Recently, LeTV announced that the new LeTV Wisdom Group, its controlling subsidiary of the smart TV business, has reached investment intentions with many investors such as Sunac, Tencent, Jingdong, Suning, and TCL. If the capital increase is completed in accordance with this intention, New LeTV Wisdom will obtain a financing of approximately RMB 3 billion for a valuation of RMB 9 billion, among which Tianjin Jiaxin, a subsidiary of Sunac, will become the second largest shareholder. In addition to Tianjin Jiarui, which is owned by LeTV and Sunac. Many well-known Internet companies such as Jiangsu Design Valley, Tencent, Jingdong, and Suning also have shares.
In the internal letter recently released by Leverfusion, the company described the capital increase as a 'reversal' and stated that after the capital increase is completed, it will not only solve the company’s financial problems, but will also expand with investors to include content and retail sales. Many areas of cooperation such as smart communities. But industry analysts, LeTV's development will still face many challenges.
Product value is still promising
According to the reporter's understanding, Le Rongzhixin is a subsidiary of LeTV. Its main business is the production and operation of LeTV, which is an important part of LeTV's ecosystem and its revenue occupies Most of LeTV's total revenue for the first half of 2017. According to LeTV's 2017 semi-annual report, LeTV achieved operating revenue of RMB 5.579 billion in the first half of 2017, and Le Rongzhi achieved revenue of RMB 4.653 billion in the first half of 2017. LeTV's total revenue in the first half of the year was 83%.
Last month, Sun Hongbin of Sunac China emphasized in an interview that 'LeChuang Entertainment and Xin Le as wise people, we will all think of ways to do it well. LeTV is still the leader in smart TV'.
'LTV TV as an important interactive portal, this capital increase also helps to revitalize its high-quality assets.' Yiwu vice president of the company told reporters by Tianyu, from a whole point of view, smart TV business is indeed the most mature LeTV products Line, still has a good brand value and a large number of existing users. He believes that Sunac, Tencent, JD.com and other giants' shares are mainly due to considering the value of LeTV in the smart TV market.
Tencent said that through the cooperation with New Music Vision, it will help Tencent to enrich third-party content distribution channels, further reaching users and boosting members and advertising revenue.
The reporter learned that after the completion of the financing, whether it is Tencent, Jingdong, Suning such Internet giants or TCL, Lenovo such a manufacturing giant, its business can give LeTV's TV business very practical resources to help.
Can the 'King of the Return' still have variables?
In 2013, LeTV Super TV set off a wave in the TV market through model innovation. With the success of the combination of hardware and content, there was no time in the next few years. But with the outbreak of the overall crisis at the end of 2016, LeTV The sale of Super TV was severely impacted. According to the data disclosed by LeTV, in 2016, sales of LeTV Super TV reached 4.3 million units. In the first three quarters of last year, sales volume dropped drastically to 1.13 million units, a 67% year-on-year decline, and revenues also increased. 12.883 billion yuan dropped to 4.973 billion yuan, a drop of 60%.
Since then, Storm TV and Xiaomi TV have 'shared up' the fertile land of smart TV. According to the 2017 annual performance forecast released by Storm Group earlier this year, the revenue growth of its Internet TV business is significant, which represents an increase of more than 40% over the same period of last year. According to public statistics, the sales of Storm TV in the first three quarters of the year increased by 30% year-on-year, and revenue increased by 82%. As for Xiaomi, according to China Yikang's public statistics, from January to July 2017, sales of millet TV lines increased by 91.2% year-on-year. In the second half of the year, Xiaomi TV won the first consecutive sales of several consecutive lines.
Although LeTV has received strong support from a number of capitalists, it is generally believed in the industry that the current bonus period of the Internet TV market is already over. There are still many difficulties in the development of LeTV. The reporter checked the 2017 (13th) The data released by China’s flat panel TV industry conference found that the overall share of Internet TV brands in 2017 has dropped from around 20% in 2016 to 10%.
The whole intelligent ecology of the TV industry is still far from coming. 'Tianyu believes that although the bonus era of LeTV's 'From scratch' has passed, the intelligent ecology of the TV industry in the future is still very large. In terms of space, its core competition is nothing more than content and interaction. Under the current situation in which LeTV is losing a lot of video users, the Tencent shares and plans to put Tencent's video and television copyright content in LeTV will increase the content of LeTV. Great help.