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

    www.av毛片| 成人免费在线观看视频网站| 青青草久久伊人| 在线观看的毛片| www.国产二区| 热这里只有精品| 国产奶头好大揉着好爽视频| 国产精品亚洲二区在线观看| 欧美三级午夜理伦三级| 久章草在线视频| 黄色一级片av| 奇米精品一区二区三区| av女优在线播放| 日韩 国产 一区| 欧美三级午夜理伦三级老人| 男人的天堂日韩| 超碰中文字幕在线观看| 国产激情片在线观看| 色婷婷成人在线| 网站在线你懂的| 一区二区在线播放视频| 国产综合中文字幕| 91看片就是不一样| 青青青在线视频播放| 亚洲小说欧美另类激情| 污网站在线免费| 日本美女高潮视频| 精品中文字幕av| 日本三级黄色网址| 996这里只有精品| 国产免费黄色av| 国产精品视频网站在线观看| 国产美女视频免费| 午夜免费看视频| 欧美一级黄色影院| www黄色av| 97人人模人人爽人人澡| 日韩av在线中文| www.xxx亚洲| 欧美日韩国产精品激情在线播放| 蜜臀av无码一区二区三区| 波多野结衣 作品| 四虎永久免费网站| 老汉色影院首页| 黄色高清视频网站| 黄色免费观看视频网站| 日韩伦理在线免费观看| 大荫蒂性生交片| 国产 欧美 日韩 一区| 强开小嫩苞一区二区三区网站 | 国自产拍偷拍精品啪啪一区二区| 青青青在线观看视频| 黄网站色视频免费观看 | 日韩视频免费在线播放| 欧美极品欧美精品欧美图片| 中文字幕日本最新乱码视频| 免费 成 人 黄 色| 国产乱子伦农村叉叉叉| 日韩久久一级片| 亚洲精品一二三四五区| 亚洲娇小娇小娇小| 免费成年人高清视频| 日韩在线一区视频| 欧美 日韩 国产 在线观看| 国产对白在线播放| 9色porny| 水蜜桃在线免费观看| 欧美激情亚洲天堂| 国产精品50p| 116极品美女午夜一级| 天天爽人人爽夜夜爽| 羞羞的视频在线| 午夜探花在线观看| 日韩av高清在线看片| 免费在线激情视频| 91香蕉视频导航| 污污的视频免费观看| 91看片淫黄大片91| 国产精品自拍片| 亚洲激情在线观看视频| 交换做爰国语对白| 亚洲 欧美 综合 另类 中字| 国语对白做受xxxxx在线中国| 国产九九在线观看| 神马午夜伦理影院| 六月丁香婷婷激情| 可以看污的网站| 国产成人艳妇aa视频在线| 欧美精品aaaa| 日本成人在线不卡| 午夜视频在线瓜伦| 黄色一级片免费播放| 91亚洲精品国产| 国产福利影院在线观看| 欧美xxxx吸乳| 日韩视频第二页| 欧美日韩理论片| 国产视频一视频二| www.日本久久| 久久9精品区-无套内射无码| 国产精品探花在线播放| 黄色片视频在线免费观看| 中文字幕1234区| 日日碰狠狠添天天爽超碰97| 亚洲黄色av片| 黄色动漫在线免费看| 欧美视频国产视频| 波多野结衣之无限发射| 色网站在线视频| 国产成人无码精品久久久性色| 精品久久免费观看| 日本新janpanese乱熟| 337p亚洲精品色噜噜狠狠p| 一区二区在线播放视频| 极品粉嫩国产18尤物| 中文字幕第100页| 女人天堂av手机在线| 欧洲xxxxx| www午夜视频| 日本精品一区二区三区四区| 老司机激情视频| 手机在线免费毛片| 日韩中文字幕组| 97国产在线播放| 精品人妻人人做人人爽| 亚洲自拍第三页| av污在线观看| 日本www在线播放| 久久这里只有精品8| 91手机视频在线| 奇米视频888| 久草福利视频在线| 国产男女在线观看| 麻豆tv在线播放| 久久香蕉视频网站| 在线视频一二三区| 99视频在线观看视频| 久热在线视频观看| 久久久久国产一区| 91淫黄看大片| 黄色片视频在线播放| 欧洲黄色一级视频| 成人一区二区免费视频| 成人免费视频91| 97在线国产视频| 欧美a级免费视频| 中文字幕在线中文| 三级在线免费观看| 在线视频一二三区| 欧美另类videosbestsex日本| 异国色恋浪漫潭| 亚洲制服在线观看| 中文字幕在线乱| 大片在线观看网站免费收看| 国产日本欧美在线| 亚洲成人动漫在线| 少妇久久久久久被弄到高潮| 成人av在线播放观看| 被灌满精子的波多野结衣| 久草免费福利在线| 免费av手机在线观看| 免费成人在线视频网站| 久久久噜噜噜www成人网| 色综合久久久久无码专区| 国产精品免费观看久久| 黄色av免费在线播放| 国产精品入口免费软件| 手机看片一级片| 韩国一区二区在线播放| 91精品国产吴梦梦| 国产高清av在线播放| 精品少妇一区二区三区在线| 日韩欧美国产免费| 激情综合网俺也去| 午夜av中文字幕| 色婷婷777777仙踪林| 亚洲国产精品成人天堂| 日本中文字幕片| 一路向西2在线观看| 香蕉视频色在线观看| 国产a级黄色大片| 1024精品视频| 日日干夜夜操s8| 国产一级大片免费看| 免费在线激情视频| 精品亚洲视频在线| 黄色一级大片免费| 男人的天堂99| 涩多多在线观看| www.成年人视频| 五月天婷婷激情视频| 四虎免费在线观看视频| 色欲色香天天天综合网www| 欧美激情精品久久久久久小说| av中文字幕网址| 国产乱人伦精品一区二区三区| 欧美视频第一区| 日韩av加勒比| 欧美日韩性生活片| 爽爽爽在线观看|