Mango TV's valuation has shrunk by 4 billion. Can it be defended after restarting the capital gate?

Yesterday evening, Happy Purchase announced that Happy Purchase intends to purchase 100% equity of Happy Sunshine, Mango Entertainment, Tian Cheng Media, Mango Film and Mango Entertainment through the issuance of shares.

At the same time as the issuance of shares to purchase assets, Happy Purchase intends to raise no more than 2 billion yuan in matching funds for not more than 5 specific investors for non-public issuance of shares, and raises matching funds not to exceed 100% of the transaction price of assets to be purchased for the proposed issue of shares. The number of shares issued shall not exceed 20% of the total share capital of the listed company before the issuance.

In addition, the happy purchase of the controlling shareholder before the reorganization was Mango Media, which had a shareholding ratio of 43.12% and the actual controller was Hunan Taiwan. After the reorganization, according to the transaction price of the underlying assets, Mango Media is expected to hold more than 50% of the shares purchased by Happiness and remains the controlling shareholder of the company. Hunan Taiwan is still the actual controller of the company. It does not constitute a reorganization listing.

With the disclosure of transaction details, the relevant data of the five target companies were also announced one by one.

It is worth noting that this matching fund-raising will be used for the target companies to implement the Mango TV copyright library expansion project and cloud storage and multi-screen broadcast platform project, which shows that Mango Media attaches importance to mango TV. Only Happy Sunshine (Mango TV) had a valuation of approximately RMB 9.53 billion in this round of trading, which represented a decrease of nearly RMB 4 billion compared with the RMB 13.5 billion of round B financing.

Reorganization details

The specific form of this transaction is as follows:

Happiness intends to issue shares to Mango Media to purchase 84.13% of its shares in Happy Sunshine, 51.80% of Mango Entertainment, 100% of Tiancheng Media, 100% of Mango Film and 100% of Mango Entertainment.

It plans to purchase its total holdings from Mango Haitong, Xiamen Jianfa, Shanghai Guohe, Lianxin Capital, Hunan Wenlv, Everbright New Entertainment, Guangzhou Yuexiu, Mango Wenchuang, Jianshe Huawen, Shanghai Junyong and China Nuclear Dingyuan. Happy Sunshine 15.87% stake;

It is planned to purchase 48.20% of the total amount of mango-entertainment held by Mango Wenchuang, Tibet Taifu, Central South Culture, Growth Culture and Shanghai Xinwei.

In fact, the restructuring of other businesses based on Happy Purchase had a plan in August last year. The assets purchased at the time of major purchases of major assets included the total or controlling equity of the seven companies controlled by Hunan Broadcasting and Television, the same person actually controlled by the company, Hunan Happy Sunshine Interactive Entertainment (Mango TV), Shanghai Tian Entertainment Media, and Hunan. Mango entertainment, mango film culture, mango entertainment technology, Golden Eagle cartoon, entertainment days.

Subsequently, this packaged listing plan was forced to be interrupted. According to the “Three Sounds,” the “forced interruption” was due to changes in the senior personnel of the Hunan Provincial Propaganda System. At that time, the announcement stated that “the status of the assets of the subject company involved in this major asset restructuring plan is relatively complex, and the restructuring plan has yet to be discussed and improved. The current implementation conditions are not yet mature.”

On June 4th this year, Happy Purchase resumed the acquisition, and the Golden Eagle and Tiandu advertisements in the original plan were excluded.

Mango TV valuation shrinks 4 billion

Ma Yun appeared in Mango TV in November 2015

The announcement also disclosed specific valuations of the five target companies: Happy Sunshine's valuation of approximately 9.53 billion, mango-based entertainment of approximately 508 million, entertainment media of approximately 503 million, mango-based films of approximately 511 million, and mango entertainment of approximately 430 million yuan.

In 2016, Mango TV completed round B financing, and its valuation after the investment was RMB 13.5 billion. In this restructuring, Mango TV estimated 9.53 billion in valuation, and its valuation has shrunk by nearly 4 billion.

In fact, Mango TV has rapidly emerged under the strategy of fully linking Hunan Satellite TV's content resources and implementing an independent broadcast, becoming the most successful Internet video platform within the state-owned system. Director Lv Huanbin also repeatedly stressed the importance of mango TV as a nuclear power. The decline in valuation is still normal, different valuation models, changes in the environment, etc. may cause valuations to decline.

