Outdoor media industry Again "commotion": "Chicken Ribs" return

Remember that wave of outdoor media?

Yes, as with the electric business and group buying, the outdoor media has a passion burning, the years of galloping, but that happened in 2005-2008 years.

The audience is the pioneer of the outdoor media arena. It was established in 2003 and was listed in 2005. In a flash, the outdoor media has become the hottest industry in China. According to the statistics of the Qing Division, from 2005 to early 2008, VC investment in the outdoor media company nearly 30, financing the amount of more than 600 million U.S. dollars, which does not include VC invested in the listed companies and the company is divided into mergers and acquisitions.

Now everything seems to be flat. The audience has returned from the "media empire", from scratch, its share price has not yet returned to the 65 dollar/share of the historical highs; As a handful of listed companies, the current shares of the US and China have even fallen below $3 trillion.

In addition to these, the industry seems to have been quiet for a long time, it is no wonder that some of the investors contacted by journalists have "forgotten" or "avoid" the topic.

Therefore, when you hear the following new news, it is inevitable to surprise: 2011, the Champs-Lai media to introduce new investors; recently, the taxi media has touched the media to obtain a new round of about billion investment; outdoor LED media-Tulip Media is preparing a a-share listing; and so on.

Just this time, these simple patterns of outdoor media are slightly changed, or in the form of business improvements, such as from the simple outdoor advertising screen to interactive social media transformation, or in the concept of packaging adjustments, such as the current hot "cultural creativity" industry.

What kind of stories will these changes bring?

Who's betting on the outdoor media?

2011, there are operators of high-speed rail outdoor media to find the founder of the network of Albert Wei, hoping to get the other side of the investment, because the network of Albert operating a golf outdoor led media.

But when he was still figuring out the return on investment and the balance of earnings, the high-speed rail media soon got the investment, one of which was a domestic state-owned company.

"The news is expected to be announced soon," said paternity.

Coincidentally。

2011, Zhejiang Shinkansen Media investment company's billion-Cheng venture invested in Shanghai Champs-Li Advertising Co., Ltd. (hereinafter called the Champs-Li). The Shinkansen is a wholly-owned subsidiary of Zhejiang Daily newspaper Group's special investment business.

May 2011, the Phoenix City media to carry out a new round of capital increase, China Credit Investment Co., Ltd. Holding shareholders, three Chinese individual investors, as well as 27 senior executives participated in the increase. The company registered capital increased from HK $48 million to 140 million yuan.

Phoenix City Media was founded in 2007 by the Phoenix Satellite TV Holdings (2008.HK) and the investment joint establishment of goodwill. April 2008, Phoenix Satellite TV and the goodwill of the Phoenix Urban media jointly injected 87 million Hong Kong dollars to expand the outdoor media business in China.

According to a business plan by Tulip Media to June 2010, the company is seeking a new round of financing. It has been reported that the tulip has been introduced to the Zhejiang Real estate business funds, but this has not been officially confirmed.

In the last round of the boom, the outdoor media industry's test water is almost exclusively foreign VC. The industry called the name of foreign institutions, such as Ding Hui, Carlyle, Sequoia, IDG, Kleiner, its and so on, have bets in this industry.

"At present, foreign VC investment in outdoor media is very few," said Xu Yi, Gobi Investment vice president, because the current foreign capital markets for outdoor media has no good valuations, and foreign VC is interested in new market trends, new value. Gobi Investment was once the investment side of the subway media DMG.

Xu Yi also believes that for local investors with industrial backgrounds or resources, the injection of outdoor media may result in resource consolidation.

Phoenix TV Holdings is one example. According to the 2011.5 Annual report of Phoenix Satellite TV, as of June 31, 2011, Outdoor media revenue of more than 140 million Hong Kong dollars, accounting for the group's total revenue of 9%, but also its business growth in the faster part.

2007, the Phoenix City media into the outdoor led media, the industry has been fiercely competitive. Phoenix Urban Media Vice President Guo Liqun had told this newspaper that the choice at this time to enter the outdoor led, Phoenix TV is from their own overall strategy to consider.

