The Upsandandandands and Iterations of the Three Generations of China’s Internet

As of June 22, 2020, Ping Duo duo founder Huang Qiis has a fortune of $45.4 billion ($321 billion), surpassing Jack Ma’s $43.9 billion (310.4 billion yuan) as China’s second-richest man, with Ma Huateng at 19th place with $51.5 billion (364.1 billion yuan).

Although the listing of JD.com shares raised 10 billion yuan, JD.com founder Liu Qiangdong’s 15 percent stake rose, but Forbes real-time rich list data show that Liu Qiangdong’s wealth ranked 132nd in the world, with a fortune of $12.7 billion, less than a third of Huang’s.

Beijing time on June 23, 2020, China’s Internet industry ushered in a historic scene. Tencent’s total market capitalisation exceeded HK$4752 billion, surpassing Alibaba’s HK$4.65 trillion!

4.7 trillion, a startling figure, making history.

Based on the latest market value, tencent’s market capitalisation is equal to 2.4 ICBC, 2.4 Guizhou Maotai, 5.8 PetroChina, 9.4 Sinopec and 14.3 Baidu.

Previous life: the first generation of China’s Internet Giants

China’s Internet year is 1997, so far in 2020, a total of 23 years, China’s Internet giant this kind of called iteration three times.

The first three giants of the traditional Internet era were born: Sohu Zhang Chaoyang, Sina Wang Zhidong and NetYi Dinglei. Among them, Sohu was the leader of the hidden at that time. In 1999, when Ma Yun, then 35, was running a business in Beijing, he ran to Sohu for an interview with Zhang Chaoyang. In 1999, it was Zhang Chaoyang’s time, known as “the godfather of the Internet in China”.

As a result, there was no suspense, and Jack Ma lost. At that time, Zhang Chaoyang, certainly can not think of 10 years later, he has been unable to reach Ma Yun’s item back. In fact, Zhang Chaoyang not only rejected Ma Yun, but also Tencent’s Ma Huateng.

Tencent has been in the early days of the user, can not realize the embarrassing step, Ma Huateng once wanted to sell Tencent, but the price did not agree, so can only continue to do their own Tencent.

At that time, there was a sea return called Gu Yongxuan also went to Sohu interview, he interviewed successfully, in March 1999 joined Sohu as senior vice president and chief financial officer.

In 2005, Gu Yongxuan left Sohu.

In 2006, founded Youku Video, on March 12, 2012 to acquire Tudou.

In 2015, Youku Potatoes sold to Jack Ma’s Ali for $4.5 billion.

Sohu and Sina are both in Beijing, and NetEase is in Guangzhou, south.

Sohu was one of the first of the three companies to show signs of weakness, but Zhang Chaoyang tried to save himself, eventually hatching a search dog in his hand. It was not until June 7 this year that Zhang Chaoyang revealed that Sohu was now out of danger and rescued and began to recover.

From this, sohu has experienced what these years.

In August 2017, Sogou went public, with Tencent holding 38.2% of the shares, ranking it as the largest shareholder. As of May 2020, Sogou has a market value of $1,267 million. Sogou is Sohu’s most successful success story over the years, but compared to Sina and Netease, the gap is still significant.

Many years later, Zhang Chaoyang admitted in an interview that premature success has swelled himself. But any expansion, will not have any good results. Modesty makes people progress, pride makes people backward, Chairman Mao said, many of them are very reasonable.

I have a very deep entrepreneurial feeling is: look at a department good or bad, look at the department head;

Sina in the middle of the internal shareholder stom conflict, Wang Zhidong out, Cao Guowei successor. Under Cao Guowei, Sina hatched Sina Weibo, which was renamed Weibo, which was listed on NASDAQ on April 17, 2014, with a 45.2 percent stake in Weibo, which has a market capitalization of $11.28 billion.

Sina also has a very successful action is rarely noticed, is on April 21, 2020, the world show company shell ST Huiball successfully listed in the A-share, now the market value of about 30 billion yuan, Sina is the largest shareholder.

In other words, the Sina family owns a total of three listed companies, two of which are listed on NASDAQ and one on China’s A-shares. General enterprises after the internal consumption of shareholders, there will be a large-scale decline, with very few exceptions, Sina undoubtedly in Cao Guowei’s hands has become an exception.

