Suspended 9 months of music this week, the resumption of trading will usher in a few limit?
Bitter wait three years, the music video industry into the music network story or failed to usher in a beautiful ending January 19, LeTV released announcement that the board approved the motion on termination of major asset restructuring matters.The so-called 'major asset Reorganization ', which LeTV announced in May 2016, acquired the music video project at a valuation of up to $ 9.8 billion at the time. Will this unsuccessful restructuring lead to the last Straw that overwhelm LeTV? Music Watch suspended more than 9 months has no reason to suspend trading, resume the moment, the market will be how to respond?
Focus music video industry into the music video completely immersed
On January 19, LeTV released an announcement that the company had considered and approved the plan to terminate the reorganization of LeTV in the morning board meeting held on the morning of the same day. As early as the end of 2014 the most brilliant period of music, Jia Yueting pushed the music as the assets of the music industry into the public music company's plan completely.
Music and video industry can be described as influx of twists and turns in late 2014, just returned from the United States Jia Yueting after the return of music, immediately threw out the announcement within one year to complete the injection of music and television industry in a year and a half later in May 2016, Transaction plan.Movie Entertainment announced in the announcement that it intends to LeTV shareholders to 41.37 yuan / share issue of 165 million shares and cash payments 2.979 billion yuan, the acquisition of 100% stake in music as the film industry in accordance with the prevailing valuation, The value of 98 billion yuan.
However, after the announcement of the trading plan, major changes have taken place in the capital market, especially in the areas of pan-entertainment such as film and television, games, etc. On November 8, 2016, LeTV released a notice that it is estimated that the project will not be allowed Completed in 2016, all parties are discussing the valuation of pricing, does not rule out the possibility of price cuts there may be. At this point, the injection of music and television into the film stage of rest.
Since then, the music video music parent company LeTV Holdings experienced a series of financial crisis, the supplier debt collection scandal, music video industry stranded.But with Sunac China's chairman Sun Hongbin shot, the value of music video and music video re-highlighted 'You do not have to think about money, do not worry about money, so long as the direction is right.' 'In June 2017, at LeTV's IP Vertical Ecological Strategy Conference, Sun Hongbin told Zhang Zhao, the CEO of LeTV,' There is no shortage of money in this world, Is the right business model and doing things, music video as the mode of making money. 'After listening to these words Zhang Zhao some choked, saying it was a long time did not receive encouragement.
Not watching movies or watching TV Sun Hongbin, the value of the music as the film industry is also reflected in the real money on the afternoon of December 25, 2017, LeTV announced that the financial innovation system controlled by Tianjin Jia Rui Huixin Enterprise Management Co., Ltd. It plans to increase the capital of the music video industry and increase the capital. Tianjin Jiarui will hold 40.7500% equity of the music video industry as the largest shareholder, and LeTV Holdings (Beijing) Co., Ltd. will hold 16.3592% of the equity of the target company, becoming the second largest shareholder However, the announcement on January 19 that the music video has meant that the replenishment has not been successful.
Analysis of 'debt + hematopoietic poor' led to the failure of restructuring
Why music video eventually failed to inject music Watch?
The announcement shows that up to now, LeTV as the majority shareholder of LeTV as a result of foreign loans and guarantees led to a large number of assets pledged and frozen, LeTV as the music industry held a 21.81% stake in the film also in the judicial freeze.Meanwhile, Other receivables amounting to RMB1.71 billion was held by its related party, LeTV Holdings Ltd. Considering that there is uncertainty in the short term solution of the solution provided by LeTV Holdings, LeTV's holding of the equity interest in LeTV may not be lifted and the other receivables due from related parties Delay in the settlement of the issue, resulting in the transaction can not be promoted or unable to obtain approval, the music Watch Board believes that the current major asset restructuring temporarily do not have the implementation of the basis and thus terminated.
On the other hand, music as the film industry's own hematopoietic ability has not been able to achieve profit commitments.According to the music as the industry's previous commitment to music Watch, the former in 2016, 2017, 2018 net profit attributable to shareholders of the parent company were not low At 520 million yuan, 730 million yuan, 1.04 billion yuan, a total of up to 2.29 billion yuan However, the first year of music video failed to reach a profit commitment in 2016. Sunac China announced in August 2017 earnings report, 2016 Music Film industry to achieve revenue of 1.098 billion yuan, attributable to shareholders of the parent company's net profit of 145 million yuan, less than 30% of the promised performance of 30% of the music industry in 2017 to 2.5 billion production costs, "Qi Men Dunjia." But there Statistics show that "Qimen Dun Jia," the sub-account should only be more than 100 million yuan, which is the reason many institutions predict music industry in this film or a huge loss.
