Palm Technology transfers 0.94% equity to Tencent's strategic investment to improve the entertainment ecosystem

In order to introduce an important strategic partner Tencent, Mr. Yao Wenbin reduced his holdings of the company's shares by 26.0462 million shares through a block transaction at a price of 7.96 yuan/share on June 26, with a reduction ratio of 0.94%.

Original title: Palm Technology transferred 0.94% equity to Tencent strategic investment

Palm Technology announced on the evening of June 26 that on the same day, the company received a "Notification Letter of Share Reduction" from controlling shareholder and actual controller Yao Wenbin. Mr. Yao Wenbin On June 26, the company reduced its shares by 26.0462 million shares at a price of 7.96 yuan/share through block transactions, with a reduction ratio of 0.94%.

According to the announcement, the company disclosed the "Prompt Announcement on the Share Reduction Plan for Controlling Shareholders and Actual Controllers" on June 20. Yao Wenbin plans to reduce the company's shares by no more than 10,000 shares during the period from June 20 to December 20, accounting for 3.88% of the company's total share capital. Among them: In order to introduce an important strategic partner Tencent, Mr. Yao Wenbin plans to reduce his holdings of 55.4175 million shares through block transactions (accounting for 2.00% of the company's total share capital), and the transferee is Linzhi Tencent Technology Co., Ltd.(hereinafter referred to as "Linzhi Tencent"); in order to further motivate core personnel, Mr. Yao Wenbin plans to transfer no more than 52 million shares (accounting for 1.88% of the company's total share capital) to the company's proposed employee stock ownership plan, and provide financial support for the employee stock ownership plan, which will be implemented after the draft employee stock ownership plan is approved by the shareholders 'meeting.

It is understood that at the UP2017 press conference on April 20 this year, among the more than ten new works announced by Tencent, Palm Technology's "Invincible Heroes of Magic: Era of War","Miracle: Awakening", and "Hatsune Miku: Dream Singer" ranks among them, which has shown the close business cooperation between the two parties. Prior to this, the "King of Fighters 98 Ultimate Battle OL" and "Street Basketball" jointly launched by the two parties have also achieved good market performance and user feedback, laying a solid foundation for this capital cooperation.

In terms of Tencent's games, its strong distribution capabilities and platform resources, as well as the social relationship chain and community resources formed by its mobile Q and WeChat, will play a positive role in promoting the precipitation of user social relationships and user pull, and will have a natural complementarity with its strong R & D capabilities. It is reported that Palm Fun Technology is the first A-share game company to receive investment from Tencent, and the two sides have cooperated many times before. From "King of Fighters 98 Ultimate Battle OL" to "Street Basketball" mobile games, Palm Fun Group R & D + Tencent's agent distribution business model has gradually been confirmed and matured in China. The 2016 Palm Fun Annual Report shows that during the reporting period, several of the company's premium games continued to bring stable revenue growth to the company, and various operating data remained excellent, reflecting the advantageous synergy within the company group and the resource synergy of large IPs and large platforms. In addition, during the reporting period, the company also obtained game adaptation rights for IP such as "Hatsune Miku","Assassin's CreedII","ONEPUNCHMAN","BLEACH", and "Douluo Continent 3", enriching the company's IP reserves in secondary yuan, online literature, animation and other fields.

In recent years, Palm Technology has made in-depth arrangements in the field of mobile game R & D and the pan-entertainment industry through "endogenous + epitaxial" development, increased capital operations and IP deployment, and continued to penetrate into the upstream and downstream industrial chains with the game business as the core. At present, an entertainment ecosystem has been initially established from upstream IP cultivation and acquisition-midstream R & D-downstream issuance and realization. Through capital mergers and acquisitions, various teams develop collaboratively, and their R & D capabilities continue to improve. The advantages of major game manufacturers and groups are particularly obvious. According to the "2016 Game Industry Report", in the 2016 mobile R & D list of China game companies, Palm Technology has a market share of 3.7%, second only to Tencent and Netease.

Some analysts said that Tencent and Netease currently account for half of China's game market. This time, Palm Technology has received strategic investment from Tencent. The advantages of both parties complement each other, which may have a certain impact on the domestic game market. For Palm, Tencent's capital injection has a positive effect on the company, and it also means that the company's channel construction throughout the industry chain is becoming more and more complete.

Editor: Mary