In the case of mergers and acquisitions, the two horses in the tug of a battle have been mutually exclusive.

In the merger, the two horses in the tug of a battle have been mutually exclusive. After the Monday Ma's Tencent stake in the east, the turn to Jack Yun's Ali shot, but surprisingly the target from the "culture" industry.

Culture China 11th issued a notice that the 62 4.4 billion Hong Kong dollar to obtain the strategic investment, Ali will receive cultural China 60% of the shares. South all reporters from the people who know, Ali this move is intended to open the cultural industry chain upstream and downstream, rather than backdoor listing.

It is noteworthy that Tencent owned 8% of the Chinese ownership of culture, after the transaction, the shareholding will be diluted to 3 2%. Yesterday, cultural China closed up 185 9%.

Why culture China?

The announcement shows that the culture of China to Alibaba allotment and issue a total of 12.488 billion shares, equivalent to an enlarged share capital of about 60%, the issue price per share of 0, 5 Hong Kong dollar, compared to the prior suspension of 0.64 yuan discount to nearly 22%. Cultural China yesterday resumed its licence, its share price soared 2.9 times times and then continued to soar, with a 4.3 times-fold increase of HK $3.39, which ended at 1.83 Hong Kong dollar and Rose 185.937%.

The announcement also shows that cultural China is mainly engaged in media-related business, including planning, production, publishing, investment, distribution of TV dramas and films, Sales and distribution magazines. The 2012 annual report of Culture China shows that the culture China Group owns a 50% stake in the Jinghua culture Communication Limited, and its main business is the newspaper advertisements and newspapers published in the Beijing Times. In May 2010, cultural China completed the acquisition of a joint control agency and started the newspaper advertising agency and distribution business in the Beijing Times.

Close to Ali of the people to the south of the reporter analysis, the culture of China's holding, means that Ali to the upstream content production link again shot. The 2013.5 Annual report of Culture China shows that its net profit is mainly due to the investment of the "West Swim Drop", which accounts for 30% of the investment share of the film. In the next 7 years, Chow is expected to produce 5 films, of which cultural China will invest 10 million yuan for each film.

Ali layout Cultural industry upstream

Over the past few years, Ali in the cultural industry in the field of frequent layout, and constantly increase the investment in cultural and entertainment industry. Last January, Ali's music division acquired the music website Shrimp Network; in April, Ali bought Sina Weibo 18% shares with 5 $8.6 billion; in September Ali integrated music, video, home entertainment and other departments, upgraded to Digital entertainment business group, and found the original Tencent video general manager Liu Chunning personally fencing In January 2014, Ali first disclosed the launch of a hand tour platform, February, and Hainan International Tourism Island pilot Experimental Zone signed a strategic cooperation agreement, planning total investment of 5 billion yuan, in the test area to build China's first based on cloud computing and large data digital Internet City Smart Internet Harbor, Ali Digital Entertainment and gaming industry headquarters base.

Another noteworthy data is that, in the just ended March 8 mobile phone Taobao Life Festival, through the mobile phone Taobao booking movie ticket online consumption of nearly 2 million, mobile Taobao become China's largest film service platform.

Ali Group Co o Zhang Yong to the South reporters said, mobile Taobao into this area, the role of positioning is not just to do ticket sales channels, Ali is working with the hospital line, content production company, and through the microblogging and other information social platforms, for the film and users to provide a one-stop path.

In addition, last week, the industry reported Ali 1 billion U.S. dollars into the Chinese media, will get the latter about 20% of the shares. South all reporters learned that the deal has entered the final stage of negotiations, is expected to be the largest Ali to date, and the Chinese media has the largest digital program content Media Resource library.

The Giants slaughter the cultural industry

5G founder, internet critic Bo told South reporters, Ali is becoming a far more than e-commerce, affecting people's lives side of the company. He believes that in recent years, Ali in the cultural industry in the field of frequent layout, on the one hand want to expand outside the E-commerce industry, do some brand, have content business; On the other hand, the cultural industry is the government to promote strong support of the field, Ali involved in this area may enjoy more support.

Moreover, the subtlety is that after the deal is completed, another giant Tencent's shareholding in cultural China will be diluted from 8% to 3.2%. Will the next two big internet giants continue to struggle in the cultural industry, and will the field become the next platform for the internet giants to go to war?

Bo that the major Internet companies have been doing the cultural industry, not Ali into the field after the attention. "Many internet companies have been involved in the industry, such as online games, animation, film and television, publishing and so on, but the cultural industry may be even hotter after the Giants intervene." Bo admits.

Observation

Ali borrow shell listing possibility low

In addition to cultural China, Alibaba, which has been planning to list overseas including Hong Kong, announced earlier that the Yunfeng fund, with a total cost of 1.327 billion yuan Citic 21st century, accounted for 54.33% of the shares, becoming the largest shareholder, and that it would continue to maintain CITIC's existing operations in 21st century, and might inject several supplementary operations

Whether it is a stake in Citic 21st century or investment culture in China, the industry's speculation on the listing of Alibaba's shell continues. However, senior mergers and acquisitions lawyers in Shenzhen said to the south, according to the Hong Kong Stock Exchange listing rules, Alibaba backdoor two companies listed in the unlikely, the two companies are not Alibaba ideal shell resources.

The relevant industry personage to the South all reporter discloses, if Alibaba through these two companies carries on the curve listing, if accumulates the assets exceeds the original capital, the benefit, the profit or the market value and so on any one index 100%, then must go to the municipal process. At the same time, if the shell listing, the two companies are not high market value, if the financing, also can not meet the needs of Alibaba.

South All reporters also learned that recently, Ma Yun traveled to different countries to conduct business visits, including through New York, and then the HKEx's head of Li also in New York.