Two and a half years of investment impairment of 500 million US dollars, is a good investment agency?

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Two and a half years of investment impairment of 500 million US dollars, is a good investment agency?

2021-11-29 00:17:08 43 ℃

A simple truth is: investment is a "cruel" probability game, investment is risky, no one can make a stable earning, Weibo can become a big winner in this probability game?

| Liang Chunfu

Edit 丨 Cai Zhen

Source | Wild Horse Finance

Recently, Weibo heard through the Hong Kong Stock Exchange. At the age of 12, it is about to complete secondary listing.

One of the fundraising purposes of Weibo is "selectively seeking strategic alliances, investment and acquisition", and shortly, Weibo has completed a major investment in the electrical competition - the SNG, Rename WBG.

Market people estimated that the SNG's Chinese Division League of League of League (LPL) has reached 9 digits, plus the team's players, coaches and other personnel costs, microblogging at least 160 million yuan.

What is the consideration of social media giants Weibo cross-border investment importance? What is the foreign investment logic of Weibo?

Ten years of investment over 200 companies

According to incomplete statistics, Weibo has invested 200 companies, and the investment scope covers more than 20 areas, including advertising marketing, MCN institutions, game companies, social networks, e-commerce, etc., and even medical health and intelligent travel. Early financing such as angelion and A rounds, as well as some company strategic investment. Among them, advertising marketing is an important field of microblogging early layout.

Weibo Investment Layout Drawing: Yellow Dynasty

As with other Internet social platforms, early Weibo focused on users accumulation, and in 2012, the commercial achievement was launched, and the current year launched a real-time bidding advertising system "fans", and explored other real-value services such as recharge members. In 2014, Weibo took the lead in launching "Hot Soup" in China and making advertising to the extreme.

In 2015, Weibo opened the advertising era. CEO Wang Gaofei said that advertising is a general business model of the Internet industry, including the original advertisement in the form of graphic video, is considered a mainstream direction, and the strong relevance of social platform and user identity is also It is considered to be with data value.

To this end, more than 20 advertising marketing enterprises that we will invest in IMS (Tianxiu Show), more than cool technology, micro-dream media, and Bazaar, the purpose is to make this marketing company with Weibo advertising business. Effect, help Weibo to realize commercialization, and this company has great demand for microblogging traffic pools.

Among them, the most typical is the world show (600556.sh). This is a platform-type enterprise in the new economic sector. One of the main business is to provide enterprises on Weibo and other platforms. Advertising plan, with Weibo has always relying on the KOL operations to be deep.

In 2010, Weibo participated in the Tianxia Xiu A round financing, cast $ 4 million. In 2013, B round financing was investd on 12 million US dollars, and the net loss of Weibo was 2.32 billion yuan. In December 2019, in order to help the world show the housing, Sina has replaced the purchase of an asset of 89.886 billion cash in place of the world show. Guangxi Huijin.

So exhaustive "support" the world show, microblogging is still commercial achievement. Li Meng, Chairman of the World, said that the reason why Sina decided to invest in the time is that the world's show can help Sina blog advertise and business. Until Sina began to do Weibo, the cooperation between the two sides was cut into the Weibo platform. The Tianxia Show also specially launched "Weiq" and other products, "Wei", "Wei", represents Weibo.

As of the end of September 2021, Sina Group took a total of 36.07% stake in the world. Not only the major shareholders are Sina, the most important customers in the world are also Sina, usually to promote advertisements in the brand on Weibo, very large probability is put in the world.

It is not difficult to see that microblogging is a more beneficial to the marketing company of Tianxia Show, and more intuitive performance is the first time in 2015, the net profit of 2.26 billion yuan in 2015.

But only the world show clearly does not meet the needs of Weibo. As of the end of June this year, the Weibo certified account reached 4.4 million, almost all stars, net red, and Kol had its own microblog certification account, which formed huge economic effects and advertising value, and Tianxia Xiu and other marketing companies only Solved the problem of these KOL traffic, as their commercial value of the boat, many KOL have completed capitalization, such as the net red, Shaohe Shares, to go to the United States.

In order to further consolidate its net red realization mode, for the field of cultural media, Weibo has also investing more than 30 MCN institutions and Nethonghang companies in recent years. For example, in 2018, the Hangzhou, the Hangzhou, I have, 2020 A round financing of MCN's research agency.

Sina Weibo achieves mutually beneficial coexistence by investing in the MCN mechanism. Weibo provides a more efficient channel for MCN institutions to enable institutions to hatch net red and enhance the influence. At the same time, MCN's high quality net red will also bring more users to Weibo. More importantly, Weibo helps net red and e-commerce institutions quickly achieve resource docking by building net red Electric commodity platform.