In addition, according to the waiter Kai-wei, some of Shanxi's coal bosses are also involved in outdoor media.

However, in the case of state-owned enterprises that invest in the high-speed rail media, Gao Tiene said, "They feel that the media is semi-official and the risk is relatively small, so when investing, there is less concern about the rate of return."

In his view, "the people who are investing in the outdoor media are looking at the outdoor media for a long time, or they are not quite clear about it." ”

Among investors in the wave of yuan-denominated outdoor media, strategic investors, state-owned enterprises, real estate or coal bosses in Shanxi Province have become a new investment force.

Evolution from dollar to renminbi: seeking domestic listings?

Apart from the possible industrial integration, are there any more ideas for people investing in the outdoor media now?

November 2011, Phoenix Satellite Television Holdings issued a notice that is considering the Phoenix City media in China to engage in outdoor media business spin-off, and in the Shenzhen gem Independent listing. The notice also said that the sponsor Citic Securities on October 20, 2011 to the China Securities Regulatory Commission of Beijing to launch a guidance program submitted applications, and on November 1 received the Beijing Regulatory Authority's letter of acceptance.

According to the reporter understands, the tulip media has already transferred the company structure from overseas to the domestic, also is preparing a a share listing.

The issue of listing has haunted the tulip media for a long time.

At the end of 2002, Tulip won strategic investment in France's de-Gao group, and in May 2006, Warburg Pincus invested in tulips. As early as 2007, tulips were expected to go to the United States Nasdaq listing News.

And the Champs-Lai investor Zhenggang also said that the current Champs-Li is also doing pure domestic companies.

"There's quite a lot of outdoor media companies that are doing architecture conversion," Wang, a pseudonym. Wang is a lawyer at a law firm, and his firm is already helping some outdoor media companies to provide such services. According to Wang's experience, the complete conversion of the entire architecture will take about "6 months to 1 years".

Xu Yi, the vice president of Gobi Investment, said the outdoor media, which made the architectural changes, "still have a lot of determination", after all, under the various policies, they can hardly have another chance to turn out.

Reporters from a number of VC to obtain the consensus is that at this stage, outdoor media companies to the overseas listing is obviously not easy, in contrast, they believe that the domestic capital market may have opportunities.

Confidence in part comes from the Chinese Government's attitude towards encouraging the listing of cultural and creative industries.

In October 2011, the sixth plenary meeting of the 17 Central Committee of the CPC adopted the decision of the CPC Central Committee on deepening the reform of cultural system to promote the great development of socialist culture and the Great Prosperity (hereinafter referred to as "decision"). Li Xiaolei, deputy director of the Ministry of Culture and Industry, said to the media, "after the policy, it is conducive to the rapid listing of cultural enterprises, the pace of development." ”

A domestic brokerage executives also believe that outdoor media in the domestic market "still have the opportunity." But he stressed that the market can not rely on the concept, the key is to have a good profit model, business development space and basic business scale.

How much space does the industry have?

In fresh media CEO Gingzhong, several outdoor media financing or the preparation of a A-share listing does not represent the status of the industry as a whole.

Indeed, think of those who have been active in the media, such as the Internet, easy access to media, time media, high-speed rail media, the Sky Chun Media, and now have become history. But Analysys international statistics show that the third quarter of 2011, outdoor electronic screen advertising market size of 2.216 billion yuan, an increase of 32%. According to Analysys international analyst Pang billion in the forecast data provided to this newspaper, 2011, the entire outdoor media industry is still growing, compared with 2010, an increase of more than 30%, the full year will reach 8.2 billion yuan.

Even though it already has the largest outdoor advertising media network in China, the audience is still growing. Earnings showed that in the third quarter of 2011, total net revenue for the media was $210.7 million, up 53% from last year's 137.4 million dollar.

EMarketer also predicted that in 2011, spending on outdoor advertising in the US would grow from $1.26 billion trillion in 2007 to $2.25 billion trillion. "I believe the industry is fine, as long as the business is done seriously," Zhenggang, who is just concerned that some of the financial structure of some outdoor media companies may affect their domestic listings because they are growing too fast.