Chinese Media Transformation: How Far is Traditional Publishing from the Internet?

One is the traditional publication media listed company undertaking the pressure of transformation, one is the game enterprise that once sought the A-share listing, the Chinese media (600373.SH) and Beijing Zhixing Xingtong Technology Co., Ltd. Eye on the "seems logical.

The suspension of the Chinese media has announced that it will be 2.66 billion acquisition of "Happy Farm" game developer Smart Star 100% stake in the assessment of value-added up to 2817.08%, which is behind the traditional publishing business-based Chinese media on the Internet platform Thirsty.

"Despite the severe sense of crisis, many M & A targets that we contacted did not meet our M & A demand for platform-based enterprises in the Internet field." Fu Weizhong, the general manager of the Chinese media, told the reporter of First Financial Daily that this time Chinese The reorganization and merger of the media and Chi Ming Starcom is a rational choice under the explicit strategic guidance.

Traditional business transformation pressure

After the backdoor listing, the Chinese media mergers and acquisitions these two years are also quite a lot, has invested in Beijing Art Financial Minsheng Art Investment Management Co., Ltd. and Lihua Color Printing (Kunshan) Co., Ltd..

"Arts and people's livelihood is not purely based on the store business and auction business art company, we fancy this business in the next three boards or Hong Kong stock market considerations, and merger Lihua color more in order to improve the entire printing industry Chain. "Fu Weizhong explained.

Fu Weizhong revealed that prior to formal business negotiations with Wisestar, the Chinese media has identified a combination of R & D capabilities and business operation capabilities focused on the platform-based businesses with the main objective of the internet as the platform.

For the market, involving the game, the theme of the Internet M & A target is not lacking, but to find a suitable but not easy. The ultimate facilitator of this cooperation between Chinese media and Smartest Star is CITIC Securities.

"In recent years, the media industry is in transition, we see the Chinese media has a more urgent M & A. Before we recommend some games, film and television companies, but they have not made up their mind until the chance link Star pass. "CITIC Securities stakeholders explained.

In fact, Smart Star had previously sought A-share listing. Celebrity Star CEO Tang Binsen told the "First Financial Daily" reporter: "The company's earliest goal is the domestic market, but also prepared for this a long time, but subject to domestic policies and many other issues, and ultimately decided to give up. In fact, as long as the business Well done, we can achieve value-added capital markets we are not very good. "And with the finalization of this merger, including Tom Binson and other celestial star executives also rely on the hands of the shares profitable.

Media Layout Internet trend

In 2012, Zhejiang Daily Media (600633.SH), a wholly-owned subsidiary of Zhejiang Expressway, acquired a wholly-owned subsidiary of Winner, the winger and Hao Fang Battle Platform, as a successful case of the traditional media layout of the Internet. In March this year, Zhejiang Daily Media also involved in the e-sports industry, the controlling subsidiary of Shanghai Digital Technology Co., Ltd. from the transfer of Qi and since the information technology (Shanghai) Co., Ltd. each 5.75% stake.

However, for smart celestial bingo, which has independently researched and developed "Happy Farm" and "World Hegemony", Tang Binsen and the Chinese media are more willing to position it as an Internet comprehensive platform.

According to its announcement, the business structure of Zhixing Starcom is divided into three levels: First, through YAC security software as a starting point, www.V9.com and other navigation sites as the traffic entrance to attract user traffic; Second, the flow of traffic After that, with 337.com gaming platform, cloud platform and Tedmedia network platform to ensure that traffic at the entry-level traffic can be efficiently imported into the relevant game products and e-commerce sites to promote the realization of traffic; Finally, the game and application APP Development layer, relying on the advantages of traffic entrance, the game as an important profit breakthrough point.

However, from the performance data point of view, the main source of income celestial Star is concentrated in the game business. In 2013, the revenue from game research and development, game publishing, advertising and technical services accounted for 38%, 39%, 22% and 1% of the game revenue respectively, accounting for 77% of total revenue and 77% of advertising revenue %.

"We are trying to create a closed loop when we are doing handwashing and we want to create a closed loop. Once the closed loop is formed, the business structure will be more robust, with both games and traffic, but it must be platform-centric and traffic is a result, not Purpose. "Tang Binsen said.

Fu Weizhong revealed that in the future, the Chinese-language media will integrate its existing new media and Internet resources with the Chi-Mattel as the core team and an important platform. However, how a game Internet team undertakes the transformation of such a huge offline transformation of the traditional publishing group, Tang Binsen's answer is a bit vague. "We have been thinking for a long time, but it is still not yet disclosed."

As a traditional publishing media group, the major resources of the Chinese media are concentrated online: there are 8 book publishers, 3 newspapers, 23 periodicals and 93 Xinhua Bookstore in Jiangxi Province.