the domestic Internet industry merger between the first and second may add a case, the reason is that last night abroad 58 city is working with the financial times revealed that a takeover market network meetings. If finalized, this is also the youku buy potatoes, fast drops merger after the third case of large amount of the mergers.
according to the financial times reported that the two companies have to yesterday signed a memorandum of understanding, the combined company valuations could reach $10 billion, the news may be the fastest announced on April 15. 58 city today early morning on the news, up 25%, eventually closed up 33.52%, a market capitalisation of $6.16 billion.
tencent technology reported that the trade talks fund is mainly a tiger in the set, in the market and 58 city on both sides of the chip, lobbying both sides merge. Said 58 city CEO Yao Jinbo, the crux of the problem is not in the market management team, especially emotional young’s brother is not acceptable.
trade negotiations specific to what progress is unknown. 58 city CEO Yao Jinbo, fair CEO Yang Haochong and executives in accepting the media consulting is closed. Of course, there are many outside analysts believe “merger in the sense, but there are rumours”.
58 city and market network, founded in 2005, at the same time, both sides will was born with a competitor’s brand, and during the next several years than the financing amount, competing, competing each other celebrity endorsements, competition promotion. Market network in 2012 could have the opportunity to log in capital market, but subject to delay to attend Yang Haochong wife divorce case, 2013, 58 city landed on the nyse, and subsequently gained tencent stake, since then, the situation of market network gradually, with 58 city of gap has been widening.
after 58 obtain abundant funds, also announced $1 billion of foreign mergers and acquisitions. In July last year, also some people asked if they would consider m&a market network, let’s have a look at how the Yao Jinbo said:
“we will not purchase a meaningless. Market network users is a subset of the set of our users, merchants and our subset, is also a Copy of our product, it doesn’t make any sense to acquisition of a company. There is no doubt that our future will be a dominant.”
indeed, 58 city and market network of customers and business form similarity is too high, it is difficult to achieve simple integration 1 + 1 & gt; The effect of 2, when the transaction of business valuation and to produce more differences.
but dubious advantage, for 58, if you can spend a low price to mergers and acquisitions direct competitors, or can produce a lot of resistance, for blood still needs to be continually financing market network is not a proper way, after all, the public may be more difficult.