Datang Telecom Games: 1.7 billion acquisition of small platform Guangzhou to play

Jiapeng recent Datang Telecom to buy the game industry companies, finally unveiled the veil of mystery. June 26 evening, since March 21, Datang Telecom (600198.SH) issued a reorganization plan, to 1.699 billion yuan for the acquisition of Guangzhou to Play Entertainment Co., Ltd. 100% Equity, book valuation value-added rate of about 1472.24%. Prior to this, Datang Telecom has given up the page tour platform "37 play" and mobile communications business Unlimited message singular two big mark. After the announcement, Datang Telecom on March 25, 2013, the formal end of the suspension of June 27, the official recovery license. 27th 9 o'clock in the morning, the stock price of a word trading, reported 12.29 yuan, or 10.03%. In the current situation of independent listing is blocked, game companies sold to a-share companies are increasingly accepted by entrepreneurs. Zhang, general manager of the media, said in an interview with our correspondent that the game company is being acquired like a litchi and must be sold in this golden stage within 6 hours of picking. For underperforming companies, the acquisition of profitable gaming companies has become a good way to improve earnings. Prior to the Zhejiang news media to 3.2 billion yuan premium 20 times times to buy a grand winger, Palm technology to 810 million Yuan 15 times times a premium acquisition of web game companies pioneer case. Datang Telecom play games The performance of Datang Telecom has not been satisfactory in recent years. Financial results showed that Datang Telecom in the first quarter to achieve revenue of 1.056 billion yuan, down 13.18% year-on-year, net profit of 119 million yuan, the loss continued to expand. It is urgent to seek new business methods to optimize financial statements. It is understood that Datang Telecom last year classified by business categories of income are as follows: Integrated circuit design, software and applications, terminal design, mobile internet and other four business categories of revenue accounted for 27.98%, 50.93%, 20.04%, 1.04%. The bulletin said that Datang Telecom mobile internet business is currently relatively weak, in this business sector, the proportion of small income, so the company's four major plate development is relatively uneven. "Through the acquisition business development and profitability of the stronger to play entertainment, the company in the Internet business sector will be greatly upgraded to achieve the company's strategic layout, enhance the overall profitability." Datang Telecom's announcement. May 8, Datang Telecom has said the proposed purchase of assets for Shanghai 37 Play Network Technology Co., Ltd. (hereinafter called "37 Play") and Infinite, on May 23, Datang Telecom announced that it had abandoned its 37-game takeover and then renounced the acquisition of an unlimited company, in turn giving due diligence to a company in the gaming industry. And this company is Guangzhou to play Entertainment Network Technology Co., Ltd. (hereinafter called "Play Entertainment"). The transaction 65% of the price to issue shares of the way to pay, 35% of the price to pay in cash, holding to play entertainment shares of the Hoi Tong Kaiyuan and other three investment institutions will take the opportunity to gradually exit. "I have been in touch with people in public companies and are generally looking to buy a wholly-owned game company." Zhang to reporters that listed companies will generally be more than 60% equity plus 40%Within the cash method of acquisition. After Datang abandoned the acquisition of 37 games, Zhang that the two sides could not talk about the way the deal. "37 play can be called the benchmark of the parade industry, the above acquisition method may not be accepted by them." Zhang said that for Datang Telecom, the financial results at present is a loss, on the one hand, a lot of cutting-edge technology research and development investment, on the other hand, the business focus on telecom operators related business, the opportunity is relatively limited, need to enter new areas and mergers and acquisitions business model clearer companies to improve performance. Analysys International analyst Shillon also believes that the acquisition of small companies trying to enter other industries is a relatively appropriate way, and 37 play in the page has a certain amount of volume, there is a basis for independent listing, so in the price will also be high. "The current game company's profit model is clear, as long as there is a certain profit margin can beautify the listed company earnings." "Shillon said. Small game platform of the way out of the announcement, according to the initial audit, 2012 to play entertainment to achieve business income of 259 million yuan, to achieve ownership of the parent company's owner net profit of 27.0136 million yuan. And 2013 1 to March, to play entertainment to achieve business income of 124.2626 million yuan, attributable to the parent company owner net profit of 30.7972 million yuan. It is understood that to play the entertainment mainly rely on "yaowan.com", "peiyou.com" and other domain names under the game platform, Web tour operation, while the mobile terminal game development and distribution. To play Entertainment and its affiliate game operating platform running on more than 70 web games. As of the end of March 2013, to play the game platform to add 1.0621 million registered users, the monthly ARPU value of 570 yuan, the number of active users reached 863,000, the month income in more than 25 million yuan. On the mobile side, in March 2013, to play entertainment with independent property rights of the "Rich series" ("Legend of the Rich", "big Rich"), such as hand travel monthly income of more than 9 million yuan. "In the page tour platform industry, compared to Tencent, 360 of these large platforms, to play entertainment profit margins are very low, the industry average profit rate is generally around 20%." Shillon said that the products to be played are not well-known, the observation of the data, its profit margins and revenue in the middle of the low level. "To play Entertainment by Datang Telecom acquisition of information, recently some time in the game circle in Guangzhou has been rumored." Zhang, who is in Guangzhou, says the game company is now being bought and the valuations are higher. "The game is like Litchi, put for a long time is not good to sell." Zhang said, the game company in the current market environment, can do to what extent is not easy to say. Shillon that, the page tour market has tended to steady growth, the flow is slowly concentrating on Tencent, 360 and other large platforms, for the ping-tai, to spend money to buy traffic and promote the day is not easy, such a high premium by the listed company is a very good way out. and in order to control the risk, Datang Telecom will also be playing with entertainment to sign the agreement: if within three years to complete the scheduled profit, to playEntertainment Equity Transfer party will be to Datang Telecom compensation. Shillon explained that for Datang Telecom, Zhejiang Newspaper media, such as the original game has no connection with the company, integration is very difficult, so generally will be signed to the gambling agreement and let its independent operation. "In terms of market development prospects, listed companies are buying small game companies, and that is likely to happen next." "Shillon said.