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Secret Tencent Overseas Investment Strategy: Why it is most likely to buy the BAT

via:博客园     time:2016/6/21 14:00:41     readed:2393

Source: AFP

Not surprisingly, then, Tencent 90 billion purchase of the Finnish game developer Supercell recent transactions will be announced.

Supercell about the message being acquired in the last month has spread, according to the May 14 Bloomberg reported, sources said, Softbank is considering the sale of shares held by the hands Supercell, and are from China, and & ldquo; some buyers & rdquo; to negotiate, it seems these buyers include Tencent.

Supercell game industry is regarded as one of the most successful mobile game company. It was founded in 2010, the initial team only six people, but its three game "tribal war" (Clash of Clans), "Jones Island" (Boom Beach), "Royal War" (Clash Royale) have swept the world in 2015 revenue reached $ 2.33 billion in the global travel market ranked first hand.

If the deal, which will become the largest single overseas Tencent in the history of acquisition.

This is a typical Tencent in overseas investments & mdash; & mdash; as long as the main strategy useful hesitate to spend millions investments and acquisitions. While carefully combing the company will invest a record found in overseas investment this matter, Tencent style BAT is among the most astute.

Guidance Strategy: & ldquo; practical & rdquo;

The game is one of the main business Tencent. Tencent is the last time in 2013 to spend $ 1.4 billion to acquire a 6% stake in the Blizzard game industry's big.

Tencent since 10 years since 2006 among a total investment acquired 34 game companies, of which only seven are Chinese companies, other major in the US, South Korea and Japan. 34 companies spent a total of 17.8 billion yuan of funds.

In addition to shares Blizzard, Tencent also spent $ 231 million wholly-owned holding a fist Riots & mdash; & mdash; "Heroes Union", the parent company, which is known as Ma has been the most successful in overseas investment. In addition, they invest heavily in South Korean developer, can expand its room for maneuver in the mobile gaming market.

& Ldquo; the gaming industry has a natural worldwide, compared to the aesthetic preferences and language barriers other product is small, like a taxi or shopping these other industries and cross-industry will happen, this is a pure Internet products and services. & Rdquo; domestic game makers the perfect interface to news executives explained.

& Ldquo; after the company bought the fist, Tencent "Heroes Union" in the Chinese market to achieve an unprecedented level. & Rdquo; The person said that during overseas mergers and acquisitions, as the domestic Internet giant Tencent is still very advantageous, pitched content companies into China if there is demand, but also very happy to accept their investments.

They did not biased in favor of emerging technologies, more importantly, it is & ldquo; practical & rdquo ;. In an interview time, Tencent CEO Ma has said in the past few years at the most successful overseas investment is the fist company, & ldquo; Tencent Although the value of technology-based companies to invest in, but can look more intellectual property content of the upstream manufacturing company. & Rdquo;

Silicon Valley an unnamed investor to evaluate interface News, & ldquo; Tencent investment objectives are very clear, such as games and related products, the objective is to build their own ecosystem, is able to take back the direct use, the tendency is not in emerging technologies. & Rdquo;

In addition to games, video Tencent also an investment priority. Being staged "Warcraft" movie before the opening, Tencent Pictures logo appeared on the big screen, which is fermented in early Blizzard's investment.

Just a few days ago, Bloomberg reported that Tencent and veteran Hollywood management company William Morris Endeavor (WME) and Sequoia Capital China, jointly set up a joint venture to develop sports and entertainment business in China & mdash; & mdash; Tencent aid at home channel edge, companies with overseas mainstream industry alliance.

WME, founded in 1898, is America's largest managers of a company, its Chinese artists and athletes including Zhang Ziyi, Lu Chuan, Jackie Chan, Yi Jianlian Liu Yifei and the like.

Its subsidiary business is complex and diverse, these years also four acquisitions, including the Professional Bull Riders (TAL bull riding contest, referred PBR), the shape and make-up artist agencies The Wall Group, and with Time Warner's Turner Broadcasting System (Turner Broadcasting ) jointly set up joint venture companies, the development of electronic sports (e-sports) business.

Path: mainstream VC bundle

In Silicon Valley, with most investors talk about domestic BAT several local investment, most believe that Tencent is efficient and agile, & ldquo; & rdquo ;. muffled fortune

Biggest bargaining chip circle is not mainstream venture capital money, but additional resources, technology venture in the birthplace of Silicon Valley in particular. This is for anyone who tries to enter the capital of foreign investors, including Chinese giant BAT is called threshold.

Tencent practice is bundled with the mainstream funds, localized operations. They Silicon Valley investment sector employs fully localized United States team, is also active shares in Silicon Valley local top fund such called & ldquo; Andreessen Horowitz & rdquo; the LP (fund investors), which means that they are able to follow Mark & ​​middot; Anderson and Ben & middot; Horowitz two Silicon Valley venture into the local mainstream star team.

Tencent in Silicon Valley really hard to chase the most aura companies, even now famous incubator Y Combinator investment case by some people look empty, but a few years ago is still Silicon Valley & ldquo; gold standard & rdquo ;. Tencent in time to follow their investors Everyme, Ark and Sonalight these start-up companies in Silicon Valley local social.

Tencent investment in early 2013 to Snapchat, making set up only two years Snapchat valuation reached $ 4 billion, also shows the company's investment strength and vision.

