In 2005, Ma faced strong external competition, with the main rival being Google and Baidu. Everyone questioned whether Alibaba could survive on the internet. However, beyond everyone's expectations, Ma relied on his commercial understanding of Taobao. By 2012, Taobao’s advertising revenue, software revenue, as well as the revenue from Lynx (microblogging) split, would total more than Baidu's. Alibaba Group Chief of Staff Zeng Ming also said that the future of e-commerce is a consumer-driven C2B model, where each link in the chain of traditional industries is gradually turning to the internet, allowing e-commerce to evolve gradually. Only when we use the Internet to connect every aspect of a business will the industry truly welcome significant development.
Quality reports and sharp viewpoints can be seen on Sina Technology. Regarding the exercise of options for 1.2 million shares, commentary suggests who might benefit from Alibaba's privatization. Analysts speculated about the privatization of Alibaba's B2B division, suspecting that Ma might enter the first Lawrence microblogging recommended | SAN official microblogging >> More repackaged overall listing. Alibaba Group has always insisted on this expression: On the occasion of Amoy Network, Ma wrote a letter to Alibaba employees stating that up to now, Alibaba's success in privatization still has many uncertain factors. Ma's next business venture is like raising pigs for meat; Ma has another logic, raising chickens for eggs, hatching chickens. This is the secret behind Ma and Alibaba Group's long-term standing at the top.
On February 21, one event may become an annual highlight in 2012 Internet transactions, exposing just the tip of the iceberg. Alibaba announced that it had received an offer from its parent holding company to fully acquire its issued shares in cash, aiming to achieve the privatization of these listed companies. Besides overall listing, Longchamp Le Pliage Small Folding Handbag, Alibaba's privatization and reorganization of Yahoo's stake are under consideration. The announcement of Alibaba's privatization indicates that Alibaba and Yahoo may negotiate the reorganization of Yahoo's shareholdings. These negotiations may or may not reach an agreement, but the privatization will not depend on the completion of any Yahoo transactions. Jack Ma (microblogging), stated that the privatization of listed companies in Alibaba will remain unwavering, while leaving the outside world with countless speculations, including how to configure HK $19 billion in privatization funds, how to finance debt payments, and how high the next Alibaba Group restructuring or market force of new seed businesses might go. At the helm of Alibaba, this reflects the painful period for the entire B2B industry - in the environment of a global economic downturn, the original B2B mode must undergo radical restructuring and reform to adapt to new requirements and developments.
On February 22, Alibaba released its full-year earnings for 2011, where much of the data was not conducive to Alibaba's stock price growth within a short time. Paying members decreased from about 809,000 in 2010 to about 765,000 in 2011, down 5.4 percent; China Gold Supplier decreased by 18.4%, international gold medal supplier decreased by 27.6%, and China TrustPass members decreased by 2.8%. Cash generated from operations reduced from approximately 3.04 billion yuan in 2010 to approximately 2.18 billion yuan in 2011, a decrease of 28.2%, and deferred revenue and customer advances were approximately 4.43 billion yuan in 2010, decreasing to 4.42 billion yuan in 2011, down 0.3%.
Gexue Hui views listed as a whole or part of the resource reorganization. Ma resembles a clever player, after Teng turn diversion of its assets, three assets will facilitate rational distribution for the stage, strategic development of the whole group. Industry groups transformation is inevitable due to changing external environments and the real economy. HC CEO Guo Jiang also said that the B2B industry has not reached a dead end, but requires innovation, greater change, and transition. Revenue or services, Alibaba has to be the best in the industry, but the leader is not good when not upgrading and transforming, steering from a simple membership model to an effects model. If the B2B industry does not improve, the situation will be even more tragic. Gexue Hui believes that the reorganization of Yahoo's stake is not the current round of privatization's main purpose but rather aims for relisting. He believes that Alibaba B2B business and Yahoo synergies, and Ma's emphasis has always been on the staff, should not replace B2B business with Yahoo.
Alipay and Taobao Union are another two eggs in the hen of Alibaba. In addition, over the past five years, Alibaba conducted a series of investments, including the million net Solar logistics company. Gexue Hui, if privatization fails, the results may lead to a lose-lose situation. Alibaba's business development is expected to face many negative factors, such as an unfavorable external environment, which will prevent the stock price from rising sharply in a short time.
Core Tip: Alibaba's success in privatization still has many uncertainties. If minority shareholders vote over 75% successful, or privatization fails. The industry believes that Alibaba overwhelmed by privatization, emergency stop turn, is expected out of a road full of thorns for the B2B industry as a whole trip. After all, Alibaba has the world’s largest online B2B customers and user groups. If Alibaba cannot successfully transform, it will be bad news for other participants in the B2B industry.
However, along with the global financial crisis in 2008, Europe and North America’s economies suffered hits, and the eurozone debt crisis remains unsolved to date. The global consumer market has severely declined, and the manufacturing sector contracted significantly. Throughout the B2B industry has also been affected by this crisis, not just reducing the number of customers but also leading to a decline in revenue and profits. Alibaba, HC, Global Sources, Netsun, and others have encountered development bottlenecks, and even rookie last year, Dunhuang network reported significant layoffs, facing market tests.
