China Nets Have Priced in a Strong Q3

Another story on the inflated valuations of Chinese portals…there are plenty of concerns, starting with revenue concentration. Sohu and Sina derive 60 percent of sales from SMS, or short messaging service, a text-only platform providing news headlines and the like, mostly for portable devices. SMS accounts for 49 percent of NetEase’s revenue.

The Chinese portals push their Web-based content to mobile-phone subscribers, who pay their phone bills. Carriers pay the portals 85 percent of the revenue.

Related: The Portals Into China.

For more in-depth coverage of wireless content and technology, read the Moco.News site.

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