久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

US EUROPE AFRICA ASIA 中文
Business / View

Are going-out companies paying too much?

By DAVID BLAIR (China Daily) Updated: 2016-08-03 07:45

Are going-out companies paying too much?

LeEco CEO Jia Yueting, left, and Vizio Inc CEO William Wang shake hands at a news conference in Los Angeles, where it was announced that LeEco had acquired Vizio for $2 billion. [Photo/Agencies]

In the late 1980s, Japan had over-inflated stock and property markets. Its companies, fleeing the lack of opportunities in Japan itself, vastly overpaid for all manner of US assets. I often dreamed that some Japanese investor would overpay for the house I owned at the time.

The rate of Chinese companies making overseas investments has more than doubled since last year. They often have a business model designed to bring technology and foreign business practices to the huge domestic Chinese market-a much better-defined plan than the Japanese, who were mostly purely financial investors, ever did. But, still I worry that they are paying too much.

Let's take a look at a recent deal. Beijing-based LeEco Global Ltd announced last Tuesday that it agreed to pay $2 billion cash for Vizio Inc, a California-based manufacturer of inexpensive television sets and sound bars. This at a time when the dollar is high relative to the yuan. LeEco argued that Vizio will enable it to gain market share in the coming internet-of-things technology that links all kinds of smart products together. And, it certainly may turn out in that LeEco made a smart move in the long run. But, I still wonder about the pricing.

Vizio filed initial public offering papers with the US Securities and Exchange Commission in July of 2015, but never actually carried out the IPO. According to accounting data in the SEC filing, Vizio's profits were $44.96 million in 2014 and $31.35 million in the first half of 2015.

Since Vizio is privately held and decided not to go through with the IPO, subsequent data are not available. But these numbers imply a profit of roughly $56 million in 2015, assuming that Vizio makes slightly more than half of its profits in the first half, as it did in 2014. Vizio has not been a growth company-its sales and profits in 2014 were about the same as in 2010 and were lower in the years in between.

Vizio's business in the US is in brutally competitive markets. Most consumers in the US consider television sets to be almost undifferentiated commodities-they buy the cheapest one. Vizio has become the biggest-selling brand of TVs in the US by following a low-price strategy. But, this strategy leads to very low margins-profits have averaged less than 3 percent of sales.

Vizio's TVs are connected to the internet, so the company receives potentially valuable data on what shows its customers are watching. But, the company so far has not been able to reap profits from this information. In any case, William Wang, the current CEO and majority owner of Vizio, will retain 51 percent ownership of the Insight division, which will own this data.

The bottom line is that LeEco has agreed to pay about 35 times earnings for a producer of near-commodity products in a highly competitive business. This compares with Apple Inc, which currently trades for 11 times earnings, Google Inc at 30, and Samsung Electronics Co at 3.3.

If Vizio had completed its IPO and received 10 times earnings, which seems about right for a low-margin company, it would have had a market value of $600 million. Even at the current historically high average Dow Industrials price-to-earnings ratio of about 20, which is too high for a company in such a competitive market, Vizio would be worth $1.2 billion.

China Daily reported that Jia Yueting, founder and CEO of LeEco, said that the purchase of Vizio is part of a "big bang plan" to enter the US market.

It may get access to Vizio's distribution channels to sell its phones and other products-but, Vizio sells its TVs through big box stores, such as Best Buy Co Inc, which insist on paying low-margin prices to their suppliers.

It may be able to use its LeEco system to add value to the TVs, but Vizio made its name through low prices-proving that customers are reluctant to pay more for sophisticated TVs. Just about every merger or acquisition is justified on the basis of "synergies", but few actually pay off.

Companies spending their own money have more incentive to get it right than does an outside analyst like myself. But, I do hope the current wave of Chinese companies going-out are not paying too much.

 

 

 

