U.S. Markets open in 3 hrs 55 mins

Wall Street Transcript Interview with Eric He, the CFO of YY Inc. (YY)

67 WALL STREET, New York - May 12, 2014 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Social Networking Economics - Chinese Internet Market - Mobile Monetization - Internet Content Providers - Data Security

Companies include: YY Inc. (YY) and many more.

In the following excerpt from the Internet Services Report, the CFO of YY Inc. (YY) discusses company strategy and the outlook for this vital industry:

TWST: In terms of your growth strategy, are you focusing on these core areas, or are you still looking at new areas to enter?

Mr. He: Well, we started off as a real-time voice communication tool for online gamers. With that particular business model, there is no business for us. Actually, we provided it for free. So we only use that to attract people to play games. So we can actually cooperate with game developers. If people play games, spend money on the games, then we will do a revenue split with the game developers. That was the model. Then we introduced the music business, and then we sold virtual items. Then that's another business model. So we started with games and moved on to music.

Recently, we also announced an education business. Think about this: Education is a place where we think that YY may have a great chance. YY is very unique because you can't find it anywhere else. YY has to have three elements in service to constitute YY, which is real-time, interactive and a large group of people. So YY essentially is a service trying to engage a large group of people in an interactive and real-time format.

For example, if you only have real-time interactive services, but you only connect two people or three people, that is Skype; that is not YY. In real-time, when you have a large group of people, but you don't have interaction, that is TV. TV is very passive; it just gives you one-way information. If you have interactive and a large group of people, that is by real-time, is asynchronous, then that is Facebook. That is linking. So if you have everything, three elements together, that is YY.

We actually can enable a large group of people to...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.