Listed companies are stepping up their "hunting" of big Internet companies, Internet University has entered the eve of the explosion or a valuation highland?

The development of big online movies seems to have encountered certain embarrassment. After a certain period of explosion, Netcom seems to have entered a relatively flat period in the number of hot products. If it were not for the media's attention, many people would have thought that this market was about to enter a period of extinction. Corresponding to dullness, listed companies seem to be stepping up their "hunting" of large online companies at the capital level.

Original title: Huayi Zhongnan Culture has successively invested in major Internet companies, and the Internet market has entered the OR valuation high on the eve of the outbreak?

The development of big online movies seems to have encountered certain embarrassment.

After a certain period of explosion, Netcom seems to have entered a relatively flat period in the number of hot products. If it were not for the media's attention, many people would have thought that this market was about to enter a period of extinction.

Corresponding to the dullness, listed companies seem to be stepping up their efforts to "hunt" large Internet companies at the capital level. After the funds controlled by Youzu and Beijing Culture Chairman Song Ge invested in Taomeng and Huayi Brothers invested in Qi Entertainment, the transition is under way. Zhongnan Culture has also targeted large Internet companies at the capital level.

Recently, Zhongnan Film Industry announced that the company plans to invest 10.5 million yuan in Qishu Youyu, accounting for 3% of the shares. The announcement disclosed that Shenzhen Jiaxin Wuhao Information Technology Partnership (Limited Partnership) also invested 24.5 million yuan in Qishu Youyu, accounting for 7% of the shares, based on which its valuation is 350 million yuan.

Continuously favored by capital, the reporter couldn't help but ask a question: What is the value of NetDa?

Compared with the new online dramas, NetU, which has been developing for more than a year, has not produced a national topic artist like Zhang Tianai; nor has it produced a phenomenal work like "Remains of Sin", nor has it produced a few capable directors. The road from NetU to cinema is still "difficult and long."

What is even more worrying is that almost all of them are parasitic on the platform. If the platform subsidizes more, the industry will live better. If the platform reduces its share, a large number of companies will be eliminated. It is predicted that the output of Netcom will be close to 2200 units in 2016, sharing the market of about 1 billion yuan.

Some people in the industry call it "The entire Internet University market for one year is not as good as the valuation of Miwei Media of Ma Dong's" Strange Qi Shuo "network comprehensive team of Miwei Media in the five months since its establishment!" Film and television magnate Wang Changtian even bluntly called Internet University a false concept and that the light would not be able to make Internet University works.

"The development of the Internet University is too short. New things that have emerged in just one or two years cannot be viewed from the extensive problems existing in the works and audiences on the market today. We can't see that current directors, actors and works are very low. We must take a long-term view. What we are aiming at is the hunger of future users for online content." Qishu Youyu CEO Dong Guanjie refuted those skeptics. Currently, several leading companies are living well, and works from Internet University to theater lines are incubating. There is reason to believe that this industry is undergoing transformation.

Qishu Youyu raises funds three times a year, with a valuation of 350 million

. Qishu Youyu was founded in September 2015. It is an Internet content company that conducts the entire industry chain layout in online movies. It is reported that although it has only been established for one year, a total of 30 films have been produced and distributed, with a cumulative total of 490 million clicks.

In August this year, Zhongnan Film and Qishu Youyu jointly released a total of 28 online movies in Beijing, and 9 of them have already been launched. After "Special Suspect" was aired alone on iQiyi, it has recovered more than 1 million in less than a week. The cost of ten thousand yuan.

Therefore, some industry insiders questioned that this time, Zhongnan Culture did not directly invest in Qishu Youyu, but invested in shares through the funds of the investment project. In short, it was the redemption of the equity of the two parties in the project cooperation.

In this regard, Dong Guanjie denied that Zhongnan Film was also a strategic investment and had nothing to do with the redemption of project equity."Considering that we have many project cooperation with Zhongnan Film, in order to enhance the strategic cooperation between the two parties, we released 3% equity."

It is reported that this is Qishu Youyu's third financing in a year. Prior to this, Angel Round Shanghai Rongxi accounted for 6% of the shares, and the second round of one-party investment accounted for 7% of the shares.

According to Dong Guanjie, Liu Chun, CEO of Zhongnan Film Industry, once said that there are many companies that produce content, but very few can truly see the potential of online students 'content. Zhongnan Culture's investment in a team with unique trees and fish will help the company deploy online dramas and online movies, enrich the company's business line, and realize the development of the entire IP industry chain.

According to the announcement, Qishu Youyu has currently invested in 40 films to be released, reserved more than 50 high-quality film and television projects, more than 100 front-line directors and production teams, and established an integrated marketing mechanism for film entertainment.

Star holder? Practice? Make money? What is the value of NetDa?

According to informed sources, based on Qishu Youyu's valuation of 350 million yuan and an expected profit of 30 million yuan, the PE (P/E ratio) of this acquisition is close to 12 times. While the traditional film and television industry is generally 12-15 times, Qishu Youyu's valuation is still within a conservative range.