NetEase is the only one of the first generation of the three giants firmly grasp the game this powerful cash cow business enterprises, resulting in its strategic competitive advantage has always stood, regardless of the outside wind and rain, still sitting on the Diaoyutai, this and the second generation of one of the three giants of Tencent is exactly the same!

This strategy is very much in line with Mr Li’s business strategy: even in the face of a full-line loss, there must still be a core business that can make money. In the private enterprise, the boss’s culture is often the culture of this enterprise, life and death success or failure of the boss.

Zhang Chaoyang so, NetEase’s Ding Lei also so.

Ding Lei’s personality is more “Buddhist”, has a strong feeling, so NetEase is also a very Buddhist enterprise, never catch the wind, only in their own site to work hard, the pursuit of product extreme details, not impatient, slow work out of fine work. NetEase over the years to create a lot of industry quite well-known products, such as Taoyun notes, NetEase Cloud music, NetEase strict selection, koalas purchased overseas, etc. , the ultimate.

Among them, in September 2019, NetEase koalas sold to Ali for $2 billion.

On October 25, 2019, NetEase hatched a separate spin-off, listing on the New York Stock Exchange, with a market capitalisation of $3.353 billion to date.

Road is NetEase’s only incubation listed enterprises.

NetEase is the first Internet enterprise to enter the field of pig farming with great fanfare, Ding Lei participated in the Wuzhen Forum many times to their own pork group dinner guests.

The Upsandandandands and Iterations of the Three Generations of China's Internet

The first three giants were all web portal business models, which originated in the US. Moving America’s success story to China is a microcosm of the early Chinese Internet world.

The first generation of the Big Three laid a very peculiar foundation rule for the entire Chinese Internet: the outside world can’t do much local.

Once upon a time, the portal’s ancestor Yahoo! and the world-class Internet king Microsoft’s MSN China have been whistling in the portal field, but have folded, the first generation of the Three giants have not moved. Sohu is now worth $360m, Sina has a market capitalisation of $2.358bn and NetEase has a market capitalisation of $57.067bn.

23 loadfloat, high stand up.

In particular, sina officials have always felt that their market value is undervalued, in fact, it is very reasonable to see the hands of the two companies, WeChat U.S. shares listed, the market value of 11.28 billion U.S. dollars;

Cheng Wang’s Defeat: Second Generation China’s Internet Giants

China’s internet world’s second generation of the three giants are Jack Ma’s Alibaba, Ma Huateng’s Tencent and Li Yanhong’s Baidu.

Ali with the rise of e-commerce, all the way to the song, and ultimately achieved hundreds of billions of dollars of giant status, here, we need to emphasize that Jack Ma founded Alibaba is not a reference to a foreign success story, but its own original business model. The same age of Tencent reference is Israel’s ICQ, Baidu reference is the United States google.

Tencent has firmly grasped the game’s powerful cash cow by firmly controlling the strategic portal of social networking (QQ and WeChat) and has held on for years, with China’s biggest gaming company remaining unshakable.

On September 27, 2010, 360 released its newly developed “Privacy Protector”, which specializes in collecting qq software for violating user privacy. On November 3, 2010, Tencent announced that it would stop running QQ software on computers equipped with 360 software, forcing users to “choose one after another”. The two sides exchanged three lawsuits, and finally won by Tencent, the Ministry of Industry and Information Technology came forward to calm the incident.

This is the 3Q war that has rocked china’s Internet.

The 3Q Battle is a great battle. It not only brings important strategic value to Tencent, but also brings new strategic significance to the Internet in China as a whole. It fully awakened Tencent this lion, so that it resolutely pickup “investment” this strategic edge, the front, the momentum is appalling, since then, China’s venture capital circle no one can easily ignore the “Tencent’s will.”

In January 2011, Tencent set up a 5 billion yuan industry win-win fund, which is said to be “capital support for outstanding innovative enterprises in the Internet and related industries” from market capitalization data, Tencent really achieved the president Liu Guangping’s strategic goal of “creating a Tencent with investment.”

The Upsandandandands and Iterations of the Three Generations of China's Internet

Tencent’s investment, quickly make it from the “public enemy of the whole people” to become the real meaning of Jianghu worship and the big brother enterprises, Tencent’s “capital and flow” model, daunting.

