Chen Tianqiao's salvation: Shanda Games or will be easy to pave the way for returning to A shares

According to Wind statistics, there were a total of four financial service companies invested by Shanda Capital last year, including Ai Qian Bang, Micro Loan Network, Qian Jing Wealth, Mr. Qian and so on.

Outside investment institutions and Internet companies like BAT are now screaming at Shanda’s every move, and how this listed company with a market capitalization of more than $1.7 billion will affect many stakeholders after privatization.

Venture Capital is pondering how to dig into the elite from the demise of Shanda's privatization; Duojin's Internet companies are considering how to package Shanda Games or Shanda's other businesses at the right price.

However, there is no doubt that among the many stakeholders, the biggest beneficiary is undoubtedly the one behind Shanda - Chen Tianqiao.

This time Chen Tianqiao finally was willing to move. In the three years before this, Chen Tianqiao has been living in Singapore and has not managed much about the company's business. Recently, he has returned, attracting him with the high market capitalization of the A-share market and the unlimited possibilities in the future of financial investment.

In fact, not only Shanda Games, its parent company Shanda Network is no longer a purely entertainment interactive group, but turned to investment holding companies.

Shanda Games Replacement Consortium

In fact, the grand transformation has shown some clues when Shanda Games replaced a new group of shareholders. On September 4 this year, Shanda Games announced that it will introduce new consortium investors, and the privatization consortiums including Perfect World, Chunhua Capital, Carlyle and Fangyuan Capital will all withdraw.

It is worth noting that the newly formed consortiums have all been replaced by domestic institutions, including Orient Securities, Haitong Securities and Ningxia Zhongyin Cashmere, which hold 23%, 20% and 15% of the outstanding shares of Shanda Games respectively, while Shanda Group holds 18% of the shares became the third largest shareholder.

However, according to Shanda Group's public relations explanation, 24% of the shares belong to retail investors and have not been fully redeemed, so it is still to be seen who is the controlling shareholder in the future.

It is worth mentioning that although the perfect world that has withdrawn from this consortium has only invested for four months, it still has a return on investment of 4 million US dollars. According to an industry insider, "Perfect World is a pure financial investment, and the shares held are not particularly large. The initial participation in the acquisition is also of a coalition nature."

For the reason for the replacement of the consortium investors, Shanda Group public relations Zhuge Hui said, “It is for the consortium to buy and sell, the consortium volunteered to join.” However, the reporter found that in the newly formed consortium list, BOC Cash has an A-share listed company. Background, and the company just announced the announcement of the asset restructuring suspension on August 25, all signs seem to point to Shanda Games want to backdoor A shares listed.

"This is a plan, but it has not yet been finalized. There are several brokers in the privatization consortium. This signal is very clear, but there are certainly many plans for how to go public. If Shanda returns to A shares, it is definitely a relatively large project because Its original valuation in the United States is not low, and the return of A-share valuation will certainly be magnified." The above-mentioned insiders revealed that "I heard the news that Shanda Games also wants to spin off the business, it is not an overall listing."

Zhuge Hui did not know whether he was listed on the backdoor, but told reporters that “the ultimate Shanda game is to achieve close cooperation with domestic consortiums to maximize the value of Shanda games, maximize the benefits of users and shareholders, and win win-win among all participants in the market. "Whether the game will be split in the end, it means that capital operation will not affect the operation of the business level.

It is understood that Chen Tianqiao mentioned in his internal speech, "Shengda is definitely not to quit the game, but to be able to let the game in a larger market, in the eyes of investors who are more recognized games, in the vast There is greater development in the world."

In fact, the privatization of Shanda Games has already been deployed as early as the privatization of Shanda’s network. According to the analysis of the industry insiders, "The privatization of Shanda Network was only a bridge process. The direct purpose is to buy the game back. Because Shanda is its parent company."

Since the launch of the privatization of Shanda Games in January this year, various venture capital institutions have been staring at Shanda’s every move.