& Ldquo; We want the brightest and the entrepreneurs work together, otherwise they are considering future cooperation and some other things, it will directly go to Google or Facebook, Tencent and never think of it, so the way we use the investment establish a fixed relationship, and then gradually learn the contact. & Rdquo; David Wallerstein, senior executive vice president of international business Tencent, said in an earlier interview.

But the limitations of China's capital has been in, not broken down into the front-line companies within the industry, and invest in the second-tier companies. Recently, Tencent has just participated in a United States AR (Augmented Reality) company Meta B round of financing in the investment, the investors also include other Associative high Yung capital, for a total investment of $ 50 million.

Mate was founded in 2012, its products similar to Microsoft Hololens, known as neuroscience based on the principle developed by & ldquo; natural machines (natural machine) & rdquo ;, through a headset device shows the virtual image, the user can and the virtual image interaction. It can be like a science fiction movie, as the computer media such as virtual images to be rendered out of thin air a brain organ or architectural models, architects and doctors for research use.

In February this year, Ted Conference, founder Meron Gribetz to the audience demonstrated their second generation, he expressed hope to use this product in the future to replace the PC and smart phones.

As early as the mid-Investment Company

Overall, Tencent overseas investment style focused on the early and mid to small amounts of money to obtain strategic alliances as well as good financial returns & mdash; & mdash; it's more like a venture capital firm actions.

According to CB Insight data, Tencent in overseas and investment in the territory of China, including both concentrated in the C round before; in C-round stage, with an average cost of $ 67 million per pile acquisition; in D round, from 2006 to 2016 10 years, overall spending was $ 1.199 billion, the deal involving six.

Source: CB Isight

More investment occurs in the seed round and round A and B round, and from the data, the vast majority of investment A and B round wheel have occurred in 2012 or even after 2014 & mdash; & mdash; a decade a round of investment in 30 cases 22 cases, 20 cases of 29 B rounds have taken place after 2014, 20 cases of 23 cases occurred in the seed round of funding after 2012.

Source: CB Isight

In this agile behind the investment, there are some on the market for a giant from China fear.

& Ldquo; they & lsquo; Close deal & rsquo; attitude is very strong, do not accept the & lsquo; King & rsquo; Terms of the acquisition, the acquisition would not accept the & lsquo; Copy to China & rsquo ;. & Rdquo; a San Francisco investor attention to the gaming industry to interface the news that they are often able to hear complaints for Tencent, & ldquo entrepreneurs from the mouth; but from the financial and investment strategy itself, such as the rate of return, speed and coverage and other terms, their performance is very good indeed. & Rdquo;

On it since last year, Tencent couple communications software Couple, design and sell products fab.com TapZen and game developers to focus on Russian national Internet DST Global investment are in IPO, mergers and acquisitions and other means to obtain exit.

By contrast, Baidu in overseas investments and acquisitions are very conservative, they spend more money on research and development, hired by Google to establish brain Andrew Ng chaired the local R & D center.

Ali is also the United States the rapid investment, compared to the outside world the impression that it is mainly & ldquo; trench & rdquo ;. 2014 Ali hope that in the communications business has layout around for acquisitions in the United States, the vast majority of contact with almost instant communication classes APP, and finally to $ 280 million alone, who won the video call software Tango Me D round of financing.

But Tango Me to have experienced a series of turbulence: the development of the electricity supplier business failure and shut down the relevant departments; lay off 9%, and the replacement CEO. Alibaba in many news reports are called & ldquo; big backer & rdquo; (Big Daddy) & rdquo ;.

From CB Insight data, Ali rarely cast seed round. Alibaba invest 800 companies in the A round of spending $ 323 million, with about the same price and Tencent invested 30 A ferry company.

From the investment Snapchat it can also be seen in the difference between Tencent and Ali. 2013 Snapchat be B round of financing, Tencent and SV Angel and other six Silicon Valley mainstream venture together with this company invested $ 80 million; by April 2015, the Ali Baba and the sovereign funds & ldquo from the Middle East; the king holding company (Kingdom holding company) & rdquo; together with the company invested 200 million USD.

Alibaba is certainly rich, but it is worth noting that sovereign funds are not smart players in Silicon Valley from the Middle East, the Silicon Valley venture capital abundant, good companies tend to choose can bring additional resources outside the mainstream money venture capital, these funds come from wealthy oil countries not favored by good company, so they often appeared in the late development of the company, almost before the IPO, the company at this time high prices, huge investments can withdraw almost entirely smoothly by IPO or M & a.

In Silicon Valley, along with the famous recent case is then set Man and the Legend Hony Capital Brothers price of $ 430 million for Wework full disk access.

& Ldquo; We in Silicon Valley do not understand why the association with such a high price to buy the company. & Rdquo; local Silicon Valley investor evaluation of this transaction, the current valuation of the company has reached 16 billion US dollars, in their view, a departure from the actual value.

& Ldquo; After many giants to overseas found here assets than China cheaper for overseas asset prices are reasonable, but many Chinese deviated; on the other hand, these so-called & lsquo; BAT & rsquo; in China are giants, but in overseas and have no bargaining power, so only high bids to sell the company to get your chance. & Rdquo; the source said.

Therefore, horizontal comparison, Tencent investment in overseas acquisitions more like a professional investment institutions, and not only know the spread of money & ldquo; & rdquo ;. Tyrant

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