Without the 3Q War, without 360 Zhou Hongxuan, there would be no awakening behind Tencent. Therefore, I insist that Zhou is probably the most important contributor to Tencent after Ma Huateng. At the same time, he has a great indirect strategic impact on the entire Chinese Internet industry.

Another special contribution of the Zhou god was to reject Wang Xing. At that time, Zhou god went to the Sequoia Fund office meeting, inadvertently met wang Xing, who was still drumming up Renren.com, Wang Xing went to Sequoia to seek financing. Two people a face, Wang Xing did not leave a good impression on Zhou Hongxuan, suggested that sequoia refused, Sequoia adopted.

Renren’s financing is not possible, the capital chain is tight, helpless to resell The Thousand Yu Group Chen Yizhou. Wang Xing ran again to toss the rice or not and other two projects, both failed. Then, in March 2010, Wang Xing founded the U.S. League, ushering in a nine-win, $160 billion market value of the high-gloss moment.

In fact, Alibaba’s outbound investment was earlier, and in 2008 it set up an investment division. It was not until 2011 that Ali Investment brought in its first investor with professional investment experience, opening the way for an equally stunning investment merger.

Tencent and Ali’s huge and strong cash flow has also made the entire Chinese venture capital industry look on. General venture capital companies also need to solve the big problem of raising capital, venture capital money is actually someone else’s.

Tencent and Ali don’t need it, they use more of their own cash flow, and what they’re more frightening about is that they can continue to generate strong cash flow every year, regardless of the success or failure of their upfront investments. Venture capital firms if the project failure rate is too high, and then want to raise capital, it is very difficult, Tencent and Ali do not need to consider this issue.

In addition, they also hold a mouth-watering flow inlet that investment firms don’t.

The venture capital industry began to ask entrepreneurs, “If Tencent or Ali also enter the industry, what do you do?” “。 Behind this problem is deep fear and uneasiness, because whether it is the financial strength, or industry resources, the general venture capital institutions are difficult to compete with Tencent, Ali such giants.

In contrast, Baidu reference to the U.S. Google model in the early days is also a big leap forward, Li Yanhong innovatively proposed “pay ranking” model, although it is intriguing, but also did earn a full plate.

For a long time, Google competed with Baidu in China, and for specific reasons Google pulled out of the market in January 2010. Since then, Baidu has been a unique company in the field of Internet search.

Although Baidu has so far firmly controlled the search field, but relative to Tencent and Ali, the reverse water boat, do not advance or retreat.

As of June 22, 2020, Baidu had $42.1 billion in market capitalisation, Tencent 4.53 trillion Hong Kong dollars ($582.6 billion), and Ali was listed in both Hong Kong and U.S. stocks, with a new market capitalisation of $590.548 billion.

The second generation of the same early as one of the three giants, now Baidu market value even Tencent and Ali’s fraction is not, the gap between the two sides is about 14 times!

Baidu, obviously fell out of the second generation of the Big Three.

Tencent has been a competitor to JD.com’s e-commerce business for a long time. Currently, JD.com is worth $91.3 billion in the U.S. stock market, and Tencent is the largest shareholder. In other words, JD.com has overtaken Baidu for a long time.

Obviously, in the investment and incubation of these two things, Ma Yun and Ma Huateng dry is not retail, engaged in wholesale. They are fully aware of the value of money and flow, and they have a deep insight into how cooperative is far better than confrontation.

As an Internet giant, Baidu’s investment business was actually established on March 18, 2016, compared to Ali Investment Department in 2008, Tencent in 2011 win-win fund, Baidu is not a star and a half point.

Slow, has been a very serious strategic mistake, Baidu investment bigger problem is that there are few success stories, the failure rate of major cases is very high.

Baidu’s high hopes of “yes ah” on October 28, 2008 officially launched, had boasted that within three years to beat Taobao. Three years later, in 2011, Baidu had a ah announced the closure, the end of the fold.

Similarly, Baidu’s high-stake, which had been highly anticipated, failed. Baidu Takeaway became a wholly owned subsidiary in August 2017 for 4.2 billion yuan ($636 million). On April 2, 2018, Hungry Man sold Ali for $9.5 billion.

Baidu shocked the venture capital world in 2014 when it bought 91 mobile phone assistants for $1.9 billion (about 11.9 billion yuan). Four years later, the 91 mobile assistant, such as chicken ribs, abandoned. The case is also known as “Baidu’s biggest failure in an investment acquisition”.