Affect the music valuation will fall again
Le video into dreams, has no reason to stop the music Watch, also must face the capital market after the resumption of the test.
Since the suspension of music video in April last year, the reason is related to the reorganization of the music business as of April 17 last year, starting from the suspension date, until October 17 last year, a full six months time.According to the previous regulatory and exchange Provisions, listed companies reorganization of assets suspension period should not exceed six months.
Recently, the industry has circulated music network has been doing the resumption of preparation for the news.Letvision notice said it will be held on January 23 termination of the reorganization and the company's operating conditions, Sun Hongbin, etc. According to media estimates, the music Watch is most likely next week Resumption of trading after three trading days, the probability is January 25.
Earlier agencies had forecast that after the resumption of trading, there will be more than daily limit plate, Shigekura Music Fund has done its worst. Earlier, including China Post, Harvest, Cathay Pacific, ICBC Credit Suisse, E Fund Fund, a substantial reduction The stock valuation of music Watch.
Music video into the listed company failed, will also affect a large number of music video star shareholder impact.
October 8, 2013, LeTV notice that the acquisition of 1.6 billion yuan spent film and television. Flower film and television production of "Zhen Huan Chuan." LeTV claimed that the acquisition of flowers film and television music can improve the content layout of music and ecology. On the one hand, the head of music and television industry Zhang Zhao is the first group of film and television to embrace the Internet, understand the movie also understand the Internet. On the other hand , When the heyday of the music as the Department has a glittering circle of friends, these contacts for the capital markets, more like a trust endorsement.
Beijing Morning Post reporter inquired about the announcement at the time and found that LeTV plans to issue shares and pay cash for 44 shareholders of LeTV Co., Ltd. Leading shareholders of LeTV include Zhang Yimou, Guo Jingming, Honglei Red, Huang Xiaoming, Li Xiaolu and Sun Li etc. If Music and video industry successfully listed, the investment of these stars will soar, many people float more than 10 times.
Media reports said that as the result of the failure of LeTV into the listed companies was not an accident, Zhang Zhao, head of LeTV, might have expected this result.'Although it seems that after Sunac entered into, it seems that it has tried to get through the music industry and LeTV However, in practice, the music video has been consciously separated from the music network.
'The industry (video) may be better and better behind, and now the house is Tingduo, car also has, full of warm thinking movies, the next ordinary people will spend more and more money on entertainment, vacation, leisure.' In June of the same year, Sun Hongbin once publicly expressed his confidence in LeTV.
According to Tencent's "Deep Web" report, in October last year, LeTV Network has announced the establishment of 'new music and TV Committee' and appointed Zhang Zhao as chairman, the position of the same as the 'temporary CEO' However, informed sources, after the appointment , Zhang Zhao in the internal performance of duties is still only CCO (chief content officer), did not appear too much cross-border .In December 26 last year's appointment, Liu Shuqing formally served as CEO of LeTV, and only for the role of Zhang Zhao Do not mention the word.
According to Netease technology reports, in January of this year, the new Music Entertainment (formerly LeTV) chairman Zhang Zhao in an interview with reporters said in an interview. A few days ago, Tianjin Jia Rui just announced the injection of music video as a music as the largest shareholder. Perhaps Zhang Zhao had a premonition.
Related
'New Music' renamed the plan to terminate
It is noteworthy that Sun Hongbin has been the owner of the 'music Watch' changed its name to 'New Music' plan was also announced at the board of directors terminated.According to the music net announcement, the company management discussion and consultation, taking into account the company's business and brand Continuity, it is proposed to terminate the name of this company, securities short changes.
In fact, Sun Hongbin was renamed as 'LeTV' after he took charge of music and was considered as an important symbol of cutting with Jia Yueting. Last September, LeTV released a proposal to change its name in Chinese Music Network Information Technology (Beijing) Co., Ltd., changed to the new music as the Information Technology (Beijing) Co., Ltd. A 'new' words highlight the boundaries of the two music.LeTV in the announcement explained the reason for the name change, said the company A series of strategic adjustments have been made and the goal of a consumer-oriented tide of cultural spending based on the family Internet has been set. "In order to further align with the Company's new strategic readjustment, the company intends to change the company name and short form of the securities." Subsequently, Sun Hongbin Music appeared in a blockbuster rebranding - Music as the new name changed to the new music as a wise man, as the music cloud renamed the new music as the cloud, music video industry to be renamed the new music as entertainment.