Core Viewpoint - The article discusses the recent acquisition of Hupu by Xunlei for 500 million RMB, highlighting the decline of Hupu and the challenges faced by both companies in the current market landscape [4][10][24]. Group 1: Hupu's Decline - Hupu's valuation has significantly dropped, with its current worth being approximately 1.3 million RMB, which is 373 times less than Xiaohongshu's valuation of 26 billion USD [6][21]. - The platform's revenue model has become overly reliant on advertising, with reports indicating that advertising could account for up to 90% of its total revenue after the separation of its e-commerce businesses [13]. - Hupu's community engagement has diminished, leading to a severe drop in active users from 55 million in 2017 to only 5.79 million in 2020 [20]. Group 2: Xunlei's Position - Despite challenges, Xunlei reported a slight increase in total revenue and gross profit in Q1 2025, reaching 88.8 million USD and 44.1 million USD respectively [29]. - Xunlei has shifted its focus to overseas markets, launching a voice live streaming platform called Hiya in Southeast Asia, which has shown promising growth [36][39]. - The company has been active in the investment market since 2014, diversifying its portfolio across various sectors, including hardware and gaming [40]. Group 3: Market Dynamics - The acquisition has sparked discussions about the perceived low consumer spending power among male users, which some attribute to Hupu's operational failures rather than the demographic itself [43]. - The article contrasts Hupu's struggles with the success of platforms like Dewu, which has demonstrated significant user engagement and a valuation of 71 billion RMB [44]. - The potential for Hupu to leverage its existing user base and content to enhance Xunlei's ecosystem is noted, with hopes for revitalization under new management [54].