On June 30, 2015, Baidu Officially launched its “Member Plus” O2O Eco Strategy, and Baidu Chairman and CEO Robin Li announced that it will invest an additional RMB 20 billion in Yumi’s business over a three-year time.

In fact, from the investment success rate point of view, Tencent failed the case is the largest (its investment is also large, the base is large), but Baidu is the most serious loss, Ali is the best.

Whether it is internal incubation or external investment, once again proved that Baidu’s internal management mechanism and talent construction must have fatal problems.

Baidu is particularly dominant in the search field, still earns a lot of money each year.

Originally 360 weeks Hongxuan is most likely to become the challenger of Baidu search, but at that time just happened to be the beginning of the rise of the mobile Internet era, Lei Jun led the xiaomi spring breeze horseshoe disease, resulting in 360 dropped the search, ran to toss mobile phone, again missed the opportunity to search for a brother!

Now, the most likely challenger to Baidu search should be Zhang Yiming’s Byte Dance. If Baidu search barriers once broken, Baidu will certainly appear cliff-like decline, because the opponent’s strategy must be high-dimensional playlow, but also non-linear competition, there is the possibility of success.

In fact, Mr. Ma, like Mr. Li, has misjudged the mobile Internet and has not been acutely aware of the differences and changes that the mobile Internet will bring.

Fortunately, Ma Yun realized the mistake, by virtue of the power of capital, quickly filled the gap in time, and based on the original main business is very good extension and adaptability, Ali’s original majority of business transformation mobile Internet, but also relatively smooth, so the mobile Internet to Ali system brought negative, not big.

Tencent first by virtue of WeChat, got the first ticket to the mobile Internet, hand-held QQ and WeChat two killers of the technical pressure group, continue to sit on the Diaoyutai.

In fact, the first to fully realize the advent of the mobile Internet era is Lei Jun, this is why Xiaomi can go all the way to the core reason.

Strictly speaking, Xiaomi is the first Chinese to eat mobile Internet celebrity benefits, thus becoming a classic case of super-large enterprises. However, the facts also proved once again that in China’s Internet, dry hardware is always dry but not engaged in software.

Xiaomi was the first to go to the table, but didn’t eat the biggest piece of cake on the internet, and the one that actually ate the biggest piece of cake was Byte Dance, followed by Ping Duo Duo.

In 2014, Mr. Li publicly acknowledged that Baidu had entered the Internet early, but that the pre-judgment of the mobile Internet was flawed, and even at one point in the early days rejected the value of the mobile Internet.

Therefore, Baidu has rightly missed a large number of high-quality mobile Internet enterprises, which is a pity.

In fact, the second-generation Chinese Internet giants, whether in capital, strategic layout, or market capitalization (dozens to hundreds of times gap) have been all-round, large-scale over the first generation of the Big Three.

The second generation of China’s Internet giants also opened up the internal and external two forces, in-house incubation, foreign investment or mergers and acquisitions, which undoubtedly greatly promoted the entire Chinese Internet industry vitality and development, a hundred flowers in full bloom, millions of families. The development and penetration of the Internet have also generated different thrusts on traditional industries, which has brought about great changes in the business environment in China as a whole.

This is a huge difference between the first and second generation giants. To some extent, Ali is in fact tenor itself, a competitive giant.

In 2003, Ma Yun started Taobao, once found Ma Huateng cooperation, hope that he invests in Taobao, accounting for 15% of the shares, but Ma Huateng has not experienced 7 years after the 3Q war, investment thinking has not yet awakened, he is not optimistic about Taobao’s business model, but also think that the share of 15% is too low.

Therefore, reject.

Later, Ma Huateng admitted: “I did not invest in Taobao, I regret to die!”

If the battle for 3Q did not take place in 2010 but in 2003, Ma Huateng might invest in Taobao. If Tencent is an important shareholder in Ali, it is certainly a jaw-dropping and bloody thing, and the world is very different.

Ali although the early B2B performance is good, but C2C e-commerce business really take off, is from Taobao. Taobao beat eBay in the U.S. in a free mode, forcing eBay to pull out of the Chinese market and establish Taobao as a dominant player in China’s e-commerce sector, thus truly establishing Ali’s dominance in the e-commerce field.