To this end, Weibo has accelerated the layout of e-commerce since 2017. In January 2020, the cross-border e-commerce platform foreign terminal. In mid-March, we will enter the share of the net red e-commerce MCN institution. In 2019, invest in Boanda e-commerce, and traffic e-commerce surprise online shopping; 2018 investment Haitao online shopping platform small elephant excellent product. Source: IT Orange

"Filter" short video, live broadcast

Investment is a probability event, and the synergy of foreign investment is difficult to quantify the assessment, but the success or failure of investment, the financial losses brought directly reflected in the financial report of listed companies.

Financial report, 2019, 2020, in the first half of 2021, Weibo has reduced investment related to $ 250 million, US $ 212 million, 66.625 million US dollars, of which, 2019 microblogging investment is 2.15 Billion dollars, in the first half of 2021, the investment was reduced by $ 59.4 million.

The science and technology was established in 2011, and there was a second shot, small coffee show, and always broadcast three star products. Starting from 2013, Sina Weibo led or compiled 4 rounds of financing, accumulating a total investment of 190 million US dollars.

Through the strong binding relationship of equity investment, the technology began with the days of Weibo lips. At the beginning of 2016, Weibo was in a large amount of zombie marketing number, and the user's active declined. The short video product of Weibo is embedded in the microblogging, and the small coffee show that relies on Weibo platform has become a booster that the microblog users grow up recovery, so in the second quarter of 2016, Weibo will first A technology writes a financial report.

At that time, technology and Weibo were in "honeymoon", but this sweet relationship was not maintained too long. Since 2017, the short video application represented by the shake, and the quick hand is rapidly developed. Behind the shake is a top strip of 700 million users. The quick hand gets Tencent investment, Tencent once opened to the fast hand QQ relational chain.

The rapidly changing industry environment makes technology a bit caught by it. Since then, the second shot was rectified for 79 days. He gradually lost its team, the only thing that is also valuable is also incorporated into Weibo in 2018.

However, in May 2016, I will start late. Even if I have a strong star resource on Weibo, I have only won the "short-term prosperity". After all, at that time, the star live is impossible to normalize, and it is rare to make a special live broadcast. Most of them are only in the lives, and they are rushing to earn a cool. With the continuous investment of live broadcast, one "TYPO" live has gradually ended.

Some think about that the loss of second shooting, the loss of the new broadcast has not continued to benefit from short video, and one of the reasons is that there is no self-developed product in the industry, and will hop from the third party. Both products or non-controlled investment companies, the industry's risk is insufficient, and it is not timely. The fierce competition in the live broadcast and short video industry, said that the bottom is the competition between major Internet platforms, and the microblog responses have launched the "love shot", "drill small video" and other self-research products, the trend has become Red Sea.

However, in this matter of short video, Weibo has not given up. In July 2020, Weibo officially launched the "Weibo Video Plan" to the whole industry quality video creators, and Weibo video creators have been fully upgraded to microblogging video numbers. In addition to giving 1 billion precision advertising resources and 30 billion top exposure resources, Weibo also announced that the video number is divided into 500 million cash, building video advertising, similar to YouTube, sharing some of the advertising revenue with the content producer.

As of the first half of 2021, more than 10 million content creators participated in the video number plan, including more than 30,000 content creators with more than one million fans. In addition, this year's Weibo video number has also opened live broadcast Lian Mai function. Unlike other platforms, Weibo will focus on improving media and sociality, hoping to pass "live + hotspots" to generate new Hot discussion atmosphere and depth interactive position.

For example, during the Olympic Games, athletes and media Lian Mai discuss the Olympic topic; the League of Legends S11 events, there is a unmatched heat between Mai Mats.

Investment in the video domain, Weibo has not been stop . 2020 investment AR video technology company micro-holography, short video live broadcast platform only football, etc.

Although Weibo has more than $ 500 million in nearly two and a half years of investment, it seems that it seems that it seems that it is not big. On the day of the double 11, Weibo handed over a bright earnings. In the third quarter of 2021, microblogging net revenue was $ 607 million, an increase of 30% year-on-year, and net profit under the US General Accounting Standard was $ 182 million, a year-on-year increase of 4 times.

Ads have always been the most important change channels of Weibo. In the third quarter of 2021, income from advertising and marketing business is $ 538 million, accounting for approximately 90%, and the rest is mainly from the value-added fees such as Weibo members.

