The complete self-control capability of “movie + drama + variety show” will be renamed after the acquisition of Galaxy Cool Entertainment, which will also make Ali Pictures more competitive in the field of content production.
Editor’s note: This article from the micro-channel public number “read entertainment” (ID: yiqiduyu) , of: means month.
In the long run, the acquisition of Galaxy Cool Entertainment may only be the beginning as the beginning of Ali Pictures’ ability to strengthen its self-made variety show.
1 Acquisition of Galaxy Cool Entertainment not exceeding 400 million, Agreement on payment with variety production schedules to reduce risks
Alibaba Pictures recently announced that it intends to acquire 60% of the shares of Tianjin Yinhe Cool Entertainment for less than 400 million yuan. After completion of the acquisition, Ali Pictures and Youku Information account for 60% and 20% of the shares, respectively. Chi and Tianjin Lihe accounted for 11.55% and 8.45%.
The valuation report shows that 60% of the equity corresponds to 391 million yuan of human life. According to this calculation, Galaxy Cool Entertainment’s valuation is 652 million yuan. The actual payment rules are more complicated. The announcement states that it will acquire approximately 28.81% of the equity of Tianjin Galaxy Cool Entertainment from investors and shareholders for 212 million yuan, which can be adjusted upwards based on cash profitability, but the total amount does not exceed 277 million yuan. Acquired about 31.18% of Tianjin Yinhe Cool Entertainment from the founding shareholders for 28 million yuan, which can be adjusted upwards based on cash profitability, but the total amount does not exceed 123 million yuan.
For investor shareholders and founding shareholders, their respective corresponding valuations are quite different. Not only that, the so-called “cash profitability payment” will be linked to the production progress of Galaxy Entertainment’s subsequent variety shows. The announcement shows that the amount will be calculated based on the number of variety shows that Galaxy Cool Entertainment can reach the level agreed in the equity agreement, with a maximum of 5 grades. Show, totalNot more than 160 million yuan, and 32 million yuan will be paid to investors and founding shareholders after each program is completed.
The announcement also lists data from Galaxy Cool Entertainment in the past two years, with losses of 317,000 yuan and 724,000 yuan in 2018 and 2019, respectively.
Yujun Jun believes that the “cash profitability payment” with different valuations and tied to the production of variety shows is obviously for the same purpose-after the acquisition, this payment design guarantees the production capacity of Galaxy Cool Entertainment. Stable. At least 5 of the variety shows with a certain scale level, the founding team of Galaxy Cool Entertainment need to continue to maintain the company’s production capacity in order to get a complete acquisition. The completion conditions also mentioned that the founder Li Wei needs to resign from all positions except Tianjin Galaxy Cool Entertainment Group.
Other businesses of Galaxy Entertainment will also undergo business restructuring. According to the shareholder agreement, the subsidiary of Tianjin Galaxy Cool Entertainment must make recommendations to the board of directors of Tianjin Galaxy Cool Entertainment within three months after the transaction is completed, by divesting and integrating its services in artist brokerage and production of movies, dramas and social e-commerce. Or part of the business.
One of the founders, Wei Yuan or his designee, will sign a joint venture agreement with a related subsidiary of Tianjin Galaxy Cool Entertainment to set up a joint venture company to divest business. Each joint venture company will be held by Wei Yuan or its designee and Tianjin Yinhe Cool Entertainment Group by 80% (through capital contribution through cash) and 20% (through capital injection through divestiture business).
In general, when the entire Internet film, television, and entertainment industry is in a frosty period of capital, the realization of the transaction of Galaxy Cool Entertainment is an exciting thing in itself. And Ali Films is obviously in a more active position in this acquisition, and the trading conditions have reduced risks in all aspects-
First of all, compared with previous years’ valuation, the valuation of Galaxy Cool Entertainment has become much more reasonable at this stage. Secondly, this acquisition has set quite a number of conditions to test the continuous content production capacity of Galaxy Cool Entertainment. For the founding team, the guaranteed 28 million yuan and the cash profitability payment capThe gap of 123 million yuan is not huge, and the final purchase price is likely to change greatly with the actual quality of the program content.
2 After the four seasons of “Mars Intelligence Agency”, The head entertainment brand with a decline in word of mouth
Galaxy Cool Entertainment first made a name for itself with the variety show “Mars Intelligence Agency” series. Galaxy Cool Entertainment has been deeply tied to Youku from “Mars Intelligence Bureau” to the recent “Acting School”. Youku Information already holds 20% of the company’s shares. In addition, in 2018, Galaxy Entertainment also launched a variety show “Top Mission” in cooperation with Watermelon Video, which was also led by Wang Han.
In the first season of “Mars Intelligence Bureau” in 2016, Wang Han took the lead and stardom such as Serenity and Xue Zhiqian opened their popularity. Through a series of novel and interesting topic discussions, they triggered the resonance of netizens. The funny effect of entertainment was very successful. The performance in the second quarter was also remarkable. The first two seasons had accumulated more than 2 billion views as early as the beginning of 2017.
