The Logic Of "Two Horses" Tencent And Ali Adopted Separately Is Worth Understanding.

The logic of "two horses" Tencent and Ali adopted separately is worth understanding.

China Internet industry observer Wang Guanxiong: Tencent and Ali set off a wave of mergers and acquisitions on China Mobile Internet. In many investment cases, they can see Ma Huateng and Ma Yun bidding. The two companies have different investment logic.

In 2014, it was an unprecedented investment and acquisition year for China's Internet industry.

The background of the wave of mergers and acquisitions is a huge and irreversible migration from the desktop Internet to the mobile Internet.

In this process, the "TABLE" five giants represented by Tencent and Alibaba (see the real battleground of mobile payment) become the leading role of investment mergers and acquisitions.

Investment in mergers and acquisitions depends on strength.

As a result, two hundred billion dollar companies, Tencent and Alibaba, which ranked the top five in the world, have become the most important contenders in the mobile internet field.

Almost every acquisition with enough weight can be seen by Ma Huateng and Ma Yun.

They spend billions of dollars with their hands, constantly breaking the imagination in the combination of cross-border and Internet.

The distinctive colors of "two horses" have resulted in the differentiation of investment logic between Tencent and Alibaba.

To explore the future pattern of China's Internet industry, we need to examine and compare the M & a strategy and logic of the two companies.

Tencent's "social dividend"

Ma Huateng, known as "little horse elder brother", is known for his low-key pragmatism.

This determines the investment strategy of Tencent holding in charge of it, that is, never waste "social dividend", and become a "two shareholder" and make super chips with WeChat.

The investment logic of Tencent is that all acquisitions are aimed at maximizing their "social dividend".

For example, early Tencent investment focuses on games, making use of the huge QQ user base, forming a continuous cash flow, and then feeding WeChat ecosystem chain, and layout the mobile Internet.

This is a very benign cycle.

Recently, Tencent has regarded mobile payment and O2O (onlineto offline) as a new strategic focus.

Tencent's classic investment cases include strategic investment O2O leading public comment network, Sogou, and this week's injection of e-commerce giant Jingdong.

Tencent's investment in the public comment network and Jingdong has not been disclosed.

The industry generally believes that this is actually the two companies at a very high price, "buy" WeChat entry.

WeChat and QQ have become the two main entrance of Chinese social networks. Any businessman who wants to use this entrance must buy high priced tickets.

Tencent now has nearly 800 million active users and more than 600 million WeChat users, which brings Tencent with the ability to integrate resources.

Let these 600 million users and Jingdong and the public comment "meet", not only can provide O2O application scenarios, form a closed loop paction, also can enhance the user stickiness to WeChat.

Social networking itself does not make money. To maximize the potential value of large numbers of users, such as games, advertising and electricity providers, is the key to Tencent's making money.

Over the past few years, Tencent's business expansion and acquisitions have been based on this logic, including the acquisition of game companies in the US and South Korea, search and patting, and elong.

In the "3Q" war, the seemingly weak Qihoo 360 got the support of sina, Sohu, Shanda, everyone and other industry giants, and they tacitly unite to attack Ma Huateng.

This incident profoundly affected Ma Huateng and made him realize that a company could not "eat alone" and do business as a whole.

After this experience, Ma Huateng's thought of investment and M & A has changed obviously: he only shares shares and does not seek absolute control over the investment target companies, but his share of shares is not low.

At the beginning of 2011, the Tencent announced the establishment of an industry win-win fund, with an initial scale of 5 billion yuan. According to people familiar with the matter, its investment scale has exceeded 10 billion yuan, and its investment projects are spread over over ten fields such as program software, mobile application software, games, online tourism, finance, maps, electricity suppliers and so on.

From Jinshan, eLong, Sogou, public comment to Jingdong, Tencent accounts for about 20% of the shares, generally sitting in the position of the second largest shareholder, plus some business bundles, Tencent's right to speak is still very large.

With the success of WeChat, Tencent's acquisition focus has gradually shifted to mobile phone games and local life services based on WeChat mobile terminals, as well as derivative WeChat payments.

As a result, Tencent can be seen everywhere in the Internet world.

Human beings are essentially social animals, and all user behaviors constitute social interaction.

With hundreds of millions of users and their relationship chains, Tencent has achieved double monopoly in QQ and WeChat through social networking, and continues to maximize its value.

It is foreseeable that Tencent will repeatedly use its "WeChat married women" investment mode to penetrate the Internet industry and even traditional industries more deeply.

Ali's "Super Jigsaw Puzzle"

Compared with Ma Huateng, Ma has three strengths: public relations, financing capabilities and layout.

This led its Alibaba group to form a comprehensive investment strategy for "capital game Super Jigsaw Puzzle".

In this regard, the industry claims that Alibaba defines the acquisition as a capital jigsaw puzzle. It is an e-commerce company, but because it is in the critical period of IPO, it does not want it to be considered an electronic business company.

Alibaba's classic investment cases include: wholly-owned acquisition of Gould, strategic investment Sina micro-blog, UC browser, American group and unfamiliar street.

2013 is the most active year for Alibaba to invest in mergers and acquisitions, but it can still clarify some ideas from its complex investment network.

Sina, intercourse and shrimp can give Alibaba social genes; Gao De, the United States, fast, Ding Ding, ink, Tao Tao to strengthen their local life services; Celestica and zhong an help it enter the Internet banking.

The Alibaba has put together a super blueprint to tell the market: we are not just an electric company, not just a Internet Co.

For such a huge investment network, Alibaba's official view is that its long-term effect is more valued.

Alibaba IPO is imminent. This official statement is more like caters to the capital market: on the one hand, investors like to listen to a big story about the future (Amazon is an example); on the other hand, it can also divert investors' concerns about whether Alibaba can deeply integrate these investment targets in the near future.

It can be said that this series of mergers and acquisitions of Alibaba is not only for investors to paint big cakes, but also for future layout.

But from the point of view of business integration and layout, whether such a complex investment can bring real value to us, we still need to ask a question mark.

Compared with Tencent, Alibaba has invested more in traditional industries, and has invested in Haier appliances and rookie logistics. Tencent has rarely set foot in traditional industries.

In the United States, technology companies like apple and Google, which have over US $100 billion in market capitalization, have penetrated into traditional industries.

For example, Google has bought huge sums of money to buy Android mobile phone system, video website YouTube, smart home Nest, and many places to buy land as cloud computing center, enter smart cars, space capsule, and even engage in balloons online in places where Internet access is not available.

These investments are not only to find new growth points, but also to show that these giants continue to be ambitious in the forefront of innovation and technology.

As two leading enterprises in China's Internet industry, whether Alibaba and Tencent will take technological innovation as the core consideration of investment decision after this round of horse racing, it is worth watching.