Huayi Brothers plans to purchase some shares of Hero Mutual Entertainment to seize the hundreds of billions of "mobile e-sports" outlet

Huayi Brothers announced on November 24th that Huayi Brothers plans to buy part of Beijing Hero Mutual Entertainment Technology Co., Ltd., the leader of China Mobile e-sports, by issuing shares. The "major asset restructuring" contemplated by Huayi Brothers' two-month suspension was also unveiled.

on November 24th, Huayi Brothers announced that Huayi Brothers plans to buy part of Beijing Hero Mutual Entertainment Technology Co., Ltd., the leader of China Mobile e-sports, by issuing shares. The "major asset restructuring" contemplated by Huayi Brothers' two-month suspension was also unveiled. As the second largest shareholder who already owns 20% of Hero Entertainment, this acquisition is a continuous addition to Huayi Brothers' luxurious "Game Legion" and conveys its confidence in the future development of mobile games and Mobile e-sports industry. at the same time, it also provides a greater possibility for the cross-border integration of its main business.

as the first film and television company to enter the field of Internet games, Huayi Brothers has successively invested and laid out industry leaders, including Palm fun Technology, the first listed mobile game company in A shares, and Yinhan Games, a popular mobile game with nearly 200 million cumulative users. On November 19 last year, Huayi Brothers announced that it planned to invest 1.9 billion yuan in Beijing Hero Mutual Entertainment Technology Co., Ltd. to subscribe for 20% of its total shareholds. at that time, the move was regarded as a key step for Huayi Brothers to open up the complete chain of mobile games from R & D and operation, to distribution channels, and then to Mobile e-sports.

Huayi Brothers Vice Chairman and CEO Wang Zhonglei once said: "all Huayi Brothers' outbound investment and mergers and acquisitions are mainly based on the layout of business coordination and linkage. What we value most has always been whether the new business can have chemical reactions and have linkage space with the existing business." As the leading Internet sports company in China, the business chains of games, events, derivatives and so on can find more cooperation possibilities in Huayi Brothers'"big entertainment ecosystem", such as the mutual transformation or marketing cooperation between Hero Mutual Game IP and Huayi Brothers' film and television IP. Or the e-sports event offline of the former can also be effectively docked with Huayi Brothers' real-scene entertainment projects and online business to achieve resource sharing and business linkage.

in fact, in addition to more possibilities of business linkage, Huayi Brothers' first round of investment in Hero Entertainment has begun to pay off handsomely. According to the announcement of the report for the third quarter of 2016 released on October 24 this year, Hero Mutual achieved a net profit of about 369 million yuan belonging to shareholders of the listed company from January to September, an increase of 2,151.76 percent over the same period last year. In 2016, Hero Mutual promised 500 million net profit to Huayi Brothers, which had completed more than 70% as of the third quarter. At present, Hero Entertainment's business includes game R & D and operation, mobile e-sports events, VR content and marketing, VR events, sports life, etc., which has formed a high-growth business ecology around young consumers. On the product side, Heroes Entertainment owns more than a dozen high-quality mobile e-sports mobile games, including the world's first FPS competitive mobile game, "National gunfight", the world's first sound and dance mobile game, "Dance creation Troupe", and the world's first TPS sea battle mobile game, "Top Battleship" and "Shadow Blade 2". Among them, the VR version of "National gunfight" will also be launched at the end of 2016, and can meet the national multi-player real-time online battle. Q4 released "Shadow Blade 2" has also won the favor of Apple, App and derivative works have been fully available on App Store,Apple Music and podcasts, access to App Store four-day DAU has reached 3.11 million, ranking sixth on the game free list. At present, about 10 million players log on to Hero Entertainment products every day. According to Analysys' China E-Sports Special report 2016, Hero Mutual is currently the second research and developer of e-sports products of China Mobile, second only to Tencent.

on the event side, Heroes Entertainment has launched the HPL (Hero Pro League) Hero League, the largest mobile e-sports event in Greater East Asia, including online matches, tour matches, professional leagues, campus competitions, overseas competitions and finals and other professional mobile e-sports competitions. It has been operating successfully for nearly two years, and the number of registered users of Heroes Entertainment Games has reached 400m. For the post-90s Internet generation, Mobile e-sports has become one of its inseparable entertainment needs, while China has become the largest market of Mobile e-sports in the world, and the scale is accelerating. Analysts said: mobile e-sports will rapidly grow into a market of hundreds of billions of dollars. Huayi Brothers' move is to seize the blue ocean of Mobile e-sports and provide stronger expansion momentum and more diversified derivative possibilities for its large entertainment ecological layout.

Edit: nancy