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Baidu Finance also play spin-off seek independent financing, but the valuation is low, no product is flawed

via:博客园     time:2018/2/6 11:31:40     readed:505


Recently, Deep 8 Jun heard some rumors in the industry that Baidu Finance is seeking as much as 2 billion U.S. dollars in financing. Investors may choose to acquire Baidu's shares in Baidu Financial Services Group or choose to acquire new shares in the sector It is reported that this financing transaction is expected to be completed in April.

According to people familiar with the situation, Baidu's financial plan uses part of its financing to invest in several domestic financial companies, such as trust companies. Baidu Finance's net revenue this year is expected to range from 3 billion yuan to 4 billion yuan, and achieve a slight profit.

Deep 8 Jun believes that through this round of financing we can see that Baidu Finance tries to narrow the gap between Ant Financial and Jingdong Finance through the spin-off independence. In such a time node, to understand "is selectively ignored" Baidu Finance, perhaps just for the time being.

Baidu finance a brief history

In recent years, Baidu behind the argument is rampant, Ali, Tencent's market value has reached 400 billion US dollars, the other hand, Baidu has been hovering around 80 billion US dollars, even the rising star of TMD are expected to catch up with Baidu. A strong sense of crisis so that Baidu had to consider seeking a new strategy to get rid of this embarrassing situation.

The development of Internet finance business has become an important part of Baidu's bidding on the market cap of 100 billion U.S. dollars.

Baidu's Internet finance business started in 2013. By the end of 2015, Baidu formed the Financial Services Business Group (FSG), which consisted of consumer finance business, wallet payment business and internet securities business. Zhu Guang, then Baidu's vice president, was appointed as a financial services business Group General Manager Wang Jin, former senior vice president of American Express, joined Baidu Finance and was responsible for the construction of Baidu's financial risk control system. As a result, financial business rose to Baidu's strategic position.

2016 年 6 月 Baidu financial team has added tremendous power, Zhang Xuyang, former general manager of asset management department of Everbright Bank formally joined Baidu, in charge of financial management and asset management business under Baidu's financial system. Former Lu Jin Executive Huang Shuang joined Baidu, In charge of the consumer financial business of Baidu Financial Services Group (FSG), Zhu Guangzhang was officially promoted to Baidu's senior vice president and continued to be fully responsible for Baidu's financial services business.

At the 2016 Baidu World Congress, Baidu financial steering arm Zhu Guang set a tone for development, that Baidu Finance is committed to becoming a real financial technology company, when AI is becoming a brand new story Baidu to the capital market, the financial Become the first scene that Baidu AI realizes landing.

Through the layout in recent years, Baidu's financial business has been extensively involved in banking, insurance, securities, funds, credit, payment, loans, wealth management, asset management and other aspects. At the same time, Baidu also provides financial financial solutions for traditional financial institutions. Step by step Baidu's financial "three-step" strategic vision, the first step "to consolidate the gold service business" through its own business polished data systems and technical capabilities; the second step "to build a platform for gold service" to create Consumer finance and wealth management two platforms; the third step "export financial technology" to provide financial technology solutions.

Why Baidu Financial spin-off?

Deep 8 Jun believes that the spin-off of financial services is the mainstream Internet business trends to ant gold service, Jingdong financial benchmark case, you can get a glimpse of Baidu's financial spin-off path.

In the early years of Ma will Alipay split independent, as the core asset in 2014 set up ants gold service company. As a wholly-owned enterprise, Ant Financial has formed a profound interest bond with state-owned capital including Social Security Fund, Hainan Jianyin and China Post Capital, and the difficulties in applying for a financial license have also been solved. At present, Ant Financial has become the Internet giant with the most complete financial license in China. Apart from fund sales in traditional industries, private banks, insurances and securities also have third-party payment, equity crowdfunding, and personal credit for approval in the absence of traditional financial institutions , It can be said that domestic financial players have made a near-textbook demonstration. Both the most complete financial license, as well as endorsements of state-owned assets, the valuation of the ant gold service is expected to climb to 100 billion US dollars, will become one of the highest in the world of Internet finance giant.

The Jingdong Group also choose "independent" rule of the financial market survival. Jingdong Finance operated independently in October 2013, but Jingdong Finance has been in a loss state since its operation. In November 2016, Jingdong Group announced the launch of Jingdong Financial Restructuring, with the price soaring 11%. 4 months after the completion of the reorganization plan settled, Jingdong Group will be out of all its holdings of Jingdong Financial shares, equivalent to 68.6% of Jingdong Finance shares for a consideration of 14.3 billion in cash and Jingdong Finance 40% of the future profit before tax. After the reorganization, Jingdong Finance has become a domestic-funded company that can apply for a financial license as an independent entity and let go of more diversified financial services businesses such as loans, securities and insurance products in China. The Jingdong Financial also announced the recent change in the single-quarter earnings.

