Chinese webnovel website IPO recently, worth over $11 billion USD

SeattleSounders · Nov 18, 2017

In the West, Kindle basically dominate digital reading.
In China, it's webnovel where the top web authors can make millions of USD in royalties each year.

From the recent IPO in the Hong Kong stock market

https://www.bloomberg.com/quote/772:HK

MARKET CAP (B HKD)
91.186

with the current exchange rate, that's $11.6 billion USD. CRAZY!!!

https://www.cnbc.com/2017/11/08/ten...k-surges-as-much-as-100-percent-in-debut.html

http://www.dw.com/en/china-literature-in-red-hot-hong-kong-ipo/a-41288841

http://technode.com/2017/11/08/china-literature-stock-spike/

I thought it was only worth around $1-2 billion USD so I was very surprised that its stock is worth $11 billion.

It recently expanded into the English language with the purchase of the https://www.webnovel.com domain name and putting the translations of their most popular novels on there for people to read for free. Time will tell if their "foreign" expansion bears fruit.

SeattleSounders · Nov 18, 2017

I did a quick search and found an old article 2 years ago.

http://publishingperspectives.com/2015/06/is-this-the-golden-age-for-chinese-web-authors/

Very Short excerpt:

On the lowest level is the ordinary writer, also “known as poor guy (or poor guy writer).” They have a limited number of fans, and their work is seldom recommended to others. Their annual income is around 1,000 yuan.
.
.

At the very top of the tier are the 20-30 web writers known as platinum authors or zhigaoshen (the Supreme God) class of writers. The 2014 Chinese web-writers list ranks Tangjiasanshao first, with earnings of 50 million yuan (around $8.06 million) per year from royalties, while second and third on the list both raked in more than 25 million yuan ($4.03 million) each.

http://www.cetusnews.com/business/S...re-leap-80%-in-Hong-Kong-debut.rk9i4xlkf.html

Although China is famed for inventing the printed book, the digital version has quickly become more profitable in a country whose citizens are glued to their smartphones.

China’s top 10 online writers earn twice as much as the country’s top 10 offline writers, according to consultancy Frost & Sullivan, in research commissioned by China Literature. Chinese adults spend roughly one-third of their leisure time on the mobile internet, according to research by state media.

SeattleSounders · Dec 8, 2017

https://www.pehub.com/canada/2017/10/tencent-invests-50-mln-in/

Toronto storytelling app Wattpad will soon receive about $50 million (US$40 million) from an investment by China’s Tencent Holdings, according to a report by the Globe and Mail.

The investment will form part of a new US$50 million financing of Wattpad, to be finalized in the weeks ahead, the report said. The round, which will be backed by a mix of Canadian and U.S. venture capital firms, is expected to value the company at about US$400 million.

Wattpad is now valued at $400 million USD.

Is that way overvalued?

I don't read anything on Wattpad because there are nothing really worth reading on there even though they are free. At least that is my perception.

It caters to fanfiction of celebrities like One Direction...which is definitely not my cup of tea.

Snitchcat · Dec 9, 2017

I'm not really surprised at the value of China Literature (it belongs to Tencent btw).

Mainland China loves to read -- paperbacks, hardbacks, digital. There are at least three "book cities" close to me; they're shopping-centre-sized bookstores, and filled with people sitting, leaning, squatting, reading all manner of books. (And the ones closest me are the small versions.) Bookshops are like libraries, except you can't leave with the books unless you've paid. But people spend hours reading the books and putting them back on the shelves. While that might seem horrendous, it's the norm.Usually those types of customers can't afford to buy all the books they want to read. However, those that can? Easily spend an average of RMB10k (approx. US$1500) in one go just on books.

And the Chinese culture is about education. So: books. And if it's digital and you can get it in your language? Immediate download. Also, payment is dead easy in China -- all via mobile, no cash. Instant debit from your account. Barrier to purchase? As long as your account is legit and you have the funds, and your device has the memory space, zero.

Filigree · Dec 9, 2017

I have one book on Wattpad, an original secondary world fantasy. 2000+ reads since 2015. I wouldn't call it a success.

SeattleSounders · Feb 9, 2018

I would say Wattpad is a success story though. It's a company that offer free reading (though now it has a $5.99 a month Premium option) that is worth $400 million USD.

It is worth more than Barnes and Noble. How is that not a success?

Kaylarr · Feb 18, 2018

I don't really understand the concept of Wattpad. Why would writers publish on there if they receive no remuneration from doing so? Even for simply exposure, wouldn't self-publishing be a better idea?

konstantineblacke · Feb 18, 2018

Kaylarr said:
I don't really understand the concept of Wattpad. Why would writers publish on there if they receive no remuneration from doing so? Even for simply exposure, wouldn't self-publishing be a better idea?

My question exactly :/

Filigree · Feb 23, 2018

Wattpad hosts well-known contests that snag lots of interest. For certain niche authors, their massive readership can *sometimes* translate into lucrative Big Five contracts.

Kaylarr · Feb 23, 2018

Filigree said:
Wattpad hosts well-known contests that snag lots of interest. For certain niche authors, their massive readership can *sometimes* translate into lucrative Big Five contracts.

Ah, I see.

c.m.n. · Feb 23, 2018

Hmm, my question is why would Tencent invest that much into Wattpad? Is Wattpad available in China already or are they trying to branch out over there?

Or Tencent is trying to branch out more into the western markets?

I've also posted a few things over on Wattpad but barely got any reads. If we had a decent webnovel website not bombarded by lame ass One Direction fanfic (there's other fanfic there), I'd be interested in posting on it. I really haven't found anything yet.

konstantineblacke · Feb 25, 2018

I know Wattpad author Taren Matharu got a publishing deal from Hodder and Strougton UK because his book "Summoner" got 6 million + hits in less than a year. He's now about to release the fourth book in the series (or that may have already happened).

Snitchcat · Feb 25, 2018

Tecent wants the 65 million (approx.) Wattpad users (and the latter's developing entertainment network), to both expand globally, and also to offer more content to its WeChat / Weibo subscribers and other media audiences. However, Tencent is investing in similar startups.

It's a case of following / leading the market in terms of providing entertainment through the venue / channel that its primary audience interacts with most, i.e., mobile devices. The amount of people in China with more than 1 mobile each... heh.

Also, the founders of Wattpad are (at least part) Chinese.

https://www.bloomberg.com/news/arti...illion-investment-in-canadian-startup-wattpad
https://www.prnewswire.com/news-rel...tencent-bdc-and-other-partners-669665293.html
https://www.chinamoneynetwork.com/2...canadian-online-storytelling-platform-wattpad
http://www.thenewpublishingstandard...pad-hits-60-million-users-could-nook-be-next/

Chinese webnovel website IPO recently, worth over $11 billion USD

SeattleSounders

SeattleSounders

SeattleSounders

Snitchcat

Dragon-kitty.

Filigree

Mildly Disturbing

SeattleSounders

Kaylarr

konstantineblacke

Filigree

Mildly Disturbing

Kaylarr

c.m.n.

Beary cute ( ͡° ͜ʖ ͡°)

konstantineblacke

Snitchcat

Dragon-kitty.