Hot Topics

Editor's Picks
...
久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

    欧美日韩第一区日日骚| 久久久久青草大香线综合精品| 午夜a成v人精品| 日韩亚洲欧美一区二区三区| 黄色日韩网站视频| 国产喷白浆一区二区三区| 99r国产精品| 亚洲大片在线观看| 精品处破学生在线二十三| 岛国av在线一区| 亚洲一区二区视频在线| 日韩美女视频在线| 波多野结衣亚洲一区| 亚洲电影中文字幕在线观看| 日韩精品一区二区三区视频在线观看 | 美国三级日本三级久久99| 久久一区二区视频| 91亚洲大成网污www| 日本午夜精品一区二区三区电影| 久久久久久久久久久99999| 91免费精品国自产拍在线不卡| 日韩精品乱码av一区二区| 国产三级精品在线| 欧美三级乱人伦电影| 国产精品一区二区91| 亚洲专区一二三| 久久天堂av综合合色蜜桃网| 91国偷自产一区二区使用方法| 久久国产精品色婷婷| 亚洲视频免费在线观看| 日韩久久免费av| 91老司机福利 在线| 久久疯狂做爰流白浆xx| 亚洲精品日产精品乱码不卡| 欧美成人综合网站| 一本色道**综合亚洲精品蜜桃冫| 另类综合日韩欧美亚洲| 亚洲乱码中文字幕| 久久免费电影网| 欧美主播一区二区三区| 国产999精品久久| 日韩精品欧美精品| 亚洲人成人一区二区在线观看 | 国产激情一区二区三区四区| 亚洲一区二区三区四区在线免费观看 | av色综合久久天堂av综合| 日本不卡的三区四区五区| 中文字幕一区二区三区四区 | 精品国产一二三| 色婷婷国产精品| 国产成人精品亚洲日本在线桃色| 视频一区二区中文字幕| 亚洲人xxxx| 国产日韩欧美一区二区三区乱码 | 91精品国产综合久久久久久久 | 精品一二线国产| 亚洲精品国产无套在线观| 国产日韩欧美精品电影三级在线| 91精品国产综合久久福利软件| 一本久道久久综合中文字幕| 国产成人一级电影| 久久99深爱久久99精品| 亚洲成a人v欧美综合天堂下载| 国产精品国产自产拍在线| 精品国产乱码久久久久久久久| 欧美日韩精品一区二区三区| 色综合久久久久久久| 成人一二三区视频| 国产呦精品一区二区三区网站| 婷婷久久综合九色国产成人| 亚洲免费观看高清完整版在线观看| 国产欧美日韩精品在线| 欧美精品一区视频| 欧美一区二区三区婷婷月色| 欧美色区777第一页| 一本大道av伊人久久综合| 成人美女视频在线看| 国产风韵犹存在线视精品| 激情六月婷婷久久| 久久精品国产亚洲高清剧情介绍| 日韩高清在线不卡| 丝袜美腿高跟呻吟高潮一区| 亚洲国产cao| 亚洲最色的网站| 亚洲最大成人综合| 亚洲男人的天堂一区二区| 中文字幕亚洲综合久久菠萝蜜| 国产午夜精品久久久久久免费视| 精品成人一区二区三区| 精品sm在线观看| www国产精品av| 精品黑人一区二区三区久久| 精品裸体舞一区二区三区| 精品嫩草影院久久| 久久综合成人精品亚洲另类欧美| 精品成人在线观看| 久久久久久日产精品| 久久久99精品久久| 亚洲国产精品激情在线观看| 国产欧美一区二区精品久导航| 日本一区二区三区电影| 欧美国产欧美亚州国产日韩mv天天看完整 | 日本韩国精品在线| 欧美专区日韩专区| 欧美日韩高清不卡| 91精品国产一区二区| 日韩欧美一区在线观看| 久久夜色精品一区| 欧美国产精品一区二区| 亚洲欧洲日韩综合一区二区| 有码一区二区三区| 亚洲国产视频在线| 日韩国产精品久久久| 美女视频黄免费的久久| 激情文学综合插| 成人小视频免费观看| 97久久久精品综合88久久| 在线观看一区不卡| 91精品麻豆日日躁夜夜躁| 欧美mv日韩mv| 中文字幕va一区二区三区| 国产精品久久精品日日| 亚洲人成人一区二区在线观看| 洋洋成人永久网站入口| 日韩 欧美一区二区三区| 国产专区欧美精品| av一二三不卡影片| 欧美视频在线一区二区三区| 日韩一区二区三区四区| 国产人久久人人人人爽| 亚洲欧美一区二区三区孕妇| 亚洲小说欧美激情另类| 免费看精品久久片| 国产乱子轮精品视频| 99热这里都是精品| 欧美日韩三级一区| 精品精品国产高清a毛片牛牛| 日本一区二区三区视频视频| 一区二区三区免费网站| 日本vs亚洲vs韩国一区三区二区| 国产成人精品免费| 欧美主播一区二区三区美女| 欧美成人一区二区三区在线观看| 国产精品久久久久永久免费观看| 亚洲国产日韩一级| 国产伦精一区二区三区| 色香蕉成人二区免费| 日韩美女视频一区二区在线观看| 中文字幕精品一区二区精品绿巨人| 一区二区三区在线观看国产| 蜜臀av一区二区在线观看| 成人av在线资源网| 欧美精品自拍偷拍动漫精品| 久久精品在这里| 亚洲在线中文字幕| 国产精品亚洲а∨天堂免在线| 欧美综合天天夜夜久久| 精品国产99国产精品| 亚洲精品视频一区| 国产美女视频91| 欧美性videosxxxxx| 久久久国产午夜精品| 夜夜精品视频一区二区 | 国产精品一区二区黑丝| 欧美亚洲综合在线| 国产欧美一区二区精品性| 爽好多水快深点欧美视频| 不卡电影免费在线播放一区| 91精品综合久久久久久| 国产精品久久久久影院老司| 麻豆久久久久久久| 欧美在线视频日韩| 国产日韩亚洲欧美综合| 日韩一区欧美二区| 91免费观看视频在线| 久久尤物电影视频在线观看| 亚洲成人黄色影院| 成人晚上爱看视频| 日韩精品中文字幕在线一区| 亚洲激情在线播放| 激情五月播播久久久精品| 欧美日韩国产一区| 亚洲少妇屁股交4| 国产精品1区2区3区在线观看| 7777精品久久久大香线蕉| 一区视频在线播放| 国产在线不卡一区| 欧美久久久久久久久中文字幕| 亚洲欧美一区二区三区极速播放| 国产精品18久久久久久久久久久久 | 色老头久久综合| 日本一区二区三区dvd视频在线| 免费观看在线综合| 欧美视频在线一区| 亚洲欧美日韩成人高清在线一区| 国产成人精品免费| 久久综合狠狠综合| 久久国产麻豆精品| 欧美一区二区精美| 天天综合网 天天综合色|