Therefore, the underlying logic of Weibo commercialization is still through diversified content ecology, "hotspot + social" strategy to maintain platform influence, and ultimately attracts the brand to put advertisements.

But in recent years, the advertisers of Weibo have been lost. After the hearing, the total number of advertisers in Weibo has dropped from 2.9 million in 2018 to 1.8 million in 2020, and the total number of advertisers in the third quarter of 2021 is only 800,000, a year-on-year reduction of 42.86%. In this regard, Weibo has shown a concentration of information after hearing, and the variation is mainly due to the loss of individual customers with relatively low advertising budgets. In this context, the average expenditure of each advertiser (excluding Alibaba) is increased from $ 649 in the first three quarters of 2020 to $ 1637 (rectified by RMB 1 million) in the first three quarters of 2021, reaching the historical high.

It can also be seen that although Weibo is facing the tranquakers of hanging, fast hands, b stations, small red books, etc. The important platform, the lost advertisers may mostly have a serious SME small and medium-sized and small-sized and small-sized customers, as well as customers affected by policy, and customers in the film and television entertainment industry.

In the short term, October National Day film announced the peak period, November DOTA and League of Legends two global electricity competitions were held, and the double eleven gave Weibo's fourth quarter's performance and traffic.

However, it doesn't mean that Weibo can be low-pillow, the third quarter is 570 million months, and the corresponding advertising revenue is only $ 538 million, and the B station 267 million can also achieve a $ 500 million revenue, micro The ability of the Bo will undoubtedly need to be strengthened.

Betueling

Electricity is a vertical field of Weibo's near-term focus on the market, and it has also been investigated.

On November 22, the Weibo Electronic Athletic Club announced that the original Su Ning Tesco Electronic Athletic Club (SNG) officially renamed the WBG League of Legends Club (referred to as WBG).

In the past year, Weibo burned money in the e-sports field, and successively acquired the king's glory, the Peace Elite Professional League team. With the acquisition of SNG, Weibo complement a piece of puzzle that the electric competition is the most important puzzle. A super electric club with the three major electric competition seats of LPL, KPL, and PEL. The Weibo Electronic Athletic Club's predecessor is a competitive culture of Weibo Investment in 2018.

The background of betting electrical competition is a recent regulatory authority to rectify the entertainment industry. Previous entertainment content is high in microblogging content, leading to some investors to think that the value of microblogging is destroyed, and the stock price has fallen.

In response to "Qing Lang Action", Weibo is adjustably adjusted to entertainment sections, not only offline "star power list", star superheat "points help", but also strictly restricts the behavior of the stars and water army brush data .

However, the topic center of young users is not only entertainment content, electrical competition, and sports they are also extremely concerned. On November 7, the EDG team represents China to win the LPL champion, and the young electrical competitions have been celebrated on Weibo, and they are related to 80 hot. It is not difficult to see that electricity is one of the topics that are most likely to cause heat in the Zege in today's Zext.

In this context, Weibo has already begun to reduce the proportion of entertainment content on the hot search, and focus on vertical content fields such as sports, electrical competitions, newsletters. Up to now, the game has become Weibo in addition to news, the largest vertical field outside entertainment.

It can be seen that the consistent "hotspot + social" strategy makes Weibo a gathering place to discuss the electrical cell. On the other hand, microblogging has investing in electric battles in recent years, and cultivates the game field KOL, and the signing of electricity election hands into Weibo has also increased the attraction of this vertical user. This is similar to the investment logic of the MCN institution, marketing service company. The investment label is related to the field of Weibo wants to expand, and the foreign investment in strategic significance may be important than financial returns.

It is worth mentioning that in recent years in the investment layout in recent years, the number of game companies has nearly 30, second only to the cultural media, cover the game R & D, the game content community, and the electricity club. This has consistent investment logic with BTA and other Internet giants, using its own powerful resources and platform advantages, a large number of investment in early entrepreneurial companies to broaden the moats or seize the opportunity, and then fuel the main business, continue to make money.

In fact, the development of Internet companies in China has been accompanied by the extension of their respective investment layouts. The depth and breadth of their investment maps are also confirmed from the side to the company's asset strength and strategic development direction.

It should be noted that the current electricity industry that is incorporated into the hot money has been facing regulatory uncertainty since the birth. E-competition will become the next "Tianxia Show" in the huge investment map of Weibo or "Take Technology", and it has to be witnessed.

A simple truth is: investment is a "cruel" probability game, investment is risky, no one can make a stable earning, Weibo can become a big winner in this probability game?

What do you think of the Weibo Investment Equipment Club? Welcome to comment.