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  "docSlug": "37ff9313bd57",
  "documentTitle": "58.com Inc. (WUBA)",
  "authorId": "62_Grizzly_Research",
  "authorName": "Grizzly Reports",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-01 00:00:00",
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  "notes": "The slide uses two distinct data sources (Baidu Index and Alexa Traffic Rank) to demonstrate the decline of Ganji post-acquisition.",
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      "text": "We see this as overwhelming evidence that the goodwill attributed to this acquisition should now be significantly, if not completely, impaired.",
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      "text": "Baidu Search Index trends for 58.com and Ganji",
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      "text": "When we compare “58 Tong Cheng”, WUBA’s own website and Ganji side by side, we see that though acquired for $2.8B, Ganji has certainly not been thriving. Before the acquisition happened, Ganji was competing toe to toe with WUBA. However, around the time of the acquisition, popularity of Ganji quickly trended downwards and has consistently decreased at an alarming rate to what appears to be marginal compared to WUBA. Meanwhile, perhaps more disturbingly, WUBA has not shown an increase in popularity, indicating that the acquisition had very little positive synergies, and that WUBA and Ganji’s customer base together is actually shrinking. This acquisition neither organically/strategically grew Ganji as an operating subsidiary of WUBA, nor did it increase WUBA’s own web traffic. We see this as overwhelming evidence that the goodwill attributed to this acquisition should now be significantly, if not completely, impaired.",
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      "text": "Findings from Alexa Traffic Ranks also validate our thesis. Due to limited data, we were only able to focus on the performance of websites since 2017. However, we can clearly see that Ganji.com, indicated by the light blue line in the middle, is ranking close to 10,000 and are lower in line with fang.com, Zhipin.com, ke.com and fangdd.com. Logically, Ganji’s valuation should probably be more or less in line with these websites.",
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