24-month addition and subtraction

Absrtact: On the last day of 2010 years, the NASDAQ:FMCN of "hibernate" has moved again. Choice in the Chinese people's December 31, 2010, the media announced that will be 61 million U.S. dollars investment in China Media (NASDAQ:VISN), accounting for the latter 15% of the shares.

On the last day of 2010, the "hibernating" NASDAQ:FMCN again.

Choice in the Chinese people's December 31, 2010, the media announced that will be 61 million U.S. dollars investment in China Media (NASDAQ:VISN), accounting for the latter 15% of the shares. Frontlead, the founder, chairman and chief executive of Limin, is still the largest shareholder in China.

This is the first major capital move by the audience in the "self-examination" series of acquisitions and mergers, and is one of only two wholly-owned acquisitions in its history. Prior to January 2008, the audience had 5 million of dollars in cash to purchase the Yellow Health Media Co., Ltd. 20% shares.

January 4, Deutsche Bank in the Nasdaq after giving the division to maintain a "hold" rating, the target price of 22.20 U.S. dollars; January 5, the Gaokaigao went up 4.22%, reported 23.71 U.S. dollars.

Is this China's largest outdoor digital media company already on the turn?

The 2010 of the mass media seems to be a "rather contradictory" year. A few months ago, Jason, the chief executive, confronted the media for denying himself, in the earlier months he made a "zero-start" annual conference address for hundreds of employees, from self-denial to media criticism, from the disappearance of the big story concept to the subtraction of non-core business, feedback back to the internal emotions of the company, is disgraced. But in another silent place that is not widely watched by the public--the client market--the journalist learns different voices.

Echoing the latter, the latest 2010-year quarterly earnings show a steady rise in profits: According to non-US accounting standards, the total revenue in the quarter is more than 1 billion yuan, the main business year-on-year growth of over 46%, net profit minus the sale of Internet business Good Yes income for 51.8 million dollars, Core business performance reached the best level in history. The net profit for the first two quarters was about 23.2 million dollars and 44.3 million dollars respectively. According to its forecast for the four quarter, the total annual net profit of 2010 is about 170 million dollars.

"Customer Experience" is an abusive and prosaic word, perhaps more direct--customers will not experience a company's strategy, but will experience the quality and cost of the company's products. While the media is busy scoring the old stories of Jiangnan Spring's past two years, the market has been testing the new process of the entrepreneur's fission.

For customers, this will never be a simple concept of right and wrong, but only "bad", "good" or "better" replacement. At the same time, whether the Internet or mobile applications are divided into the future, if this was a mistake, how will the new audience start again?

Dormant two years of new capital movements, accompanied by the obsession with capital magic of the audience into the 2011. Jiangnan Spring after the bitter experience of "business theory" and "causal theory" also means that the new audience in the "third grade" is destined to be with its "second grade" completely different story.

24-month addition and subtraction

According to the public announcement of December 31, 2010, China's media has entered 23 economically developed cities, with China's largest public transit subway TV advertising network, accounting for China's car wireless digital signal transmission TV terminal total of 76.8%, covering has opened the total number of subway TV terminals nearly 100%. The focus is expected, the integration will achieve media network coverage of 3 to 400 million urban consumers, occupy the average daily advertising ratings of the total time of 1/3, also for the audience at the end of the transmission and transmission of the docking process.

This is the first time that the audience has been silent for the past 24 months.

Over the past two years, how much has been accustomed to listen to the distribution of the capital layout of the story of the outside is a bit uncomfortable. At this time, had the company and Tan Care of Jiangnan spring has been returned to the post of CEO, in the earlier two years, he dominated the great leap forward from "Life Circle Media" to "China's largest digital media group", where it bought 9 mobile advertising companies and paid nearly 100 million dollars for a series of deals. The cost of a series of acquisitions for Internet advertising companies is even more high, with the audience paying nearly 500 million dollars and the company reaching 7.

After the Jiangnan spring cautiously said, 24 months of silence is "immersed in a preservation of strength of self addition and subtraction"-the end of 2008 financial crisis is the catalyst for the division of the disaster, the real decisive reflection began with two fuses: first, the CCTV "3.15" party to the exposure of spam messages; Buying at a loss "a reflection of the acquisition of the city of Seal, Jason admits that it is the best way to buy it after it has been listed in the city and the price has been lowered due to losses.

If the first fuse is more like a pile of "contingency" events, then the second fuse directly contributed to the inner fission of the Jiangnan spring.

"We began to subtract, the return of other business to the main business, in fact, the building, store and framework of the three business itself is growing in the market, because these businesses have been recognized by customers, will not think or need to discuss the media, in addition to the financial turmoil of the customer's budget contraction impact, The 2010 recovery business immediately rebounded back to strong and solid. "Jason said.

