Tencent vs. Alibaba: Is There Enough Room for Both?

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Aug. 13 (Bloomberg) -- General Catalyst Partners' Neil Sequeira and Bloomberg Intelligence’s Paul Sweeney discuss the battle between Tencent and Alibaba on "Street Smart." Bloomberg's Leslie Picker also comments. (Source: Bloomberg)

We certainly do.

The chinese internet market is huge.

These companies are generally in two different businesses.

Alibaba focusing on commerce.

That said, they are each making investments in each other's business.

We are going to see increasing competition.

There are lots of established players in china all benefited from the rising tide.

You mentioned mayor each trying to get into each other's business.

Are they trying to create one dominant form overall?

Can you be instant messaging and e-commerce all at once?

Synergy is what they are going after.

They are going for all the growth options to drive different users to their platforms.

Instead of being everything to everybody they are hoping their partnership will help drive users to their chat service and also put their e-commerce platform on sites.

It is supposed to be a matching situation that helps drivers to their different products.

How does it work together with e-commerce?

Is it if i start talking to my friend about a new parachute and my friend checks out that parachute is as well?

E-commerce is tied directly to chat.

You want folks to start using mobile devices.

Chat also drives traffic across different sites and across e-commerce properties.

Leveraging chat is going to become more popular going forward.

We know they are working with a company not faring so well today.

Candy crushed saga.

How is that going to move forward?

Are we going to see them make a bigger inroad into the gaming platform?

We saw the numbers from king yesterday, very distant or do.

It highlights the risk of the gaming business.

It has always been this way.

That is a hit driven business.

We saw that with bingo.

I think this may be a way to give more access to more users and perhaps take the resources to help drive and create more and better products.

For king may need to get more products released more evenly throughout the year.

The creators of candy crushed saga.

Tell me how the ipo process is going.

Is it going to be the biggest ipo ever?

It is looking that way.

The numbers we saw are doing nothing but helping alibaba.

The advisors are looking at 10 sent -- tencent is one of the companies.

A proven entity is a great they.

A great thing.

What are we thinking in terms of its valuation?

Alibaba is thinking about raising wendy billion dollars.

The valuation is between $120 billion and $200 billion.

It's very impressive what the company has been able to achieve and grow.

It's a little paypal and a little bit of amazon.

You look at facebook when it first came out.

There was so much hype.

How does alibaba make sure it does not suffer a similar fate?

I think the roadshow illustrates what they are thinking.

They are going to turn over every single rock around the world.

I think it creates 45 times demand -- four or five times demand.

Valuing the company is going to be critical and making sure you have enough demand to support this.

We know they are planning a worldwide trip beginning in asia and spending the globe as they talk to investor after investor.

Is it going well does far?

Do investors have an appetite for a chinese company like this?

Absolutely.

Since they decided to do this in september you will have investors there.

You have the liberty of going to every city you want to.

Most likely they are back from their august vacations.

This has been proposed by bankers.

They want to copy at that and say it could still technically

This text has been automatically generated. It may not be 100% accurate.

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