Dragon Ball Live Broadcast parent company business split Youjiu Games profitability enhanced

Youjiu Games announced on the evening of the 15th that Youshi Network plans to split the live broadcast business and e-sports business it operates and operate them by different entities. Next, the two entities will carry out a series of equity swaps and stock swaps. If the transaction is implemented and completed in 2016, it will have a significant impact on the company's performance for that year.

In November last year, Youjiu Games announced that it would spend nearly 300 million yuan to increase its capital to acquire part of the equity of Youshi Network, the parent company of Dragon Ball Live Broadcast, touching on e-sports live broadcasts. For this investment, the listed company said it can enhance profitability. Sure enough, this quickly became a reality, but in a slightly unusual way. Youjiu Games announced on the evening of the 15th that Youshi Network plans to split the live broadcast business and e-sports business it operates and operate them by different entities. Next, the two entities will carry out a series of equity swaps and stock swaps. If the transaction is implemented and completed in 2016, it will have a significant impact on the company's performance for that year.

"Retain" investment in e-sports business According to Youjiu Games 'announcement, after the split of Youshi's online business, the company's original shareholders plan to jointly establish a new live broadcast company and an e-sports company based on the existing shareholding ratio. After that, Shanghai Juli Media Technology Co., Ltd.(hereinafter referred to as Juli Media) plans to acquire 100% equity in the live broadcast company and 25% equity in the e-sports company.

Data shows that Juli Media is an integrated video service platform under Suning Holding Group. It was established in May 2005 with a registered capital of 20 million yuan. The company owns well-known video portals such as PPTV.

The original shareholders of Youshi Network and Juli Media agreed that as of April 30, the valuations of Youshi Network's entire enterprise and live broadcast company were 1.32 billion yuan and 900 million yuan respectively. The founding shareholders of the company should ensure that after the establishment of the live broadcast company, Youshi Network will transfer all its live broadcast business and required assets related to the live broadcast business to the live broadcast company in accordance with the agreement; then, Juli Media will acquire 100% equity in the live broadcast company through a series of investment methods such as acquiring equity.

At the same time, the original shareholders of Youshi Network jointly established a new e-sports company based on the shareholding ratio of all parties in Youshi Network. It is estimated that Youjiu Games will hold a shareholding ratio of 21%. All Youvideo's online e-sports business and related required assets will be transferred to the e-sports company.

Then, the original shareholders of Youshi Network plan to use their 23% stake in the e-sports company to subscribe for the corresponding capital increase in Juli Media's new registered capital at the time, using the e-sports company's valuation as a consideration. After the above transaction is completed, Juli Media plans to acquire 2% of the equity of the e-sports company for a consideration of 8.89962 million yuan, and holds a total of 25% of the equity of the e-sports company. By then, Youjiu Games will have 19% shareholding in the e-sports company.

Looking back on history, leading game music companies planning to increase capital, we can find that Youjiu Games spent a total of 278 million yuan to acquire a 21% stake in Youshi Network in November 2015. Youshi Network is mainly engaged in e-sports live broadcasting, event hosting and other businesses. The company's core organization is PLU Game Entertainment Media. In February 2015, PLU released a live broadcast of Dragon Ball. Dragon Ball Live has signed up with famous e-sports star Faker and all professional players from the seven top teams under the Korea Professional E-sports Association.

Regarding Youshi Network's business split, Youjiu Games said that if the transaction is completed in 2016, it will have a significant impact on the company's performance that year. The one-time investment income obtained through this transaction accounted for more than 50% of the company's audited net profit for the most recent fiscal year. According to the company's 2015 annual report, the company achieved a net profit of 74.6167 million yuan last year. For Youjiu Games, which made a profit of 28.3186 million yuan in the first three quarters of this year, once this transaction is completed, the benefits it will bring will undoubtedly be considerable.

In addition, Youjiu Games also announced on the evening of the 15th that its wholly-owned subsidiary Youjiu Times will invest 6.5 million yuan in cash to increase the capital of Beijing Xiaoxu Music Culture Co., Ltd.(hereinafter referred to as Xiaoxu Music), thereby holding the company's 17.94% shares.

The reporter noticed that Xiaoxu's music has a great background. The company is currently the largest music content creation company in China and has been working in the field of game music for 10 years. Its music content creation covers game music, animation music, film and television music, etc. According to the announcement, Xiaoxu Music's name can be seen in almost all popular games of every period such as "The Legend of the Dota","Immortal Dynasty" and "Eight Dragons".

Editor: yvette