$ 3.6 billion acquisition of YY Live! Can Baidu latecomer stimulate live broadcast?

Original title: $ 3.6 billion acquisition of YY Live! Can Baidu latecomer stimulate live broadcast?

　　According to the industry, ifBaiduThe above action is meant as accumulating power for the live broadcast business, so the YY Live broadcast capture isBaiduA landmark event for a strong entry into the field of live broadcasting.

On the morning of November 17th,the networkThe people in the circle are worried about “BaiduThe acquisition of YY Live Broadcast has finally been officially “stamped”.

《International financeThe reporter learned that Baidu and Huanju Group have signed a final binding agreement to acquire the Huanju Group’s domestic live broadcast business (for example “YY Live”) with a total transaction value of approximately 3.6 billion. dollars. The transaction is expected to be completed in the first half of 2021Delivery。

According to the industry, Baidu’s acquisition of YY Live is considered a “marriage that everyone needs.” Currently, YY has focused its business overseas.marketThere is an urgent need for a large amount of financial support and internal oversight is becoming stricter, so selling home businesses that have peaked in revenue can provide the weapons for subsequent business restructuring. Although Baidu is working. hard on the live broadcast track, it still has huge search traffic, which can provide a traffic pool for YY’s national live broadcast business, thereby further enhancing monetization capabilities.market shareAnd the increase in revenue, for the follow-upPerformanceAnd financial reports provide assistance.

　　Baidu overweight live broadcast layout

Public information shows that YY Live was founded in 2008 and belongs to Huanju Group, one of the first live online video broadcasting platforms in China.

Baidu’s acquisition of YY Live is not a whim. The “International Finance News” reporter noted that since the beginning of this year, Baidu has continued to act in the field of live broadcast.

In March, Baidu began building live broadcaststeamThe live broadcast function has been launched; in April, Baidu launched a series of self-produced live broadcasts; in May, it released the “Baidu Live Broadcasting Energy Concentration Plan,” announcing that it would use 10 billion traffic and 500 million grants to discover and cultivate creators of high-quality live broadcasts; In the same month, Baidu’s President and CEOLi YanhongHe opened the live broadcast debut on the Baidu app and personally contributed to his new corporate live broadcast platform; June, before Baidu’s invitationHuyaThe founder, Gu Feng, was the head of the live broadcast business and built a live broadcast center.

The intense business dynamics seem to announce to the outside world that live broadcasting has become Baidu’s new core business. For this reason, the news that YY Live will be acquired by Baidu in late October has sparked enthusiastic discussions across the industry. Today, news of the acquisition was confirmed that YY Live, as a puzzle piece of Baidu’s live broadcast track, is officially incorporated into Baidu’s mobile ecological landscape.

From the point of view of industry insiders, if Baidu’s previous shares are intended as an accumulation of power for the live broadcast business, the acquisition of YY Live is a key event for Baidu to enter the broadcast field live. By combining the previous series of actions, coupled with the inclusion of the veteran live broadcast platform YY Live, it is possible to imagine Baidu’s ambitions in the field of live broadcasting.

So, can YY Live be the last piece of the puzzle on Baidu Live?

Financial commentator Bi Ge believes that, first of all, YY himself has been deeply involved in the field of live broadcasting for many years, and the team and anchors have rich experience, which will help Baidu build talent and system quickly. relatively mature operational for live broadcast. The acquisition of YY for Baidu, which is a laggard in live broadcast, can seize the time window as soon as possible, and also can occupy the resource advantage in the field of live broadcast of the show, forming a complementary chain with the broadcast in direct content and the live broadcast of e-commerce that is being built; Second, Baidu acquired domestic YY commercial business,loanHelp YYBrandInfluence, It is planned to realize a short-term market education in the field of live broadcasting, gain a considerable number of persistent users and explore other live broadcast services based on this.

　　There are still challenges to drive performance growth

It is worth noting that Baidu also released the same dayauditThird quarter financerelationshipFinancial report shows that in the third quarter of 2020, Baidu obtained 28.2 billion yuan in revenue, belonging to BaiduNet profitReached 13.7 billion yuan.

In the financial report, Baidu also mentioned the live broadcastProductDevelopment status.According to reports, in September, Baidu App Dayactive userThe number reached 206 million, maintaining growth momentum based on a volume level of 100 million.Based on a huge scale of users, with information andKnowledgeMain live broadcast and short video content is also becoming more abundant. In the third quarter, Baidu’s number of live broadcasts of knowledge products reached 8 times that of the previous quarter.

Baidu’s third quarter 2020 earnings call was held todaymeetingIn response to the acquisition of YY Live, Baidu CEO Robin Li replied that Baidu has 300 million daily active users.BUTYY is very natural for making traffic. As a large-scale live broadcast platform, YY has accumulated extensive experience, and Baidu Live has a lot to learn.

Some people in the industry have said that after the official joining of YY Live, Baidu’s annual turnover could exceed 10 billion. So is the acquisition of YY Live a profitable business for Baidu?

In this regard, Bi Ge affirmed the ability to make YY Live. He pointed out that although Douyin and Kuaishou’s daily activities are nearly ten times that of YY’s domestic daily activities, the revenues from Douyin and Kuaishou’s live broadcasts are only two to three times those of YY’s domestic activities. Therefore, the efficiency of carrying out YY is very high. “This will allow Baidu to quickly gain strong profitability support following the acquisition of YY’s domestic business, without the need to address the continued huge investment in emerging businesses such as food delivery businesses in the past. monetization experience of YY’s internal team can also provide Baidu other “Live broadcast business revenue provides a reference.”

However, for YY live broadcast, which is mainly based on live broadcasting of shows, it is not an easy task to quickly make money and increase the short-term performance income scale.

According to Bi Ge, just like the audience, content and form of the live show and live gamebusinessWith different models, there is a clear distinction between live e-commerce live broadcasts and live broadcasts of shows. The anchors of the live broadcast of the show are good with talent and rely on their appearance or eloquence to earn rewards, while the live broadcasts of e-commerce require the anchorssupply chainHave relatively good professional skills in construction, product introduction and analysis. And the audience of the show live broadcast and e-commerce live broadcast are not the same group. Therefore, if YY’s current anchor group is to turn into e-commerce, it will face greater challenges.Whether or not there will be merchandise anchors such as Li Jiaqi, Wei Ya and Kuaishou Simba from Taobao in a short time, it will be a test in to some extent. Baidu and YY internal affairs team.

(Source: International Financial News)

(Responsible publisher: DF380)