Entry-level products are awesome! Tencent invests $1 billion in Meituan Dianping

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There are really big news on the Chinese Internet every day!

Breaking news tonight, The Wall Street Journal quoted people familiar with the matter as saying: Tencent is about to complete a $1 billion investment in the new company to be formed by the merger of Meituan and Dianping, and the new company is valued at approximately $20 billion.

This news means five things:

***, O2O is popular. Meituan Dianping has become the sixth largest giant after TABJM (Tencent, Alibaba, Baidu, JD.com, Xiaomi) in the Chinese Internet industry! This fully proves the imagination of O2O.

Second, Meituan Dianping’s IPO is imminent. You know, JD.com successfully IPOed last year after Tencent invested in it, quickly clearing Wall Street’s doubts about its mobile transformation.

Third, Tencent’s monopoly position in the portal is getting stronger and stronger. Emperor Penguin is the collective godfather (second largest shareholder) of small giants such as JD.com, Dianping, 58, and Sogou. The top three Chinese mobile Internet apps, QQ, WeChat, and Sogou Input Method, are all Tencent-affiliated!

Fourth, Tencent's trend towards becoming a private equity company is very obvious. Under the management of Martin Lau, who graduated from Goldman Sachs, Tencent's investment style is very aggressive, and it is also a leader in Internet+. A Tencent that is no longer a copycat and dares to invest is good for China's Internet.

Fifth, the more open, the stronger. Here is another piece of information. In fact, if Ma Huateng had agreed to invest in 360 at the request of Lao Zhou, there would have been no 3Q war! Of course, a blessing in disguise, it was that war that woke up Tencent and made it open, giving half of its life to its partners.

In a word, the portal is awesome! "Portal" is a term unique to the Internet industry. For Tencent, QQ is a portal-level product; for Baidu, web search is a portal-level product. For Alibaba, Taobao is a portal-level product. For 360, security guards are portal-level products. For Xiaomi, mobile phones are portal-level products. For Meituan, group buying is a portal-level product.

In my annual training open class [Focus on Innovation], I proposed that the essence of a portal is a product and service that is "heavily connected" to users, and all the company's value-added services are developed on this basis.

Because the essence of the Internet is "connection", the most valuable thing is the connection between people (social network). Social network means difficult to migrate relationship chain, extremely high trigger frequency, and maximum connection possibility (open API to introduce third-party services). WeChat is in its heyday, Weibo and Momo have been listed in just a few years, which fully demonstrates the wild imagination of social products. WeChat and QQ are the main entrances of mobile and PC, which is the confidence of Tencent's success!

Looking at the Chinese Internet, only Jack Ma, who is extremely good at "strategy + financing + marketing", can compete with Ma Huateng! This is a duel between the two horses worth hundreds of billions of dollars. We are all witnesses.