Recently there are rumors that China's Internet giant Tencent is negotiating with News Corp about the acquisition of MySpace.Aiming to the rumor,China bulk wholesale electronics ePathChina Yide Huang analyzed the purpose of the transaction. Yide Huang believes that, for Tencent the reason of acquisition of MySpace is to expand and strengthen the Tencent QQ influence in international markets through the influence of MySpace brand
In 2005 News Corp acquired MySpace by 500 million U.S. dollars,the price seems very cheap now. even though MySpace has served as one of the important businesses of News Corp multi-channel income-generating strategies, now it may have been difficult for News Corp to get too much benefits from the site.
Compared with the hot Facebook, MySpace has left far behind,and even has no competition at all. Since the founder,Chris DeWolfe and Tom Anderson left Myspace in succession, the site has changed a lot of leaders.
Tencent is now a company with 50 billion U.S. dollars market capitalization, and its business is still evolving. Although Tencent is not famous in the United States, in fact, Tencent really is a larger social networking site than Facebook. Users number of Tencent QQ greatly exceeds 6.5 million.
In the Chinese domestic market, Tencent is facing competitive pressure form Sina and its micro-blogging service, but from the point of market value view, the scale of Tencent is 10 times as much as Sina. If acquired the MySpace, Tencent seems to be able to aim at larger international market, and take MySpace as the important factor of its expanding international markets and international influence. In addition, of course, there are other motives for Tencent, which can be reflected from the following facts. For example, earlier this year, Tencent acquired the U.S. online game development company in Los Angeles Riot Games at high prices, in order to increase the number of games.
However, China wholesale ePathChina Yide Huang stated that MySpace may have an important impact on expanding the international market for Tencent, but not the most important factor. Tencent may be by the use of more influential intermational brands to enhance the QQ international market influence.
In 2005 News Corp acquired MySpace by 500 million U.S. dollars,the price seems very cheap now. even though MySpace has served as one of the important businesses of News Corp multi-channel income-generating strategies, now it may have been difficult for News Corp to get too much benefits from the site.
Compared with the hot Facebook, MySpace has left far behind,and even has no competition at all. Since the founder,Chris DeWolfe and Tom Anderson left Myspace in succession, the site has changed a lot of leaders.
Tencent is now a company with 50 billion U.S. dollars market capitalization, and its business is still evolving. Although Tencent is not famous in the United States, in fact, Tencent really is a larger social networking site than Facebook. Users number of Tencent QQ greatly exceeds 6.5 million.
In the Chinese domestic market, Tencent is facing competitive pressure form Sina and its micro-blogging service, but from the point of market value view, the scale of Tencent is 10 times as much as Sina. If acquired the MySpace, Tencent seems to be able to aim at larger international market, and take MySpace as the important factor of its expanding international markets and international influence. In addition, of course, there are other motives for Tencent, which can be reflected from the following facts. For example, earlier this year, Tencent acquired the U.S. online game development company in Los Angeles Riot Games at high prices, in order to increase the number of games.
However, China wholesale ePathChina Yide Huang stated that MySpace may have an important impact on expanding the international market for Tencent, but not the most important factor. Tencent may be by the use of more influential intermational brands to enhance the QQ international market influence.
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