A major integration in the field of game broadcast MCN
Exclusively learned that on March 13, 2020, the two major Chinese games MCN Shenzhen Xiaoxiang Mutual Entertainment Culture and Entertainment Co., Ltd. (hereinafter referred to as “Little Elephant Mutual Entertainment”) and Shanghai Daye Culture Communication Co., Ltd. (hereinafter referred to as “Daye Culture”) officially announced the merger.
According to the merger agreement, Xiaoxiang Mutual Entertainment and Big Goose Culture will set up a new company, “Shenzhen Little Elephant Big Goose Culture Co., Ltd.” (hereinafter referred to as “Little Elephant Big Goose”), the original Little Elephant Mutual Entertainment founder Dou Yuxiao will serve as CEO of the new company.
The ability to attract gold for live games has been strong. According to Huya’s third quarter 2019 financial report data, total revenue was 2.265 billion yuan, an increase of 77.4% compared with 2018, and net profit was 123.2 million yuan, an increase of 117.1% year-on-year. Douyu’s third quarter 2019 financial report shows that total revenue reached 1.859 billion yuan, an increase of 81.3% year-on-year; net profit was 72.2 million yuan, an increase of 37% from the second quarter.
According to the “Research Report on China’s Game Live Broadcasting Industry 2019” released by iResearch, The size of China’s game live streaming market in 2018 reached 13.9 billion yuan and the number of users reached 260 million. The market size in 2019 is expected to reach 17.77 billion yuan, and the size of users will reach 310 million people.
The game MCN is the upstream of the game live broadcast industry and is responsible for the output of content. As a leading company in the field of game MCN, the merger of Baby Elephant and Big Goose is a major integration in the field of game live MCN.
As of April 2019, Xiaoxiang Huyu ’s total traffic on the platform reached 20 billion, with an average monthly traffic of 2.1 billion. There are more than 5,000 artists signed, more than 2,000 game anchors, more than 90 anchors with over 1 million fans, and monthly revenue of more than 100 million yuan. In the April 2019 report, the company expects full-year 2019 revenue to exceed 1 billion yuan.
The number of KOLs under Big Goose Culture exceeds 10,000, more than 100 million followers and more than 100 people, more than 10 million followers and more than 20 people, and the total number of followers is over 400 million.