August 30, 2012
Dear Mr. Left:
Thank you for responding to my letter. To remind you, the main points in my letter were:
- Citron lacked basic understanding of Chinese search market.
- Citron misunderstood Sogou products and combined two products into one.
- Citron compared apples to oranges in its web traffic analysis, and did so unfairly.
- Citron omitted critical data in its financial comparisons of Sohu and Qihoo.
- Citron did not understand search monetization and zeroed $98M of revenue.
- Citron’s video analysis was ludicrous, and missed obvious business issues.
- Citron’s adding market cap from one company to the next was wild and ridiculous.
In your response, you chose only to say that I “did not properly represent” your statements in (4), and for the other six points, you said you did not want to “go back and forth”, and respected my knowledge. Since you have implicitly acknowledged the other six points, I also agree it’s not necessary to “go back and forth” on point (4).
Interestingly, you chose to bring up several other issues which had NOTHING to do with my letter, so I see no need respond. Perhaps someone else will take you up on the 100K RMB offer, and if they do, I hope they will donate the money to an anti-fraud cause.
REFERENCE | Citron Research: Open letter to Kai-Fu Lee Aug 30 [PDF]
(This letter was originally posted on xueqiu.com)