Chen Flyover starts first plan ——— sell assets and streamline business

Abstract: South All illustrations: After two months of privatization of Liu Yin Metasequoia, Chen Tianqiao began his first plan to sell assets and streamline business. Last week, shun network technology announced plans to 80 million yuan price, by letting Grand Holdings of Chengdu Kut Technology 100% Equity. This is

South All illustrations: Liu Yin

After two months of privatization, Chen Tianqiao began his first plan to sell assets and streamline business ———.

Last week, shun network technology announced plans to 80 million yuan price, by letting Grand Holdings of Chengdu Kut Technology 100% Equity. This is the grand recent second asset transaction, less than a week ago, Zhejiang newspaper announced the proposed to spend 3.49 billion yuan to buy a grand winger and Hao Fang.

Behind the privatization, often accompanies with the company strategy, the business, the structure adjustment and the reconstruction. This also means the grand layout game, literature, music, film and tourism Interactive entertainment industry chain of the "09 structure" is being "recycled."

And after the sale of assets, Shanda can get rid of the single online gaming business rely on to build a real entertainment empire?

Shanda Group spokesman Jin (micro-blog) to the South reporters said: "Shanda has been around the strategy of interactive entertainment, the strategy has not changed." Its big business section includes literature, games, video, relying on payment, advertising, cloud computing three platforms to provide users with services. ”

Empty "Online games media" assets

The latest trading lead Kut technology is the Internet café industry leading software companies, its billing system "Vientiane network Management" in the domestic Internet cafes market has about 50,000 internet cafes users, accounting for the Internet Café accounting system market share of about 30%.

2011, Kut Technology realized operating income of 49.02 million yuan, but the net loss amounted to 27.54 million yuan.

The acquisition of Shun net technology, "the target company is currently due to the operating cause of temporary losses, but its products and market share has not declined", "the company intends to conduct this transaction is mainly through the acquisition of target companies to further expand in the Internet café market leading edge."

Shun network is currently the largest Internet cafes update software service providers, and Kut main business for internet cafes billing software, the two business has overlap. The announcement indicated that the purchase price initially determined to be 80 million yuan, the final equity transfer price will be determined in the equity transfer contract after negotiation according to due diligence results.

A grand insider to the South all reporters revealed that September 2003 Grand acquisition of KUT Technology, acquisition price reached millions U.S. dollars, Kyrgyzstan wins business is classified as ' online media ' plate. "The plate that is the grand advertising media business, has its own game built-in advertising company Shengwei, art Sound network Radio." ”

However, the plate since 2007, has not been a breakthrough, during which the network of media C E o Zhang Rain turnover, Shengwei was merged into a grand online after the final dissipation, art sound network into the cool 6 after the massive layoffs, now Kut technology is also about to be once the rival shun net technology acquisition.

At this point, has been placed thick net of the online media plate has been basically emptied, shanda in the field of advertising business only saved a grand online advertising system.

Since the purchase price was not disclosed, failed to calculate the sale of technology to win the full return of the grand. However, the C Hinav Enture Group chief analyst Weifeng, said that the winger, Hao Fang, Kut technology are in the 2003-2004-year acquisition, now have a higher valuation, or even higher than in the United States listed similar companies. “

A lucrative deal

The sale of a loss-making enterprise such as Kut technology is a real sense of "burden" action.

"Shanda bought auspicious wins, mainly for the management of entertainment software, but because did not achieve the desired effect and loss, in the other purchase price reasonable situation to sell, this transaction can be done." "Analysys International Online games industry analyst Sun Mengzi said.

But for the sale of assets to continue to the grand supply of blood business "game", the industry is somewhat unexpected.

April 9, Zhejiang newspaper Media announced plans to spend 3.49 billion yuan to buy the grand Group of two games company Hangzhou winger Network Technology Co., Ltd. and Shanghai Hao Fang Online Information Technology Co., Ltd. The Hangzhou winger and Shanghai Hao Fang are the leading developer, distributor and operator of the domestic entertainment interactive platform. 2011, the two companies total operating income of 460 million yuan, to create a net profit of 160 million yuan, year-on-year growth of 60%. In the same year, Hangzhou winger net profit of 140 million yuan, Shanghai Hao side net profit 15.39 million yuan.

The acquisition of the Hangzhou winger and Shanghai Hao Fang, once considered a grand group outside the M-m O PG Client NET, seeks the next profitable growth channel. In the three quarter of 2010, this part of the business was integrated into the wing structure, with its online chess, electronic sports platform, desktop games and other three main business, and was once the idea of a spin-off listing.

