The total amount of cultural media mergers and acquisitions is nearly 150 billion yuan, and 44 film and television companies have landed on the New Third Board

According to incomplete media statistics, as of January 1, 2016, there were more than 160 mergers and acquisitions in the cultural media industry alone, and the total publicly disclosed mergers and acquisitions amount was nearly 150 billion yuan, a year-on-year increase of 50%.

Taking stock of the capital market in 2015,"cold winter" may be a keyword that cannot be avoided, but in the entertainment industry, we seem to be able to see a different scene.

According to incomplete media statistics, as of January 1, 2016, there were more than 160 mergers and acquisitions in the cultural media industry alone, and the total publicly disclosed mergers and acquisitions amount was nearly 150 billion yuan, a year-on-year increase of 50%.

In addition to the soaring numbers, we have also discovered some new characteristics of capital operations in 2015.

1. The large-scale capitalization of the film and television industry was completed in 2014, but many second-and third-tier film and television companies still reorganized assets with listed companies at quite good prices in 2015;

2. The New Third Board has become a new export for film and television companies, and as many as 44 film and television companies have landed on the New Third Board;

3. Although the profit method in the secondary field is still unclear, it has become an important area of capital-intensive layout;

4. Video websites that have not yet achieved profitability continue to look for "fathers". In addition to Ali's wholly-owned acquisition of Youku Tudou, Mango TV, PPTV, etc. have also completed multiple rounds of financing;

5. Sports investment is booming, large companies and large consortiums such as Wanda, LeTV, Hualu Baina, and Chinese Culture have launched arrangements in the sports field;

6. Online ticket purchasing As an extension of the O2O war in the film and television industry concentration has also been significantly increased through multiple capital operations in 2015.

We also found that the return wave of Chinese stocks that began at the end of 2014 is still continuing. The privatization operations of Bona Films, 360, Shanda Networks, Perfect World and other companies will continue in 2016.

Second-tier and third-tier film and television companies are keen to "sell themselves" to listed companies.

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This includes:

1. Gongda Electric Sound acquired 100% equity in Chunchun Ronghe and 100% equity in Beijing Lehua Culture for 4.12 billion yuan, officially entering the film and television entertainment industry;

2. Tianshen Entertainment acquired 49% equity in Ruyi Pictures for 1.323 billion yuan. After the transaction was completed, Tianshen Entertainment, which started as a game, officially added its film and television segment;

3. Fuchun Communications acquired 860 million yuan 80% equity in Chunqiu Shidai, a producer of "Wolf";

4. Huawei shares purchased 100% equity in Dream Star Shengyuan by issuing shares and paying cash. This company reserves more than 20 important literary IPs, and Tong Hua, the original author of "Step by Step", is also an executive at Dream Star Garden.

After 44 film and television companies landed on the New

Third Board and the New Third Board were "freed" by the policy in 2015, a large number of companies concentrated on landing on the capital market. Among them, there are well-known Yunnan Culture, Happy Mahua, and the ugly duckling that specializes in drama.

According to media statistics, as of December 29, a total of 156 cultural companies have registered on the New Third Board, including 44 film and television companies. For example, Zhang Jizhong's film and television company Jizhong Culture, Huayi Chuangxing, which was spun off from Huayi's new media business, and Jimei Pictures, which mainly distributes overseas films.

In particular, last year, the "New Third Board Layered Plan" was officially released, and the New Third Board will divide the listed companies into the innovation layer and the basic layer. In a sense, the innovation level basically enters the equity conversion level, which means that the New Third Board gives cultural enterprises an opportunity. Many small and medium-sized cultural enterprises can "first land on the New Third Board and then plan for long-term development."

Since the tiered plan was just released at the end of last year, it is foreseeable that in the future 2016, the New Third Board will continue to usher in a new wave of listings.

The secondary yuan industry ushered in a capital boom

. Before last year, the secondary yuan was once regarded as a "subculture" and lingered outside the mainstream culture. But in the past year, the second dimension seems to have successfully transformed into a mainstream culture.

In April 2015, Ranye Culture, which was established less than a month ago, received millions of yuan in angel investment from Jingwei China, and the capital level is rapidly intervening in this "niche culture" industry.

It is against this background that major Internet giants began to lay out secondary fields. Last year, Alibaba's Youku Tudou invested US$50 million in the secondary video site Acfun; in November, it was continuously reported that Tencent was about to complete its investment in Station B, planning to invest 200 million yuan, accounting for 15% of the shares. In this way, Station B's valuation is around 1.5 billion.

According to a "Secondary Research Report", in 2015, 2 out of every three young people born in the 1990s or 2000s were secondary users; this year, the coverage rate of domestic animation exceeded 40%, surpassing the Japanese comic book for the first time. ACG consumes more than 1700 yuan per capita, and it is expected that the potential of the entire secondary market in the future will reach underwear dollars.

