Selling controlling stake in gaming and entertainment for RMB 3.3 billion Will smart cars become NetQin's main line?

When it comes to Internet security software, we have to mention NetQin, which was founded in 2005. After more than a decade of development, NetQin has not only achieved great success in security, but also laid a solid foundation in mobile entertainment and mobile games. After years of exploration in technology and entertainment, NetQin resolutely decided to abandon its most profitable entertainment business and develop technology.

On March 30, 2017, NetQin Mobile announced that it had signed a final agreement with Tongfang Investment Fund, an affiliate of Tongfang Securities under Tsinghua Tongfang. Tongfang Investment Fund will acquire the controlling stakes of Feiliu Mobile and Xiuse Show for RMB 3.32 billion in cash.

The completion of this transaction also implies that NetQin's new N+Q Blueberry plan will undergo major changes.

In 2015, NetQin announced the new N+Q Blueberry plan. N is the first letter of NetQin's English name, representing the blue technology business line, namely mobile security and mobile enterprise; Q is the second letter of NetQin's English name, representing the berry entertainment business line, namely mobile entertainment and mobile games.

The Feiliu Mobile was finally traded after many twists and turns

In 2012, NetQin completed the acquisition of Beijing Feiliu Jiutian Technology. Since 2013, Feiliu has begun to focus on mobile games and cooperated with many leading developers. Many games have gained good reputations under Feiliu's operation. After launching the three games "PaPa Sanguo", "Quanmin Dou Sanguo" and "Siege and Maraud", Feiliu has become a giant in the iOS distribution market, with 106.9 million registered users and 20.4 million monthly active user accounts.

From 2014 to 2016, Feiliu had intention transactions with Yema, Beijing Jinxin Rongda, Gansu Huangtai Wine, Beijing Jinxin Hengrui and Shenzhen Prince New Materials, but was blocked due to policy reasons. With the release of the news of the sale of the controlling stake, Feiliu will usher in a larger development platform.

Retreating from the mainstream to make way for the development of automobiles

Xiuse Show is a live broadcast platform under NetQin that focuses on music business. As the pioneer of mobile live broadcast, Xiuse Show has achieved a very high market share by introducing celebrities and high-quality Internet celebrities. In 2016, Xiuse Show beat many old show entertainment manufacturers with an absolute share of 9.7%, ranking first in the market.

Xiuse Show has always performed well. In NetQin's third quarter financial report for 2016, mobile value-added service revenue hit a new high of US$54.9 million, up 74.6% from the same period last year. The revenue from the mobile social video live broadcast platform contributed 82.2% to the year-on-year growth in mobile value-added service revenue.

It is very difficult to understand why NetQin sold Feiliu Mobile and Xiuse Show at the same time. After all, Xiuse Show has always been profitable and has a good reputation in the market. It can be said that it has a bright future. As for why it sold Xiuse Show, it can only be attributed to one thing: to focus on developing businesses related to smart cars.

Focusing on automobiles, NetQin steps into the smart market

The recent rise of smart cars has attracted many Internet companies to get involved, and NetQin, a veteran Internet company, has also begun to enter the field of smart cars. Nowadays, many Internet companies regard smart cars as the next industry trend, and smart cars will undoubtedly become a battleground in the future.

On December 1 last year, NetQin released its third quarter financial report for 2016, which revealed information about its involvement in the field of smart cars. The financial report showed that NetQin invested in Link Motion Technology last year and consolidated the business. Link Motion Technology has been committed to the automotive industry in the past few years, focusing on the research and development and design of smart car platforms and providing integrated solutions.

This time, NetQin sold its controlling stake in Feiliu Mobile and Xiuse Show, which is equivalent to splitting the entire entertainment line. It is hard not to speculate that NetQin will make a big move in its blue technology line. Although NetQin has stumbled in recent years, it has never made a mistake in its major strategic direction. Let's wait and see what NetQin will do in the future in the field of smart cars.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.