For the privatization of Alibaba, one controversial point is whether the price of HK$13.5 is reasonable. Alibaba disclosed in the announcement that the price is a premium of 60.4% over the average closing price of the last 60 trading days before suspension on February 9, and a premium of 55.3% over the last 10 trading days average closing price. This premium far exceeds the 20-30% given by capital markets' expectations. If more than 75% of minority shareholders participate in the vote, privatization succeeds, or it fails. In fact, in 2009, Hong Kong Telecom Pacific Century's privatization efforts failed due to minority shareholders' opposition. Alibaba (microblogging) (1688.HK) for ordinary shareholders, compared with the original issue price of Alibaba, there is no premium, which is also criticized by individuals.
In this regard, Ge Xuehui interviewed this reporter, saying that the repurchase price generally considers factors such as the current stock price, earnings, sales revenue, investment bank forecasts, then sets a premium. Ge thinks that the high premium of HK$13.5, investment banks predicted Ali Baba's 2012 target price of about HK$7, meaning that without privatization messages, we believe Alibaba's stock is worth the money.
Taobao, Alibaba's golden egg-laying hen. Many people did not succeed in challenging Baidu with search engines; Ma successfully challenged Baidu, but not through search engines. Outside Ma, there is no plan for re-listing. But the outside world still believes that Ma's privatization of Alibaba stems from Ma's open letter to the staff of Alibaba Group, suggesting buying back stocks at a lower price due to business loss. Alibaba listed in 2009 and 2010, distributing dividends twice totaling 2.11 billion Hong Kong dollars for its shareholders.
Breaking test Ma's another kind of logic: chicken meat, raising chickens, eggs, hatching chickens, endless listing as a whole can solve the repurchase funds. Privatization is expected to cost Alibaba around HK$19 billion. The Alibaba Notice repo funds come from two sources: First, syndicated debt financing, including ANZ Bank, Credit Suisse, DBS Bank, Deutsche Bank AG, Singapore Branch, The Hongkong and Shanghai Banking Corporation, Mizuho Corporate Bank Hong Kong Branch external debt financing; Alibaba Group’s internal cash resources. If privatization fails, the results may lead to a lose-lose situation according to Gexue Hui.
Ma's future seed business days for Jingdong cat, Paypal, is an Amoy, Ali cloud computing. Alibaba IPO, forcing Paypal, logistics (including investment and logistics information platform construction), cloud computing, big Taobao Alliance. Upgrading the business model, pay-for-service and online transactions will be the clear direction of development for Alibaba's products and services. More considerations in formulating the company's long-term development strategy through privatization will allow the Alibaba Group and its B2B business to progress faster in upgrading and restructuring rather than succumbing to market expectation pressures, such as listed companies needing to consider expected returns and price volatility.
Gexue Hui believes the bank will not conduct debt-equity swaps, and the listed path may also repay debts. Alibaba describes the future environment in the bulletin: major developed countries' economic performance is bleak, the weak global economy, the euro-zone economic crisis highlighted the United States signs of recovery fuzzy, and economic worries spread to other emerging markets and developing countries; China cannot be an exception. In 2011, Ma again encountered severe external and internal challenges: first, disputes over control of the Alibaba Group, secondly, impacts from Jingdong and all passengers representing B2C. Jingdong achieved 30 billion yuan in revenue in 2011 and quickly claimed 100 billion yuan, appearing to be combing Taobao and Alibaba Group, understanding its development logic to predict its future. Privatization, on the surface, is a strategic initiative to change according to Gexue Hui, similar to Alibaba PCCW PCCW using the technology stock bubble to list in 2000, reaching a highest price of HK$100, only to be privatized at HK$2, trapping many shareholders. With more than 14 billion U.S. dollars in cash and cash equivalents, the privatization cost was 14 billion yuan. Additionally, the largest shareholder inspired some people to buy very few shares voted, undermining market fairness, thus the Hong Kong court ruled the privatization failure.
After the privatization announcement was released, on the first day of trading, Alibaba stock opened with a 43% increase, February 23 was up 0.15% to HK$13.22, close to HK$13.5. Hou Jiyong, a person familiar with the Alibaba Group in Beijing, told reporters that Alibaba's privatization undoubtedly prepares Alibaba Group to build a larger platform. Since last year, Alibaba B2B companies have been continuously upgrading their business models, shifting strategies from solely acquiring new customers to enhancing user quality and authenticity, increasing buyer traffic, improving user experience, and linking transaction-based services to service effects to enhance supplier quality and improve buyer experiences.
On February 23, 2009, investment partner Ge Xuehui, in an interview with this reporter, said that generally, after the announcement period, the company needs to issue circulars to shareholders and then get approval from a special meeting of stockholders. All goes well after announcing the delisting check and then sent to shareholders. Each company differs due to actual situations in hours, generally between 2-4 months. Alibaba's privatization is conducive to finally achieving the Alibaba Group's hope to establish an e-commerce ecosystem and run through a complete ecological chain from consumers to manufacturers at both ends, which may be the ideal business model for the future of the Alibaba Group.