Huayi Brothers Buy 51% Stake In Chinese Movie WebsiteJuly 2, 2014 | Print | Comments | Category: Business, Telecom & Wireless
Huayi Brothers have acquired a 51% stake in Maizuo.com, a Chinese movie information and tickets provider, for CNY266 million.
Of the total investment, Huayi Brothers acquired a 15% stake from Matrix Partners for CNY53.85 million; it acquired a 24.40% stake from shareholders of Maizuo.com for CNY116 million; and the company invested an additional CNY96.2 million to acquire the remaining 19.14% stake. This investment is based on Maizuo.com's performance promise between 2014 and 2016.
The online movie ticket market includes three major parts: online sales of movie tickets, ticket group buying, and movie fan communities. In 2013, Gewara.com, another online tickets provider in China, led the industry with reported income of CNY800 million. With the joining of traditional movie companies such as Huayi Brothers, the Chinese online movie market will expect more intense competition in the future.
Maizuo.com formally started operation in 2010 and the company has established its movie O2O platform for PCs, mobile clients and the mobile web. Its service areas reach nearly 700 movie theaters in more than 80 cities in China. In 2013, Maizuo.com's annual operating revenue was CNY58.965 million and it suffered net losses of CNY7.303 million.
However, the executives of Maizuo.com promised that their net profit for 2014 will be no less than CNY35.2 million; their net profit for the next two years will be no less than CNY80.96 million; and their net profit for the next three years will be no less than CNY140 million.
Leave A Comment:
- Letv Reaches Internet of Vehicles Deal With BAIC Motor In China
- Tencent Announces Structural Adjustment Aimed At Animation And Film
- Alibaba Appoints Yu Yongfu AutoNavi President
- Tencent Literature Merges Into New Group With Shanda Literature
- Sony Confirms Launch Of PS4, PSV In Mainland China On March 20