Giant Network's backdoor listing of "Journey" and other core IPs will be transformed into film and television

According to Giant's plan, developing in-depth Internet services including Internet finance and Internet medical care and building a comprehensive Internet group has become the Giant's goal. This may mean that Giant Network's "new journey" will be full of challenges.

As the first Chinese game stock to successfully backdoor listing, Giant Network's "new journey" has begun. After quickly completing the equity transfer, Giant Network held its first large-scale investor meeting in Shanghai. All core management, including President Liu Wei and Vice President Ji Xuefeng, attended the exchange meeting.

Although Shi Yuzhu himself did not participate, we still felt the "President Shi's personal brand" from the scene. The company said that "Shi Yuzhu returned to Giant Network in 15 years and devoted all his energy here. He is responsible for the company's strategic layout and product details, including the details of the" Journey "mobile game, and the future layout is within the main body of Giant Network."

Talking about future actions in the capital market, the company said,"With Mr. Shi's brand, we will actively make some relatively large actions and will not disappoint investors in the future." According to Giant's plan, developing in-depth Internet services including Internet finance and Internet medical care and building a comprehensive Internet group has become the Giant's goal. This may mean that Giant Network's "new journey" will be full of challenges.

1. A pioneer in privatization, with a market value exceeding 140 billion

yuan. Looking at past information, we can find that Shi Yuzhu, who had superb financial skills, was prophetic and announced privatization as early as November 2013. As of July 2014, Giant Network had been the first among many game stocks to complete privatization. Its share price ended at US$11.92 and its market value was approximately US$2.87 billion.

In October last year, Century Cruises, which had suspended trading for nearly a year, issued an asset reorganization suspension announcement, saying that it had reached a "Material Asset Restructuring Intention Framework Agreement" with Giant Network. The company plans to issue shares to all shareholders of Giant Network and acquire all equity interests of Giant Network. The transaction consideration is tentatively set at 13.09 billion yuan. After the transaction is completed, Shi Yuzhu will become the actual controller of the company. In addition, the total amount of supporting funds to be raised by the company will not exceed 5 billion yuan.

According to the announcement, Giant Network shareholders promised that the non-net profit deduction in 2016, 2017 and 2018 will be no less than 1 billion yuan, 1.2 billion yuan and 1.5 billion yuan.

Since then, Giant Network's share price has created the myth of 20 consecutive shares, and the actual market value once exceeded 140 billion yuan. As Century Cruises announced on the evening of April 7 that the transfer procedures for 100% equity of Giant Network and related industrial and commercial change registration work for this major asset reorganization have been completed, Giant Network's backdoor borrowing is nearing completion.

The announcement shows that Century Cruises received relevant approval documents from the China Securities Regulatory Commission on April 5, approving its major asset reorganization and plan to issue shares to purchase related assets and raise matching funds. The relevant procedures can be described as "quick delivery".

2. How to start the giant's new journey?

I have to admit that in the past 15 years, the game industry has undergone earth-shaking changes. When the giant entered, the market size was only a few billion yuan, and in 2015 it reached 140.7 billion yuan.

Looking back at history, we have to admit the giant's glorious past in the history of online games: (The following chronological events use the quote box)

It was founded in November 2002 with a team of more than 10 people. "Journey" was officially released in January 2006, creating a free experience, a prop charging model, and a second-generation charging model for online games. It has disruptive significance.

It landed on the New York Stock Exchange in November 2007 and raised US$1 billion. It was the first time that the TMT industry raised the highest amount and became the largest Internet game stock by market value.

In 2008,"Journey" was online with 2.1 million people at the same time, becoming the number one online game in China.

In 2011,"Journey 2" broke through prop fees, created a transaction charging model, and launched the third-generation charging model for online games.

The first 3D game of "Xian Xia World" in 2013 was one of the most successful end games of that year.

In 2014, mobile games were fully deployed, and "Journey" and "The Big Master" mobile games were successively launched.

In July 2015, the casual mobile game "Ball Battle" had 32 million monthly visitors, making it the top 10 in the long-term list.

However, its return journey also showed that this established game company has not transferred its advantages to the mobile game era. Due to the rise of mobile games, Giant Network's operating income and net profit after deducting non-profit have both plunged in the past two years. In 2014 and 2015, the company's operating income decreased by 6% and 17% respectively year-on-year, and net profit after deduction of non-profit decreased by 17% and 39% respectively year-on-year, showing an intensified decline.

At present, for giants, the most important product is the "Journey" mobile game, which is so important that Shi Yuzhu has to personally participate in it. Company executives said at the scene today that "Journey" and "Xian Xia World" were created by the original team of Duanyou and will become explosive products in the field of mobile games. "Journey" mobile game has reached a strategic cooperation with Tencent and will be launched heavily within the year. Whether these past IPs can regain their glory in the mobile game version has become the biggest performance focus of the giant.

When asked by investors,"The company's market value is already relatively large, how will it plan in the future?", company executives said that first of all, the game business can continue to dig deep, especially mobile games. There are not too many performance commitments. Including this, and overseas is also room for growth; Secondly, in the field of pan-entertainment,"Journey" and Ali cooperate to make movies, and other core IPs will be moved into the film and television screens. The game "Vanity" is suitable for e-sports, and e-sports is also worth looking forward to. VR/AR, games will also be available in the next two years; We are optimistic about the development of China, Internet finance and medical care, and will continue to explore it.

Editor: yvonne