Mango TV disclosed data as of September 1, 2017: Mango TV has 47 million independent users/day active users, average daily VV reaches 220 million, and PC-side video player reaches 240 million monthly users. 550 million, the number of Internet TV terminal users reached 65 million, operator TV business nationwide to reach 49.3 million users, of which 698 million in Hunan Province's IPTV business.

At the same time, the layout of Mango TV in Internet TV has a lot of imagination.

On August 8, 2016, Mango TV officially announced its advancement in the Internet TV industry, launching Mango TV, Mango Box, and independent research and development operating system MUI. Earlier this year, Mango TV launched three smart TVs with Everbright, Gome, Skyworth and others. Its TV brand was named IMGO and it started to enter the Internet TV. On September 27th, Mango TV reached a cooperation with LeTV. The full content of Mango TV will land on LeTV, and part of LeTV will be shared with Mango TV.

Mango's cultural landscape

In 2005, Happiness Purchase was jointly established by Hunan Radio, Film and Television Group and Hunan Satellite TV with a capital injection of RMB 100 million. It is mainly engaged in TV shopping. At present, there are three modes of TV shopping, online shopping and outbound shopping. There are PC-end e-commerce platforms, mobile shopping websites, etc. channel. In January 2015, HAPPY was acquired and listed on the stock market, becoming the second listed company of Hunan Radio and Television.

The acquiree is also a member of the Xiang Army. In terms of blood lineage, they are also under the actual control of Hunan Broadcasting and Television, and each has expertise in mango development in various vertical fields of entertainment:

Happy Sunshine (Mango TV) is a video site exclusively for mango content. At the same time, it also has an Internet TV. After completing B-round financing in June 2016, it raised nearly 1.5 billion yuan, and the market valuation reached 13.5 billion yuan; Mango Entertainment was founded. Hunan Satellite TV's phenomenal brand “Happy Girl” and “Happy Boys”, and their favorite artists eventually flowed into Tiancheng Media; Mango Film was founded in 2001 and has been filming the “Feng Shen” and “The Palace Lock”. , "The Palace Lock" and other film and television works; mango entertainment is the first domestic cross-border game company, the company's self-developed "Where the Daddy" series of mobile games has opened the hands of Chinese TV variety show mobile game development .

In other words, the days entertainment media, mango film culture, mango entertainment three companies have business brokers + content production business segment; mango mutual entertainment in the game industry from production to distribution for the entire industry chain layout, and can rely on Hunan Satellite TV to obtain Channel resources; In the industry's most downstream channels, Happy Sunshine (Mango TV) has laid out Internet video.

This will be a "1+5>6" business. Injecting happy purchases such as Mango TV, it is very possible to terminate its current three-year decline in net profit. Putting in a business like Mango TV, which is happy to purchase, can also successfully raise funds in the stock market to solve problems that have long troubled itself. Financing issues; the most important thing is that before the acquisition of the "mango brothers" Although excellent, but none of them have achieved absolute superiority in their respective fields, and now the mango entertainment giant ship is finally integrated, the group military effect can make Hunan radio and television more worth the wait .

For a long time, Hunan Radio and TV has been paving the way for this matter and removing obstacles.

On May 3, E-Media announced an announcement that Hunan Radio and Television transferred its entire interest in E-Media to Net Control Group. Hunan Radio and Television Company has solved the problem of horizontal competition for the happy purchase of the assets of Mango Media.

At the same time, deputy director of Hunan Radio and Television, Chen Gang, deputy chairman of mango media, mango media general manager, day entertainment media chairman Zhang Yong entered the ranks of happy new purchase of a board of directors.

On July 6th, Ding Cheng, the former general manager of Happy Mango (Mango TV), was promoted to the video channel director of Hunan Radio and Television, and Cai Huaijun, the head of the strategic investment department of Mango Media with background in capital operation, was the deputy general manager of Mango Media and the general manager of Happy Sunshine.

Director Lv Huanbin described his statement at the 2016 annual summary work conference as “Defending Ma Lan Shan”. “In the eyes of the storm of media competition, we have retired.”

In today's time node, the living environment of the old TV Xiang Army is not optimistic. At this time, Dragon TV, Zhejiang Satellite TV and other local TV stations have risen in succession, "Teng Youai" has opened up its borders on the Internet platform, and major emerging cultural and entertainment companies have also mushroomed. The influx of capital, the concept of iteration, the rise of new players, leaving the time and space for the Xiang Army may not be much.