Radio and Television Media will participate in the 360 return of A shares and invest nearly 300 million yuan to establish a fund

On December 9, Radio and Television Media announced that the company plans to indirectly invest in the equity of Qihoo 360 Technology Co., Ltd.(referred to as "Qihoo 360") by subscribing to the "Huarong 360 Special Investment Fund", with an investment amount of no more than 300 million yuan. This special investment fund is an investment fund specially established by Huarong Securities to participate in the privatization of Qihoo 360 and return to A-share listing. The fund manager is Huarong Ruize.

A financing project proposal shows that Qihoo 360 is expected to delist from the United States before the end of the first quarter of 2016, and will then be re-listed in China's capital market as early as 2017.

Investment does not exceed 300 million yuan

According to the announcement, in addition to investing no more than 300 million yuan in the "Huarong 360 Special Investment Fund", Radio and Television Media will also provide funds to relevant parties based on the unified arrangement of Qihoo 360 privatization plan. Provide bridge funds of no more than 61 million yuan. The exit method of "Huarong 360 Special Investment Fund" is: after Qihoo 360 is listed on the domestic capital market, it will withdraw through reduction in the secondary market.

In terms of timing, Radio and Television Media expects to sign a subscription agreement with fund manager Huarong Ruize before December 10; pay a 3% deposit of the subscription amount to Huarong Ruize on December 12; and pay the entire price from February to March 2016., the specific payment time is uniformly arranged according to the Qihoo 360 privatization process.

This schedule of Radio and Television Media is highly consistent with the statement in the above financing project proposal. The project letter shows that Qihoo 360 is expected to be delisted from the United States before the end of the first quarter of 2016, and will then be re-listed in China as early as 2017.

Radio and Television Media stated that Qihoo 360 is one of the Internet companies with the largest number of users in China and a leading domestic Internet and mobile information security company. Qihoo 360's plan to return to A-shares is by far the largest return project for China Internet companies. Participating in the operation of Qihoo 360's return to A-shares can increase the company's investment income expectations.

Qihoo 360 Technology Co., Ltd. was founded in September 2005 and was listed and traded on the New York Stock Exchange in 2011 (NYSE: QIHU).

addition to enjoying a high return on investment, Radio and Television Media also said that it can take this as an opportunity to strengthen business cooperation with Qihoo 360 in PC and mobile games, Internet advertising and other fields, and accelerate the development of the company's Internet business.

According to public information, in the third quarter, Qihoo 360's market share in the PC search market exceeded 30%, and the number of paying users of its game products reached 1.3 million. Among them, there are nearly 1.1 million mobile terminals and slightly more than 200,000 PC terminals.

Radio and Television Media is making efforts to transform the Internet. On the basis of the acquisition of Jiuzhi Tianxia, Yikesi, Jinji and Shanghai Jiuzhirun in June this year, in November, Radio and Television Media announced the acquisition of Anwo Media and Shuanyin. The acquisition targets involve mobile applications, Internet advertising, online games, new media, mobile music and other fields to build a new ecosystem of "channel + platform + content".

Analysts at Fortune Securities pointed out that in the field of "channels", Radio and Television Media's network facilities and users have ranked among the top in the country; in terms of "platforms", Radio and Television Media has built a mobile Internet platform covering "brand advertising, effects marketing, mobile media, and application distribution"; in terms of "content", its "film and television dramas, online reading, mobile audio, games", etc. support each other.

In the third quarter, Radio and Television Media achieved a net profit attributable to owners of the parent company of 196 million yuan, an increase of 113.21% over the same period last year; operating income was 1.334 billion yuan, a decrease of 4.80% from the same period last year; basic earnings per share was 0.14 yuan, an increase of 100.00% over the same period last year.

Editor: yvonne