But the enthusiasm and word of mouth of the Mars Intelligence Agency did not continue. After the third season of 2017 broadcast, the public evaluation has been much worse than before. The main problem is that the design of “Mars Intelligence Agency” itself is a program lacking a continuous theme. In the early stages of the program, various post designs and Wang Han Xue Zhiqian and others can be used. The stalk kept the show relaxed and funny positioning, but in the third season, on the one hand, there was continued aesthetic fatigue and lack of creativity, and on the other hand, it was difficult to grasp the topic scale boundaries and the rigidity of the implanted ads, which led to the “Mars Intelligence Agency” 》 When the third season aired, criticisms of the general atmosphere began to appear frequently, and the Douban score also dropped from 7.4 points in the previous two seasons to 6.5 points.
I may be aware of the bottleneck of the show. In the fourth quarter, “Mars Intelligence Bureau” began a radical change, adding many wonderful items such as kung fu lipstick, father’s fist, etc., but the effect was very small, and the guest’s efforts seemed ineffective Help, the previous seasons were not very in-depth topics, this season has become confusing and full-screen awkward. “Mars Intelligence Agency” in the fourth quarter Douban score is only 3.9 points.
In other words, Galaxy Cool Entertainment’s signature variety brand “Mars Intelligence Agency” is now in a time of urgent need for self-help. The “collapse” of the fourth season left many difficulties for the subsequent development of this series-is it trying to find the feeling of the first two seasons? But after a few years, the same program format may not get the same results among the current audience. Or change? The negative example of the fourth season is still there. How to change it properly?
According to Baidu Encyclopedia information, the “Mars Intelligence Bureau Season Five” program will return in the second quarter of 2020. The performance of this Galaxy Cool Entertainment Signature Variety Show needs to be focused on.
3 Why does Ali Pictures need variety control?
Alibaba Pictures mentioned in the announcement that the benefits to the company are: complementing its self-made variety capabilities and co-operating with Variety and other existing lines of business of Ali Pictures:
By incorporating Galaxy Entertainment ’s variety production business, Alibaba Pictures will focus on building its own variety production team to build the production capability of all categories of “movie + drama + variety show” to better serve users and the market. Provide high-quality content.
At the same time, given the flexible format of variety shows, Ali Films is also able to combine variety production with existing ticket sales (movie announcement), drama production, and Ali Fish (derivatives). Carry out cooperation and joint research and development of variety show projects, and give full play to the synergies between various business lines in the ecosystem.
From a general perspective, Ali Films and its Taobao Tickets have participated in the vast majority of explosive works in the Chinese film market through a large number of joint productions in the past two years, such as “War Wolf 2” “Operation in the Red Sea”, “Detective Chinatown 2”, “I and My Motherland”, “Captain of China”, “Youth Boy”, “Manslaughter” and so on. Cat’s Eye data shows that in 2019, Alibaba Pictures ranked No. 1 in Pingfang with a box office of 13.132 billion yuan.
Alibaba’s Internet advocacy system composed of a combination of Taobao, Beacon, and Yunzhi has constituted an infrastructure-level industry status, and its impact on the Chinese film market has penetrated into all stages of the industry chain. With the further linkage between Ali Pictures and Youku, the advantages of the Xuanfa business have also formed a more complete closed loop.
At the same time, Ali Pictures has also obtained unexpected surprises by investing in the introduction of foreign award-winning films, such as “Green Paper” and “Why Home?” Box office results are all overexpected. At the 92nd Oscar, the film “1917” jointly produced by Ali Pictures won three awards for best photography, best visual effects and best sound effects. The investment effect of overseas film layout is very clear.
Obviously, whether it is investing in overseas film projects or showing sharp edge in self-made content, deepening the upstream industry chain is one of the development directions of Ali Films. In terms of episodes, Ali Pictures has gradually formed a studio mode for self-produced producers. The popular suspense drama “Rebirth” recently broadcast by Youku is Ali Pictures’ self-made drama works. Producer.
The complete self-control capability of “movie + drama + variety show” will be renamed after the acquisition of Galaxy Cool Entertainment, which will also make Ali Pictures more competitive in the field of content production.
The significance of self-made variety show cooperation with other existing lines of business of Ali Film is even richer-in the announcement of movies and dramas, variety shows have always been a lively and effective form. Through the guests of variety shows, The film and television announcement implantation in the theme has reached mature audiences. This model has already matured. With the ability of self-made variety shows, Alibaba Pictures can also better link with its movie announcement and drama production business to activate more Dissemination advantages.
So in the long run, the acquisition of Galaxy Cool Entertainment may be just the beginning as the beginning of Ali Pictures’ ability to strengthen its self-made variety show. From the perspective of Ali Entertainment, the importance of self-made content will affect the content cost and content quality control, as well as the development of private IP. It is the focus of competitive investment in the entire video industry, and it is also a must for the streaming industry under the leadership of foreign Netflix models By the way, having more complete content production capabilities is always meaningful in the current market environment.