tag:blogger.com,1999:blog-5911215222074368345.post1705069892799204226..comments2023-10-20T09:06:10.250-05:00Comments on Chinese Internet & Gaming Stocks: Sohu.com to Roll Out its Own Web BrowserHenryChttp://www.blogger.com/profile/01479371401701734510noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5911215222074368345.post-32718271850227842932009-01-20T21:49:00.000-06:002009-01-20T21:49:00.000-06:00Thanks, good point. Game will be cash cow for the ...Thanks, good point. Game will be cash cow for the next five years. <BR/><BR/>For game spinoff, I think Zhang suspects game's prosperity (hypergrowth stage) won't last very long, on the order ~3 more years. Maybe lasts long enough to sustain Sohu's drive of pinying input, browser, and search to surpass Baidu in search and sina in news. So, I suspect the major reason of spinoff is to give him the option of totally letting go of game at a fair price and not to distract the main business. Others including ones you pointed is to prevent in-fight. <BR/><BR/>3 to 5 years from now, huge fortune will be made in ads from news, entertainment (including web based TV programing), and search when total Chinese internet ad will enter hyper growth stage and newspapers will fade quickly and TV like CCTV will stagnate at best.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5911215222074368345.post-55881371970742357512009-01-18T00:42:00.000-06:002009-01-18T00:42:00.000-06:00Hi, thanks for your analysis.Tencent QQ is a formi...Hi, thanks for your analysis.<BR/><BR/>Tencent QQ is a formidible foe. They are eating into every sectors of internet industry in China. It is why Sohu's chinese Input methods and Browser are so important.<BR/><BR/>It is a battle that could determine the fate of China's internet industry in the next five years. <BR/><BR/>It is also a battle that Wall Street has no clue of.<BR/><BR/>In terms of why are they want to spin off the game sector. I have no idea. I tried to find articles of Charles Zhang's explanation. I can't really find a detailed one.<BR/><BR/>It could be a good move, or it could be a bad move. But I have no idea.<BR/><BR/>Note that China's number game portal, 17173.com, belongs to Sohu. It is possible that Charles wants to put some separation between 17173.com and Sohu's game division.HenryChttps://www.blogger.com/profile/01479371401701734510noreply@blogger.comtag:blogger.com,1999:blog-5911215222074368345.post-31414425262108123112009-01-17T23:05:00.000-06:002009-01-17T23:05:00.000-06:00Thanks for the analysis.I have followed sohu almos...Thanks for the analysis.<BR/><BR/>I have followed sohu almost daily day since 2001; Charles Zhang appears to be honest and decent; unlike sina's management, which appalls me in stealing the company (awarding themselves disproportion amount of options and stocks to themselves) for its total mismanagement of the company which was best positioned 8 years ago. The track record foretells a fiasco coming in digesting the recent FMCN acquisition.<BR/><BR/>Sohu now is the most focused company . I agree with its sharp focus on internet media (news & entertainment & search). I think only Baidu & Tencents can stop sohu. But Baidu appears to wandering without focus recently, almost like yahoo. I never touched Baidu in the last five years. It appears that I was right. Tencent QQ is far more formidable than Baidu; but I don't follow QQ and know little of it. <BR/><BR/>Sohu intends to spinoff its hugely profitable game sector when bull market returns. It seems to me that it would be best to side with Mr Zhang when that happens, e.g., sell the game shares and return to sohu share. what's your opinion on the spin off and the motive?Anonymousnoreply@blogger.com