This week’s focus on the company: Alibaba, NetEase, Weibo, Ruixun Coffee, Fun Headline, Apple Inc.
“Featured Headlines” is a weekly column to help you sort out the company and business news that deserves attention that week. The “Featured Headlines” consists of a number of short news items, all from the subscription column “Daily Business Collection.”
The following is a noteworthy company and business news this week (September 2nd – September 6th):
Netease opens the koala, Ali leads the cloud music, and each takes the required transaction
On September 6, Ali acquired the koala of NetEase’s cross-border e-commerce platform for $2 billion. After the transaction is completed, NetEase koala will be included in the Tmall Import and Export Division, and the brand will remain unchanged. At the same time, Ali led a new round of financing of Netease Cloud Music’s $700 million. For both parties, this is a transaction that is required for each.
After the acquisition, Ali will have a 50% share of the cross-border e-commerce market and expand its global product supply chain. Leading Netease Cloud Music not only complements Ali’s content traffic shortcoming, but also gives Ali a weapon against Tencent on the music track. For NetEase, cross-border e-commerce business has been difficult, and it has been divested to facilitate the company to better focus on the main game industry. Netease Cloud Music has Ali, a resource-rich gold lord, and will be more comfortable in terms of copyright investment and business realization in the future.
Extended reading: Focus analysis | Giants cut the battlefield, koalas live in Ali Zoo
Establishing the social product “Oasis” emergency, can Weibo’s “realization” dream come true?
This week, Weibo’s new social product “Oasis” app has received much attention. Oasis is known as the Chinese version of “Instagram”, and is currently in the beta stage. New users need to enter the friend invitation code when they log in for the first time, which almost duplicates the invitation mechanism that Weibo was originally launched. During the internal test, the Oasis was once removed from the app store due to the alleged plagiarism of the App logo.
In addition to the main picture social, Oasis also assumed the mission of monetizing. The discovery page of the Oasis is almost inlaid with a small red book planting community. It can be considered that Weibo is interested in increasing the e-commerce layout through the oasis. Oasis has the possibility of a battle, because of the huge traffic pool behind Weibo. The combination of “Ins+Little Red Book” also provides more imagination. The user experience of microblogging can be built, and the user experience is a decisive factor.
Extended reading: Product observation | If imitating ins is an advantage, then the microblogging oasis is half successful
“Little Deer Tea” went on the market for 2 months, and what is the calculation of Ruixing Coffee?
On September 3, Ruixun Coffee announced that its tea drink brand “Xiaolu Tea” will be operated independently. The stores are mainly located in the second, third and fourth tier cities, which are mainly for leisure scenes, and are heavily invited to be the idol star. As a brand spokesperson. The Chinese tea industry targeted by Xiaolu Tea is a big blue ocean. Market research firm Frost & Sullivan predicts that by 2023, the size of China’s current tea market will grow to 158 billion yuan.
“Small Deer Tea” does not charge for the franchise fee, and the store does not divide before the profit, which will inevitably attract a large number of partners to join, and the expansion of the store is not a problem. However, the product quality control problem associated with the joining method requires “Little Deer Tea” to focus on and solve it, otherwise it will erode the brand reputation. Judging from the current development situation, there is no particularly strong competitive barrier in the current tea industry. Consumers in sinking markets are more sensitive to price and store channels, and the sinking of Deer Tea needs to prioritize these two elements.
Extended reading: Focus analysis 丨瑞幸 wrong peak expansion, Xiaolu tea wants to sink down so easy
The weakness of the advertising industry does not affect the growth of the headline, and “Mic Read” continues to serve as an important engine
After the US stock market on September 5, the interesting headline released the second quarter of 2019, the revenue increased by 187.9% year-on-year, basically the same as the market expectation; the net loss expanded year-on-year. The revenue of the interesting headline is basically from advertising. The advertising business revenue of this quarter was 1.358 billion yuan, a year-on-year increase of 209.2%, and the growth rate was very impressive. 
According to the financial report, the comprehensive headline platform Q2 reached 119 million, and the daily users reached 38.7 million. The growth rate of the two core indicators was over 200%. User growth is attributed to the powerful engine of “meter reading”. “Mi reading” is a free reading app under the headlines. As of June this year, its monthly user size has grown to nearly 24 million. In addition, the user participation cost and the proportion of sales and marketing expenses in the second quarter of the fun headline are declining, while the number of active users of the platform is still growing rapidly. This means that the fun headline has a good use in controlling the operating costs and expenses.The overall growth efficiency of the company is improving.
Extended reading: The first quarter of the headline net loss of $81.8 million, an increase in the year-on-year loss
Apple will issue $7 billion in bonds, when will launch content mergers and acquisitions to attract attention
According to Bloomberg’s report on the evening of September 4, Apple plans to issue $7 billion in bonds. Apple also announced a bond issuance plan on its investor relations page, ranging from three years to 30 years, but Apple did not disclose it. The specific bond amount. This is the first time Apple has raised funds in the bond market since November 2017.
Apple is not short of money, low financing costs is one of the important reasons for Apple’s bond issuance, the US 10-year bond yield has dropped to 1.47%. In addition, Apple needs to reserve cash for the merger. Along with Apple’s current business layout, Apple has launched a number of Internet businesses at this spring’s conference, and is determined to “soften”. The most important layout is the TV content of Apple TV+. As an outsider, Apple To break into the real money and rebuild the content framework, it is clear that M&A is the fastest way.
Extended reading: Apple with $200 billion in cash has raised $7 billion in debt financing
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