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Alibaba Looking To Be Chinese Netflix, Yahoo Stays Afloat With Alibaba Stock

Alibaba's in the news for upcoming IPO, domiance in Chinese home entertainment industry, and keeping struggling Yahoo afloat.

Jul 15 2014, 8:31pm CDT | by

11 Updates
Alibaba Looking To Be Chinese Netflix, Yahoo Stays Afloat With Alibaba Stock
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Alibaba Looking To Be Chinese Netflix, Yahoo Stays Afloat With Alibaba Stock

Alibaba wants to be the next Netflix. The Chinese internet conglomerate pretty much makes up every major U.S. internet phenomena in a single source.



Quartz's John McDuling noted Alibaba is the Chinese version of "Dropbox, PayPal, Uber, Hulu, ING Direct," and the latest deal with Lionsgate makes competition for Netflix. After putting over $3 billion in content initiatives in under six months, the company is now pushing for home entertainment dominance.

And "Alibaba now wants to be the Netflix of China " compares the business-to-consumer model to Amazon, which makes sense they've been keeping up with the set-top boxes, like Amazon Fire TV, Roku or any streaming media player.



Having the boxes that will access the Lionsgate films in a high media market means the company should do well in conjunction with March's $804 million investment in production house China Vision Media and more principal funds in the internet TV company Wasu. And to add even more revenue and control share, they invested billions in the Chinese version of YouTube, YouKu Tudou.

They're definitely looking to make a deep impact through exclusive mainland China access. Creating a more in-depth relationship will benefit both companies, too. Tech savvy consumers will pay for exclusive access. Plus being a bank means that the money to supply products has fewer red tape in accessing customer statements.



And Lionsgate will definitely get a pay off in the end. Profits have fallen and are expected to fall further as the Hunger Games series wraps up filming Mockingjay (with November premieres in 2014 and 2015) and AMC's critically acclaimed Mad Men finishes airing the last season in two parts (ending in Spring 2015). Divergent's success was okay, but not as profitable as either Hunger Games or Twilight in the anticipated teen market.

In a bold move, "Yahoo! Inc. will return at least half of the cash it reaps from Alibaba Holding Ltd.’s initial public offering to shareholders." Brian Womack of Bloomberg discusses more of the payout in "Yahoo to Keep More of Alibaba After IPO, Return Cash ." Even though Alibaba is going to IPO in the U.S., Yahoo's deep investment offers the struggling company some breathing room right now. Instead of selling 208 million shares, the company has decided to only release 140 million. That's a lot of bank to keep around.



With around 23 percent stake, the $168 billion valuation gives the U.S. giant the ability to move pieces as Chief Executive Officer Marissa Mayer's looks to find a niche for Yahoo in the changing market. Analyst Brian Wieser of Pivotal Research Group LLC finds the decision to hold deeper stakes wise. Stating bluntly that Alibaba "is the dominant moving piece in Yahoo’s valuation.”

Chief Financial Officer Ken Goldman says that the Sunnyvale, Cali, company will also give back "at least half of the after-tax IPO proceeds to shareholders." The idea follows the company's "overarching commitment to maximizing shareholder value through prudent capital allocation."



Shareholders are a major influx of money since the company's display ads fell 7 percent compared to 2013's second quarter profits. And surprisingly, the price-per-ad fell 24 percent. Even acquiring social media platform Tumblr hasn't helped bring profits up. So Alibaba's influx helps.

Thankfully, Alibaba's IPO is the most anticipated since Twitter's in 2013 and Facebook in 2012. That means Alibaba and Yahoo, plus Lionsgate, will benefit from quick cash influxes.

 

Sources: Quartz , Bloomberg

 

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Update: 11

Alibaba Says It Relies on Markets, Not Connections

Source: NDTV

Alibaba Aquires Share In Soccer Giant Evergrande
In response to an article about the political connections of some of its shareholders, Alibaba discounted the notion that their backg ...
Source: NDTV   Full article at: NDTV 1 day ago, 4:43am CDT
 


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Update: 10

DealBook: Alibaba Says It Relies on Markets, Not Connections

Source: NewYorkTimes-Business Day

Alibaba Aquires Share In Soccer Giant Evergrande
In response to an article about the political connections of some of its shareholders, Alibaba discounted the notion that connections of its investors helped drive its busines ...
Source: NewYorkTimes-Business Day   Full article at: NewYorkTimes-Business Day 1 day ago, 3:26pm CDT
 

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Update: 9

Yahoo Has Bought 41 Companies In Two Years: This Is How It Decides Who To Buy, What To Pay (YHOO)

