Two days ago, Sun Hongbin admitted to failing to invest in LeTV. But at the same time, he stated that he will find ways to make the new LeTV Entertainment, another standard of investment in LeTV. Now, LeTV Entertainment announced that it will change its name to LeChuang Entertainment.
On March 27th, Zhang Chao, Chairman and CEO of LeChuangwen Entertainment, informed the entire staff and more people in the industry with an internal letter. The reporter of the “Daily Economic News” noticed that Sun Hongbin also liked it in the circle of friends. This letter.
“I was deeply touched when you and I walked side by side across the dark moments of the company’s founding.” In this letter, Zhang Zhao’s words, which have always been very rational in the face of the outside world, reveal a sentimentality, and The dark moment's exactly the same name as last year’s movie. It tells the story of Churchill leading the British people through the darkest moments before the end of World War II. Zhang Zhao said that at the end of last year he called all shareholders to discuss the meeting of capital increase, just like In the "Dark Times" in the difficult moment in which Chugill lived. At that time LeTV's equity was pledged, Leshi Holding still had arrears of RMB 1.7 billion, and the cash flow of the film industry was greatly affected. However, movie production required a lot of money... ...
Looking back at 'to the dark moment', Zhang Zhao felt a lot of emotions. On the 27th, he accepted an interview with a handful of media such as the “Daily Economic News” in the president’s office.
Started disposal of shares held by LeTV Holdings
“The name change is very important. It is important to face the market independently and face the industry independently. 'Last November, LeTV was proposed to be rebranded as the new LeTV Entertainment. Now it is renamed as LeChuang Entertainment. Zhang Zhao admitted that this is two The ultimate goal is to completely strip LeTV.
When renamed as the new LeTV Entertainment, Zhang Zhao called it 'Nirvana rebirth'. He said: 'The new LeTV Entertainment will be completely stripped of the influence of Jia Yueting. The new LeTV Entertainment will no longer need to go to the 'Savior'. However, After this, the difficulties were beyond the expectations of Zhang Zhao. Lexus Holdings’ pledged shares in the film industry failed to thaw for a long time, directly affecting the process of the integration of the film industry into LeTV. At the same time, Leshi Holding also had arrears of up to RMB 1.7 billion. Film industry's production cycle cash flow tension.
Under the guidance of Sunac, the film industry needs long-term and sound development, and it will inevitably need to be completely separated from the music system, and the listed company LeTV will be separated. This has induced the second rebranding of the film industry.
On December 25 last year, LeTV.com announced that Tianjin Jiarui, a subsidiary of Sunac, intends to increase capital for LeTV. After the capital increase, Tianjin Jiarui holds 40.75% of the shares of LeTV, becoming the largest shareholder. LeTV Holdings There are 16.392% of the equity, which is the second largest shareholder. Prior to this, LeTV Holdings had held 21.81% of LeTV Industry as its largest shareholder.
Zhang Zhao said that prior to this change of name, 16.3592% of shares of Levision Holdings had been disposed of in the course of 'disposal within a few months, through transfer, auction, etc.'.
Zhang Zhao said that before Sun Honglei called him and asked him to change his name. 'Because he is also our shareholder and our partner. I said it means we have less interference. He said it would be good. It's good. '
In the new name LeChuang Entertainment, there is still a word 'Le', but in the opinion of the top management team, this word has nothing to do with LeTV, and Chen Su, vice president of LeChuang Entertainment, said: 'You can understand it as we have been There is a spirit of optimism. 'Zhang Zhao pays more attention to the 'creation' word that was added to it, because this is a combination with the largest fund management company, 'In addition, our genes have always been innovative.'
The valuation has dropped to 3 billion
The interview on the 27th was held in the president’s office. Zhang Zhao said that at the end of last year, in the next large conference room, a special shareholders’ meeting was held. 'I have held many shareholders’ meetings in my experience. It was a special one. 'More than 40 shareholders were sitting together. Zhang Zhao was most impressed by the fact that shareholders' remarks were filled with emotions on Let's watch. 'Each has its own concerns and each has its own problems. Not much thought of LeTV, more thought is the problem of LeTV.
The question about LeTV is like a huge energy field. Overshadowed by that shareholder meeting, Zhang Zhao admits that the negative influence of LeTV on LeTV has made him very helpless. 'Why is LeTV's problem turned into a problem for LeTV? '.
Zhang Zhao said that at that time it was like the 'dark moment' in the movie. 'Because the largest shareholder is still LeTV Holdings, think about that public opinion environment, it is basically dark, I can't see anything.'
The situation of Da LeTV is very complicated and complicated. However, Zhang Zhao was touched by the fact that more than 90% of the shareholders had reached an agreement.
The result of this conference was LeTV.com's announcement on December 25 last year. Sunac will lead the latest round of capital increase of the film industry and become the largest shareholder. However, the announcement did not mention the specific scale of capital increase.
This capital increase comes from the company's own shareholders, which amounted to 1 billion yuan. Zhang Zhao said that this is not a capital increase. It is a capital increase. During the capital increase, the overall valuation of LeTV has shrunk dramatically to 3 billion yuan. In May 2016, when it tried to inject into LeTV, the valuation was as high as RMB 9.8 billion, but when it reached Sunac China’s strategic investment at the beginning of 2017, the valuation was approximately RMB 7 billion. This was in response to the increase of investment in the film industry on September 29, 2015. The value of RMB6.975 billion was equivalent, and that time, Sun Yu, Deng Chao, Huang Xiaoming, Sun Honglei, Liu Tao and more than a dozen star shareholders were introduced.
Compared with the valuation of 7 billion yuan, the latest capital increase, LeTV's valuation has shrunk by 57.2%. Zhang Zhao recalled that because LeTV Holdings has arrears of up to RMB 1.7 billion in the film industry, it may not be recoverable.
This time, his own capital increase temporarily left the film industry out of the crisis and spent the darkest moment since Zhang Zhao’s LeTV. He described: “In the dark, you lowered your valuation and your torch lighted. Everyone saw it. '