China Entertainment’s rescue plan is hard to come by

Chapter 499 Split, valuation of billion [Please subscribe]

Sun Yi's promise made Xiong Xiaoge fall into thinking for a while.

In fact, the listing plan of Star Image is nothing to IDG Capital, it can only be a mediocre listing project.

You know, as a top international financial investment company, IDG Capital, even the China branch, handles projects of the same level as Alibaba and Tencent.

Just like the first two rounds of investment in Renren, including the current plan for Renren to go public in the United States, they were all projects with a minimum of one billion, and they were all in US dollars.

But why is Xiong Xiaoge so concerned about Starry Sky’s listing this time?

There are two answers.

First, he is optimistic about the future of the film and television industry. Whether it is Hollywood in North America or the domestic film market, these are his identified investment directions.

People’s lives are inseparable from entertainment. Once their material life is enriched, they have to engage in spiritual life.

Second, the development momentum of Xingkong is really great.

Including "The Intouchables" which has just been released globally, Starry Sky has only been established for just two years. Not counting others, the box office revenue of just a few movies has exceeded 10 billion.

It's only been two years.

And what's particularly important is that this 10 billion is cash that can be withdrawn at any time, not a number on the books.

Why can the film and television industry attract capital from all walks of life?

Just because there is a lot of turnover and cash, it is convenient for various customers to make transactions and fund transfers.

The same is true for investment companies. Nine times out of ten, their money is not their own, but comes from different customers around the world.

The sources of funds for these customers are diverse.

I understand everything I understand.

Therefore, most customers' investment requirements are generally confidential and stable.

For the financial industry, there has always been a saying called "cash is king."

That is to say, as long as a company has sufficient cash flow, no matter what happens, it can sit firmly on the Diaoyutai and remain invincible.

Starry Sky is such a company. Under the leadership of Sun Yi, its income is stable, and its film and television investment can absorb a large amount of capital flow.

After all, big-budget movies like those in Hollywood often cost hundreds of millions of dollars, and some even cost hundreds of millions of dollars.

Does all this money belong to the film and television companies themselves?

impossible.

They all come from various film and television investment companies or investment funds.

Therefore, Starry Sky Image perfectly meets the investment needs of IDG Capital, and for them, investing in such a company is simply a sure profit without losing money, just like picking up money for free.

Sun Yi's listing plan is to raise funds.

He has a project in hand, but the cycle from preparation to shooting to release is really too long.

But he didn't want to develop step by step, for fear of missing this golden opportunity in the film and television industry. I always make a fortune and immediately invest in it again, such as studios, theaters, special effects companies, and the online ticket booking system I plan to develop in the future, etc.

This caused Starry Sky Image to be short of money every day, and occasionally had to tear down one wall to make up for the other.

It's not that he hasn't considered finding a bank loan, and the bank is very happy to lend it to him.

But how much can you borrow?

Do film and television companies have any substantial assets?

In addition to the theater land, there are various copyrights.

The theater chain has just started, with total assets of only 200 million.

And what about copyright?

Sun Yi knew that the most profitable thing for the entire company in the future would be various film and television copyrights, but these days, copyrights are really not worth much money.

One or two billion is too much.

What about other hidden assets?

There's no way to put a price on it.

It's like Sun Yi went to the bank and said, "Look, I'm the director of the Palme d'Or at Cannes. Just give me a loan of 100 million because of me."

Can I get a loan? ?

Can loan.

But it must be a high interest rate and comes with various additional conditions.

People are uncontrollable, who knows what will happen to you after you take the money.

Just like those famous celebrities who have had violent outbursts, if their head gets hot, they become fans, or they suddenly awaken the skills of a time management master, their persona collapses, and they are banned, who will the bank ask for money from? .

right?

Besides, the money in the bank carries interest, so don’t you need to pay it back?

Need it.

And what about the stock market? It's not necessary.

If you buy and sell, investment is risky, so you need to be cautious when entering the market.