Based on the actual needs and flow advantages of e-commerce, Ali extended alipay, Tmall and other businesses, and gradually formed their own large and unique e-commerce industry system, become a 500 billion U.S. dollars of big macaus.

In fact, not only Zhang Chaoyang, Ma Huateng refused to Ma Yun, when the powerful Lei Jun also refused to be weak Ma Yun at that time.

Lei Jun’s reason is that Ma Yun put things too big, he dare not believe.

Even more magical is the godfather of Chinese business, Lenovo founder Liu Chuanzhi, tencent, Ali and Baidu all rejected once.

Can refuse BAT, so far, only Liu Chuanzhi a big man. In essence, Lenovo is rejecting the whole era.

Global expansion: The time has come for the third generation of the new big three

Huang’s Ping Duo Duo, Wang Xing’s American Group, Zhang Yiming’s Byte Dance, I call it the “New Three Giants of China’s Internet”, their time has come.

One very special is that Ping Duo Duo and Byte Dance are both companies based on the mobile Internet. The nature of the business of the United States group and Ali’s Alipay, Taobao, Tmall and other main business is highly similar, can be very smooth extension to the mobile Internet field. The essence of group purchase is e-commerce, and Ali’s core business e-commerce is the same thing.

Therefore, JD.com and Ali have contradictions, the United States and Ali have conflict, are inevitable.

Ping Duo Duo is now valued at $96.828bn; HK$1, 000bn (about $160bn) and Byte Dance, which is not yet listed, is currently valued at $100bn (August 2018, $75bn).

Ping Duo Duo has been doing this for five years, the shortest time; the Us 10 years; the byte is not yet listed, valuing it at $100 billion, eight years. The timing of the first and second-generation Giants need not be said. In reverse valuation from the time dimension, byte growth is rocket speed, it may be three generations in a row, the nine giants of the single fastest growth enterprise, this is its first unique.

The Upsandandandands and Iterations of the Three Generations of China's Internet

If Byte Dance goes public, it is likely to surpass PingDuoDuo’s market capitalisation, not to the same level as the Us, and possibly even the Us Group, because byte is the only one of the three companies to achieve a large-scale profit, which is a natural advantage of its business model, while Ping Duo duo and the us group are still in the strategic loss phase.

The value of the three companies, in fact, has been far away from Baidu, to replace. At the same time, they also surpassed the original third-ranked JD.

The e-commerce business of Ping Duo Duo, the only one of the new big three, is a major competitor to JD.com, which, by market capitalisation, has now narrowly bet on JD.com’s $3.7 billion.

But JD.com has been in development for 22 years and Ping Duo Duo has only been in the same place for five years. However, JD.com also has an ace in JD.com’s logistics, which has yet to be listed, and is valued at about $10.9 billion. If JD.com adds this card, it could easily beat Ping Duo Duo.

As to whether we can surpass Tencent and Ali in terms of market capitalization, I think this is not high, because the current Ali and Tencent can no longer be regarded as a single enterprise, they have grown into a basic ecosystem, and this system is the need for hundreds of billions of capital strength and time, not short-term can be done.

In particular, Tencent’s hands also have micro-banks, Ali also has Ant Technology in hand, these are hundreds of billions of levels of strong cross-sectional cards. Excluding Baidu, Ali and Tencent, the three rising star companies, are China’s five most powerful and high-profile Internet companies, with a combined market capitalisation of more than $1.5 trillion.

The United States group was established on March 4, 2010, has developed a total of 10 years, a thousand regiments, and finally sit on the group purchase industry’s first chair position. On October 8, 2015, the U.S. Group merged with Popular Reviews. Soon, Zhang Tao, the founder of the popular review, left, and Wang Xing took control of the big picture.

When Meituan Dianping went public in 2018, Mr Wang said that one in four people in China had spent money on a US tour. With a firm control over offline merchants, the Group has successfully extended the business from a single group to a single group to a restaurant, movie tickets, travel, hotel reservations, takeaways.

In particular, it is worth noting that the group purchase industry to push the first, push the team management difficulty is very large. At present, the Internet industry can count out of the ground push legion one hand can count, only Ali, the United States regiment, hungry 3. This is the United States group significantly different from other giants unique, I summed up as “wireless under, not the United States group”!