Sun Mengzi estimates that the Hangzhou winger and the Shanghai-ho side accounted for about 10% of the overall revenue from the Shanda games. Hao Fang and winger, although not particularly in the income, but they can basically maintain a long-term demand, in the market also maintain a more stable demand. "She believes that the grand choice to sell the Shanghai Hao Fang and the Hangzhou winger, mainly because they are not grand main source of income, the grand source of income or focus on large-scale online games above."

From another point of view, Weifeng that the deal in the "contraction front", sold a good price, for Shanda to bring rich book capital returns.

Financial results show that the 2004 Grand IPO, with 20 million U.S. dollars, about 164 million yuan to buy Hangzhou winger, and Shanghai Hao side transactions completed in two steps, the cost of 56 million U.S. dollars, about 463 million yuan. The purchase of the Zhejiang newspaper media, the winger valuation of 31, 800 million yuan, Hao side value of 310 million yuan, grand total benefit of 2.863 billion.

How to get rid of adjustment period troubles

The royal insider revealed that the current Shanda's business sectors include games, literature, film and television, payment, cloud computing, online media or advertising, as well as the hardware shell electronics, with the Internet platform and copyright content output two channels, so as to get through the industrial chain. "Shanda has always wanted to get rid of the reliance on a single online game business, but not smoothly." ”

Thus, since 2004, the Grand network through independent investment, mergers and acquisitions and other means of online games development, mobile games, network literature, network video, E-commerce, advertising and tourism and other fields, and has cool 6 and Shanda Games two listed subsidiaries.

But over the years, Shanda's new business has been mired in a slump in profits. The most obvious is the heavy investment of cool 6, still huge losses, become a grand big baggage. At the same time, online games are still shouldering the role of hematopoiesis. According to the financial results before the return of the city, the Grand network in the third quarter of 2011 net revenue reached 1.7721 billion yuan (279 million U.S. dollars), of which the grand game revenue of 213 million U.S. dollars, accounting for the grand network of 76.3% total revenue.

Sun Mengzi that the grand game in the Grand group level is a very core business, can be said to be a grand stronghold. But even in this field, Shanda games in the face of Tencent, NetEase's fierce competition "in the past few years the profit development of Shanda game is still a change, 2009 before the listing in the domestic online games ranked first." But after the listing, with the Grand game main business client net after the overall large buffer, revenue down, business decline, now ranked in Tencent, NetEase, the domestic only ranked third. ”

In Weifeng's view, the contraction front and the business adjustment are compulsory for most companies after privatization. "On the one hand, through market-oriented behavior to sell good prices, so that the book to get good Money returns." He said that on the other hand privatization can get rid of the capital market performance pressure, but the aim is to better achieve strategic investors and investment holding company positioning, so as to the future through spin-off business and asset listing to achieve financing and overall appreciation "it means Shanda need ' Slimming ', will focus on boutique projects, can cultivate such as Shanda literature, such as the listing business. ”

In addition, the industry has reporters to the south, in addition to the sale of assets, Shanda's another Cross-media film and television program integration and distribution company prosperous Sun has also been easy to master. Xu Lei, the founder of last April, returned to the team and bought back control by buying back a large majority stake.

"Shanda will continue to peel off and the main business is irrelevant, low profit margins, the prospects for the improvement of profitability of the project." "Weifeng is expected, after 2009 years of high-speed mergers and acquisitions, after the grand privatization of the asset adjustment will continue, and eventually get rid of the troubles of the grand transition adjustment period."

RELATED LINKS

Shanda's main business assets

Grand Games

Grand shareholding 71.9%. Mainly to provide users with large multiplayer online role-playing games (M M ORPG), advanced casual games and other diverse network game products, as of March 31, 2011, the Grand games operation 28 M M ORPG and 6 advanced casual games

Grand Literature

To build the largest network of original literature platform, promote the physical publishing, film and television, animation, games and other related cultural industry development. Its starting point, novel reading Network, tea Tim Incense, romantic novels bar, Xiaoxiang College, Banyan Tree.

Grand Leisure Community

Its main winger and Hao Fang two major subsidiaries (currently Zhejiang newspaper Media has taken over).

Cool 6

Network video business, as of July 7, 2011, Shanda holds 酷6网 66.4% of the shares.

Shanda Online

A digital publishing platform designed for cultural and virtual products.

Grand Innovation Institute

Engaged in computer, Internet, import equipment and other scientific research institutions.