Dr Mathew McDougall

Is Telstra Playing in China or Not?

I bet if I asked the average Australian about Telstra spending 100's millions of dollars and owning a number of Chinese online publishers, many would be completely unaware if not completely surprised.

telstra in china Ask me about this strategy and I would say that on the surface this approach has merits and sound approach.... but like most things in China the strategy document with the impressive growth numbers and forecasts can often mask the 'greyness' of doing business in China and the inherent difficulties faced by a foreign (western) owner of a Chinese locally managed and operated business.

So when reading the news today about Telstra selling their position in Soufan via an IPO, I found myself wondering if this was done because they wanted to 'cut and run' or was it simply a case of taking a commercial perspective and making a good profit from an investee company?

Back in 2006, Telstra acquired a 51 per cent interest in SouFun, which operates a real estate and home improvement website for $US254 million ($283 million). The sale via an IPO return Telstra around $US413 million on the stake, or 62.6 per cent more than the acquisition price in 2006.. so in all a good return and a sound investment.

But would holding onto the position in Soufan longer return better results to the Telstra shareholders in the future? Or is this an acknowledgement of legacy issues bubbling within the Australian Telco's broader China strategy resinating from the Sol Trujillo era. Or is it just the China Telstra team getting the message through that running an online China business is dificult and frought with risk?

Do you have an opinion or view on this? Comment below...


COMMENTS

There are no comments for this article

CHAMPION IN FOCUS

Dr Mathew McDougall Digital Jungle Dr Mathew McDougall
Company: Digital Jungle
Position: Founder & CEO
CEO for Digital Jungle. I founded Digital Jungle in 2011 as a cross-cultural digital marketing agency. Our mission is to help International organisations connect their brands with Chinese consumers, living in China and abroad.

Latest Articles by Dr Mathew

October 16 | Reaching the Digital-Savvy Chinese Consumer
October 9 | The Rise of Location Based SNS in China
September 24 | Did Viral Marketing Damage the Hasbro Brand?

Article stats

30 Days: 0 articles, 0 views
All time: 0 articles, 0 views


    Twitter
    Follow me on Twitter

    ABOUT DR MATHEW'S COMPANY

    Digital Jungle

    Socially led, digital marketing agency  More info & Contact Details



     

    RELATED EVENTS

    NSW Public Sector Grades 9-10 High Performance and Leadership Workshop NSW Public Sector Grades 9-10 High Performance and Leadership Workshop

    Develop and refine core skills and key leadership capability to achieve success and excel in NSW Grade 9-10 level roles and beyond.

    WA Public Sector Level 7-8 High Performance & Leadership Workshop WA Public Sector Level 7-8 High Performance & Leadership Workshop

    Develop and refine core skills and key leadership capability to achieve success and excel in Western Australian 7 - 8 level roles and beyond.

    Executive Assistant Development Intensive Executive Assistant Development Intensive

    Adding value and enhancing your personal and professional effectiveness as an Executive Assistant.

    The Women in Project Management Leadership Summit 2018 The Women in Project Management Leadership Summit 2018

    Practical advice and strategies to guide female leaders for career advancement in the project management space.

    Public Sector Workforce Analytics Workshop Public Sector Workforce Analytics Workshop

    Emerging tools and frameworks to enable best practice workforce analytics and planning for HR Professionals.

    RELATED COMPANIES

    First Rate First Rate

    First Rate is a leading online marketing agency and are specialists in search engine optimisation (SEO), search engine marketing (SEM), email marketing and banner advertising.

    BULLSEYE BULLSEYE

    Full service digital agency with the creative firepower and technical know-how to handle any digital project.

    Hitwise Hitwise

    The Hitwise online competitive intelligence service provides daily insights on how 25 million people interact with over 1 million websites in 160+ industries. Our unique, global network of Internet usage data is integrated into our user friendly service,

    Additude Additude

    A Digital Ad Agency specialising in innovative digital services.

    Resonate Solutions Resonate Solutions

    Resonate helps its clients build and develop online communities


     

    LATEST DIRECTORY LISTINGS Boost SEO - add your company for free

    Mad Dog PromotionsProtonbits Software Pvt LtdCat Rubbish RemovalEnertec Windows & Door SystemsVacuumSpotSally Dasouki - Melbourne Victoria, AustraliaVazooky DigitalDr TurnerAspect Shade