Therefore, it still has to be listed.

Especially the theater department. This thing is like real estate. He doesn't have the leisure to play with the bank and build a theater and get a one-time loan.

It’s not as easy as going public and developing.

Of course, he is not stupid. Listing also means that the company no longer belongs to him alone. Big A does not recognize AB shares and must have the same shares and rights, so his control over the company must have declined.

If that's the case, then split it up and list it.

The film and television copyrights were separated and joined Star Film and Television Investment Company. The special effects department merged with the studio and the web game business remained in Star Digital.

The theater business, artist management and part of the film and television production department were reorganized into Star Pictures and packaged and listed as a subsidiary.

The production department, music department, distribution department and other departments will still remain in Star Image as the parent company of the listed company.

The three-level structure above is still controlled by Sun Yi's family company.

As for the brokerage contract signed by the brokerage department, it is mainly to help listed companies stabilize their stock prices in the early stage and develop.

To put it bluntly, Starry Sky Pictures was a company that Sun Yi used to raise money for the listing of his theater chain. He used Starry Sky's strong production capabilities and his own name to protect the company for three years. Apart from the theaters, he had no core assets at all.

After three years, you can exit based on circumstances.

Of course, Xiong Xiaoge could definitely understand Sun Yi's intentions, but he didn't care.

In three years, as long as Sun Yi remained bound to the listed company, it would be enough for him to make several times his capital and profits, so after thinking about it for a while, he laughed and agreed.

Next, the two worked out the specific details, including the backdoor listing of the shell. Idg has almost finished it. As long as Sun Yi pays, he can directly sign a contract to buy it.

As for the shares required by idg, Xiong Xiaoge required at least 15%.

"Mr. Xiong, how many shares does this shell currently have in circulation in the stock market? Is it 25%?" Sun Yi needed to recalculate the share distribution, so he asked this question.

Xiong Xiaoge shook his head and replied: "No, only 15%."

"Ah, so few?"

Sun Yi was a little surprised. The fewer circulating shares, the fewer shares he would have to sell in the listing. For him, it was not a bad thing.

Moreover, this part of the circulating shares can be acquired through the stock market in advance. As long as it does not exceed 5%, there will be no problem.

Generally speaking, all listed companies that can be used as "shells" have suffered losses for many years. Companies facing delisting warnings are usually companies whose stock prices are low and no one cares about them. As long as IDG helps with the operation, a large amount of money can be recovered. chips.

Then after Star Sky is reorganized and listed, the profits of these shares will directly multiply several times.

Of course, idg himself will definitely do this. The part that does not exceed 5% is free money.

Xiong Xiaoge explained with a smile: "Brother Sun, 4% of the tradable shares are listed companies under normal conditions. For companies with a total share capital of more than million yuan, as long as the tradable shares are greater than %, it will be fine. This company just meets this requirement.”

Sun Yi calculated in his mind.

Fifteen percent of the shares are outstanding, which means that you still have 85% of your shares. If the company wants to be listed, the management and the company’s veterans must provide a certain amount of shares, or at least take them out. Ten percent, plus the fifteen percent required by IDG.

That leaves only 60 percent.

It's not enough. The listed company does not involve Star Future's core assets and only needs to hold more than 50% of the shares.

"Okay, I agree, but in terms of price?"

"Brother Sun, don't worry, I won't treat you badly." Xiong Xiaoge held a cigar between his fingers and gestured to Sun Yi.

"Two billion, I'll give you a valuation of two billion."

Two billion, 15% is 300 million.

The price Xiong Xiaoge gave Xingkong's original shares was already very sincere.

"Thank you very much, Mr. Xiong."

"Easy to say."

"By the way, I would also like to trouble Mr. Xiong to help me draft an equity transfer agreement."

　Sorry, it's too late to come back today. The next chapter will be later. If you don't make it in time, it will be during the day tomorrow.

　　

　

(End of this chapter)