After the deal is concluded, a live broadcast platform with a market value of more than 10 billion yuan will be born in China, and the game live ecology will be further consolidated, and the ambition of the two to merge is not limited to live broadcasting. Then, the specific form of financial transactions, the future top management team, and the development direction of the two platforms after the merger have become the focus of the industry.
After the merger can increase profits, Betta executives or management of new companies
Tencent has tried to promote the merger of fighting fish and tiger teeth in the past two times. Once it was on the eve of the market, the market was worried about the interaction between the two stock prices. The other was the four quarter of 2019. The live broadcast of live games has already surpassed the fight between the fighting fish and tiger teeth. The Tencents investment in the Kwai Fu has not been repeated. Kwai once again proposed the plan to merge the fighting fish and tiger teeth.
Now, the merger plan of Betta and tiger tooth has finally surfaced after being discussed by the market for a long time.
The form of the transaction is similar to the merger of Ctrip and qunar, but different from TME (Tencent music and entertainment group), when TME merged, neither of them was listed. (douyu and Huya) are listed, they can only exchange one companys shares for anothers shares. This is only a financial (merger). In terms of operation and management, Betta executives may all remain in the senior management of the new company. People close to the deal, Li Ming (not his real name), told reporters.
In addition, some analysts said that the reason for replacing the douyu stock with tiger tooth stock is that the betta has issued more stocks and the equity is relatively dispersed. It can avoid the risk of more dispersed equity and obtain more financing with less equity.
In this matter of merger, Huya has been out of the game (referring to the fact that it has been controlled by Tencent), and Chen Shaojie is still at the negotiation table, a former Huya employee told shell finance reporter of Beijing News. Tiger tooth executives have reduced their holdings before, and there are also reductions in this transaction, said Li Ming.
After the merger, internal friction can be reduced, organizational efficiency and culture can be reshaped, and the cost of anchor, brand, sales and management can be optimized. After a rough calculation, a lot of profits can be increased, said Wang Cong (pseudonym), another person close to the transaction. Sharing, signing and brand promotion fees for the anchor are the main costs of the live broadcasting platform. After the merger, there will be no job hopping for the anchor Internal friction and other expenses will also be controlled.
According to the big data of Aurora, the coincidence rate of users of Betta and Huya is 31.6% in June 2020; from January to July 2020, the average daily active users of douyu and Huya are 13.569 million and 10.471 million, respectively, and the penetration rates are 4.2% and 3.9% respectively. Analysts believe that the high user coincidence rate may be the reason why the two platforms have not merged directly.
Liu Hao, an investor in the above-mentioned live broadcasting industry, said that both brands should be retained. As for how long, it is hard to say.
Betta, tiger teeth will be differentiated, future power game community and short video
In the financial report released on August 10, Betta changed its positioning to diversified community direction with game as the core. According to the reporters understanding, the staff of the second Department of Betta R & D, whose office address is located in Beijing, expanded rapidly after the Spring Festival. The two-story office building in Wudaokou is extremely crowded, and the tea room is full of people.. And Betta has recently replaced its office location to the nearby Sohu building, and the rental space has been further expanded.
Zhao Miao, a person in the live broadcasting industry who has worked on many platforms, told reporters that game anchors are similar to creators such as writers and singers, and can generate content. The only difference is that the production of anchors is not enough. If you use the organizational ability, such as MCN (anchor agency) to increase the content output of anchors, it is easy to make short videos or game communities.
To make short videos, Betta and tiger teeth are actually very advantageous. As long as we solve the problem of insufficient anchor capacity and algorithm recommendation, Zhao Miao told reporters.
He also analyzed that the game community driven distribution is an active attack method, and it is possible to win in this field, because the potential competitors are taptap (a game community developed by Shanghai easy to play) and some game core forums. Tiktok is a defensive tactic because the Kwai and the quick hands are less likely to win.
The advantage of fighting fish is its long established ecology, which make complaints about the citys game, and the management of the anchors, the wind control and the Tucao culture evolved from the two dimensional ecological evolution.
In terms of anchor ecology, Chen Shaojie, founder and CEO of Betta, once said at the analysts meeting in the first quarter of 2020 that the top 100 anchors have completed the renewal of their five-year contracts, and some even established associations jointly with Betta, which are deeply bound. In other words, if other platforms want to surpass Betta in terms of anchor ecology, they need to at least wait for the platform to cultivate a large number of high-quality anchors, or the above-mentioned anchor has passed the priority renewal period with Betta.
