North to snatch Internet cultural assets of the pace is hard to stop

Rainy season in the South rainstorm did not stop the listed company Chinese media (600373.SH) north of the Internet to snatch the footsteps of Internet culture.

On June 23, the Chinese media announced that it will acquire a 100% stake in HappyZone developer Beijing Zhixing Xingtong Technology Co., Ltd. ("Zhixing Xingtong") at a premium of 2.66 billion yuan at a premium of 28 times.

The acquisition plan shows that in addition to the Chinese media to pay 1.649 billion yuan share price, but also paid 1.011 billion cash consideration, the cash consideration of 38% of the total transaction price. The only winner of the acquisition, Tang Binsen, a 32-year-old founder of Chi Star, gained a total of 740 million yuan through the direct and indirect acquisition of the equity interest in the underlying assets.

It is worth noting that Tang Binsen and its management in the transaction received huge profits mainly from Xiaochang Feng Jie, Xiaochang Mu Lin two companies equity returns. The two companies registered on the same day April 25 this year Xiaoguoxian County, Hubei Province Xiaowu Township Forestry Management Station Zhixing Star management equity incentive platform, the two companies together hold a 59.99% stake in Zhixing Star.

Regarding the issue of high-premium acquisitions, Wu Jie, the director of the Chinese media, told the reporter of China Business News that 28 times more than the subject company's relatively high profitability, performance growth and the value of Internet and game development and operation personnel Premiums are not the highest in similar deals.

The Chinese media said the company looks forward to opening up "online" and "off-line" operating resources through this acquisition, laying out the Internet business in an all-round way and transforming itself into a "full range, all media and whole industry chain of cultural products and service operators".

Acquired cash more than 1 billion

After suspending for up to 3 months, the Chinese media on the evening of June 23 announced that it intends to adopt the method of issuing shares and paying cash to buy 100% stake in Chi Mei Optoelectronics. At the same time intended to 11.46 yuan / share to no more than 10 specific objects issued not more than 77,370.06 million shares raised no more than 887 million yuan for the payment of cash consideration.

Data show that Chi Ming-Star was established in 2008, is a focus on international Internet integrated platform for business. Smart celebs through free security software and navigation site as a starting point, through the establishment of game operation and distribution platform and e-commerce service platform (cloud) to realize the flow of cash, the game product for the company an important breakthrough in profit.

At present, Chi Ming-Star has successfully independent research and development, exclusive agent, the joint operation of the "Happy Farm" "Bouncing Church" and other 20 web games and mobile online games. Smartest Star currently has about 50 million active users in about 40 countries and regions, its many sites among the world's top 1000, the cloud of global integrated technology services including Dunhuang network, including nearly a hundred E-business company.

In the past three years, Ching Ming Star has received 260 million, 276 million and 619 million yuan of revenue, respectively, corresponding to the net profit of 102.29 million, 12.2446 million, 7605.94 million.

According to the reorganization plan, the acquisition of the underlying wisdom Starcom valuation of 2.66 billion yuan, of which the company intends to Tang Bin Sen, etc. share price of 1.649 billion yuan, while paying cash consideration of 1.01 billion yuan. Cash consideration accounted for 38% of the total transaction price.

Among them, 14 natural star shareholders such as Tang Binsen obtained share consideration. The Innovation Fund of Investment Fund and Bei Meihong all obtained cash consideration. Xiao Xiaocun Feng Jie, Xiaochen Mu Sen and investment fund Shenzhen Litong obtained the cash and share consideration at the same time.

The consideration payment scheme shows that Zhixing Xingtong CEO Tang Binsen personally obtained a consideration of 123 million shares. While Xiaobin Feng Jie and Xiaochang Mu Sen, both held by Tang Binsen and his management, received a cash consideration of 740 million yuan and a consideration of 944 million shares.

Data show that Tang Binsen holds 36.52% stake in Xiaochang Feng Jie, Xie Xianlin and other 12 intellectual star executives hold 63.47% stake. In addition, Tang Binsen holds 66.73% equity of Xiaochang Mu Sen, and 27 persons including Zhang Yan, Chief Financial Officer of Zhixing Star Tong hold 33.26% equity.

