Giant Network will try to engage in film, television and entertainment when it is re-listed with a valuation of 100 billion yuan

Ji Xuefeng revealed to reporters that Giant currently controls a star fund company that specializes in signing stars. It has previously signed contracts with stars such as Yang Mi, Wang Baoqiang, and Jing Boran. With this kind of star resources, Giant will also try to explore the entertainment and film and television industries to expand the influence and follow-up value of IP.

This year's ChinaJoy, a strong signal of listing A-shares in the game that has been delisted from the other side of the ocean or is on the way to privatization is sent out.

On July 29, Ji Xuefeng, president of Giant Network, revealed in an interview with reporters that Giant is currently holding many mobile games on its hands and has not yet launched them. It wants to find a suitable time to launch them together with the "heat" of the capital market. The company is listed in A shares. The process of listing is advancing, and the merger and acquisition of a top 5 overseas mobile game developer in the world is also in sync.

Shanda, Giant, and Perfect, the three major game giants that were once glorious, chose to delist from the United States after experiencing "contempt" in the U.S. stock market. What they need to do is to let go of the glory of Duanyou and re-prove themselves on the small screen.

Re-listing with a valuation of 100 billion yuan

On July 28, Perfect World announced that through the subsidiary merger agreement, Perfect World will continue to exist and be wholly controlled by the parent company, which means that the privatization process of Perfect World has ushered in a "breakthrough". Shanda Games has experienced setbacks amid the waves of its privatization consortium. But they all have only one goal: to get back from the U.S. capital markets. Giant Network completed its privatization last year and is expected to become the first stock in the past to be listed after its return.

100 billion yuan, this is the bottom line of Giant Network President Ji Xuefeng's recent valuation for Giant's re-listing. Comparing the data at the time of delisting, it is not difficult to find that this figure seems very heroic. In July 2014, Giant Network completed its privatization and was acquired by Giant Investment Co., Ltd. for approximately US$3 billion. At that time, its market value was only US$2.87 billion, which was nearly less than the market value of more than US$5 billion when it landed on the New York Stock Exchange in 2007.

How to support the valuation of 100 billion RMB? Ji Xuefeng told reporters that valuation depends on the base (i.e. performance) and the coefficient (i.e. PE P/E ratio). In the former, Giant has achieved this year's expected turnover of 1.5 to 2 billion yuan from zero revenue in its mobile game business in 2014, and has reserved many high-quality mobile games waiting for the right time in the capital market to be launched; in the latter, domestic game stocks have reached 40 times the PE value. It is not difficult, and it is nearly ten times higher than the P/E ratio of all game stocks in the U.S. market.

In fact, Shi Yuzhu, who retired from front-line business, is not idle. Behind the re-listing of Giant Network's A-shares, Shi Yuzhu's figure in managing capital operations is hidden. Ji Xuefeng revealed that overseas investment and mergers will be one of Giant's strategic directions after listing, and plans to acquire a top 5 overseas mobile game company in the world.

Just last week, Giant Network released its mobile game strategic layout for 2015, including more than 20 top mobile game products and IP including "Wuji Tianxia","Vainglory","SD Genda", and "3D Journey". It was announced for the first time, and mobile game research and development and distribution were carried out simultaneously. For the companies behind "Journey","Legend","Dream Westward Journey" and other masterpieces that used to be powerful in the end-game market, whether they can flexibly turn around and reoccupy the bridge on the mobile side has become a test.

Pan-entertainment layout extends IP follow-up value

According to the latest "China Game Industry Report (January-June 2015)" released by ChinaJoy this year, the actual sales revenue of China's mobile game market reached 20.93 billion yuan, a year-on-year increase of 67.2%, much higher than the growth rates of end-games (4.5%) and web-games (12%). Among them, mobile games are increasingly showing a development trend of refined operations and IP sustainability.

"Flower Thousand Bones", adapted from the novel into a TV series and online games, has become a highlight in this year's IP market. It climbed to second place in the iOS best-selling list in a short period of time after its launch. However, more IPs quickly lost their original popularity and value under the development of some small and medium-sized Mini games companies that "make quick money."

Netease has gone from "Fantasy Westward Journey" to mobile games; Giant Network's "Journey 3D Edition" will also be launched at the end of the year. While the former end-game giants have used their trump card IP "residual heat", they have turned their attention to the upstream. The online literature and variety entertainment market. The original Baidu index for the novel "Martial World" was only 100,000. After Giant Network used this IP to develop a mobile game, this index rose to 600,000.

Pan-entertainment has become a hot spot in ChinaJoy this year. For example, during Tencent's half-hour speech at the ChinaJoy Summit Forum, the topics focused on pan-entertainment, which also reflects the layout ambitions of the game company. For example,"Martial World" recently signed a contract with famous Taiwanese artist Jolin Tsai. Unlike the simple endorsement model in the past, stars will also appear in this game to participate in player interactions and conduct in-depth cooperation with the game.

Ji Xuefeng revealed to reporters that Giant currently controls a star fund company that specializes in signing stars. It has previously signed contracts with stars such as Yang Mi, Wang Baoqiang, and Jing Boran. With this kind of star resources, Giant will also try to explore the entertainment and film and television industries to expand the influence and follow-up value of IP.

Although Ji Xuefeng has been silent about Giant's re-listing process, judging from factors such as the speed of its mobile game layout, the company's overall continued profitability, pan-entertainment concept, and capital market operations, Giant is expected to become the first company to re-enter the A-share market after its return. Game company.

Editor: yvonne