Another advantage of Betta is the community. One of the lucky things about Betta is that its done very early, and the core users of the game are surrounded. The atmosphere of the whole platform is very interesting. Betta co-founder and CEO Zhang Wenming was introduced in an exclusive interview with shell finance reporter of Beijing News. In his opinion, most live broadcasting emphasizes the interaction between the host and the user, while Betta emphasizes the interaction between the host and the user, and pays attention to the interaction between users. In order to carry the needs of user communication, Betta online similar post bar Fish Bar function.
Key Mr. Tencents pugc anxiety
The above interviewees all think that Tencents merger proposal is basically a foregone conclusion.
In terms of equity, Tencent has cleared the barrier of huanju group by increasing its shareholding in early April, and has become the largest shareholder of douyu and Huya. According to the announcement, as of April 3, Tencent held 36.9% of the equity of Huya through its wholly-owned subsidiary, with 50.9% of the voting right. After the agreement in Septembers proposal was completed, Tencent owned 51.0% of the issued equity and 70.4% of the voting right. As of March 31, Tencent, through its wholly-owned subsidiary, holds 38% of the shares in Betta and 38% of the voting rights.
In terms of business, Tencent has been the largest institutional shareholder of douyu and Huya for a long time. No matter in the aspects of E-sports events, game promotion and anchor management, Tencent has experienced a long time of running in, and the integration is less difficult. According to shell finance reporter of Beijing News, although the douyu and Huya are invested by Tencents war investment department, an organization similar to live media has already been set up within Tencents mutual Entertainment Group (IEG) to coordinate the relationship between fish fighting, tiger teeth and Penguin video games, and to limit the job hopping behavior of the main broadcaster on the above three platforms.
After several rounds of negotiation and psychological construction, the management of Tencent, douyu and Huya have changed their attitude towards the merger.
Behind this is Tencents tightening management of strategic investment enterprises in recent years, as well as Tencents anxiety in the field of pugc. From this year on, Tencent is also strengthening its control over strategic investment (holding) companies, such as the consolidation of Tencent music, Yuewen group and supercell, as well as the change of management of Yuewen group. A Tencent insider told shell finance reporter of Beijing News.
What needs to be vigilant is that the long game video and the short game video are bypassing, seizing the users use time, and then the share of the game live broadcast. The former Huya employees said Tencent should consider how to strengthen the barriers of its live broadcasting platform. According to the information of Kwai Kwai, the gift income of fighting fish, tiger tooth, B station and fast hand in March 2020 was 974 million yuan, 818 million yuan, 1 billion 5 million yuan and 1 billion 749 million yuan respectively. In April 2020, the gift income of fighting fish, tiger tooth, B station and fast hand were 719 million yuan, 803 million yuan, 892 million yuan and 1 billion 905 million yuan respectively. That is to say, if the fighting fish and tiger teeth join forces, they can basically get a smooth balance between the live broadcasting industry and Kwai Chi, and surpass B station to form a balance. (at the request of the interviewees, Li Ming, Liu Hao, Wang Cong and Zhao Miao are pseudonyms.) it is immoral to force Liu Juns extended reading to buy by force, edited by Bai Jinglei, a shell finance reporter of Beijing News? Some Microsoft employees opposed the acquisition of tiktok. After nine years of leadership, Apple CEO cook finally made more than $1 billion. Tiktok was investigated by the French privacy regulatory agency because of complaints. Source: responsible editor of Beijing News: Wang Fengzhi_ NT2541
What needs to be vigilant is that the long game video and the short game video are bypassing, seizing the users use time, and then the share of the game live broadcast. The former Huya employees said Tencent should consider how to strengthen the barriers of its live broadcasting platform.
According to the information of Kwai Kwai, the gift income of fighting fish, tiger tooth, B station and fast hand in March 2020 was 974 million yuan, 818 million yuan, 1 billion 5 million yuan and 1 billion 749 million yuan respectively. In April 2020, the gift income of fighting fish, tiger tooth, B station and fast hand were 719 million yuan, 803 million yuan, 892 million yuan and 1 billion 905 million yuan respectively. That is to say, if the fighting fish and tiger teeth join forces, they can basically get a smooth balance between the live broadcasting industry and Kwai Chi, and surpass B station to form a balance.
(at the request of the interviewees, Li Ming, Liu Hao, Wang Cong and Zhao Miao are pseudonyms.)
Beijing News shell financial reporter baijinglei editor Zhao Ze proofread Liu Jun