The third-year story seems to come back to the beginning, but without the second-year leap forward, Jason seems unable to see the starting point. The sale in the third quarter of last year was the end of the 2009-year series of reorganization, shutdown or stripping. The sale was good, and the audience received a profit of 79 million dollars, and two years ago it paid for its acquisition cost of $70 million in cash plus 155 million U.S. dollars in media shares.

Public finance Deputy Xu Xian also told reporters that the 2008 and 2009 after the public has been selling a good part of the tangible and intangible assets, the current price is higher than the good net book value, "So we sell good will achieve asset profitability."

And the results can still be seen in the subtraction of purification behavior, Jiangnan spring in addition to the outside world know little.

According to Jason, 2010, the focus of the four major product strategy movement: first, in the one or two-line city to carry out high-definition screen movement; second, the three or four-line city to promote the screen multiplication, expand coverage; Thirdly, promote the content and entertainment of advertising, and finally, enhance the media interaction, jointly with Sina, Mobile launched with the Internet, cell phone wireless advertising cooperation to enhance the interaction with the audience to promote advertising sales.

"High-definition and so bring us more bargaining power, growth to three or four-line city and advertising customers sinking demand kiss, the third is the customer needs is also the needs of the audience, the fourth is the advance of RFID technology." Jason said the audience wanted to make four changes that would allow customers to feel a higher return on investment.

Similar to this logic, Jason in the new capital action just completed said: The minority equity investment anastomosis has been established development strategy, that is, in reducing the company's non-core business while focusing on expanding and investment in the core business.

Further inquiry into new media business

The transformation of Jason values is the shift from investor and shareholder to customer-driven, but the four word "self-denial" is not so simple as literal meaning, it contains at least two layers of questioning.

First, the acquisition is not right or wrong is always neutral means, if the focus of the past series of mergers and acquisitions is a mistake, then what is wrong? Second, whether the Internet or mobile applications are divided into the future, if the past is a mistake, then how will the audience start again?

In response to the first question, Jiangnan Spring reflection: In the past, the public in the Internet and wireless business is caught in a "conceptual advance", that is, because "I want to do the Internet or wireless, so I want to access the Internet or wireless", the direct starting point is to meet entrepreneurial ambitions, mergers and acquisitions did bring the capital statement extension, but in fact, " We have no way to organically integrate these media because they are not strong with our original business connections, they are independent and have no synergy with our core business.

Jason said, "If you look deeper," the audience in these two areas entered the value point at the same time a selective error, because all of our other business is the media, such as access to the Internet, we choose the value point is the agent rather than the media business, if Sina and the integration of the public success, then the business of the idea is right, We do not choose the most powerful media in the Internet and the audience to do a combination, if the choice is a most powerful media, then the audience today is an all-encompassing thing.

In other words, the old audience chooses a wrong value chain to enter the new digital realm. But in fact, it is difficult for the audience to enter the value chain of what they call "truly correct" in these two emerging areas.

In the past two years, the public has failed in 2009 for failing to approve a "Sina-minority" deal that has been launched to save the market capitalisation; Similarly, the wireless domain's biggest media is the operator, and the focus of the wireless value chain to choose the error also means that its business model faces a "mobile phone is very strong, but the mobile ad licensing is not strong "Natural hazards.

As for the answer to the second question, Jiangnan Spring also remember the first question to clarify the train of thought: The audience has not been in the expansion of the original business extension, then the future, the audience will also remember this lesson forever.

More than 60% of advertisers are preparing to dramatically increase their digital media budgets, with Internet and outdoor TV becoming the main direction for advertising budget transfers, according to the latest report from the Institute of Advertising Research at the University of Communication. "Internet or wireless is really we do not go past the topic, but our extension must be related to the main business, we do not become others, we or ourselves, but a more powerful self." "Jason said.

For example, "such as mobile phone business, the future with RFID technology, users in the building ads divided into large screen sites to see interested ads immediately after the use of mobile phone control, then the relevant information will be immediately passed to the user's mobile phone, if this is a Greek tourism board advertising, it will tell you, Greece is the most worth playing five places, Which travel agencies can do travel, what discount coupons, etc. ”

Jason stressed that, unlike the second-year story, similar business and the digital outdoor business has relevance, "the audience will be from the digital outdoor media to the entire digital media forward, but the process must ensure that the extension of all business is with our main business has synergies, because the cornerstone of the focus is always the main business." ”

Does the audience do better than others in the Internet or other areas? "Not necessarily, it doesn't have to be the core competitiveness, but if someone imitates my RFID today, he doesn't have a niche for these screens." "Jason said.

According to Jason revealed that the focus of the interior has done a relevant layout, but the relevant people expect that the user's hands of the mobile phone terminal to become RFID, in China's environment estimated to be two years time.