Source: Business Insider

Yahoo News/ABCNews Pre-White House Correspondents' Dinner Reception Pre-Party
At almost the very moment that Yahoo was reporting its disappointing quarterly earnings, and saying it would keep a bigger stake in the hot Chinese internet company Alibaba after its IPO than originally planned, the woman responsible for the Alibaba deal was on stage at the Fortune Brainstorm conference in Aspen, Colorado.  She was talking about her merger and acquisitions strategy. Jacqueline Reses is chief development officer for Yahoo ...
Source: Business Insider   Full article at: Business Insider 6 days ago, 11:20am CDT
 

Update: 7

Alibaba, Neilson Partner Up In Developing App To Improve Ad Targeting

Source: bidness etc

Nielsen Hldg NV (NLSN), a leading provider of consumption trends, has partnered with Chinese e-commerce giant, Alibaba in its launch of the application “Omni Channel” which would integrate online and offline data relating to Chinese consumers. Alibaba will be supplying online data relating to Chinese consumer demographics and their buying patterns while Neilson will contribute offline data. According to Yan Xuan, president of Neilson, this application is the first o ...
Source: bidness etc   Full article at: bidness etc Jul 14 2014, 7:55am CDT
 

Update: 6

China Shipping joins Alibaba in e-commerce logistics platform

Source: The Journal of Commerce

First Group of Violence-stricken Chinese Workers Evacuate From Vietnam
China e-commerce giant Alibaba will partner with state-owned China Shipping Group to set up an integrated and cross-border logistics platform to support the rapid growth of internet shopping on the mainland. China Shipping Network Technology (CSNT), a provider of transport information products and subsidiary of Chi ...
Source: The Journal of Commerce   Full article at: The Journal of Commerce Jul 14 2014, 4:12am CDT
 

Update: 5

As IPO Approaches, ALIBABA Still A Mystery to Many Outside China -"The Alibaba Effect" Explains What's At Stake

Source: Forbes

Alibaba Aquires Share In Soccer Giant Evergrande
On August 8, 2014, shares of Alibaba,  the Chinese e-commerce giant, under the ticker symbol "BABA", will go on sale to the public. It has the potential to be the largest tech IPO in history and perhaps one of the largest IPOs in history, pe ...
Source: Forbes   Full article at: Forbes Jun 27 2014, 12:41pm CDT
 

Update: 4

Stripe adds support for Alipay, opens China to western businesses

Source: CNet

Alibaba Aquires Share In Soccer Giant Evergrande
Closing the gap between China and the rest of the world, Stripe has partnered with Alibaba's Alipay to allow Chinese shoppers ...
Source: CNet   Full article at: CNet Jun 25 2014, 11:59pm CDT
 

Update: 3

Stripe adds support for Alipay, opens China to western businesses

Source: Car Craft

Alibaba Aquires Share In Soccer Giant Evergrande
Closing the gap between China and the rest of the world, Stripe has partnered with Alibaba's Alipay to allow Chinese shoppers to make internat ...
Source: Car Craft   Full article at: Car Craft Jun 25 2014, 11:59pm CDT
 

Update: 2

Sky-mobi To Become Key Distribution Partner For Alibaba

Source: bidness etc

Locals React To Visit Of Chinese Delegate To Taipei
Rosenblatt Sees Co. has suggested that Sky-mobi Ltd (ADR) (MOBI) could potentially become a key distribution partner of Alibaba due to its prior relationship with UC Web, causing the stock to rally to its highest price in the last two months. UC Web, China’s most popular mobile browser, was acquired by Alibaba earlier this month for an undisclosed amount. Sky-mobi’s surge today follows a 4.7% increase during trading yesterday. Sky-mobi had only yesterday relinquished a 37.9% stake fr ...
Source: bidness etc   Full article at: bidness etc Jun 19 2014, 12:03pm CDT
 

Update: 1

SGX advises caution in trading of SingPost shares

Source: Channel News Asia

Alibaba Aquires Share In Soccer Giant Evergrande
SINGAPORE: Singapore Exchange (SGX) on Thursday (19 June) issued a "trade with caution" warning on Singapore Post after its shares surged around 5 per cent on Wednesday.SingPost, in response to a query from SGX, said it was not aware of any reasons that could possibly explain the trading in its securities. A sign shows the location of the SGX Centre in downtown Singapore. (AFP/Rosl ...
Source: Channel News Asia   Full article at: Channel News Asia Jun 18 2014, 9:39pm CDT
 

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