THE DYNAMICS OF INTERNET-BASED MULTINATIONAL CORPORATIONS IN CHINA: YAHOO! CHINA CASE

Abstract              This paper aims to analyze the dynamics of internet-based multinational companies in China with a special focus on the discussion of the factors behind the closure of Yahoo! Inc.’s business operations in China by 2015. In order to answer this research question, this paper uses a qualitative method based on literature study as a research method. Based on the theoretical approach offered by obsolescing bargain theory and Porter's five forces model, this research conclude that the Yahoo! Inc.’s withdrawal from the Chinese market due to the accumulation of the increasingly stringent Chinese Government regulation on the internet and the increasingly competitive domestic internet industry. Strict regulation is representation of the "shift of bargaining advantage" while market competitiveness is evidence of Yahoo! Inc.’s lack of competitive advantage.Keywords: China, Internet, Multinational Corporations, Yahoo! Inc

Research on Multifunctional Integrated Internet Platforms

Throughout the development of China’s Internet industry for more than 20 years, we can tease out three stages that can represent the trend of the times: the first stage can be called the Portal Era with the entire Internet industry dominated by portal websites. However, with several major portals ’transitions after being unable to maintain effective operation of their profit model, the Portal Era came to an end. The second stage we call Social Network Era , represented by Sina Mircroblog and WeChat. The former had successful transitions after several ups and downs and the latter is trending and promising. Also vigorously developing are various social websites and mobile apps. In the midst of the laughter of those entrepreneurs, the industry came to a third stage of development: The Era of E-business. These three stages did not appear one after another in chronological order. Social networks and e-business platforms in fact exist simultaneously with two groups of people hitting on different roads that lead to the same destination. Social networks and business platforms are now already inescapably intertwined with each other: social networks attract traffic for e-business platforms while e-business platforms provide profit in return. What is more, big Internet giants aim to create a theme park magnificently situated in the internet world to provide one-stop services like portal browsing, e-business, third party payment, social networking and entertainment. At the same time, social network leaders also gradually provided e-commerce .and the third party payment service without willing to pave way for others. Longer ago, with the smart phones sweeping the world, the mobile internet era approached quietly while online and offline businesses increasingly converged. Therefore, we have reasons to believe that the next important stage of Internet development will be named as the era of multi-functional integrated Internet platforms

Platform Competition with “Must-Have” Components

In platform-component systems with indirect network effects, some components are so popular with consumers that they have strong bargaining positions and can be regarded as “must-have” from the point of view of the platform. For example, ESPN is a must-have component of cable TV platforms. This paper presents a theoretical model to assess how platform market structures affect the likelihood of exclusive versus non-exclusive contracts between platforms and components. The model evaluates the combined impacts of (i) the popularity of the component, (ii) the platform market share difference and (iii) platform technological compatibility on the platform-component contractual arrangements. It shows that a component provider is more likely to sign exclusive access contracts with a single platform if its popularity is high, the platform market share difference is large, and platform compatibility is low.network effects, bargaining, platforms

Why are some websites researched more than others? A review of research into the global top twenty

The web is central to the work and social lives of a substantial fraction of the world’s population, but the role of popular websites may not always be subject to academic scrutiny. This is a concern if social scientists are unable to understand an aspect of users’ daily lives because one or more major websites have been ignored. To test whether popular websites may be ignored in academia, this article assesses the volume and citation impact of research mentioning any of twenty major websites. The results are consistent with the user geographic base affecting research interest and citation impact. In addition, site affordances that are useful for research also influence academic interest. Because of the latter factor, however, it is not possible to estimate the extent of academic knowledge about a site from the number of publications that mention it. Nevertheless, the virtual absence of international research about some globally important Chinese and Russian websites is a serious limitation for those seeking to understand reasons for their web success, the markets they serve or the users that spend time on them. The sites investigated were Google, YouTube, Facebook, Baidu, Wikipedia, QQ, Tmall, Taobao, Yahoo, Amazon, Twitter, Sohu, Live, VK, JD, Instagram, Sina, Weibo, Yandex, and 360

Tencent Holdings Limited : an IPO case study

The purpose of this case study is to empirically investigate the phenomenon of initial public offerings (IPOs) by applying it to Tencent Holdings Limited (Tencent). Tencent is a Chinese internet and telecommunications value-added service provider that launched its IPO on 16 June 2004. Tencent is China’s largest internet firm and Asia’s most valuable brand, boasting a current market capitalization of HK$1.224 trillion (US$157.9 billion). The origins of Tencent’s success story trace back to its IPO decision, an important topic in the field of finance. The aim of this study is to investigate the structure of Tencent’s IPO, its listing decision and determining an intrinsic value of its IPO shares on its listing date. It was found that Tencent’s IPO extensively relates to academic literature surrounding IPO under-pricing and valuing unlisted companies. The results reveal that Tencent left money on the table by underpricing its offer shares and exercised its over-allotment option as a form of price stabilization. It was further found that Tencent’s underpricing was not influenced by competitor IPOs but rather by stringent IPO allotment policies and other signals of firm quality. It was also discovered that there might have been bias in the allocation of Tencent’s shares. An investigation into Tencent’s listing on the Hong Kong Stock Exchange (HKEx) revealed that while its competitors listed on the NASDAQ Stock Market, there was a clear correlation between Tencent’s operations and corporate structure to the HKEx listing and regulatory requirements. The decisive factors included domiciling in the British Virgin Island and Cayman Islands, the cost of listing on the HKEx Main Board versus the NASDAQ National Market as well as the effects of US GAAP and the Sarbanes-Oxley Act of 2002. The study was concluded with the application of a relative valuation and discounted cash flow (DCF) valuation. The relative valuation estimated a price range of HK$14.40-HK$18.72 for Tencent’s IPO shares, while the DCF estimated the intrinsic value of the shares to be HK$18.68. The analysis was comprehensive and in-depth and suggests that Tencent’s IPO shares were five times undervalued and were offered to shareholders at a deep discount

The MacBride Report in Twenty-first-century Capitalism, the Age of Social Media and the BRICS Countries

The MacBride Report was published in 1980. The report communicated the need for a New World Information and Communication Order (NWICO). With the breakdown of what used to be called “actually existing socialism“ in the East and with the rise of the neoliberal commodification of everything, a NWICO indeed emerged, but one that looked quite different from that the MacBride commission imagined. Thirty-five years later, it is time to ask how the situation of the media and communications in society has changed. This contribution asks the question of what we can make of the MacBride Report today in a media world and society that has seen the rise of an economically driven form of globalisation that also has impacts on the media, the expansion of the information economy with a new young precariat at its core, and the emergence of the World Wide Web and its change into a highly commercialised system, including the emergence of so-called “social media“ whose capital accumulation model is based on targeted advertising