The "second element" is rising from the original niche culture to the commercial and capital level. But for now, similar to video websites, whether it is secondary communities or secondary companies, the layout of secondary companies in the secondary field is more of a race, and the true profit era is far from here.

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Video websites that have not yet achieved profitability continue to look for "father"

Last year, Alibaba fully acquired Youku Tudou for more than US$4.5 billion. This acquisition rewrote the landscape of Internet video. China's three video giants-Youtu, iQiyi and Tencent Video are all in the bag of BAT.

Outside the Internet, the capital actions of the radio and television system in the video field are also relatively obvious. For example, Mango TV, a subsidiary of Hunan Radio and Television, raised more than 500 million yuan in its first round of financing in June last year, mainly used for exclusive content purchase and content self-production to create a solo broadcast platform; BesTV, a subsidiary of SMG, acquired Fengxing shares for the third time last year at a consideration of US$64.62 million. The purpose is to use the popular Internet team to enhance its advantages in online video, mobile video and Internet TV channels and platforms.

Especially after iQiyi tried the online drama "Tomb Robber Notes" to "pay to watch in advance", the member payment environment seems to be more mature and has also attracted many capitals to join the video website field.

However, it is worth noting that although member payment has become a way to monetize video websites, the video industry still has not found its own profit model. The three major video websites including iQiyi, Youku, and Tencent have still not achieved profits.

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The sports market reveals a new look

Last year, everyone seemed to be investing heavily in copyright for sports events. In addition to Chinese Culture winning the Super League copyright in the next five years at a sky-high price of 8 billion yuan, Tencent won the exclusive copyright of NBA new media in the next five years for 3.1 billion yuan in five years, and LeSports crazily won hundreds of top sports event IPs;PPTV concentrated on purchasing exclusive all-media copyright in La Liga China from 2015 to 2020 at this price.

In addition to the crazy acquisition of competition rights, Wanda first invested in the European powerhouse Atletico Madrid, then acquired the world's second largest sports company Swiss Infront, and then acquired the American World Ironman Company for US$650 million; in early September, Ali established Ali Sports Group. In early December, Chinese Culture and CITIC Capital acquired a 13% stake in Manchester City Club's parent company, City Football Group, for US$400 million. Even in the last few days of 2015, news came that LeSports and City Group were going to invest in Guoan. In addition, seven A-share listed companies, including Noble Bird and Pathfinder, have deployed nearly 10 billion yuan in sports funds.

Against the background that Alibaba and Tencent have entered the sports industry on a large scale, coupled with Wanda, these large companies have brought a new round of investment in the sports industry, and some new trends are emerging in the sports market.

This is mainly due to the stimulation of national policies. In October 2014, the state issued the "Several Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption", planning that the sports industry will achieve an output value of 5 trillion yuan by 2025. This means that in the next 10 years, the sports industry will be a violent industry.

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The Internet O2O war extends to the film and television industry.

Affected by Internet mergers and acquisitions, this year's online movie ticket purchase field is also booming. In this field, the impact of capital operation is mainly reflected in the increase in industry concentration.

Similar to Didi and Kuaidi, Ctrip and Qunar, the online ticketing field is also constantly witnessing the merger of the eldest and the second. For example, with the merger of Guevara in the lithography era, Cat's Eye Films merged with Public Comment. After this round of integration, three ticketing websites, namely, Microfilm Era, Cat's Eye Film, and Baidu Nuomi, have formed, and the field of online ticketing has officially become the world of BAT.

On the one hand, this is due to the highly monopolistic nature of the Internet market. When the industry develops to a certain stage, the concentration effect of the entire market is obvious; on the other hand, specific to the O2O field of online movie ticket purchase, in order to win more users, low-cost subsidies seem to be the safest way to compete. But this has also led to the online industry becoming a bottomless pit for "burning money". In order to no longer shop for low prices, it is also a means to achieve industry concentration and industry thresholds through capital operation.

The wave of return of China's stocks has not subsided and will continue until 2016

. Since Stormwind Technology landed in A-shares in March and set a record of 39 consecutive daily limit, the call for "China's stocks to return to A-shares" has not stopped. Companies continue to dismantle the VIE structure and prepare to log in to A shares through backdoor and other means.

In 2015, there were 3 China-listed companies that returned to A-shares through backdoor borrowing. Two of these backdoor incidents occurred in the pan-entertainment industry. They are Giant Network's backdoor Century Cruises and Focus Media's backdoor Qixi Holdings. The latter even became the first Chinese stock to return to A shares.

China companies listed overseas are still unable to achieve the expected valuations in overseas markets. Following the return of well-known Chinese stocks such as Giant Network and Focus Media to A-shares, Qihoo 360, Shanda Network, and Perfect World are all privatized companies that will receive much attention next year.

Editor: yvonne