PPLive big shareholder soft Silver has been looking for a decent exit time

Despite repeated denials by PPLive, PPLive's big shareholder, SoftBank, is looking for a decent exit.

Yesterday, news of the sale of the pplive spread again. News that Alibaba Group and Hunan Satellite TV will spend 400 million of dollars to buy pplive. A investor to the "first financial daily" confirmed the matter is true, SoftBank will leave some shares.

PPLive, however, immediately gave an informal denial of response. Zhang, vice president of PPLive Enterprise Development, said in a personal micro-letter that the news was not reliable.

PPLive CEO Tao also told the media in the previous day that he was not optimistic about the video industry's mergers and acquisitions model. If the merger, the parent company and the subsidiary strategy is inconsistent, but will affect the decision of the subsidiary, loss of market opportunities. But he admits that PPLive has got a weighty investment intention.

Investors have revealed that PPLive management has been hoping to introduce strategic investment in the film and television industry chain, which coincides with the efforts of Hunan TV, which has been trying to water the Internet.

As of yesterday, the Hunan Radio and television concept of a A-share listed company Electric Media (000917.SZ) shares rose 4.19%, turnover reached 568,000 hands, compared with the average turnover this week increased by one.

The bid for the Giants

Since May this year, Baidu 370 million U.S. dollars acquisition of PPS, the sale of PPLive news began to circulate. Sohu, Suning, Alibaba and other internet, it giants have become rumored bidders, but recently, Sohu, suning exit signs increasingly obvious.

Sohu CEO Charles Zhang recently told this newspaper that he is not optimistic about the video industry's acquisition play. He said that the acquisition is mainly to take money to clock, but for Sohu, time is still more abundant, Sohu video will be more dependent on its own Sohu system development. Suning vice President Jinjun also disclosed to this newspaper, because the price dispute, suning only in wait-and-see stage.

And because PPLive and Alibaba common big shareholder soft silver reason, the bargaining chips of both sides of the transaction are more diversified. Half a month ago, Tencent Video CEO Liu Chunning quit to join Alibaba News, also to Ali investment PPLive added speculation.

Ali's mobile, living room strategy

Ali Capital managing director Zhang Hongping told reporters that Alibaba's current investment is a fancy and Ali ecological integration, complementarity; the second is the advantage in the mobile field. Alibaba does not insist on holding.

To occupy the mobile portal, Alibaba has launched a more intensive investment in wireless terminals since last year. From the vertical axis of the mobile industry chain, Ali Investment of the gold map, friends, UC, Sina Weibo (and Mo), the United States (and Tintin net), respectively, corresponding to the mobile industry chain map, developer data, platform portal, mobile social and O2O.

The pplive also has good performance at the mobile end. Eric data shows that June pplive in mobile Intelligent terminal coverage of 7.401 million people, ranked Youku, exotic art after the third place in the domestic video. What's more, the electronic business advertising accounted for its overall advertising revenue a larger share, and Ali's resources more fit.

In fact, Alibaba has also been hoping to video to show the platform sellers merchandise, access to external traffic, and to meddle in digital entertainment services.

2010, Taobao and Hunan satellite TV a total of 100 million yuan to set up a joint venture company "Happy Taobao", and launched a network of electrical companies hi Amoy nets. Among them, Hunan Satellite TV Holdings 51%, Taobao held 49%. Hunan Satellite TV "more Amoy more Happy" column to become Hi Amoy Network for the promotion of television one of the channels. 2012, Taobao also increased holdings, become a controlling party.

The same year in June, Alibaba and China number of media set up a joint venture company Taobao, registered capital of 100 million yuan, and the number of Taobao TV shopping mall and Amoy network two major platforms, output video content.

"For video clients, Ali has a bigger plan in addition to moving the portal," he said. "An industry personage said, Ali's industrial layout is moving from the PC end to the mobile end, even to the family as Unit's living room strategy, PPLive has more video content and users, this will be Ali's living room strategy bring integration conditions."

Just last month, Alibaba's Aliyun with the number of China, Hisense and other cooperation to build a loaded with Aliyun OS Internet TV, and once the acquisition of PPTV,PPTV-related video content will also be in the Aliyun OS video applications, which will also bring a greater pplive to promote channels.

and hand Hunan satellite TV, in addition to Ali and has maintained a good cooperative relationship, Hunan TV's user layer, video original content, but also conducive to pplive content source integration, which is pplive quite valued place.

"Hunan Satellite TV +pptv+ + Aliyun Internet TV, Alibaba's video mobile, living room strategy will tend to complete, through the industrial chain of upstream content sources and multiple terminals channels." said the person.

The plotting of soft silver

Ali shares the PPLive, also has the capital level consideration.

One investor told the newspaper that Alibaba and PPLive, a common shareholder of SoftBank, have been looking for pplive opportunities. With the combination of Youku and potatoes, Baidu acquisition of PPS, and its video site Archie integration, PPLive market opportunities have not been much, if not by the current pattern of video industry to move, then a year later may not be able to sell higher prices.

Tao to this newspaper that pplive since the fourth quarter of last year has achieved break-even, last year revenue amounted to 800 million yuan, 145% of the PPS, according to Baidu on the PPS 370 million U.S. dollar pricing (not counting its game business income), by the same city sales ratio calculation, pplive valuation should be in 500 million ~6 billion dollars.

In the previous round of financing, SoftBank bought the pplive 35% per cent of $250 million trillion and valued PPLive at $714 million.

In addition, PPLive last year to a number of banks to seek loans, the total amount of nearly 200 million yuan, including loans to China Merchants Bank 30 million yuan, Bank of communications 20 million yuan, and so on, the loan rate in 6.76%~11% range. Even if these loans were excluding out, SoftBank would have to consider selling at a discount.

But if you sell pplive to Alibaba, SoftBank may not be too weak. First, Alibaba is about to start listing, according to Alibaba and Yahoo, SoftBank's tripartite treaty, before listing Alibaba's valuation will not be less than 73.5 billion U.S. dollars, and inject pplive Alibaba volume will be larger, soft silver is expected to gain more benefits from Ali listing.

Second, Alibaba before listing, is expected to solve Ali small micro-financial services in the property problem. In addition to Alipay has been privatized, Ali small loans, "three horse Company" by Alibaba Group Holdings. Ali insiders revealed that Alibaba board Chairman Ma Yun is eager to Alibaba Group in the overall market before the Ali financial business completely privatized.

So it seems, the soft silver of this game, down very deep.