Data shows that Taomeng. com, which also has NetUniversity as its main business, had more than 50 times of PE in its financing in December 2015. From this point of view, the PE of big Internet companies has always been at a high level.

Seven Entertainment, which was once a high-profile stake in Huayi Brothers, has also recently reported financing news. According to Zhang Sisi, founder of Qi Entertainment, Qi Entertainment has developed particularly rapidly this year. In 2016, its revenue will reach 100 million, including a profit of 58 million yuan, and its estimated valuation is 500 - 600 million yuan.

However, many Internet companies that have reached the financing stage will have problems left over from history. The reporter knows an Internet company, which was jointly invested and established by a TV drama company and an advertising company. The TV drama company accounts for 40% of the equity, and the advertising company accounts for 20% of the equity, while the founding team of Internet University only accounts for 40%. At first, this company only regarded Netcom as an advertising monetization method like micromovies. However, when Netcom truly became the largest profit-making method, it was unable to adapt to equity incentives. The complex equity of the three parties was bound to be a source of financial difficulties for the present or future. Financing brings great difficulties.

A person who has handled the financing case of Netcom companies told reporters that there are three main methods for Netcom companies to conduct valuation: the first method is based on annual revenue, the second method is based on annual profits, and the third method is based on the expected future growth space in the entire large industry. However, based on the company's situation, the estimation method is essentially closer to the Internet and is still different from traditional film and television companies.

So what is the value of the online market, which is different from traditional film and television companies, with such a high PE?

Although this is a cliché question, after more than a year of chaos and precipitation, although the number of works of NetUniversity has exploded, it has not brought us many surprises like online dramas or PGC. The most obvious is that there have been no phenomenal works like "The Promotion of the Crown Princess" and "Remains of Sin", nor have there been artists or creators who can be generally recognized by the industry.

What is even more troublesome is that the ceiling of the Internet Market is still very low, mainly relying on platform members. Take the 20 million announced by iQiyi in June as an example. The members mainly rely on online dramas to attract new people, and the corresponding Internet Market has not added many new users, resulting in a weak box office base. Some people jokingly said that the entire market capacity is not as good as the 2 billion valuation of Ma Dong's "Qi Qi Shuo" website comprehensive team Miwei Media in the five months since its establishment!

Some people have also given ruthless comments on the "appreciation" roadmap of "The Taoist Out of the Mountain", which costs 300,000 yuan and shares tens of millions of revenue. If it is a theater movie, it is very likely that a hit at the box office of 30 million yuan will cost 1 billion yuan. However, in today's online market, it is almost impossible for such a hit to appear again.

A small number of leading companies are still popular. It is impossible for practitioners who turned points or appeared in them in 2017

not to understand this. Investors can also see it clearly. So why are they still pouring into this industry one after another?

"But if you look at the overall market prospects, NetU has a lot of room to extend. For example, after NetU's" Taoist Comes Out of the Mountain "and" Mountain Cannon Into the City "became popular, it is preparing for a theater version. NetU represents the value of online content in the segmented field." Dong Guanjie told Entertainment Capital that the reality beyond the prospects is that the leading content company is still making money.

Entertainment Works has invested in companies such as Qi Entertainment and Taomeng. com, and the return on investment is more than tens of times; while Qi Entertainment, which was invested by Huayi, has increased its market value by 20 times in half a year. The estimated net profits of a few leading companies in 2016 are all in the tens of millions.

These favorable conditions have become the key reasons to lure investors and newcomers to enter, but these leading content companies are still clearly aware that the entire Internet market is still in an initial stage, and it will not be in the middle and late stages before they can see the ultimate value brought by this industry. At present, the capital level is keen on several leading companies, hoping that they can explore clearer profit models and establish industry systems and norms in the process.

Optimistic estimates that this time point will come in 2017. At that time, a large number of companies may withdraw or die because of their ability to integrate resources and commercial monetization, and small Internet companies will not be able to make money because of their poor click-through rates. The remaining top companies will stand out and become large companies that are difficult to shake in the industry.

Yin Chao, CEO of Taomeng, believes that the value of Netda is far from being fully realized. He believes that Netda's market prospects are still broad. Netda is like mobile games, it is light and has low cost in time and money. It is especially suitable for young people who stay at home and have no social needs.

Yin Chao even predicted that on the basis of the gradual improvement of the quality of major online movies, there will be online theaters in the future where single-chip payment prices can be on par with physical theater fares.

At the same time, platform paying users are also expanding. According to rough statistics, there are currently more than 40 million members on the entire network. As of June 2016, the number of online audio-visual users in China has reached 514 million, of which 440 million mobile video users are. Some research institutions have estimated that the number of paying users will reach about 55 million by the end of this year, and the number of users is expected to grow to 75 million in 2017. Netda will inevitably be one of the important contents of this user market consumption.

Editor: yvette