Is there a chance to turn over if more than 80% of the equity is sold to BesTV Fengxing?

A few days ago, Blockbuster issued an announcement that it will hold 400 million funds for the third investment popular network. Blockbuster's official announcement only listed the profits and losses of the popular major business lines, and pointed out that the large investment in OTT business will be uniformly planned and implemented by the restructured listed companies. Fengxing.com also said that a media communication meeting will be held in the afternoon of March 10th.

Blockbuster issued an announcement last Friday, announcing three transactions totaling nearly Rmb800m, of which more than half (Rmb400m) was spent on the third investment popular website. As of March 9, Blockbuster shares were up 1.46%.

Review the first investment since 2012 (US $30 million, which values the trend at US $85.71 million, equivalent to about RMB 540 million), the capital increase in 2013 (RMB 307 million) and the Rmb400m this time, or about RMB 896 million, with a total stake of 82.76 per cent. Calculated on the basis of the amount and proportion of the third capital increase, Vogue Network (Vogue Network + Vogue online) is valued at about 1.39 billion yuan, nearly triple that of 2012.

1. After the completion of this acquisition, BesTV will hold 82.76% of the popular equity, and the rest will be held by the founders and employees.

2. After the completion of this round of investment, the popular board of directors is composed of five directors, of whom Blockbuster appoints four. The popular chairman is appointed by Blockbuster.

3. Competition terms: the form and content of the company's main natural person shareholders, senior management personnel and core technical personnel shall be the "labor contract" approved by BesTV.

4. The general manager shall be hired by the board of directors, and the general manager's request for the appointment or dismissal of the company's deputy general manager, treasurer and other senior management personnel shall be subject to the approval of the board of directors.

is there still a chance for the popular website to turn around? What's the next step? At least there is no clear answer in the announcement. The popular network also said that a media communication meeting will be held in the afternoon of March 10. However, in view of Blockbuster's past experience of cautious words and deeds after the capital increase and holding of Blockbuster in 2013, we might as well talk about the big deal of 400 million yuan last week.

< strong > 1. The "homemade" prescription is not suitable for the popular < / strong >

the current main business (shopping guides, patches, mobile and game transport), and it is also the mainstream profit model of domestic video websites. But in this model, most players are still losing money and are not getting better before consumers form good payment habits. As a result, the number of users is increasing and high-quality content is also increasing, but revenue can not keep up with hardware and content investment, forming a strange circle of burning money, and not many people can suffer in it.

the lifesaver most video sites find in the content price war is to make homemade content. At present, China has formed PGC players with good content quality and IP has been incorporated into the film and television industry chain. But there is not enough motivation for popular websites to spend a lot of money on self-control. On the one hand, blockbuster, which is popular and relies on rich content resources, can be accessed at any time; on the other hand, for the sake of listing performance, blockbuster may not be allowed to spend money on "homemade content" of the same quality as TV content.

of course, popular CEO Luo Jiangchun himself has said that he is not optimistic about the development of self-control.

< strong > 2. 900 million yuan in three years, blockbuster is to buy the popular team's "Internet thinking"? < / strong >

the official announcement also said:

this increase is also aimed at providing relevant talents and technical support for listed companies to vigorously develop Internet TV business and channels, expand Internet TV platforms, and create the first entrance to Internet TV, relying on popular Internet teams and Internet thinking.

it is precisely because of this that the popular OTT business is included in Blockbuster planning. For fashion, this is not a bad thing, because so far, Internet video companies involved in OTT hardware business have not only been strictly restrained by SARFT document No. 181, but also show no sign of making a profit. For example, Letv's OTT business, which has been in the limelight since 2013, was listed as "R & D expenditure" by Letv's financial report.

A moderate event in 2014 was that Samsung TV and Blockbuster turned to Mango TV after a quarrel over the use of TV broadcast licenses. I don't know whether this incident stimulated BesTV. In short, Blockbuster, which is infatuated with the popular team "Internet thinking", the biggest purpose of this capital increase is actually to do Internet TV business, but the official did not say whether it is OTT hardware or integrated services with licenses as the core. It should be pointed out that Luo Jiangchun, the founder and CEO of popular online, is currently the CEO of Blockbuster Internet TV business group.

anyway, this 400 million yuan of "Internet thinking" is really expensive.

< strong > 4. Is there any chance of the linkage between the station and the network? < / strong >

popular network and blockbuster may not be the originators of the concept of "network linkage", but they are definitely the most involved players. After the first capital operation in 2012, the fashion has been emphasizing the special importance of "station-network linkage" in the whole business. However, experience over the past few years shows that the essence of "linkage between stations and networks" is to "accumulate popularity with each other." it is for video websites to borrow the golden IP of television stations and new media channels for television stations to achieve the goal of "exchanging needed goods." The feasible and popular "linkage between stations and networks" must work together, and the protagonists may not be video websites and television stations (such as this year's CCTV Spring Festival Gala and Wechat).

the problem is that compared with Hunan Satellite TV and other major satellite TV, BaiTV, which is slightly introverted and dominated by Oriental Satellite TV, does not have much golden IP, and the popular network cannot compete with the first-tier giant video websites.

< strong > 5. Will the fashion face the personnel upheaval of the Cool 6 style? < / strong >

corresponding to this capital increase of absolute holding, Blockbuster controls the appointment of the board of directors and core personnel. In terms of personnel and specific strategic directions, fashion has been destined to take orders from Blockbuster. The proportion of say at 4:1 is almost the same as a wholly-owned acquisition. The integration of video sites seems to be more difficult than outsiders can imagine. The integration of Youku and Tudou has led to almost all Tudou executives leaving. Although the integration of iqiyi and PPS is smooth, there are also 5 per cent layoffs. After Cool 6 entered the hands of Shanda, senior executives such as CEO began a lantern-like rotation. Therefore, the integration of personnel and business is also an important problem for both parties.

Edit: vian