Wang Zhonglei was elected as vice chairman of Hero Mutual Entertainment. The failure of the acquisition did not affect the cooperation between the two parties.

after Huayi Brothers failed to acquire Hero Mutual of the new third board company, Hero Mutual announced on January 10 that the company elected Wang Zhonglei as vice chairman of the company to assist Chairman Ying Shuling in his work.

original title: acquisition failure is not embarrassing. Wang Zhonglei became Vice Chairman of Hero Mutual Entertainment

after Huayi Brothers failed to acquire the new third board company Hero Mutual Entertainment, on January 10, Hero Mutual Entertainment issued an announcement saying that the company elected Wang Zhonglei as vice chairman of the company to assist Chairman Ying Shuling in his work.

before that, there were 9 directors of Hero Mutual Entertainment. Ying Shuling was chairman of the board, and there was no post of vice chairman. The creation of the post of vice chairman for Wang Zhonglei, the current chief executive and general manager of Huayi Brothers, means that the failure of the acquisition has not had much impact on the cooperative relationship between the two sides. On the contrary, Huayi Brothers has increased its participation in the entertainment of heroes.

on November 24, 2016, Huayi Brothers announced that it had acquired part of the shares of Hero Mutual of the new third board company by issuing shares. The claims of the largest mergers and acquisitions of the third board and the most expensive friendship did not last long. On December 6, Heroes Entertainment announced that it would terminate the deal with Huayi Brothers.

the reason for the termination of the acquisition is that there is no agreement on the overall valuation and transaction price, but Huayi Brothers still holds 289 million shares of Hero Mutual, accounting for 20.88% of the company's total share capital, making it the second largest shareholder of Hero Mutual.

Huayi Brothers'"fondness" for heroes' entertainment is not without reason. Since the launch of the new third board, Hero Mutual has exceeded expectations. The company's revenue in the first three quarters of 2016 was 632 million yuan, with a net profit of 369 million yuan, according to the 2016 quarterly report. The value of hero entertainment has increased by 50% in less than ten months. At present, the total market value of Hero Entertainment is about 14.349 billion yuan.

on January 5, Heroes Mutual Entertainment examined and passed a number of motions, such as the motion on the company's proposed change of registered address to the Cultural Industry Park, Wenanyi Town, Yanchuan County, Yan'an City, Shaanxi Province, and the motion on the company's proposed relocation to Yanchuan County, Yan'an City, Shaanxi Province, and to cooperate with the people's Government of Yan'an City. According to the cooperation proposal with the Yan'an Municipal people's Government, the Yan'an Municipal people's Government listed Hero Entertainment as a key supporting listed enterprise in Yan'an.

good profitability and government support do not rule out the possibility that Hero Mutual may independently conduct IPO in A shares or other capital markets in the next few years. From the shareholding, acquisition obstacles, the post, we can see that Huayi Brothers has always been optimistic about the prospect of hero entertainment. E-sports, as the main business of this company, also shows its strategic ambition for the layout of e-sports industry.

Hero Entertainment was founded in 2015 as Mobile e-sports, whose businesses include Mobile e-sports events, game development and operation, sports life, and so on. Wang Zhongjun also said in public: "I hope that the game business will become the fourth carriage to keep pace with the film business, artist brokerage and TV drama business in the whole industry chain of Huayi."

Edit: nancy