Latest news with #SuperVIP
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Tencent Music to buy Chinese audio platform Ximalaya for $2.4 billion
China's Tencent Music Entertainment Group said on Tuesday it would buy domestic long-form audio platform Ximalaya for about $2.4 billion in cash and stock, expanding its library of content to attract more paying users. The deal will give Tencent Music access to a diverse creator network that includes professional and user-generated content on topics spanning history, business and entertainment. It is one of the few sizeable M&A transactions in the technology sector in China in the recent years. An unprecedented regulatory crackdown on private enterprises in the country, starting from late 2021, had cast a chill on dealmaking. The deal also comes as Beijing has been looking to bolster private-sector sentiment and encourage executives to expand their businesses against the backdrop of a deepening China-U.S. tech war and Chinese economic slowdown. Tencent has made large investments in long-form content such as podcasts and audiobooks to grow its Super VIP program, which offers a premium experience by bundling high-quality audio, online karaoke and exclusive event access. Still, 86Research analyst Charlie Chai warned that integration could be a challenge, pointing to Tencent's $417 million deal for Lazy Audio in 2021 that struggled to unleash the gains that were originally expected. "The TME-Ximalaya deal could be compromised by similar organizational friction, keeping the latter as mostly an independent entity over the near term," Chai said. The deal follows Tencent's quarterly revenue last month exceeding expectations, driven by subscriber growth in its online music services, particularly in long-form audio. The company will offer $1.26 billion in cash and Class A shares representing up to 5.20% of its total outstanding stock. It will also issue shares to Ximalaya's founder investors not exceeding 0.37% of its total share count. The stock component totals about $1.15 billion based on Tencent's last closing price on April 24, a day before Bloomberg News reported about the deal.
Yahoo
20-05-2025
- Business
- Yahoo
Chinese Discount Retailer Vipshop Stock Is Tumbling Tuesday: What's Going On?
Vipshop Holdings (NYSE:VIPS) reported its first-quarter results on Tuesday, with sales reaching $3.62 billion (26.27 billion Chinese yuan), in line with the analyst consensus estimate. This is a 5.46% decrease over sales of $3.83 billion the same period last year. The Chinese online discount retailer registered adjusted earnings per ADS of 61 cents or 4.43 Chinese yuan, missing the analyst consensus estimate of 66 cents. Total orders for the quarter were 167.2 million, compared with 178.5 million in the prior year period. The number of active customers for the quarter was 41.3 million, down from 43.1 million a year quarter's gross margin was 23.2%, down from 23.7% in the prior year period. Gross profit declined 7.1% to $838.2 million (6.1 billion Chinese yuan). GMV (Gross Merchandise Volume) for the quarter was 52.38 billion Chinese yuan versus 52.44 billion Chinese yuan a year ago. As of March 31, 2025, the company had cash and cash equivalents, restricted cash of $4.0 billion (28.9 billion Chinese yuan), and short-term investments of $26.5 million (192.3 million Chinese yuan). During the quarter, the company repurchased $16.9 million of its ADSs under its current $1 billion share repurchase program. It continued share repurchase of $4.3 million under its current $1.0 billion share repurchase program, which is effective for a 24-month period through February 2027. Chair and CEO Eric Shen said the company continued to make progress on the strategic actions it had set out to return to growth. He further noted the expansion of its off-price brand supply, which drove the double-digit growth in Super VIP customers. Outlook: For the second quarter, the company expects total net revenues between 25.5 billion Chinese yuan ($3.51 billion) and 26.9 billion Chinese yuan ($3.71 billion). This range falls slightly below the analyst consensus of 26.42 billion Chinese yuan ($3.64 billion) and represents a year-over-year decrease of approximately 0% to 5%. Price Action: VIPS stock is trading lower by 8.21% to $14.20 premarket at last check Tuesday. Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? VIPSHOP HOLDINGS (VIPS): Free Stock Analysis Report This article Chinese Discount Retailer Vipshop Stock Is Tumbling Tuesday: What's Going On? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
