Lok-Vision suspension for the acquisition of Flowers film and television to strengthen the upstream copyright control

Wen/Zhao Nan is not six rooms, nor is it strong to see the media, nor is it a hand tour company, after the suspension of nearly one months, the major assets of the video network reorganization will soon surface. A very accidental scene and opportunity, I obtained from the more authoritative information on the asset reorganization: Le video network, the same control company le-Vision film is about to buy the domestic film and television investment company Flower movie and television, the current transaction has entered the audit phase, but the amount is still unknown. Le video Network has issued a notice of suspension this year August 27, and said that the reason for the suspension to avoid related major issues of uncertainty may result in price fluctuations. September 3, the video network again issued a notice that the major issues to be disclosed as a major asset reorganization, and said that the transaction will resume on October 8, and in the three months after the resumption of the card is no longer planning assets reorganization matters. And also yesterday, Le Video network issued two announcements, one is about its smart TV and Tencent Xun Network sales channel cooperation; the other is a progress bulletin on major asset restructurings. During the suspension, the rumours about the merger and acquisition of Lok-Vision continued. At the beginning of September, there was news that the company would buy six rooms with strong visual media and domestic video site. However, strong view of media director Cao Haitao and the six rooms are explicitly denied to the media. Then, the correlation and speculation about the Lok-video-network suspension and the layout of the music and video films began to circulate in the popular. The industry may have a few questions about the deal. 1, since it is the acquisition of the music film, Why will the Lok-optic network suspend business? Yes, music video and video is the same as the music under the group of two parallel companies, there is no direct equity relationship between the two. And the music video network holds 51% of the new (smart TV as the main business) equity, music and video film in August ago this year, mainly for the founder of Jia Yue Pavilion personal hold. And after August this year, le-Vision film completed a round of 200 million yuan financing, the transfer of more than 13% of the stake, from deep into the cast, and deep venture investment is also a video network of investors. The reasons for the suspension may be: 1, music video business and video network is the industrial chain upstream and downstream relations, music video through the copyright content of the film to carry out advertising and copyright distribution, therefore, the music video of the stock exchange may be on the music network price fluctuations. 2, the music network has always been in the financial disclosure is very transparent, the prospectus, earnings disclosure are very detailed, this is a good phenomenon of shareholders responsible. According to the 2013.5 Annual report, the music video and video network also do have the flow of money generated by business transactions. In the first half of 2013, le-net accounts receivable includes le-view film, book balance of 5.9 million yuan, and should pay the object also includes music video, the end of the amount of 8.5 million yuan. Over the same period, the music video from the video from the film's advertising revenue of 5.566 million yuan, accounting for the same amount of 1.62% of the same transaction, Le Video network for the purchase of music film copyright costs of 9.5 million yuan, accounting for the same amount of 0.83% of the transaction. As a result, the change in the ownership of the music and video studios is likely to have an impact on the performance of the video network. 2, why is the flower film and television? After learning of the acquisitionAfter the transaction, I hereby consult the relevant business information. Flower film was founded in November 2006, is located in Zhejiang Hengdian Film and television industry experimental zone, registered capital of 3 million yuan, is a set of investment, production and distribution of film and television companies. What are the main serials of the Toupai of the flower film and television? 2005 Toupai Gauchich Director of the series "Happiness Like Flowers"; 2006, with the Beijing Television Art Center Toupai Zheng director of the "Golden Wedding", 2007, Toupai Zheng director of the "Grass", 2009 Toupai Zheng Director of the "Golden Wedding wind and Rain Love"; 2010, Toupai Zheng Director's "Huan Biography", 2012, Toupai Zheng director of the "New editorial department of the story." And the above film and television drama Most of the copyright cooperation with the video network. Among them, "Huan biography" and "The story of the new editorial department", respectively in 2011 and 2013, by the music network to 20 million and 50 million yuan price to get the exclusive network copyright. And the "Huan biography" of the exclusive authorization for the video network has brought more than 3.6 billion of the traffic growth and more than billion value return. The case has also been widely publicized. It can be said that in the formal purchase of flower film and television, the two have launched a more in-depth copyright cooperation for many years. Copyright is one of the most important sources of revenue for music, and it is also a long-standing axis and hub of the layout. The early business model of the video network mainly revolves around the copyright content to carry on the user pays and the copyright distribution. According to the 2010 Music Network Prospectus, copyright distribution revenue accounted for more than 50% of the total revenue of the video network. Le Vision Network CEO Liu also said that the network Copyright library of the most of the resources for 5-7 years, and copyright distribution of the right to use most of the 1-year usage time, with the market on the promotion of copyright, the distribution of copyright business is still bullish. It is also based on different business models, compared to Youku, potatoes are still in the loss phase, Le Vision network as early as 2007 has achieved a full year of 14.69 million yuan net profit. With the development of the business, the brand value of the video network, the copyright distribution business accounted