At around 9:47 a.m. on Monday, December 2, some media reported that, according to reliable information, the reporter learned from an executive within Toutiao that the company had also expressed a strong interest in Tik-Tok, and in
Recently, it contacted its parent company Qunxing Group and proposed to participate in the competition to acquire Tik-Tok.
The reporter learned from executives that the parent company Qunxing Group is also interested in this and is quite in favor of the proposal and is discussing the possibility of merging Tik-Tok.
As soon as this news came out, the outside world was in an uproar and was also surprised.
Qunxing Group actually also took a fancy to Tik-Tok. Unexpectedly, the corporate giants from the East and the West coveted Tik-Tok so much that it actually attracted giants from all walks of life to compete for it. It is really a super hot potato.
What is certain is that although Toutiao has developed rapidly and has become a major Internet giant, with Toutiao's current strength, it is still impossible to swallow up Tik-Tok on its own. The valuations of the two are between
Between brothers.
But if the parent company Qunxing Group is involved, it will be completely different.
Nowadays, Stellaris is so huge that it can be said that even if it completely acquires a giant like Microsoft, it would not be a problem, and the acquisition would be in cash, because Stellaris really has that strong financial resources.
Shortly after the news was exposed, Toutiao's share price immediately surged. The company was first listed on the backdoor during the bull market in 2015, and was listed on this venue after the establishment of the SGX market.
When Toutiao was initially listed via backdoor listing, its market capitalization was only RMB 4 billion, at RMB 3.2 per share, and its total share capital was 1.25 billion shares. Just this year, it split its shares at a ratio of 1 to 10, and its total share capital expanded to 12.5 billion shares.
As of last Friday's closing price, Toutiao closed at 54.07 yuan per share after hours, corresponding to a market capitalization of 675.875 billion. The cumulative increase since listing reached 16,796.87%, a terrifying increase of nearly 168 times.
At this moment, the time-sharing trend of this stock fluctuated all the way up. The bulls had the upper hand and began to push the stock price up continuously. The capital game on the market became very fierce.
Before the news came out, the trend of this ticket was actually quite satisfactory, with an increase of less than 0.5 percentage points.
As the news spread, the trend of this stock began to change, and the attention also skyrocketed. Before, it was only among the top 50 popular stocks, but now it has rushed to the top ten.
Around 10:02, major market software pushed messages:
[Today’s Toutiao rose by more than 4 percentage points, reaching the 700 billion market value mark for the first time, setting a record high, and the current transaction volume is 11.7 billion]
When the small windows of major market software push news, Toutiao's stock price continues to rise on the daily time-sharing line. At this moment, it has increased by more than 5 percentage points, and the trading volume is also continuing to increase.
Most investors believe this is major good news. If Toutiao can successfully acquire Tik-Tok and merge with it, it will definitely be a combination of powerful forces and perfect complementarity.
Moreover, the two companies themselves have a great connection, because they are both companies founded by the same founder, Mr. Zhang. However, Toutiao was sold to Qunxing Group by Mr. Zhang that year, which was also the reason why Toutiao was sold.
Mr. Zhang went overseas and founded Tik-Tok, which became the most successful entrepreneurial project in his career.
For many companies, as long as the founder team leaves, it is often the beginning of their decline.
But Toutiao is an exception. After its founding team left, far from declining, its development momentum has been rapid. Its Douyin has now surpassed Kuaishou to become the top player in the domestic short video field.
According to Toutiao's third quarter financial report data this year, the company's revenue reached 30.7 billion yuan and net profit was 5.2 billion yuan. The total revenue in the first three quarters reached 73.356 billion yuan, and the total net profit in the three quarters reached
12.5 billion yuan.
During the third quarter financial report conference call, the company's head said that for the whole of 2019, the company's revenue is expected to exceed 100 billion yuan, and its net profit is expected to reach 17 billion yuan.
This level of performance is definitely more than enough to support the current market value of 700 billion.
You know, when the company was listed through a backdoor merger in 2015, its market value skyrocketed from 4 billion to 100 billion. Investors at the time thought it was completely crazy. They all thought that after the crazy bull market, it would definitely be a mess.
, it depends on who takes the last baton.
As a result, today, its market value has soared to a height of 700 billion. The valuation bubble at that time was simply incredible, and the price-to-earnings ratio soared to more than 300 times.
But the bubble that was blown up did not burst, but was filled with value growth. The current price-to-earnings ratio of Toutiao is about 41 times.
Today, news broke that Toutiao wants to acquire Tik-Tok. Investors are looking forward to this matter. Not only are the two companies complementary to each other perfectly, but they also have an inexplicable sense of fate.
After all, it is a company founded by Mr. Zhang. Toutiao has been merged into the group of stars. If Tik-Tok is also included in the group of stars again, it will really be a sense of destiny.
But these are all secondary. The most important factor that market participants expect is that the two companies are so complementary.
Currently, Tik-Tok has lost the support of the three major record companies and is facing a copyright dilemma.
From the initial failure to successfully obtain the copyrights from the three major record companies, to the dispute with ICE in the copyright court, and now the NMPA is involved again, Tik-Tok's copyright journey can be described as difficult.
Although Tik-Tok acquired jukedeck, an intelligent artificial intelligence startup, and can use AI solutions to provide users with more convenient music accompaniments, there will always be copyright issues as long as users are allowed to upload their own music.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! The current situation is that Tik-Tok’s external copyright problem is difficult to solve, and the road to copyright self-rescue is still unclear.
As for Tik-Tok, a huge pain point, if it can be merged with Toutiao and integrated with the company's Douyin, the copyright issue will no longer be a pain point.
Because Fang Hong had already spent huge sums of money to acquire a large number of domestic and foreign copyrights very early on, whether it was film and television copyrights, music copyrights, TV series copyrights, etc., all of them were packaged and bought like crazy.
At that time, the outside world thought that Fang Hong was crazy and a foolish son of a landlord.
Only when I look back today do I understand what a wise choice it was for Fang Hong to spend huge sums of money to continuously acquire copyrights. At that time, the price seemed very expensive, but now it seems that it is extremely cheap.
Moreover, the giant Yixing Media Group under the Group Xingxing Group is also producing a large amount of the latest original content.
Just this year, Yixing Media cooperated with Toutiao's Douyin department to launch the "LeBang Plan" in China. The 62 songs on the line are all from the independent musician support plan, and the copyright is shared between the two.
In recent years, both Douyin and Yixing Media have provided a lot of support and incubation for musicians to obtain copyright support.
All in all, if Tik Tok can be merged with Toutiao, it will have many benefits and can solve many of its own troubles. And the dilemma Tik Tok is currently facing is not just a copyright issue?
Similarly, Toutiao can also gain huge benefits from the merger with Tik-Tok. First of all, there is no need to worry about overseas markets. Once the merger is completed, it will completely secure the world's number one position in the short video field, and no one can compete with it.
