Alibaba strategic stake in Tianyu Longtong major shareholder Huaping Investment intends to exit (VC336)

On January 18th, Alibaba has reached consensus with Tianyu Longtong on strategic shareholding. From the initial business cooperation relationship, both parties have reached the capital level.

At present, the amount of Alibaba's investment in Tianyu Longtong is unknown. The public relations departments of both parties declined to comment.

Analysts believe that Alibaba's shareholding in Tianyu Longtong mainly has two aspects: First, in the era of mobile internet, smartphones have become application service carriers, and the entrance is of greater significance; Trend, but turning yourself into a company is not Ali's way of doing things, but adopting mergers and acquisitions can try.

It is understood that in order to complete the effective integration after the investment, Alibaba Group's Alibaba Cloud company may integrate with Tianyu Longtong's line of business responsible for the development of Alibaba Cloud mobile phones.

In Ma Yun ’s layout of Alibaba, Alibaba ’s role is to use the user data accumulated by various companies of Alibaba Group to conduct in-depth mining and provide a larger business for the entire Alibaba ecosystem through the cloud computing system. value.

With the development of user needs, Alibaba Cloud needs to play a more important role in the processing capacity of mobile data services.

The layout of the mobile Internet cannot be lacking in terminal support. And Ma Yun has long been optimistic about the domestic mobile phone manufacturer Tianyu Longtong. It has been reported that Ma Yun particularly appreciates the courage of Tianyu Longtong CEO Ms. Rong Xiuli, the execution of her team and cost control.

For Tianyu Longtong, under the trend of mobile Internet, the importance of services and computing will gradually replace the importance of manufacturing in the 2G era. How to introduce rich content operation services will be the core of mobile phone manufacturers' future thinking.

Rong Xiuli believes in this. Rong Xiuli once said that the era of hardware and software has passed, and now it is the era of Internet services. If mobile phone hardware manufacturers do not innovate, the era of the Internet leading mobile phone companies will not come.

It can be seen that Internet service companies such as Xiaomi Technology and Shanda have already included mobile phone manufacturing.

According to official disclosures, the sales volume of Tianyu mobile phone W700 using Alibaba Cloud OS is about 200,000 units, which is not very satisfactory. After the investment and integration, the seamless connection between Alibaba Cloud and Tianyu is expected to develop more excellent mobile phone products.

Alibaba's intervention is also expected to help Tianyu Mobile to further internationalize through its network channel advantages.

Rong Shengli, general manager of Tianyu Longtong's overseas business department, said that in 2012, Tianyu Longtong plans to develop deeper cooperation with Alibaba, which involves copying the model of operating cloud mobile phones overseas, and has already approached some enterprises. According to reports, overseas sales of Tianyu mobile phones accounted for 50% of overall sales in 2011.

In addition, Tianyu Longtong has advantages in traditional channels. In the future, mobile terminals developed by other hardware manufacturers using Alibaba Cloud OS may be expected to be sold through Tianyu's channels.

In addition to the above aspects, Alibaba's investment in Tianyu Longtong also has its own internal factors from Tianyu Longtong in addition to the level of business integration.

In May 2008, Huaping Investment invested 530 million yuan in Tianyu Longtong, and the agreement included Tianyu Longtong's commitment to the listing plan. According to reports, in accordance with the relevant agreement, Tianyu Longtong had expected to launch the Hong Kong listing plan at the end of 2010. But the plan was suspended with Tianyu's internal strategic adjustments and a large number of executives leaving in 2010.

Tianyu Longtong is an enterprise that makes a fortune with the advantages of traditional channels. In the early stage of development, Tianyu developed rapidly through the channel model, maintained a good cooperative relationship with distributors, had a quick capital turnover, and had little pressure on goods. But in 2009, Tianyu Longtong began to shift to the operator market.

In the early stage of transformation, with its good channel advantages, Tianyu Longtong was favored by operators. However, after in-depth cooperation, the Tianyu Smart Phone developed by Tianyu Longtong did not perform well in application services, and Tianyu Longtong's attractiveness to operators was weakening. In addition, the R & D cost of smart phone projects is greater than that of 2G phones, and a project requires millions of capital investment.

At the same time, Tianyu also experienced a decline in the performance of 2G mobile phones. It is reported that its non-smart phone shipments have fallen by 2/3 compared with the peak period.

Under this strategic shift, Tianyu Longtong urgently needs to improve its weakness in Internet services and needs to introduce new funds.

According to people familiar with the matter, Alibaba's stake in Tianyu Longtong also shows that Tianyu Longtong's majority shareholder Huaping Investment intends to fade out.

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