While Xiaochang Feng Jie, Xiaochangmu Sen held 53.39%, 5.60% stake respectively. According to this ratio calculation, Tang Binsen individuals total or to obtain shares worth 495 million yuan, the cash consideration of 290 million yuan, with a total revenue of 785 million yuan to become the winner of the deal.

At the same time, Zhixing Xing Tong, the largest PE Shenzhen Li Tong, also respectively, with 279 million shares of consideration and 1.51 billion cash consideration for huge profits. The well-known investors, innovation workshop chairman Kai-fu Lee, however, through innovative workshops and Beimei Hong arbitrage realized 189000000 yuan, compared with its December 2012 investment Zhixing Xing Tong more than 2000 million yuan value-added more than 9 times.

High premium acquisition

In fact, the high earnings of each Celestom benefited from the high premium acquisition of the Chinese media.

Data show that as of March 31 this year, Zhixing Star total assets of 270 million yuan, total liabilities of 172 million yuan, attributable to the parent company's total equity 97,756,400 yuan. Chinese media gave 2.66 billion yuan of high prices, a premium of 28 times.

On the issue of high premium, Wu Di said that the acquisition plan of the Chinese media has been filed with the Ministry of Finance of Jiangxi Province and approved by the regulatory authorities. Compared with similar acquisitions, 28 times the premium is not high. Chinese media fancy the subject of the company's higher profitability in the future, the performance growth rate and the value of Internet and game development and operations personnel.

According to Chen Hu and Gu Jia, China Merchants Securities analyst, the social games and the outbreak of mobile games have caused the explosive growth of the revenue and profits of Zhixing Xingtong. With the gradual increase in the size of the company and the continuous enrichment of business models, the space for growth in the future period.

Chen Hu said that 2.66 billion acquisition of Smart Star Star generous transformation of the Internet, Chinese media has taken an important step in a comprehensive strategic transformation.

With this acquisition, the Chinese media will take advantage of the opportunity to enter the field of online game operations and e-commerce services. By utilizing the existing technologies, channels and users of Chi Star, the company will build a leading Internet platform enterprise in China and achieve two-way online and offline interaction and three-dimensional New media.

Chinese media is not the first listed company to enter the internet and mobile game platform through a high-premium acquisition. The summer online-shopping M & A boom was just the same as last year's scene.

In the short two-month period from July to August last year, there were at least 10 mobile games and Internet M & A deals in the capital market. For example, Shenzhou Taiyue (300002.SZ) acquired a 100% stake in the underlying assets of Shell Software at a premium of 28.46 times. Previously, Huayi Brothers (300027.SZ), Phoenix Media (601928.SH) and Tian Zhou Culture (300148.SZ) acquired mobile games or online games assets at 10 times, 15 times and 21 times higher premium respectively.

Last year's "crazy vote" market in January this year, early arrival. June 19, Caesar shares (002425.SZ) announced that it plans to raise 750 million yuan to buy Shenzhen bovine interactive 100% stake in the apparel industry strode into the field of Internet games. Shenzhen Cow Interactive only set up more than two years, released four or five games.

"You can not just think of Celestial Star as a gaming company, but as an Internet platform company, and do a good job in international business." The acquisition of the company is based on its internet platform and its future internationalization. "Chairman, Chinese Media Zhao Dongliang believes that the transformation of publishing media enterprises must be Internet-based, looking for new models through the Internet.

In fact, in the face of the impact of the Internet culture into the digital media, the Chinese media, mainly traditional publishing businesses, have been planning the industrial restructuring. Under the strategic thinking of "Culture, Science and Technology, Culture and Capital, Culture and Market Integration", the Chinese media have successively arranged new businesses such as new media publishing, film and television performing arts and art management through the acquisition of a 51% equity stake in Beijing% field.

The acquisition of Chi Ming-Star is the Chinese media a full-scale step into the Internet. Zhao Dongliang said that the future of Chinese media is an all media, multi-media, full industrial chain media group, the acquisition of Chi Ming Star is the first step in the future, the Chinese media will use Chinglish's Internet platform to achieve online and offline business innovation.

Wu Di disclosed that the Chinese media have been formulating the corresponding online and offline integration plans and that Zhi Ming Xing Tong is an integrated platform for Internet culture. In the future, more offline businesses will be integrated.