Among them, the american group hatched the cat-eye movie from within the movie ticket business in February 2012. In April 2016, the Group independently split spun off Cat’s Eye. On May 27th, Light Media announced that it had acquired a total 57.4% stake in Cat’s Eye through share swaps, cash and other means, and Cat’s Eye sold its own light, but the company still held a 32.6% stake in Cat’s Eye and 6% of Light Media.

In the deal, Cat’s Eye was valued at about Rmb8.3bn.

Of particular note is the significant under-line advantage of the U.S. mission, coupled with the competitive advantage of high-dimensional playlow, and it is the most likely to cut into the taxi field, facing the real meaning of the drip taxi competitors.

On February 14, 2017, the U.S. mission in Nanjing piloted a u.S. mission taxi, causing a drop-down strong reaction. At present, the United States group taxi operation in a number of large cities, but the business model and drip is very different, is the introduction of external partners in the mode of operation, non-self-employed.

From a competitive point of view, the United States group cut into the taxi, it is relatively easy; At present, the United States cut into the line under the charging treasure field, the use of this style of play, exactly the same.

Ping Duo Duo was founded in September 2015 for a total of five years, and on July 26, 2018, it landed on the U.S. capital markets, with a market capitalization of $24 billion. Ping Duo duo is the fastest-growing company among China’s three generations of internet giants, and it has to be said that it is at the top of the list of mobile Internet celebrities.

Ping Duo Duo is completely different from Ali and JD.com C2C e-commerce model, the implementation of C2M group shopping third-party social e-commerce model, users through the launch of groups with friends, family, neighbors, etc., advocate a lower price, group to buy high-quality goods, thus forming a rapid virus-type fission state, rapidly accumulating users and expanding visibility.

Ping Duo Duo was the first to rely on Tencent’s WeChat ecosystem, so Tencent is Ping Duo’s second largest shareholder, with a 16.5 percent stake. In addition, Tencent holds 20.14 percent of the company and is the largest shareholder, according to a prospectus for the listing. In addition, The Drop-by-Car, founded by Cheng Wei, is currently valued at about $50 billion in 2018, with Tencent holding about 11 percent of the shares and the largest shareholder.

The former third-strongest Chinese e-commerce company is the Guangzhou-biased only product club, the current market value of $14.195 billion, since the rise of Ping Duo Duo, only product will fall to become China’s fourth largest e-commerce, Tencent is its second largest shareholder, JD.com is the third largest shareholder.

That is, Tencent has become an important shareholder of two of the new big three, the influence is not surprising! Tencent also holds the three aces of JD.com, Ping Duo Duo and U.S. Group, as well as micro-banking and WeChat payments.

Tencent, Ali, Byte, Ping Duo Duo, JD.com, Drip, Met, Baidu. China’s Internet eight strong, five belong to Tencent.

In fact, among the new big three, Ping Duo Duo is actually facing the most competitive pressure, because it has to face both Ali and JD.com’s two big rivals, in the short term, Ping Duo Duo has the most variables, in the core area of e-commerce, still can not be completely said that Ping Duo is 100 percent solid. In contrast, american groups and bytes, in their respective core areas, currently have little real meaning for competitors.

It can be said that they have established core competitiveness and moat in their core sites.

Of course, the e-commerce circuit is large enough, Ping Duo’s moat is not 100% strong enough to mean that it will fail, but it can do how much, or like JD.com, for many years in the old two (or the old three) position, difficult to break through, there is a certain unknown, which is determined by its core business.

The choice of e-commerce circuit means that it can be quickly stronger and bigger, but it also means that it will be strongly countered by both Ali and JD.com.

Also need special attention, the current Ping Duo Duo is still the main development of e-commerce business, hoping to determine their core position in the field of e-commerce, and not too much foreign investment to expand its ecological system.

At the same time, the new big three, The American Group and Byte Dance, have launched a large-scale outbound merger and acquisition, in the same way as Ali and Tencent, to build a huge ecological industry system.

Byte Dance, founded by Zhang Yiming, is a more magical and remarkable company than Ping Duo Duo, founded in March 2012 and has been growing for eight years.

