Shell finance reporter of Beijing News learned exclusively from a number of people close to the transaction that the merger is basically a foregone conclusion. This merger plan is the third time Tencent has put forward relevant suggestions, and even has risen to the level of Tencent general office. Several parties have started negotiations since the beginning of June this year. The form of financial transaction is similar to the merger of qunar and Ctrip, and the senior management of Betta may be retained to the senior management of the new company. After the combination, the positioning of Betta and Huya will be slightly different, and both the community and the short and medium-sized videos will be taken into account.
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 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.
Liu Hao (pseudonym), an investor in the live broadcasting industry, also expressed similar views to reporters. He also predicted that Chen Shaojie, founder and CEO of Betta, would become CEO of the new company. It is not easy to judge whether Tencent interactive entertainment business group will send someone to be the chairman of the board.
After the news of the merger was released, many netizens began to guess the new names of douyu and Huya after the merger, Douya, douhu and Huyu were all on the list. However, according to the exclusive news learned by shell finance reporter of Beijing News, the way of merging the two is to get through the content, but the team operates independently, and the two brands will continue to be retained. In other words, users can see two anchors through one platform at the same time. And according to the previous Betta station in a convention, it is also very likely to open the user account.
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 Q1 financial report of douyu and Huya in 2020, their revenue during the reporting period is 2.278 billion yuan and 2.412 billion yuan respectively, with non net profit of 260 million yuan and 219 million yuan respectively. According to the half yearly report released by Betta on August 10, its revenue was 4.786 billion yuan, and the non net profit was 596 million yuan.
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.
According to Tencents proposal, it has reached an agreement with joyy Inc. (hereinafter referred to as huanju group) which hatched Huya and Dong Rongjie, CEO of Huya, to purchase 30 million and 1 million class B ordinary shares of Huya from huanju group and Dong Rongjie respectively. The transfer will be completed on or before September 9, 2020, when Tencents shareholding in Huya will increase to 51.0% of the issued share capital of Huya, The voting rights will be increased to 70.4% of the total voting rights of Huya.
A person close to huanju group told shell finance reporter of Beijing news that the reduction of holdings will enable huanju group to obtain about 800 million US dollars of overseas cash, which is convenient for the company to obtain users, marketing and subsidies when going out to sea. At present, the most important strategy of huanju group is to go out to sea and artificial intelligence, with Japan, South Korea, Australia and Singapore as the focus, followed by the Middle East and Europe, And Southeast Asia. In addition, according to the previous non competition agreement signed between huanju group and Tencent holdings, huanju group has no plans to make live games in recent years.
Zhao Miao (not his real name), a veteran of live broadcasting industry who has worked on many platforms such as Betta and byte skipping, analyzes that if the two platforms are leveled in terms of anchor resources and user resources, then the live broadcasting field will no longer be the focus of competition between the two, and the difference after the merger is the most noteworthy.
Shell finance reporter of Beijing News exclusively learned that the main work of the second Department of Betta R & D is to increase the short and medium video capacity of Betta. At present, we can see that there are many short videos in the live stream. It is not known whether to launch an independent application. In addition, the betta may also play a role in the game community.
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.
Another example is that Tencent executives stationed in Huya are all responsible for specific business, not finance or investment. For example, Huang Lingdong, who was appointed chairman of Huya, is the general manager of Tencent interactive entertainment group. Before joining Tencent, he served as vice president of the ninth city of the game company; Xu Guang, appointed as director of Huya, is the general manager of Tencent interactive entertainment group, in charge of game distribution; PU Haitao, who is appointed as the director of Huya, is the general manager of Tencent, mainly responsible for mergers and acquisitions, capital and other related matters Legal field.
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.
Tencents lack of a pugc platform, users quit the game, where to know the new game? Where to continue to watch the game related content? Tencent tiktok Kwai is sure that this part of the users will remain in their own ecosystem, but at present, these users are being attracted by B stations, jitter and fast hands. Internet analyst Tang Xin told the Beijing News shell financial reporter.
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