LeSports won Series B+ financing: Completely changing its operating model is the way out

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The lack of profit planning for copyright procurement methods and effective back-end operating models are undoubtedly important reasons why LeSports fell into a financial crisis before." The lack of profit planning for copyright procurement methods and effective back-end operating models are undoubtedly important reasons why LeSports fell into a financial crisis before.

the lack of copyright procurement mode and effective back-end operation mode of profit planning is undoubtedly the important reason why Letv Sports fell into the financial crisis before.

original title: Letv Sports received B+ round financing: government capital is deeply involved, can it take a turn for the better in the predicament

the recent negative Letv Sports finally ushered in a turnaround.

Today, Letv Sports announced the progress of B+ round financing. Some new and old shareholders of Letv Sports and funds under Zhongyi Ningbo Ecological Park (national ecological park) confirmed their participation in the B+ round, with a post-investment valuation of 24 billion yuan. However, the specific amount of financing and the progress of financing were not directly disclosed in Letv Sports.

Letv Sports founder and CEO Lei Zhenjian said in a media interview:" Letv Sports was valued at 21.5 billion yuan before investment and 24 billion yuan after investment. Once everyone calculates this, they can still work it out. " According to the rough calculation of

, the financing is about 2.5 billion yuan. This means that Letv Sports, which is currently in financial crisis, is expected to get assistance from external funds.

Chen Chen, representative of Letv Sports shareholders, said that although Letv Sports has made many mistakes, shareholders should still support Letv Sports, both spiritually and materially.

while announcing the progress of financing, Letv Sports also announced the establishment of the Letv Sports Strategic Development Committee, which is composed of HNA Capital, Zhongze Culture, Perth Investment, Ping Yineng Mine, Oriental Huifu, Xinpai Capital, Yunfeng Fund and individual shareholders, as well as management representative Lei Zhenjian.

it is reported that the committee will assist the shareholders' meeting and the board of directors to provide important support to the company during the critical period of the company's upgrading and transformation. The committee will perform the company's auxiliary duties such as strategic development decision-making, daily work supervision and financial supervision, ensure the company's independent operation, and urge the company to properly handle previous receivables in a timely manner.

this series of actions shows that Letv Sports in the storm is getting back on the right track. Can the remaining problems such as arrears and layoffs be solved? Can Letv Sports get out of the crisis as desired?

< strong > Government Capital deeply participates in < / strong >

it is worth mentioning that in this financing, besides the new and old shareholders, the biggest bright spot is the fund under Ningbo Ecological Park. According to official disclosure, the high-quality comprehensive construction land used for the Letv sports town project is the main asset of the capital increase.

it is reported that the "town" is located between Shanghai, Hangzhou and Ningbo. According to Letv Sports, with the cooperation of government funds and Letv Sports, the newly developed Letv sports town will accommodate Letv Sports's global partners, bring the landing of offline sports service products, and eventually become a sports tourism resort.

and Letv Sports, including sports event operation, outdoor tourism, sports training and other products, will also form a synergistic effect with the sports town.

next, Letv Sports also plans to shift its business focus to the construction of Letv Sports Town. According to Letv Sports CEO Lei Zhenjian, Letv Sports will tilt the team's core competencies and resources to build Letv Sports Town, hoping to explore a successful model and copy it to other areas to expand the sports consumer population and promote the upgrading of the sports industry.

at the same time, Letv Sports also announced that it plans to relocate its headquarters to the Sino-Italian Ningbo Ecological Park, which, as one of China's eight national ecological parks, will formulate special policies to support the landing of the project to support Letv Sports.

in terms of concrete implementation, Letv's sports will be laid out by the offline commercial business groups in the three major business groups. Letv sports said that the offline commercial business group will expand from single-point product-level services such as event operation and sports training to systematic services covering a variety of sports scenes with a small town as a unit.

thus it can be seen that around the sports town of Letv, Letv Sports, which is supported by government capital, is expected to reverse its previous decline.

< strong > Capital crisis has been temporarily alleviated < / strong >

at present, there are still many difficult problems facing Letv Sports. Among them, the most important copyright crisis has fermented several rounds, which is also the problem that Letv Sports urgently needs to solve after getting a new round of financing.

after entering 2017, Letv Sports successively lost the rights of the AFC Champions League and the Chinese Super League. Relevant sources said that as Letv Sports lost its copyright one after another, more copyright owners began to worry that Letv Sports's copyright installment would not be cashed, and the account run caused by "debt collection" was imminent. This also means that after getting the financing, the first thing Letv Sports needs to do may be to discuss the account with the defaulting party.

how to proceed with the next round of copyright procurement is still quite important.

as a means for Letv's sports family to get rich, large-scale copyright procurement once pushed Letv Sports to the top position of an Internet sports company, but now the advantage is no longer there. Further remedial measures will determine the future of Letv Sports.

in response, Lei Zhenjian said, "We will not give up the procurement of copyright, but will balance a reasonable input-output ratio."

this statement shows that Letv Sports will formally abandon the operation mode of taking copyright at a high price regardless of everything.

in fact, the previous mode of operation has aroused opposition from Sun Hongbin, chairman of the China Board of Directors of Leeco, whose performance meeting on March 28th even publicly stated that it was a mistake for Letv Sports to be in the Chinese Super League. "the CSL should not have done it in the first place. I invested 1.35 billion and lost 1.3 billion. You can't do it just because people like it. It's a business. It's not right for you to do so. "

lack of copyright procurement mode and effective back-end operation mode of profit planning is undoubtedly an important reason why Letv Sports fell into a financial crisis before.

Letv Sports, which is aware of the problem, has been trying to make adjustments for months, and COO Yu Hang, who had previously been in charge of Letv sports copyright procurement, also left in this wave of adjustment.

however, due to the lack of funds, Letv Sports can only put out the fire for a long time. The timely injection of external funds is expected to promote a new round of transformation of Letv Sports from the capital level.

judging from the current public statement of Letv Sports, in the next stage, in addition to building Letv Sports Town, Letv Sports will continue to focus on expanding the number of users and members. Including the continuation of high-quality copyright procurement, and the development of UGC business, are measures to enhance the strength of the media business to maintain user stickiness.

Lei Zhenjian said, "as one of Letv's seven major ecologies, Letv Sports will provide Letv's large and small screen users, as well as all sports enthusiasts, with a richer range of products and services, including live events, short videos, picture and text information, and self-media, and strive to create a link platform that aggregates a variety of sports services, and strive to create more value for users."

if you want to expand the number of users and members, you must expand on products and services. However, the lack of high-quality copyright projects may further affect the payment business represented by Letv sports members.

member is the hope of Letv Sports profit before the capital crisis. In this strategy, Octopus Live, which Letv Sports previously acquired, is very important. At present, the octopus live broadcast focuses on "national original interactive sports live broadcast"; in addition, Letv sports content is also incubating some self-made short video projects.

this series of measures shows that Letv Sports is trying to shift the company's direction from copyrighted content, which requires a lot of investment, to live streaming by UGC users, which is relatively low in cost.

this looks more like a UGC alternative supplemented by copyright events, and it still needs to be proved by further achievements of Letv Sports.

on the other hand, Lei Zhenjian also revealed that Letv sports e-commerce has also been accumulating strength recently. It is reported that in mid-April, Letv sports e-commerce officially launched the domain name sportsmall.com; in June, Letv sports store flagship store will also be reinstalled in Tmall to open. Letv sports e-commerce and sports consumption business groups will focus on the entrance construction of sports consumers and create core competitiveness.

Edit: jessica