"We have been waiting for Shanda Games to sell. After waiting for more than half a year, if there is a change in personnel if he sells, then we will have the opportunity to dig people." A venture capital institution in South China told reporters.

Shanda Games remains the main source of revenue for Shanda’s network. According to the data disclosed by Shanda Network, in 2013, Shanda Games realized a total operating income of 434.473 million yuan, a year-on-year decrease of 7.21%; net profit was 158.878 million yuan, an increase of 42.61%.

Specifically, the role-playing game accounted for 87.6% of the game's operating income, and the mobile game business was newly added in 2013. In that year, the operating income was 48.22 million yuan, accounting for 11.09% of the game's operating income. Class games have ceased to be the company's business direction since 2011.

According to the official website of Shanda Games, the more classic games currently operated include the legendary series, the bubble hall, and the million Arthurian king.

The heyday of Shanda Games was in 2005, when Shanda was unrivalled in the industry with its legendary collection in the field of end-games.

However, in the era of page games and the rise of social games, Shanda did not grasp the opportunity, and fell behind a lot.

Later, Shanda Games released the mobile game "Million Arthur King", but because of the dependence of the mobile game on the distribution channel, compared with companies like Tencent and 360 channels, Shanda does not have its own channels and traffic, relying on media propaganda. To guide the flow, the effect is not ideal.

“In fact, Shanda Games is not a company that specializes in R&D games, but more like a game operation company. The reason is that Shanda Games is not managed by people who are technically born. It used to be an agent to buy out, “Legend” is before Acting products, the company later acquired the upstream Korean company." The aforementioned industry insiders told reporters.

From the analysis of the industrial chain, due to the poor R&D strength of the upstream, the downstream channels have not beaten Tencent, 360, etc., Shanda Games has encountered bottlenecks in its development, and the former richest man can only be dejected.

In fact, for Chen Tianqiao, who is an economics student, he is better at and prefers to invest than Shanda’s game business.

If you sell the stake in Shanda Games this time, the cash it will receive will be used to invest in the TMT field. This is what Chen Tianqiao mentioned earlier. “Shengda has transformed into an investment holding group, and it is more important to learn to use more rational and professional. The perspective of the angle of the game to grow together with the game.

觊觎Internet finance

If Shanda’s privatization is not so certain, one thing is already fixed: Shanda’s reduction of its equity in the game is to build an investment holding group. Chen Tianqiao wants to develop and expand its investment business.

"In fact, there is nothing wrong with Shanda's transformation and investment. The first can be cashed through investment projects, and the second now has opportunities, such as finance, so it will invest more money to invest." The South China Venture Capital said.

In fact, Shanda has long been in the financial sector for a long time. According to Wind statistics, there were a total of four financial service companies invested by Shanda Capital last year, including Ai Qianbang, Microfinance Network, Qianjing Wealth, Mr. Qian and other companies.

According to Zhuge Hui, in the future, Shanda will focus on the Internet finance sector, including not only VC, PE and other investment institutions. In the future, more than 100 billion RMB will be invested in Shengfutong and access to external platforms for payment.

Shanda’s positioning for itself is an investment holding company, and investment is indeed what Shanda has been doing for a few years. In fact, Chen Tianqiao's investment vision has been good, and the industries he invests in have high profit returns, and they are a good player in capital operation.

Since 2002, Chen Tianqiao has invested in more than 150 projects, many of which are well-known projects. These brands operate through a series of capital operations, or are sold out, or make greater plans for Shanda's further investment. This series of operations has long indicated that Shanda is not the first company to concentrate on the game industry.

“In fact, Shanda has been eating this bowl of rice.” The above-mentioned Huanan venture capitalists said, “Shenda is actually a partial investment company, not a research and development type. Many new businesses do not do it themselves, but rely on acquisitions.”

Since product development capabilities are weak, it is necessary to choose other directions. For Chen Tianqiao, the best breakthrough lies in capital operation. In fact, Shanda is better at capital operation, and with a unique vision, the investment has made great achievements. Like the cinema ticketing system in China, Guevara and the popular ink weather, it is a relatively successful project.

