11.5 billion assets to be injected into the happy purchase: Mango TV price of 9.5 billion, days entertainment 500 million

The new media assets of Hunan Taiwan, such as Mango TV and Sky Entertainment Media, will be bundled into Happy Purchase ($1,300 million) at a price of RMB 11.5 billion.

On the evening of September 28, Happy Taiwan Co., Ltd., a listed company of Hunan Taiwan’s listed company, issued an announcement to acquire 100% equity of Happy Sunshine, 100% equity of Mango Interactive, 100% equity of Tiancheng Media, and 100% of Mango Film and Television through the issuance of shares. Equity and 100% stake in Mango Entertainment.

In this transaction, the price of Happy Purchase shares was 19.66 yuan/share, and the number of shares issued was approximately 5.8 billion shares. After negotiations between the parties to the transaction, the trading prices of Happy Sunshine, Mango Entertainment, Tiancheng Media, Mango Film and Mango Entertainment were 9.53 billion yuan, 508 million yuan, 503 million yuan, 540 million yuan and 468 million yuan, respectively. The total amount is about 11.55 billion yuan.

Happy purchase reorganization details

Happy Purchase was established in 2005. It was listed on the Shenzhen Stock Exchange in January 2015. As of June 30, 2017, Mango Media Co., Ltd., a wholly-owned subsidiary of Hunan Broadcasting and Television, held a happy purchase of 43.12% of the company's shares. After the completion of the transaction, Mango Media's share of happy purchases will increase to 67.88%. The acquired Happy Sunshine, Mango Mutual Entertainment, Sky Entertainment Media, Mango Film and Mango Entertainment are also the assets of Hunan Taiwan and hold all or a majority of the shares through Mango Media.

Happy Sunshine operates Mango TV, a video site dominated by Hunan TV; Mango Inter Entertainment is a game company, and works often interact with dramas broadcast on Hunan TV stations; “Tourism Media” produces “Super Girl” and “Happy Boys”. ” Phenomenon-level performances such as talent show, brokerage business, Brilliance Yu, etc. are all entertainment artists; Mango and Mango Entertainment is a film production and investment team.

After the transaction is completed, Happy Sunshine, Mango Mutual Entertainment, Sky Entertainment Media, Mango Film and Mango Entertainment will become wholly-owned subsidiaries of listed companies.

In addition, Happy Purchase intends to use the bidding method to raise no more than 2 billion yuan in supporting funds for non-public offering of shares by no more than 5 specific investors. It is intended to deduct the fees of the intermediaries involved in the transaction and the relevant issuance fees for use in the rights of Mango TV. Library expansion project and cloud storage and multi-screen broadcasting platform project.

The transaction will also change the main business of Happy Purchase. According to the announcement, before the transaction, the main activities of Happy Shopping include household consumption business, community e-commerce business, O2O business in local life, and automotive e-commerce business. The completion of the new media platform and content integration, the main business will be retailed by the media. The business expanded to the new media platform operations, new media interactive entertainment content production and e-commerce industry chain.

As early as August 2016, Happiness has announced that it intends to acquire all or part of its controlling stakes in the seven companies controlled by Hunan Radio and TV – apart from the above five companies, it also includes Hunan Golden Eagle Cartoon Co., Ltd. and Hunan Tianyu Advertising Co., Ltd. Both belong to the quality assets of Hunan Radio and Television. However, just two months later, the acquisition plan was announced.

The Purchasing Purchasing announced at the time that the assets of the target company involved in the major asset restructuring plan were complex and the restructuring plan was still to be discussed and improved. The current implementation conditions were not yet mature and it was decided to terminate the major assets reorganization.

In June of this year, Happy Purchase announced reorganization and reorganization. The subject of the transaction was changed to Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., Shanghai Sky Entertainment Media Co., Ltd., Hunan Mango Entertainment Co., Ltd., Mango Film Culture Co., Ltd. and Shanghai Mango Entertainment Technology Co., Ltd. These 5 companies.

The ambitions of Hunan’s Taiwanese capital to build entertainment “aircraft carrier” are huge. Mango TV, games, entertainers, content production and other services are packaged into the happy purchase of main TV shopping, making “happy shopping” from content to platform. It will also become a key node for the innovation of TV Hunan.

However, over the past year, the culture and media industry has changed a lot. The transaction price of Mango TV is 9.5 billion, which is a lot less than the valuation of 13.5 billion after the completion of the B round of financing in June 2016. The reason for the decline in valuation may be due to different valuation models, or it may be due to changes in the environment.

Mango TV's operating body, Joy Sunshine, was established in 2006. From April 2014, relying on the "Mango Solo" strategy of Hunan Taiwan, the content of Hunan Taiwan's self-made products was exclusively broadcasted by Mango TV, and Mango TV developed rapidly. The "aggressive" mango TV is now generally regarded as the second echelon of the video site. The scale and activity of the user is still far from the internet giant's iQIQI, Tencent video and Youku.

When the "Mango Solo" strategy was gradually terminated and the TV content production capacity of Hunan TV was catching up with other local stations and video sites, Mango TV urgently needed to expand its core competitiveness.

It is worth pointing out that Mango TV may be one of the few video sites to achieve profitability. According to the announcement, Happy Sunshine's operating revenue in 2016 was 1.817 billion yuan and net profit loss was 690 million yuan, but it was in January-June 2017. , Happy Sunshine Studios revenue was 1.376 billion yuan and net profit was 158 million yuan.

This time, Happy Sunshine will be injected into the listed company system and will be accompanied by a 2 billion yuan fund-raising. Mango TV will be given more financial support for copyright procurement.

In addition, the influence of the entertainment media of the day is also difficult to catch up with the heyday of “fast men” and “super girls”. At present, Tiandian's main business includes artist brokers, variety shows, film and television dramas, and other wireless value-added authorizations. As of the signing date of this announcement, there have been more than 30 signed artistes in cooperation with Tiancheng Media, including Brilliance Yu, Ou Hao, and Chen Xiang.

In 2016, when Happy Purchase first launched the reorganization, Tiandu Media’s helm created the “dragon godmother” Dragon Daniel of “Fast Man” and “Super Girl”, but Long Danni had already resigned in December 2016. The director of the original Hunan Taiwan Program Transaction Management Center, Xiao Ning, took over as general manager of Tiancheng Media.