Thunder sees behind the "sell": Thunder is not ruthless but powerless

Some time ago, in an article, I deeply analyzed the reason why the stock price of Thunder had dropped to the bottom of the valley. I did not expect the Thunder to give a big "surprise" so quickly. On the day of April Fool's Day, there was news that Thunder had sold 130 million yuan to sell Thunder. Originally thought to be a trick for Thunder to increase attention, I did not expect that details would be confirmed soon. Xunlei announced that it has reached a legally binding framework agreement with an independent third party, Beijing Xiangchao International Media Co., Ltd., to sell all of its shares held by Xunlei for 130 million yuan.

This time, Thunder is not attracting people's attention by the way that the stock price breaks new lows, but the way is even more depressing... Such a low selling price is simply incredible for a website that has a certain status in the domestic video industry. After being brutally "sold up," Thunder sees what implied secrets and what is the intention of Thunder?


Brandishing a knife "from the palace" Thunder sees a lot of problems

A very simple truth - if Thunder sees its importance in Thunder's business model, or if it is extremely profitable, Thunder will never sell it. Therefore, the main problem is to look at yourself in Thunder. From the perspective of the overall development of the video industry, although Thunder sees the top ten in the industry, but in the Youku potatoes, Iqiyi, Tencent video, Sohu video, etc., are only three-line camp, the market share is relatively low.

While the competition in the video industry has reached a level of fierce competition and is not favored by the capital market, even if Youku Tudou shares have been plunged, public opinion of the minority Thunder, especially in the acquisition of the most critical genuine content, Thunder It is impossible to compete with other video sites backed by gold owners. Genuine resources are scarce. Even if this is the case, the cost of the content that Thunder sees also puts tremendous pressure on Thunder.

According to the financial report, the content cost of Thunder in the fourth quarter of Thunder was US$8.1 million, and the total net loss of Thunder in the fourth quarter was US$4.7 million. In other words, if there is no content cost expenditure, Thunder may also earn millions of dollars. It is rude to say that almost nothing Thunder has become a heavy burden that Thunder is eager to get rid of. In addition, user-generated content flows almost entirely to giant video giants, and Thunder sees few gains. In the current self-made system has become the best mode to reduce costs, Thunder has been unable to keep up with the development situation.

In fact, this is Thunder's own acceptance. In the previous vigorous copyright wars, Thunder viewed himself as a clever choice to wait and see, but also self-satisfied that saving a lot of money. But at that time, many video sites began to rapidly expand and develop, laying the foundation for becoming the industry leader now, and Thunder was squeezed out on the edge of the video industry. Subsequently, with the copyright monopoly and norms, Thunder has no place to look. This kind of destiny has a direct connection with Xunlei who wants to be a technology-led company. With the same fate, there are storm video, persistent client, ignoring the procurement of content, leading to the mobile Internet, failed to keep up with the situation. The failure to go public in the United States has finally failed to make a listing in the country.

One aspect that Thunder has always been criticized for in the US stock market is the issue of copyright. Thunder seems to be seen as a "selling place" for pirated content. Now that Thunder has sold "Swords from the Palace" to sell Thunder, it will not only eliminate a burden but also eliminate a time bomb. Of course, it is still not possible to "keep a thousand years apart and unify the rivers and lakes."


Thunder is not ruthless but powerless

Thunder has always been seen as the Thunder Department, and is an indispensable member of the latter's ecological structure. In the past, downloading video files on Thunder, it was a habit of many users to see through the Thunder. In short, Thunder download is Thunder's productivity tool, and Thunder sees it as an easy way to turn it into an entertainment tool. The two complement each other and are indispensable.

Now that Thunder has sold Thunder at a low price, it seems to be very ruthless just to obtain cash, but it is really powerless to continue to look at Thunder. In recent years, the performance of Thunder in the stock market is not just playing a roller coaster, but a bungee jump! The stock price plummets, absolutely horrible. Even as of December 31, 2014, the total amount of cash and cash equivalents and short-term investments held by Thunder was 433.7 million US dollars, which exceeded the market value of Thunder in the capital market once!

Under such a situation, how to move forward lightly and maintain the core competitiveness becomes the top priority for Thunder. Although the video industry is promising in the future and has great potential, it still can only “eat white food”. Thunder itself is not fed and it is naturally impossible to look at Thunder again. Thunder to see their own advertising revenue and content costs can not break even, rely on Thunder to help. Other Internet value-added services (mainly composed of games) accounted for 14.6 million U.S. dollars in the fourth quarter, an increase of 46.8% over the same period of the previous year. This was the top priority for Thunder.

One will only open and eat, and the other will be independent and self-reliance, and Thunder will abandon who it is. Thunder must cut off the thunder to see the blood transfusion chain, and then maintain its normal operation, and seek to regain the attention of the stock market.

Focus on new business? Thunder hemostasis measures are ineffective

Zeng Shenglong, chairman and CEO of Thunder Board of Directors, said that this transaction is part of Thunder's strategy to simplify existing non-core and non-profit businesses and focus on the transformation to the mobile Internet. In other words, starting from the sale of Thunder, Thunder will really want to transform from a company based primarily on the PC side to a mobile Internet company.

However, the essence of Thunder is to accelerate downloading. In the case of high-speed 4G and 100Mbps broadband, even if the accumulated technology is deep, it will be difficult to make a difference. Moreover, the demand for large-capacity downloads on the mobile terminal is low, and various deployments of Thunder on the mobile terminal are difficult to deploy. As for page and mobile games, Thunder is even less dominant in cruel competition. More importantly, if you lose the Thunder and look at this huge potential business, there will be fewer stories that Thunder can tell in the capital market. In the long run, the damage caused to Thunder is irreparable.