scale caused by the sale of Sogou will be new challenges for Sohu. < / P > < p > build interesting social products, fox friends, boss personally go to the battle to do “Charles’s good thing sharing” live broadcast, launch school flower school grass contest… In front of and behind the scenes of every move, there is the figure of Sohu CEO Zhang Chaoyang. < / P > < p > the video and portal websites related to these businesses do not account for much of Sohu’s revenue. However, they are the group’s core business, which Zhang has always valued. In the media communication meeting after the release of Sohu’s Q2 financial report in 2020, Zhang Chaoyang showed that he attached great importance to Sohu Video: “Sohu will obtain funds that can support the development of video business.” < / P > < p > “in the field of content creation, large investment does not necessarily have a high return.” small and beautiful “is not necessarily a small flow, but also likely to generate blockbuster money.” In 2018, Zhang Chaoyang said publicly at a promotion meeting of Sohu Video. After choosing the path of “small and beautiful”, the audience found that most of the dramas and variety shows on Sohu, whether self-made or purchased by copyright, are small-scale products that they have never heard of or seen before. Today’s Sohu Video is far from its peak, compared with the blockbuster content such as the house of cards and friends, and the homemade drama with loser man. < / P > < p > but these episodes, which are relatively “sinking” and have low production costs, will not have too much impact on Sohu as a whole even if they are in a loss because of the relatively low cost. Keeping the video business “online” all the time also enables Sohu to have a stable source of traffic in this field, which makes it possible to carry out short video and live broadcasting services on this basis. This is the concept of Zhang Chaoyang’s “original”. In his opinion, the current live broadcast content forms are divided into three categories: one is the show live broadcast, the other is the live broadcast with goods by e-commerce, and the third is the “value live broadcast” created by Sohu Video, that is, “inviting knowledge experts to live broadcast, delivering the information that everyone needs, and meeting the real needs of the whole society.” < p > < p > on March 9, 2020, after publishing the financial report of 2019 in Sohu, Zhang Chaoyang said that he hoped that the epidemic situation would pass quickly, “to ensure that the company can survive, and that employees can have wages.” < p > < p > for this reason, Zhang Chaoyang is “working at full power”. The time management skill of sleeping only four hours a day is probably a last resort for him. Zhang Chaoyang, born in 1964, is 56 years old. Ma Yun, born in the same year as him, has left the front line of company management and engaged in his beloved public welfare undertakings. But Zhang Chaoyang can’t. for a long time to come, he will have to sleep only four hours a day in Sohu. Recently, in an interview with the media, the host found a thick book with a big red cover on his desk,. Before he founded Sohu, Zhang Chaoyang did postdoctoral research at MIT, majoring in physics. < / P > < p > “I use it as a cushion for live broadcasting.” Zhang Chaoyang didn’t give an idealistic answer such as “sticking to the profession and pursuing the dream”. For the busy CEO, “the gravity of reality is too heavy.”. This answer of Zhang Chaoyang is quite symbolic. But in contrast, Sohu employees may not necessarily think so. < / P > < p > on a workplace social app, after receiving an offer from Sohu, some people raised questions such as development prospects and whether to work overtime. A user who was certified as an employee of Sohu replied, “it’s very leisurely. I don’t work overtime. There’s no prospect. It’s just retirement.” This is very different from the scene of Sohu. When “Dapeng” Dong Chengpeng just joined Sohu, he sometimes had to work until two o’clock in the middle of the night. At that time, there were not only Dapeng in Sohu, but also Gu Yongqiang, the founder of Youku, Gong Yu, the CEO of iqiyi, and Li Xueling, the founder of happy gathering era. Countless Internet “big men” had worked here. Today, only Charles is the “big man” of Sohu. Sohu still needs more time to return to the “center of the Internet stage” and return to the track of continuous profitability. Developed a “plug and play” solar power generation scheme, and “5B” won a $12 million round a financing

Author: zmhuaxia