However, sell oneself Tencent, can you do a good search? News out, Sohu and Sogou share price trend shows that the market is optimistic about this move. However, in the situation of byte skipping and Ali all supporting search, there are still many unknowns about the future search market pattern.
On the evening of July 27, Sogou, Chinas second largest search company, announced that it had received a privatization offer from Tencent. Tencent is prepared to buy other shares of Sogou at a price of $9 per share. If the acquisition is successful, Sogou will delist from the U.S. stock market.
After the news came out, many people believed that after the privatization of Sogou, Tencent was likely to be listed on the science and technology innovation board in order to obtain a higher valuation. For Tencent, it may not only strengthen its overall business, but also make a lot of money..
As of the end of the day, Sogous share price rose 48%, with a price of $8.5 and a market value of $3.2 billion. Meanwhile, Sohu shares surged 39.96% to $15.55 on Monday.
The frustrating fate of the second largest search company
Sogous story is well known in the Internet circle: in the past 17 years, it has experienced the competition with Baidu, the search leader, and has maintained its independent operation under the investment of Alibaba, Tencent and other giants.
On September 16, 2013, Sohu, Sogou and Tencent jointly announced the strategic cooperation. Tencent injected US $448 million into Sogou, and incorporated Tencents Sogou business and other related assets into Sogou. After the transaction, Tencent acquired 36.5% of Sogous fully diluted shares.
If Sogou is not on the market, Wang Xiaochuan will not find a girlfriend. This widely circulated saying once represented the determination of Wang Xiaochuan, a technical elite. Even with Baidu, Wang Xiaochuan did not shrink back and give up, and eventually created Sogou input method and other national applications.
From a fledgling Tsinghua graduate to todays forty years old, Wang Xiaochuan took Sogou to the New York Stock Exchange three years ago.
However, since the listing, Sogous share price has been falling.
The day before the announcement of the Tencent acquisition, Sogou closed at $5.75, just 44% of the offering price.
Wang Xiaochuan, who was appointed by Zhang Chaoyang to kill Baidu, did not kill Baidu. When facing the risk of selling himself, he chose Tencent as a life-saving straw. Now, when the development encounters a bottleneck and the value is not recognized, it is Tencent that comes forward to offer an invitation.
At present, whether it is Sogou or Sohu, to survive, has become a serious proposition that can not be bypassed.
Tencent needs Sogou
Wang Xiaochuan once said that entrance + content is the condition for search, users must be able to think of you as long as they want to get information. Obviously, Wang Xiaochuan is going in the right direction.
In Tencent ecology, Sogou has gained a good market share in the past. According to AI media consulting data, the number of search users of China Mobile has grown steadily, reaching 705 million in the fourth quarter of 2019.
Once the acquisition of Sogou by Tencent is completed, Sogou will become a private indirect wholly-owned subsidiary of Tencent. According to Wang Xiaochuans circle of friends, Sogou expressed his gratitude to Tencent for its recognition of Sogous value, technical capability and product innovation capability. Next, it will seriously discuss and measure relevant issues, so as to enable Sogou to continuously create greater value for users.
The acquisition may be a rebirth opportunity for Sogou. And for Tencent, it is a heavy hand to search the track.
Search business has always been Tencents obsession. At that time, the search business that Tencent merged into Sogou was once an independent search division within Tencent. However, it was simplified and divided and disappeared with the incorporation of Sogou. However, with the increasing volume of Tencent, Tencents action in search has never stopped, and the cooperation with Sogou is also deepening.
As early as four years ago, wechat launched the search business and set up a special search application department. At that time, wechat said that the establishment of the Department was to optimize the user experience. This year, wechat has updated the search and search function, which is intended to serve the important carrier small programs of commercialization. The service search can make the small programs of businesses quickly out of the circle, more easily searched by users, and accurately reach customers.
According to the official data released by wechat this year, the number of small programs exceeded 3.2 million and the daily life exceeded 400 million. During the epidemic period, the data performance and social value of wechat small programs were more widely recognized
For Tencent, the past cooperation with Sogou is Sogous third party service for WeChat. If Kwai Sogou is incorporated, WeChat will be able to find a huge Content Ecosystem in search of prime business. In addition, Tencent eco partners, such as Jingdong and fast hand, can also take advantage of the potential to develop traffic cooperation.
The entrance and content mentioned by Wang Xiaochuan can be easily realized in Tencent ecology. For Tencent, Sogou can not only give mature technology, but also become an important key closed loop in ecological development. Strengthening its search capabilities will help Tencent develop its social networking and advertising.
The search business has a long history. It seems that Baidu only relies on search to support the basic disk, and other giants have tried the water one after another. In March this year, the headline search of byte skipping was launched independently. As Tencents biggest imaginary enemy, byte hops ecological daily life has reached 600 million.
Not long ago, Alibaba innovation business group established the intelligent search business department, focusing on the layout of the previously launched intelligent search app quark. Its published data show that the number of active users of quark search has increased 5 times, the search volume has increased 6 times, and the search volume of AI camera recognition has increased by more than 10 times in the past year. Alipay is also reintegrating search business, opening the flow of home search center, upgrading the search box to better match the new positioning of Alipay after upgrading to digital life platform. In the post mobile Internet era, the significance of code adding search business may not only lie in making money and doing business, but also in opening up the ecology and enabling users to get a better experience. After experiencing the rough development stage of Baidu Putian system, search business has entered the stage of fine operation of competition technology and ecology. For Wang Xiaochuan or Tencent, it is necessary to adjust the expectation of search. If Wang Xiaochuans Sogou continues to be independent, it may become a chicken rib. But once Tencent becomes the owner, it may become the engine of the giant. Extended reading Oh, good! Jay Chou quickly broadcast live for half an hour to earn a suite. Reporters on the spot hit the Kwai. Sky question No.1 soaring to the scene cheering: never so proud and tears! Tianwen-1 Mars probe launched successfully_ NT2541
Not long ago, Alibaba innovation business group established the intelligent search business department, focusing on the layout of the previously launched intelligent search app quark. Its published data show that the number of active users of quark search has increased 5 times, the search volume has increased 6 times, and the search volume of AI camera recognition has increased by more than 10 times in the past year. Alipay is also reintegrating search business, opening the flow of home search center, upgrading the search box to better match the new positioning of Alipay after upgrading to digital life platform.