Game mergers and Acquisitions benefit account: 39 unseen assets take 25 billion

Since last year, a shares of listed companies have 16 major game mergers and acquisitions, a total valuation of about 22.2 billion yuan, the assets of the seller to total 9.377 billion cash and 32.2 billion equity market value. Financial Weekly reporter Dai Jianmin/Shenzhen reported January 24, the Network game index (wind data) closed at 3723.23, and then new high. After 2013 years of galloping, the current a-share market involving the probability of online gaming companies have reached 47. According to the 2013 China Game Industry Report, 2013 China game market, the number of users up to 490 million people, an increase of 20.6%, sales revenue of 83.17 billion yuan, compared with the previous year, a sharp increase of 38%. The success of the gaming industry has attracted the pursuit of capital. Since the establishment of subsidiaries, strategic cooperation, mergers and acquisitions, various areas of the listed companies to sharpen their heads across the world into the game field. The benefits are obvious, in the announcement of game business related announcements, these companies have no exception to the stock of the rise, according to statistics, 8 companies because of the release of the game related bulletin share price rose to more than 100%. However, there are also insiders pointed out: "The listed companies to engage in the game, after all, is not good at the field, if not advance in-depth research, it is difficult to succeed." "But this has not affected the enthusiasm of the market, less than 50 game concept companies in the past year set off up to 25 billion of the mergers and acquisitions boom, high valuations become a common phenomenon, full of good expectations for the future." Whether this is the prelude of the grand drama, or will become the last madness, all is not known. 25 billion game mergers and acquisitions frenzy wind information shows that a shares of listed companies, involving online games (including hand-travel, such as mobile Internet games) The concept of a total of 47 companies, including the palm of the fun technology, the old game companies such as Green Treasure, but more than last year only just to dabble in the game "rookie", Some have not yet launched any game projects. And some companies claimed that the hands of the business or even the true and false, difficult to convince people. "Last year to the current a-share market game companies are a lot of halfway decent, there is no game business, their own business and games, and even no connection with the Internet, announced into the field of play, do not rule out the company is to borrow the game boom to hype." "A private equity person in Shenzhen told the financial weekly reporter according to the private equity, the current listed companies enter the field of play, there are mainly three forms, one is to set up a game subsidiary, the second is to cooperate with the game manufacturer, three is the acquisition of game assets, Financial Weekly (Money-week) This is also true of the statistical data of major project laboratories in listed companies. In all the Cross-border entry of the game last year, the Zhonghong shares chose the first form of the shares. May 13, 2013, the joy of the shares announced that the Shenzhen branch to complete the industrial and commercial registration, and this branch will use the company in the toy research and development, design, manufacture and sales advantages, to find the right hand travel development company, cooperative development hand Tour products. After the joy of the shares again issued a notice, Shenzhen branch, including hand Tour products businessThe new business is being carried out, the Hand Tour product project is under development. The announcement was made in the name of "Hand Travel products business progress" and was announced in high profile. July 2013, the joy of the company said that the hand Tour product project is currently in the research and development phase, is expected to be at the end of 2013 or 2014 before the market to launch products, short-term failure to contribute to the company's profits. After this round of speculation, the joy of the shares of the market is sought after. But the authenticity of its hand-travel project is being questioned by the market. By January 17 this year, the joy of the shares announced that the hand tour products are under development. August 6, 2013, Zhonghong shares announced the investment of 100 million yuan set up Hangzhou Megatron Network Co., Ltd., to carry out hand tour business, and said that the next 3 years in accordance with the development of new companies need to invest about 500 million yuan. However, on January 23, when the financial weekly reporter contacted the securities department as an investor, the relevant personnel said that "there is no game product launch, the team includes Tanghangseng brought over, there are some recruitment, a total of 20 people." "It is also a high-profile publicity, but the game product has been delayed." The private-equity people told reporters: "Listed companies in the Cross-border game, after all, is not good at the field, if not in advance in-depth research, it is difficult to succeed." In addition, the Zishing Tower, Jinya technology and other companies have chosen to cooperate with the game manufacturer. October 2013, Jinya Technology said that with the online game business Perfect world to achieve strategic cooperation, to jointly develop a subdivision of the OTT products, that is, the creation of a built-in perfect world game products of the Internet set-top box. In November, the Zishing Tower announced that the company's wholly-owned subsidiaries and too can Vocko signed the framework cooperation agreement on hand-travel projects, Zishing invest in its own funds of not more than 20 million yuan for investment and too can cooperate with the Hand Tour project. But when reporters confirmed the progress of cooperation, two companies in the securities Department of the relevant staff said that it is not clear the follow-up progress. And the domestic listed companies choose the most is through the way of acquisition, access to the game field tickets, mergers and acquisitions are divided into equity, increased acquisition, issued shares to buy game assets. According to the Financial weekly reporter statistics, since 2013, a share market has more than 30 cases of online game mergers and acquisitions, involving 39 game assets, the total amount of more than 25 billion yuan, but has completed only 9, 4 are in the signing of the transfer agreement stage, others are in different stages of the process. From the amount of view, more than 1 billion of the total of 9, of which the plum umbrella reorganization of the information of the case, the share value of the information of the tour group reached 3.8 billion, for all cases. In this more than 30 cases of acquisition, a total of 16 are the use of additional acquisitions and reorganization of the way, currently only 3 of the SFC through or conditional adoption, respectively, Shun Rong shares, Austrian fly anime and Huayi Brothers, 6 to obtain the SFC to accept, the rest still stay in the board of Directors plan stage. The 16 acquisitions involved 16 game assets, with a total valuation of about 22.2 billion yuan. According to statistics, the sale of these game asset shares received 9.377 billion cash and 8.800 million shares of relevant listed companies, and this part of the current market capitalisation amounted to 32.2 billion yuan, which is undoubtedly a feast for the sale of shareholders. One has to say that the palm of the technology, in 2013, has 810 million acquisition of dynamic network pioneer, 2.553 billion mergers and acquisitions play crab technology and upstream information, the acquisition of the most assets of the game company. This lets its stock price climbed. Wind data shows that since February 25 last year, the palm of the technology announcement of the acquisition of the network pioneer, its share price rose to 529.94%, the rise of the first stock market. "The technology itself belongs to the hand tour companies, and now do these large-scale acquisitions, the business has a big complement." But at present the domestic game market in the past scattered competition pattern also slowly changes, the concentration degree is more and more high, the scale effect will gradually embody. "An analyst who has long followed the technology told reporters. In addition, a number of other companies announced the acquisition of game assets, also ushered in a sharp rise in stock prices. Among them, more than 100% of the total 8. Can the intrinsic value of these game assets support such a high premium? Where are their core competencies? The riddle of asset valuation the company is in the ascendant, and the valuations are rising, but how do you judge the bid and determine the exact valuation? A company that bought game assets in 2013 told reporters that in the last year when choosing the game, there are a lot of options, on the one hand, professional investment consulting agencies have introduced a lot of projects, there is a game of their own door-to-door. "At that time, there are five or six companies for us to choose from, we are more cautious, after repeated comparisons, only to determine the acquisition of the target." said the senior executive. According to the executive, the choice of mergers and acquisitions, the main consideration of two points, one is the nature of the company is profitable, and if the continued profitability, the second is a relatively low valuation, the level of premium can not be too outrageous. Another insider, who is interested in acquiring game-asset companies, said, "Our internal standards of acquisition are stricter." "The first is the volume requirements, must be the forefront of the industry, the second need to have a stable, research and development, operational ability of the team, the profit model must be clear, fluctuations can not be too large, even in a particular period of high income." In addition, if there is a good platform will also consider. However, even with these stringent standards, game companies