M & A and reorganization in the film and television industry is difficult to recover, institutions have made large efforts to flee on rallies

the media industry became the leading industry in 2016, and one of the core variables lies in the stricter regulation of mergers and acquisitions and backdoor listings at the policy level, as well as strengthening the supervision of cross-border mergers and acquisitions. As a result, the logic of M & An in the media industry is limited to a certain extent, and there is a big correction in the index.

in the past 2016, the film and television sector has changed its hot scene and ranked at the bottom.

people in the industry said that in addition to falling short of expectations at the box office, stricter mergers and acquisitions are also an important reason. At present, there are no signs of warming up in the M & An of the film and television industry. For film and television stocks, institutions have also begun to become "impatient". Among them, Great Wall Film and Television has issued a pre-acquisition plan, only a limit, institutions have chosen to reduce their holdings every time they are big.

< strong > M & An in the film and television industry stalled < / strong >

"from 2013 to 2015, the stock price of the media sector rose sharply, and M & An is an important reason for driving this round of market. When the supervision of M & An is stricter, this logic does not make sense, and the valuation of this sector will come down. This is also a reason for the poor performance of film and television stocks last year, in addition to the poor box office. " A private equity person in Shanghai thinks.

Statistics show that in the past year, the media sector ranked bottom, and film and television stocks fell all the way. Wanda Cinema fell by 54.82% in this year, and Huayi Brothers fell by 46.81% in this year.

Dongxing Securities analyst Yang Ruomu believes that as an industry in which product creation is the core competitiveness, the cultural and entertainment industry needs constant creative innovation. Mergers and acquisitions, as a common way to attract fresh blood and maintain the company's creativity, were largely rejected last year, leading to a lack of endogenous product innovation.

whether the industry will return to the era of high valuation in the future depends on the recovery of macro-economy or household consumption growth, the frequency of innovative high-quality products and the marginal relaxation of M & A regulation in the industry.

Wind data show that from 2013 to 2015, there were 29, 46 and 88 mergers and acquisitions in the film and entertainment industries, respectively, with mergers and acquisitions worth 21.8 billion yuan, 35.9 billion yuan and 43.5 billion yuan respectively.

from the fourth quarter of 2015 to the first and second quarters of 2016, mergers and acquisitions continued to be hot, with 17, 36 and 25 cases respectively. The amount of mergers and acquisitions reached its peak in the second quarter of 2016, and the amount of mergers and acquisitions worth 44.6 billion yuan exceeded the data of any year in 2012 and 2015.

however, in the third quarter of 2016, with tighter regulation, the restructuring of several listed companies failed, mergers and acquisitions of film and television targets entered a cooling-off period, and the growth rate declined for the first time in four years in the third and fourth quarters of 2016.

Haitong Securities released a research report saying that the media sector has risen significantly since 2013, and mergers and acquisitions are an important factor driving this round of market. From 2013 to 2015, this is the media sector three years of major market, the highest index to achieve nearly six-fold growth. The main changing factors are the large-scale mergers and acquisitions that began in 2013, represented by games, film and television, marketing and other fields.

the brokerage believes that the media industry has become the leading industry in 2016, and one of the core variables lies in the stricter regulation of mergers and acquisitions and backdoor listing at the policy level, as well as strengthening the supervision of cross-border mergers and acquisitions. As a result, the logic of M & An in the media industry is limited to a certain extent, and there is a big correction in the index.

< strong > institutions reduce their holdings of Great Wall Movie < / strong >

in 2016, companies including Storm Group, Tangde Film and Television, Letv, Wanda Cinema, Huayi Brothers, etc., failed to complete the merger and reorganization of film and television assets.

at present, there is still no possibility for regulators to relax the possibility of mergers and acquisitions in the media industry.

Wanjia Culture announced on the evening of January 5 that the company received a letter of inquiry on December 29, 2016 from the Shanghai Stock Exchange on matters related to the disclosure of changes in the rights and interests of Zhejiang Wanhao Wanjia Culture Co., Ltd. The SSE asked Longwei Media to provide a written reply by January 5, 2017. As the contents and data involved in some of the issues need to be further verified and supplemented, Longwei Media said it could not be completed within the required time. Therefore, the company applied for an extension of reply to the Shanghai Stock Exchange and is expected to reply before January 11, 2017.

Great Wall Pictures announced on December 31 that it plans to buy 1.35 billion yuan and 545 million yuan each for the premiere era controlled by Gu Changwei's family and Dena Pictures, the new third board company, respectively. Among them, it is proposed to issue 87.8252 million shares and pay 270 million yuan in cash to the shareholders of the premiere and 22.1545 million shares and 273 million yuan in cash to the shareholders of Dana Pictures at the price of 12.3 yuan per share. At the same time, the company plans to raise no more than 563 million yuan at the same price.

however, this good news only led to the daily limit of Great Wall Movie and Television on January 3. On January 4, share prices continued to rise, but then there was a lack of strength. The company's share price fell all the way down in the next two trading days.

it is worth noting that on the same day that the Great Wall Movie and TV limit rose on January 3, the agency was in a hurry to ship goods. On the same day, Great Wall Film and Television entered the list of dragons and tigers, buying seats were all local business departments, while selling seats were dedicated to institutions, which sold a total of 121.5082 million yuan that day, which is quite large.

Great Wall Pictures and Television's financial results in the third quarter of last year showed that UBS Capital, Fuguo Tianrui Regional strong Fund, Wanjia harmonious growth mixed Fund, Jingshun Great Wall Fund and so on all owned Great Wall Movie and Television.

Edit: yvonne