In addition, in May and June last year, Moody's and Fitch successively included Baidu in the negative watch list on the grounds that they worried that the rapid growth of financial services business would increase the company's reputation risk and contingent liability risk, and believed that " Baba and Tencent and other domestic financial services companies also carried out compared to a lot of Baidu less "& ldquo ;.

In summary, the deep 8 Jun that Baidu chose to spin off the financial business because the one hand, after the spin-off background of the domestic capital can be obtained for more business development license required to ensure rapid and healthy development of Baidu financial long-term, and the other On the one hand you can make the current "All in AI" Baidu stripped of financial instability in assets to obtain a higher valuation.

Baidu Finance, which operates independently, will, on the one hand, rely on Baidu's powerful AI technology to make significant advances in AI finance technology; on the other hand, through the participation of new investors, the team's responsibilities and responsibilities will be clearer and easier to implement Landing, but also reduce the cross-impact of other business lines on the financial services, Baidu financial business is expected to usher in the outbreak.

Baidu Finance can achieve "counter-attack"?

Baidu dropped behind in the era of mobile Internet, started late in the financial sector, and the lack of e-commerce scene, making Baidu how much financial appears to be "inadequate". According to the current valuation to calculate, the current valuation of Baidu Financial gold ant service only 1/20, Jingdong Finance 1/3, the momentum to catch up is more fatigue.

At the same time, Baidu Finance failed to come up with a burst of financial products in the past two years, and its core team personnel changed many times. For example, Wang Jin, head of Baidu's financial risk control, chose to leave after joining Baidu Finance for 16 months and then founded Baidu Wallet People, one hundred Fu Bao Zhang, general manager of the company also confirmed the departure from Baidu, once gorgeous financial team curriculum vitae gradually into the yellow yesterday, the industry joked that Baidu Finance now rely on personnel changes to brush the sense of existence, Baidu financial development worrying.

However, although Baidu Finance no matter what a plate out, all with the ant gold clothing, Jingdong financial counterparts a lot less business, but the deep 8 Jun that is not completely no chance to catch up.

With the maturity and development of Internet finance, China is entering a new phase of more in-depth application of financial technology, which is also referred to as the "smart financial" phase. According to statistics, at present there are 800 million economically active population in our country. There are only 300 million people recorded by the central bank for credit reporting, yet another 500 million people have not yet been covered. The credit rate is only 6% and the space for development is still huge. With 188 trillion yuan of assets under management, 58% of non-bank deposits and an online rate of only 10%, the potential should not be underestimated. In addition, insurance, small and micro enterprise financial services are blue ocean market.

Baidu Financial saw such a vast market space, and recently in promoting smart financial activities frequently.

On January 20, Baidu Finance and Accenture jointly released the Joint Intelligence Report on Intelligent Future with AI - Zhu Guang, head of Baidu Finance, pointed out in this report that artificial intelligence is the best The most commercial landing scene is financial, artificial intelligence technology now can make its transformation of the industry is finance, it is clear that Baidu Finance relies on financial science and technology to enable intelligent finance, to achieve the strategic concept of overtaking.

January 25, Baidu Finance and Wuxi Rural Commercial Bank reached a cooperation and work together to create "integration", with financial technology to help the traditional financial services transformation and upgrading. According to the cooperation agreement signed by both parties, this cooperation mainly focuses on the field of finance and science and technology. Baidu Finance integrates the financial and technological capabilities into "one machine" and outputs it to Wuxi Rural Commercial Bank, bringing the big data finance technology and commercial bank finance Organic integration of services to promote the Wuxi Rural Commercial Bank to upgrade to the wisdom.

However, China's Internet companies have never lacked a firm and arrogant target. As players in the market have been exporting financial technology capabilities to traditional financial institutions and speeding up the launch of smart finance through deep cooperation, Baidu's financial future will face even more severe Market competition, the winner in the short term is difficult to determine.

The financing can become a new opportunity for financial development in Baidu, Shenzhen 8 Jun can not comment, but the industry more than a black gold ant clothing, Jingdong financial contest, after all, the development of the entire Internet finance industry will be a Good thing.

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