still get a higher premium and there is a gradual upward trend. Reporter statistics found that the current a-share market mergers and acquisitions cases, the game company premium rate generally reached more than 10 times times. One of the highest premium, appeared in Zhejiang newspaper Media acquisition of Shanghai Hao side case, the asset premium reached 46 times times. "At present, the high valuations of game companies are mainly reflected in their good cash income, which can be said to be paying for future earnings," analysts told the financial Weekly. Therefore, to maintain a stable income situation for the game company to determine the most important indicators. "The plans announced last year show that most of the acquisitions have set up betting agreements to guarantee the future benefits of the game." Financial WeeklyAccording to the statistics of the money-week, the average growth rate of the underlying assets for the next two years is more than 11%. It is estimated that the growth rate of more than 100% of the two, is the Great Wall group and the day boat culture. In the Great Wall group of the acquisition of the case of the Wo culture, wo Culture 2013 years to achieve a net profit of 1.07 million yuan, the share seller promised to the 2014, 2015 profit will reach 12 million, 15.6 million, the next two years, the average net profit growth rate reached 525.75%. Tian Zhou Culture acquisition of the artifact era in the next two years, the average net profit growth rate of 102.09%. And these game assets can really give the buyer company to increase the number of performance, is not yet known, such as the future of regular reports will be able to see at a glance. But in the eyes of some investors, these seemingly good expected returns are at great risk. "Game companies, unlike traditional industry companies, are themselves light asset companies with little net worth." Now give him too much value, if the expected return is not achieved, in the future to take into account a large amount of impairment losses, these game companies will directly become negative assets. "The private-equity person told the weekly financial report. and to maintain a steady return, Analysys international game analyst said: "A game of short life, usually only a few months, if you want to maintain a stable income, it is necessary to continuously introduce high-quality games, which requires the game company's team has strong strength, and can maintain stability." "The merger of a broker in Shenzhen said," We are also beginning to realize the risk of game mergers, the bubble began a lot, and now choose the target will be cautious, more value the development of the company's ability to rely on the company's income depends on a single product, reserve game items will also be included in the key indicators. "The future of the game, the data show that the online game index even higher, January 24 closed at 3723.23 points, compared to the beginning of 2013 1039.39 points up 258.21%." According to the 2013 China Game Industry Report, the number of users in the 2013 Chinese game market reached 490 million, an increase of 20.6%, sales revenue of 83.17 billion yuan, compared with the previous year, a sharp increase of 38%. Among them, the client game is still the main market, accounting for 64.5% of the total market, web game sales revenue of 12.77 billion yuan, mobile games, social games and stand-alone games income is 11.24 billion yuan, 5.41 billion yuan and 89 million yuan. And the mobile game represented by hand tour market share reached 13.5%, an increase of 8.1%, in the game industry segment industry market share performance in the most obvious increase. A South China Securities and Acquisitions department head of the merger and acquisition of the game in the last year so fire, absolutely not groundless, good growth is a very important factor, mergers and acquisitions of sellers and buyers have done a depth of research. "There are some bubbles in valuations because they have good expectations and conform to the rules of any investment market," he said. This has happened before.Times, when every new thing comes up, the extra high expectations certainly produce bubbles. This is the objective law of the development of things, the capital is profit-driven. "The owner further explained:" A company acquired after the tour, the market value rose, bring benefits is that the majority of shareholders choose a part of the current, the other, in high stock prices when to buy other items, the cost is low, so the game will continue to buy. "But the Analysys international gaming sector analysts have made 2013 a turning point in the game merger boom," game company mergers were a big deal in 2013, but we judged that the momentum would go down until the financial data for last year were released in March or April, because the financial data for these gaming companies would show a lot of things, Problems with the difficulty of keeping profits will also be exposed. "(More exclusive report, please pay attention to SINA Micro-blogging @ financial weekly, micro-credit public number Money-week)