Byte was first entered the market in the form of “today’s headline” news side, and through massive information collection, deep data mining and user behavior analysis, it recommended personalized information for users’ intelligence, thus creating a new mode of news reading, and it was also the earliest and most successful application of artificial intelligence to the mobile Internet scene of Chinese Internet enterprises.

Byte’s products include short video, watermelon short video, volcanic video, Faceu, car emperor, Wukong question and answer, covering video, information, social, education and other fields. Byte is very different from the first and second generation of the Big Three, although it was only 8 years old, but the layout has been overseas for 5 years.

In the second point of the letter of the eight-year-old internal letter, Zhang Yiming announces his appointment as CEO of Byte Global, explicitly mentioning that more time will be spent in the U.S. and Europe and other foreign markets. In fact, Tencent and Ali’s overseas market layout is in the domestic market to achieve a certain degree of foundation, only to do.

ByteDance starts in emerging markets such as India and Indonesia and moves to developed markets in Europe and the UNITED States. In August 2015, ByteDance launched an overseas edition of Today’s headline TopBuzz, taking the first step in expanding overseas. Investin in Dailyhunt, India’s largest news aggregation platform, in October 2016 and BABE, Indonesia’s largest news-recommendation reading platform, in December 2016.

At the same time, based on the huge success of short video at home, byte began to replicate this model to Europe and the United States, quickly launching a series of investments and mergers and acquisitions.

The overseas version of Watermelon Video TopBuzz Video was also launched in September 2016. In February 2017, Byte Dance acquired Flipagram, the US short-video app, to invest in Vshow, launched its overseas version of TikTok in May, and in May this year, its overseas version of TikTok was the world’s top mobile app (non-gaming) download list with nearly 112 million downloads.

In July, Vigo Video, an overseas version of Volcanic Video, went online; in November, it acquired Music.ly, the Us short-video app, and invested in Live.me, an overseas live-streaming product that owns short video Cheez.

As of July 2019, the total number of byte products worldwide is more than 700 million, and the total MAU exceeds 1.5 billion. Of these, more than 320 million live.

Media reported that Byte Dance’s revenue in 2019 was RMB120 billion. By 2020, byte’s revenue target is 200 billion yuan, or half of Tencent’s. In 2019, Tencent’s revenue was 377.3 billion yuan.

A few days ago, the head of the byte game in the micro-headlinepublicly said: “We are very optimistic about the game this direction, will have the patient continued input.” The game is the content industry, as long as there is patience, the content industry is very difficult to be monopolized. “The first half of the sentence indicates attitude, the second half is no different to tencent and NetEase listening.

Because the game is the core source of profits for Tencent and NetEase, byte is tantamount to declaring war directly on Tencent and NetEase.

What’s even more bizarre is that in early June 2020 (that is, early this month), ByteDance has formally established a tier 1 business unit clearly named after “e-commerce” to co-ordinate the operation of the company’s e-commerce business on a number of content platforms, including sound, today’s headlines, and watermelon video.

Byte, it seems, is a plan to go the path of content e-commerce, unlike the business models of Ali, Ping Duo and JD.com. However, e-commerce is, after all, Ali’s main business, both Ping Duo Duo and Jingdong Tiger Dragon Plate, is likely to cause Ali’s hostile attitude.

It’s a jaw-dropping move, whether it’s a success or failure.

In China’s Internet industry, 360-year-old Zhou Hongxuan is the only person who has singled out the second-generation Big Three (Ali, Tencent and Baidu) to cause them great trouble, but is still alive and well.

As Baidu has fallen among the giants, Zhang Yiming is the second historic battle-level figure after Zhou Hongxuan if word energy saving challenges ali and Tencent.

According to the latest news, the Worldwide Downloads of ByteDance, which soared during the ByteDance outbreak, are now valued at $100bn.

Byte Dance’s AndTikTok has more than $78 million in global Apple App Store and Google Play Store in April 2020, surpassing YouTube’s $76 million for the first time, according to Data from Sensor Tower.

In an interview, a partner at a veteran PE agency in the United States revealed that he was shocked by Byte Dance, “before June 2018, several video platforms such as Sound, Volcano, and Watermelon were not sold at a single penny, and then commercialized charges for at least a hundred million dollars the day after.”

Cross 23 years, explore China’s three generations of “three giants” iteration and rise trajectory, the biggest feeling is: each era has its own great enterprise, each era has some heroes, each era also has some new heroes appear.