It is reported that Shanda's main business segments are divided into three categories: Internet business, PE/VC and park management platform.

Internet business is not limited to games, but also in literature, video and other fields.

In terms of investment, most of the past grand investments were venture capital, and the PE investment department was not opened separately. Insiders of Shanda Group revealed that “Shengda VC has 3 billion venture capital funds, but the project volume will not be large. In addition, Shanda also had its own equity investment fund before, and the size of the investment was larger, but it was not separately sorted out to form a department. The way of sorting out the business after the groupization changed. There was no PE team, but investment-related business. Now the group will form a separate PE team and is currently recruiting."

The insider explained, “Future will enter other cultural fields through equity investment. If the operation is handed over to younger people who understand the regular operation of the industry, Shanda will not directly participate, and may invest in other fields. PE perspective will It has become very wide, and these are all based on the foundation of the Internet, using Internet thinking to judge and analyze the areas to be entered."

For the issue of personnel changes that may be caused by business transformation, Shanda Group indicates that personnel incentives will continue and the business scope will not be affected by capital operations.

In fact, Shanda’s talent incentives are getting bigger and bigger. Chen Tianqiao's philosophy is that “the best talents create the greatest value”. For talents, they are not only willing to spend money, but also the amount is gradually upgraded. This year, it has thrown 800 million shares to reward the performance of the eight studio producers, to retain the game development team that can create great profits for the company.

The insider revealed to reporters that the biggest difference between Shanda and BAT and Qihoo 360 is that Chen Tianqiao’s money to motivate employees is his own. “Because the incentives are all his own money, the equity incentives are definitely not in place. But this time the incentive is because the talents will be robbed without any incentives.”

Chen Tianqiao does not engage in games, raises financial investment, and finally can make Shanda the financial giant of his dreams. It is still unknown.

The only thing that is certain is that he is doing what he likes and is good at. "He has always been very uncomfortable with the game and likes to have a story (investment)," said the insider.

Grand

Therefore, Chen Tianqiao’s ambitions in capital operation are well known.

Shanda Network was established in November 1999. Under the leadership of Chen Tianqiao, it started from 500,000 startup funds and 20 employees. In just 5 years, it became a large enterprise with a market value of 2 billion US dollars. It is unique in the domestic online game market. Leading the wind. The grand development process is undoubtedly accompanied by the traces of Chen Tianqiao's capital operation.

In May 2004, Shanda Networks successfully listed on NASDAQ in the United States, with a total financing of US$152.4 million. Immediately after September 2009, Shanda Games was listed on NASDAQ with a financing amount of US$1.044 billion.

In addition, Shanda’s M&A activities have continued.

In July 2004, Shanda Network strategic investment game platform company - Shanghai Haofang online and casual game company - Hangzhou winger software, and the two companies were acquired by Zhejiang Media last year.

Most worth mentioning is that in October 2004, Shanda Network acquired the Chinese website of the original literature. In December 2009, it successively acquired four online literature websites, including novel reading network, romance novels, banyan tree and Xiaoxiang Academy. So far, Shanda Literature has occupied 90% of the domestic market share of literature. Today, Shanda Literature has developed into the second largest source of income for Shanda in addition to games.

Through a number of capital operation methods such as mergers and acquisitions, joint ventures and integration, Shanda has gradually shifted its diversification strategy from a less relevant industry to a more relevant direction, and constantly improved its layout in the industrial chain, including the acquisition of Hurray. Cool 6 website, set up Shengshi film and so on.

At present, Shanda has developed into a literary website, a game in the middle, a music and a film and television. The literary website solves the game content supply. When the game business is stable, the middle and downstream industries of literature, film and television, etc. will be independently developed and expanded. Into the subdivision of entertainment sector, and finally open the entire entertainment industry chain.

The positive benefits of Shanda’s two listings and several mergers and acquisitions are obvious. Not only opened the financing channel, but also enhanced the brand influence, but also spread the risk and improve the operational safety of Shanda.

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