SINA crux of pain?

May 8, 2006, SINA Announces succession by Weiguo Cao: Wang yan as the new CEO, at this point, just a 7 year Sina CEO replaced by 5 digits. 9 may, the new wave publishing 2006 first quarter did not audit the fiscal report, total revenue over a 4670 million, while total revenues NetEase 6610 $ TOM4858 million, while Baidu's rapid growth as the industry claimed. Frequent turnover, CEO performance growth momentum, and from time to time out was acquired, which all seem to presage Sina that era of the "unrealistic", has two new expensive macroclimate drifted away. SINA, the crux of the pain?

May 8, 2006, Wang Yan calmly announced the resignation of Sina, CEO of take a back seat to Prime, he was named Vice Chairman of the Board. At this point, SINA CEO since 1999 and not treating the Sha is known to have to specialize in industry of Janet Leverling, capital good dance maodaolin, Prime retreat Wang yan, Weiguo Cao: financial background, in a short period of 7 years with a 5-bit has been replaced. In the meantime, the Board of Directors the same dramatic changes. For an annual revenue of approximately $ 200 million of listed companies, so frequent changes in top management, does not seem to use the Internet can be completely unpredictable and industry characteristics and complicated to explain, much less the as Sina, Duan Yongji has said, "this is very normal."

At the same time, the Sina business development also is not satisfactory, except for network news to keep China's Internet media first brands, gaming, wireless value-added, search all competitors. Network News position, change the operation mode of advertising, SINA increasing advertising revenue, but the increase in advertising revenue and not to bring up the total revenue.

Accompanied by changes in top management and performance, SINA shareholder structure also frequent shocks. Now the big surprise of acquisitions, will incorporate 19.5% stake, after the coming in of Germany who michaelj.g.gleissner bought 6.4% stake, but years later merged with tom.com also increased significantly.

It all began so confusing: the first ever Chinese website, why has lost its former glory and future direction?

What made the first Portal status

SINA predecessor SINA Corporation was founded in late 1998, consists of four tonglifang information technology co., Ltd. and SinaNet news company merger, and the same name as the Chinese Web site launched. Of these, four tonglifang accounted for 60% of the shares, huayuan information accounted for 40% of the shares.

Four tonglifang is a professional engaged in the Chinese software product development, sales and service of joint-venture company, the four-way group, the inventor of the "Chinese Star", as well as Janet Leverling CCDOS inventor yanyuanchao December 1993 co-founder. In accordance with the agreement, the four-way group accounted for 79% of the shares, representing 21% of the shares. But this Protocol in 1997, the first venture into cash only; that is, until 1997, to Janet Leverling-led management only got four tonglifang 21% of the shares.

SinaNet news company in 1995, in the United States in Silicon Valley from three ethnic Chinese graduate students at Stanford University, jiangfeng years as General Manager. Merge with four tonglifang, huayuan is already the largest overseas Chinese website.

The introduction of venture capital

In September 1997, the successful introduction of the four tonglifang Walden international investment group, three international high-technology venture capital company, internationalization, is the first company to introduce the mechanism and the Silicon Valley venture capital management software company. The introduction of venture capital, not only for SINA provides funding for development, but also introduced international advanced management ideas, future Sina big brand laid the Foundation, but also for future equity to lay scattered.

In 1998, SINA to France World Cup coverage in the world, become the "first the starting point of the portal". After the Sina news in the Kosovo war, Taiwan earthquake, China's accession to the WTO, the Sydney Olympic Games, "9 · 11" and other major events of the report was a great success, firmly established the Sina in global Chinese Web site of powerful advantages.

Content-core team

SINA news of success, and the original four tonglifang website sports salon owner, SINA global Senior Vice President, editor-in-Chief of Chen Tong are inseparable. Early, Chen Tong recognizes that the Internet is an ideal platform for the dissemination of sport events, compared with other traditional media, with time-sensitive features. 1997 FIFA 10 strong race, Chen through various means, and to establish contacts in all arenas of friends, through a variety of competition throughout the reporters collect information, and created a precedent, a webcast allows visitors in a short period of time increased substantially, established China's first football website. In addition, SINA editors part comes from the China Youth Daily "and other traditional media, the news is highly sensitive. Advantages of high-quality under the leadership of the team became the Sina news success.

And SINA also relies on the Sina news the pool's strong popularity, becoming the first Chinese portal, and succeeded in the attention economy into great business value. The first quarter of 2006, SINA net revenue of $ which advertising 4670 revenues 2220 million, net profit of $ 7 million, net profit up 15%, enterprise accounts and more with 3 billion in cash.

Although the Sina performance looks good, but compared with other portal site this is unsatisfactory. NetEase 2006 first quarter revenue of $ 6610 net profit 3660 m; TOM Web site during the same period income 4858 million, profit is $ 1214; even the business model and SINA Sohu company nearest, or quickly reduced the gap with Sina, Sohu in the first quarter of 2006, net income of $ 3130 million in profits.

Competitor's excellent performance

For SINA this once Chinese first portal rather embarrassing. SINA that lost many of their competitive advantage? and analysts are media analyzed, can be summarized in three categories: one is the high-turnover; second, the development strategy of swing; third, the share ownership dispersion.

However, these difficulties are caused by SINA's real reason?