Is Yu Minhong's Strategic Move to Stabilize Dong Yuhui Actually a Gamble?

Tech 2024-04-07 22:44:13 Source: Network

Dong Yuhui's Transformations: A Calculated Strategy? Dong Yuhui's role at Oriental Selection has undergone several changes. Is there a strategic plan behind these transformations? Initially, he was an anchor for Oriental Selection before becoming a partner, then transitioning to senior partner

Is Yu Minhong

Dong Yuhui's Transformations: A Calculated Strategy?

Dong Yuhui's role at Oriental Selection has undergone several changes. Is there a strategic plan behind these transformations?

Initially, he was an anchor for Oriental Selection before becoming a partner, then transitioning to senior partner. What are Yu Minhong's motivations for these moves?

Yu Minhong: Over-reliance on Dong Yuhui is Unhealthy for the Company

The external media's acclaim for Dong Yuhui has surpassed Yu Minhong's own assessment.

It is acknowledged that the platform provided Dong Yuhui with an opportunity to shine, but his success is largely attributed to his personal abilities and charisma.

Everything Is Under Yu Minhong's Control

As the company's CEO, Yu Minhong needed to determine whether Dong Yuhui's success was due to his individual talents or the platform's advantages.

To determine the underlying factors and avoid jeopardizing Oriental Selection, Yu Minhong devised a cunning plan.

Divide and Conquer: Testing Dong Yuhui's Capabilities

The "divide and conquer" strategy allowed Yu Minhong to evaluate Dong Yuhui's contribution while minimizing the risk of losing a significant portion of Oriental Selection's user base.

He offered Dong Yuhui the position of senior partner, isolating him from Oriental Selection and setting up a separate entity.

With a 0.5% stake in the company, Dong Yuhui was encouraged to pursue independent growth.

Dong Yuhui's Performance After Separation

After launching his own independent live streams, Dong Yuhui thrived with greater autonomy.

His success in both style and effectiveness proved the effectiveness of Yu Minhong's strategy.

Regardless of the outcome between Oriental Selection and With Huitongxing, Yu Minhong emerged as the ultimate victor.

However, Dong Yuhui's Success Poses New Challenges

Dong Yuhui's exceptional performance has overshadowed Yu Minhong and the company's management.

Relying heavily on a single individual for a company's success can be detrimental.

The company's trajectory becomes dependent on a single person, making it vulnerable to external influences.

The Real Dilemma

The current concern lies not with Dong Yuhui but with Yu Minhong and Oriental Selection's management.

Dong Yuhui has established himself as a strong personal IP. Regardless of whether he remains with With Huitongxing or ventures independently, his ability to generate revenue will likely surpass his reliance on others.

The Declining Performance of Oriental Selection

Oriental Selection's recent downturn has raised concerns for Yu Minhong.

He had previously considered grooming Dong Yuhui as his successor at New Oriental.

Only Yu Minhong truly understands the depth of his intentions.

Yu Minhong's Underestimation of Dong Yuhui's Influence

Yu Minhong's strategy underestimated Dong Yuhui's influence in the market.

Whether users migrate from Oriental Selection to With Huitongxing or not, the overall spending for the company will remain relatively stable.

However, it sends a negative signal to investors about Oriental Selection's value. The higher the value of With Huitongxing, the less competitive Oriental Selection appears.

With Huitongxing: An Uncontrollable Entity for Yu Minhong

Consider the scenario where Dong Yuhui leaves the company. Even with a multi-million follower "With Huitongxing" account, how many users would continue to engage and spend money?

Yu Minhong ultimately failed to eliminate Dong Yuhui's central role. Instead, Dong Yuhui's independence has allowed him to fully utilize his talents, strengthening his bond with his followers.

Dong Yuhui's 0.5% Stake: Will He Eventually Leave?

It was previously assumed that Dong Yuhui's compensation would include a substantial equity stake and a share of the revenue from each live stream, similar to other top anchors.

However, the actual arrangement includes only a 0.5% equity stake without a revenue share.

Management's stance is that Dong Yuhui has been generously compensated. Future equity increases are unlikely to be significant.

The Future of With Huitongxing

Based on Dong Yuhui's contributions in 2023, which generated net income of 520 million yuan, his share of the revenue would have been at least 200 million yuan if he received 50%.

Given his actual 0.5% equity stake, Dong Yuhui's compensation falls far short of his true value.

Oriental Selection's valuation will continue to decline as it loses favor with investors.

A Potential Solution

The only viable solution is for Yu Minhong to incorporate With Huitongxing as a separate entity and take it public.

As Dong Yuhui's contributions continue to increase in value, the current imbalance between his contributions and compensation will likely reach a tipping point.

In such a scenario, Dong Yuhui may consider leaving Oriental Selection to establish his own enterprise. This would pose a significant challenge to Oriental Selection.

Whether Yu Minhong possesses the foresight to increase Dong Yuhui's equity stake and rebalance the internal dynamics remains to be seen.

The Demise of YOYO

Meanwhile, YOYO, who was once hailed as a rising star, has resorted to desperate measures.

Her daily reliance on Dong Yuhui for, or trending topics, to gain attention raises questions about her tactics.

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