In the first half of the year, the scale of VC/PE financing in the cultural media industry fell back, and the results were gratifying in the field of film, television and music

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The "First Half Data Report of the Cultural Media Industry" recently released by the China Investment Research Institute shows that in the first half of 2017, the scale of VC/PE financing in the cultural media industry fell, and the volume of announced and completed transactions in the M & A market declined. However, the scale of IPO financing increased compared with the same period. Data shows that in the first half of the year, there were 44 VC/PE financing cases in the film, television and music field of the cultural media industry, accounting for 45.83%.

with the continuous increase of disposable income of Chinese residents, the per capita expenditure on culture and entertainment is also increasing. As an important part of the service industry, the cultural media industry has been favored by capital in recent years.

original title: the VC/PE financing scale of the cultural and media industry declined in the first half of the year

along with the continuous increase in the disposable income of Chinese residents, the per capita expenditure on culture and entertainment is also increasing. As an important part of the service industry, the cultural media industry has been favored by capital in recent years. However, since the beginning of this year, the momentum of the capital distribution of the cultural media industry has weakened.

the Cultural Media Industry data report for the first half of the year released by the Investment Research Institute recently shows that the scale of VC/PE financing in the cultural media industry declined in the first half of 2017, and the number of transactions announced and completed in the M & A market declined, but the scale of IPO financing increased compared with the same period.

Film and TV music financing scale leads

No matter in terms of financing scale or the number of financing cases, VC/PE 's investment in the cultural media industry became calmer in the first half of the year. According to statistics from the Investment China Research Institute, in the first half of the year, there were 96 VC/PE financing in the cultural and media industry, with a total financing amount of US $757 million, down 48.4% from US $1.467 billion in the first half of 2016 compared with the same period last year and 44.66% from US $1.368 billion in the second half of 2016.

in terms of volume, VC/PE financing cases have been on the rise since 2014 and began to decline after reaching a peak in the first half of 2016. The number of cases in the first half of 2017 was 96, down 39.24% from 158 in the first half of 2016 and 35.25% from the second half of 2016.

however, the scale of VC/PE financing in the field of film, television and music is far ahead, and it has become a bright color in the subdivision of the cultural media industry. Data show that in the first half of the year, there were 44 VC/PE financing cases in the film, television and music sector of the cultural media industry, accounting for 45.83%; the financing scale was as high as US $375 million, accounting for 49.57%, much higher than in the fields of media publishing, animation, advertising production and agency.

"for the domestic film and television music market, the overall situation in the first half of 2017 is to accelerate the listing process, pay attention to property rights protection, and explore new models such as online and offline integration. In the second half of the year, the film and television music field will continue to transform and upgrade, and there is still a lot of room for development in the future. " Gao Yuan, an analyst at the Investment Research Institute, said.

it is worth noting that in the first half of the year, nine enterprises in the cultural and media industry raised more than US $20 million. Among them, Chengdu Xinchao Media Group Co., Ltd., which topped the list, received an investment of 1 billion yuan, which was invested by 2345 Investment Fund. Shanghai Xingge Culture and Media Co., Ltd., which ranked second, received an investment of 500 million yuan, with the participation of the China International Capital Corporation.

the M & A market shows a lukewarm performance

along with the scale of VC/PE financing, the number of M & An in the cultural and media industry has also declined. The report shows that in the first half of the year, the number of announced deals in the cultural media M & A market was 63, down 47.50% from the previous month; the amount of M & A was 2.683 billion US dollars, down 64.14% from the previous month, the lowest level of semi-annual data in three years. In terms of M & A completion, according to statistics, in the first half of the year, the number of transactions completed in the cultural media M & A market was 44, down 12% from the previous month; the amount of M & A was 4.104 billion US dollars, down 59.85% from the previous month.

however, the advantages of the leading companies in the industry are still obvious. According to the statistics of the Investment China Research Institute, in the first half of the year, the merger and acquisition of eight enterprises in the cultural and media industry exceeded 100 million US dollars, the largest of which was Dalian Wanda Group Co., Ltd., through its cinema chain AMC Entertainment holding Company of the United States, invested 930 million US dollars to acquire the Nordic Cinema Group (Nordic Cinema Group), the largest cinema chain in Nordic Europe.

in fact, Wanda Group also won the largest M & A case in the cultural and media industry in 2016, when the US AMC cinema chain of Dalian Wanda Group Co., Ltd. announced the acquisition of Odeon & UCI Cinema, the largest cinema line in Europe, for 921 million pounds, or about 9 times EBITDA.

the second and third largest M & A cases are the acquisition of the news assets of Zhejiang Daily Digital Culture Group Co., Ltd by Zhejiang Daily Media holding Group Co., Ltd., and the acquisition of 15 per cent stake in Letv Film (Beijing) Co., Ltd by Sunac China holding Co., Ltd.

VC/PE organization IPO exit book return hit a record high

in the first half of the year, the financing scale of cultural media IPO increased compared with the same period. Data show that in the first half of the year, the financing volume of cultural media IPO was US $339 million, down 64.80% from the previous year, up 73.44% from the same period last year, up 75% from the previous month, and up 250% from the same period last year.

in the first half of the year, there were 7 IPO listed companies in the culture and media industry, namely Neo-Classics, Deyi Wenchuang, Xuanya International, Hua Kai Creative, China Science and Technology Biography and Olympic Biography thinking Holdings.

from a specific case, in the first half of the year, China Science and Technology Publishing Media Co., Ltd. was the largest IPO financing case in the cultural media field, which was listed on the Shanghai Stock Exchange on January 18, 2017. this public offering of 130.5 million shares was priced at 6.84 yuan per share, with a total fund-raising amount of 893 million yuan and a net fund-raising amount of 834 million yuan.

it is worth mentioning that in the first half of the year, there were four IPO withdrawals in the cultural and media industry, involving two enterprises and four VC/PE institutions. According to the data, there were four exits in China's cultural media industry in the first half of the year, with a book exit return of $80 million and an average book return of 5.03 times, which rose sharply from the same period and the previous period to an all-time high since 2014.

from a specific case, the one with the highest book return in the first half of the year was New Classical Culture Co., Ltd. Sequoia Capital China Fund injected 60 million yuan into New Classic on September 6, 2012, holding a 6.20% stake in New Classic. Sequoia Capital China Fund withdrew after the New Classic was listed on the Shanghai Stock Exchange on April 25, 2017, with a book exit return of 134 million yuan and a book return of 18.09 times.

it is also worth mentioning in the field of education. Analysts said that due to the IPO review of the normalized capital environment and the favorable policy mouth of the amendment to the Civil Promotion Law, a large number of high-quality education targets with a certain profit scale may choose independent IPO, and the acceleration trend of educational asset securitization in 2017 will remain unchanged. At the same time, due to the stricter audit of M & An and a large number of small and medium-sized enterprises' valuation, the cases of M & An of education assets will be relatively slow.

Edit: mary