for the proportion of total revenue has decreased, advertising revenue and terminal income significantly increased. In addition, there has been a decline in video copyright prices on the market. According to the 2013.5 Annual report, the first half of this year, the music network copyright distribution accounted for more than 37%, compared to the initial stage of the IPO, and from the revenue level, also reduced by 15% over the same period last year. However, the video network advertising revenue accounted for increased to 46%, the revenue growth of 125% year-on-year. The copyright library has been the core advantage of the video network compared to other videos. And the whole industry chain layout of the music is also around the video copyright to expand: Le Video network to carry out the copyright content of the advertising and distribution; music to the new production of smart television to expand the video content of the user channel distribution; le-Vision is an upstream investment in film and television dramas, is the production source of the copyright content. However, as the market copyright prices decline, the music network investment flower film and television may also face risks. But the value of the outstanding production team behind the flower film and television is undoubtedly the largest, which will provide sustainable and high quality copyright content for the music vision. Especially valuesIt should be noted that the flower film and television repeatedly Toupai Zheng director works, maintaining a close relationship with the Zheng team. and the quality of copyright content will be advertising and copyright distribution as a revenue model of the listed companies to benefit from the video network. 3, after the demon Shares music network, the dream of music video pictures how big? In August this year, le-Vision film completed a round of 200 million yuan financing, the transfer of more than 13% of the stake, from deep into the cast, and deep venture investment is also a video network of investors. At present, the value of le-view film has reached more than 1.5 billion yuan. and will flower film and television after injection, music video in the domestic film and television distribution of comprehensive strength is expected to squeeze into the top three. Earlier, the film "Small Time" by le-Toupai was about 400 million box-office. Jia Yue Pavilion previously said that the hope that the film in 2013, the total box office reached 1.2 billion yuan. Behind this is the gross domestic film box-office value of 20 billion yuan this year, and the past 5 years 35% of the composite growth rate. Liu Xi, general manager of the North China region, also said in an interview in the Investment music video, the main consideration of the investor is whether the film can have the ability of independent listing, if the independent listing is merged into the video network, will be able to bring investors what kind of return on investment? The investors ' final unanimous decision is to push for the future listing of the domestic gem. Le-View is also under the group of Lok-View holdings, in addition to the listed video network and the Singapore-listed telecommunications equipment Enterprises Xbell, the most potential companies listed. In fact, as early as the music network before the city, Jia Yue Pavilion has been completed on the group's business section of the three major layout. According to the previous listing prospectus, the actual control of the Jia Yue Pavilion has 17 company shares, and before listing it has written off a certain number of shell companies and not yet business companies to form the music under the group's Network video services, telecommunications equipment integration and film and television investment three major plates, respectively corresponding to the music network, Xbell and today's music video. Among them, the film and television investment plate originally mainly includes music and video entertainment Investment (Beijing) Co., Ltd., Zhejiang Music Video Production Co., Ltd. and video perfect film and television investment (Beijing) Co., Ltd. 2011, Jia Yue Pavilion and the original Light film founder Zhang joint creation of le-vision pictures, then, music and video investment plate, some of the assets will also be integrated into the music video pictures. In the above three business sectors, in February 2012, the video network incubation to intelligent television terminals for the main industry company music as a new, registered capital of about 100 million yuan. As a result, le view holding group expanded into four business sectors. In April this year, the new 337 million financing, the equity change. In addition to the music network increase capital 100 million, Foxconn's Shenzhen Crown Tripod Construction Engineering Co., Ltd. to become a new major shareholder music. At the end of the deal, the company held 51.54% of the shares, with a 27.44% stake in the group and 20% per cent of Foxconn's holdings. But the new financing is valued at around $650 million, and in terms of the sales of smart TVs, it is about billions of units in size. And le-Vision smart TV has been low price routes, profit margins are not high, occupy the flowFunds are large, it is difficult to market short-term, but the need to rely on the music network listed companies to supply blood. According to the bulletin, the net profit for the new Year in 2012 was negative at $15 million. At present, the value of the 1.5 billion Yuan music video film in the flowers and movie injection and the future development, there is a big increase in space. Currently, the US-listed company has a market capitalisation of less than 290 million dollars. And the domestic listing of Huayi Brothers and Light media market value of 42.9 billion yuan and 26.4 billion yuan respectively. The domestic a-share market culture class plate is flourishing. It is noteworthy that the music network in the first half of this year in February, May and June, conducted three bank borrowings, the loan amount is 180 million, 100 million and 90 million yuan, the guarantee party for the Jia Yue Pavilion. Apart from April this year, the Lok Optic network has made no disclosure on the use of the new $100 million. This also does not rule out that the jiangle of the group of video-holding groups to inject the shares of the listed companies, and through the music network to the flower film and video after the acquisition of the integration with the music video.