Sun Hongbin's 15 billion blood transfusion behind Jia Yueting: All of the two Shanxi businessmen

　　#Laogao E-commerce Online Information# On the afternoon of January 15, in a hotel on Jinbao Street, Beijing, Jia Yueting with a black hoodie and flat-headed, and Sun Hongbin with a suit and lace and gold-rimmed glasses sat together. Two Shanxi men, one is 44 years old, engaged in the Internet industry, the company is hungry, the other is 54 years old, focusing on real estate, and the entrepreneurial process is ups and downs. The company's industry ranking (seventh) is rising steadily, holding 60 billion yuan in cash.

　　Two people in one game

　　It took only 36 days for the 15 billion investment from Sun Hongbin's first meeting with Jia Yueting to the press conference between the two parties.

　　"We met at 6 pm on December 10, 2016 and had a conversation for six or seven hours. On December 12, Wang Mengde, Lenovo's friend and the consultant I invited went to LeTV to communicate with the LeTV team. I had a big drink in the evening, and Lao Jia went to the United States the next day." Sun Hongbin, 54, the chairman of the board of directors of Sunac China, said at the press conference that, including the New Year's Day holiday, I have been "working" at LeTV for the past month and led the team to conduct due diligence.

　　According to Sun, the main person in charge of this due diligence came from Lenovo Holdings, and PwC and lawyers were also involved in it, trying to understand LeTV's so-called "ecology" and see what kind of business it is. In addition, Sunac also considered the relationship and capital flow between LeTV's three businesses, listed, non-listed and automobiles. Sun even jokingly recalled the experience of having dinner at LeTV and having three bowls of noodles in one meal in the past month.

　　"We build houses and are in the oldest industry. It was found thousands of years ago. We do not have the Internet genes. What do we judge (LeTV)? The first is whether it has potential, and the second is whether it is possible. Can this be done? Lao Jia has a very rare entrepreneurial spirit in this era, which is the most important reason for my investment." Sun smiled and said that he spent a month to fully understand LeTV's business and financial situation. "After reading the account, I admire Lao Jia even more. He did such a small amount of money and was all in it. If he loses, he will be crushed to pieces."

　　"If you lose, you will be crushed to pieces." In Jia Yueting's own words, it is "allin". At the press conference on the 15th, he also repeatedly emphasized that he and LeTV insisted on the "allin" attitude.

　　Sun Hongbin said that when he first met, he felt that he and Jia Yueting had "a very compatible aura and were not afraid of death." Interestingly, when the news of Sunac investing in LeTV came out, the industry speculated that Sun might have seen himself when he was young in Jia. In the early years, Shunchi was called the dark horse in the real estate industry because of his rapid growth in land acquisition. His Zhi was so satisfied that Sun also once said that Shunchi would become the leader of China's real estate industry. Around 2004, such remarks attracted doubts from Vanke Chairman Wang Shi and other bigwigs. In 2004, accompanied by a series of severe housing market regulation measures, the rapid advance of Shunchi's capital chain was tight. In September 2006, Hong Kong Road Infrastructure acquired most of the shares of Shunchi through capital injection.

　　Sun Hongbin, who was quick-talking, commented on Jia Yueting, who was 10 years younger than him: "When I was young, no one is afraid of anyone now, and no one is afraid of Old Jia now." After saying that, he laughed. This seems to be a person who once "allin" has a tacit understanding of a person who is "allining", or a reminder.

　　Is LeTV underrated?

　　For Jia Yueting, has LeTV been underestimated at this time?

　　Judging from the investment funds and shareholding ratios of Sunac China in the announcement, LeTV did give Sunac a "friendly price".

　　According to the announcement, Sunac strategically invested in LeTV, acquiring 8.61% of LeTV (300104.SZ) for RMB 6.041 billion, acquiring 33.5% of LeTV Zhixin's equity for RMB 7.95 billion, and acquiring 15% of LeTV Pictures' equity for RMB 1.05 billion. Calculation shows that LeTV (300104.SZ) has a valuation of approximately 70.16 billion yuan, LeTV Zhixin has a valuation of approximately 23.73 billion yuan, and LeTV Pictures has a valuation of approximately 7 billion yuan. Compared with the valuations announced by several companies before, there has been a certain degree of shrinkage.

　　It can be seen that in the previous case of LeTV's private placement of about 4.8 billion yuan in August 2016, the share price of the private placement was about 45 yuan. In addition, the average price of LeTV in 90 days before the suspension was about 42.69 yuan. Based on the shareholding ratio of Sunac China's 6.041 billion yuan to acquire 8.6% of the shares, the acquisition price is about 35.4 yuan per share.

　　According to the restructuring plan announced by LeTV in May 2016, LeTV had planned to include LeTV in a listed company at a price of 9.8 billion yuan. In the recent announcement, Jiarui Huixin accounted for 15% of LeTV's total registered capital at a price of about 1.05 billion yuan, which means that LeTV's valuation shrank by about 2.8 billion yuan.

　　In mergers and acquisitions, some companies will adopt vulture tactics and find companies that are on the verge of danger or even on the verge of life to buy equity targets at a low price. In the view of a senior investment banker who did not want to be named, Sunac's investment in LeTV is only partly involved in the control of risks, and on the other hand, it is waiting for the opportunity to "get cheap".

　　Sun Hongbin emphasized that he never looks at the price, he looks at the value.

　　Funding issues have been resolved, except for automobiles

　　"In addition to our automotive ecosystem, the 16.8 billion yuan capital demand for LeTV has been able to meet the needs of the second phase of our ecological strategy very well." Jia Yueting, who had been plagued by funding problems, said this for Sunac's 15 billion blood transfusion.

　　After this transaction, LeTV listed companies and its holding subsidiaries will receive a total of approximately 7.1 billion yuan of funds, and the remaining funds will be invested in the LeTV ecosystem in the non-listed system, such as LeTV globalization and mobile phone sub-ecology to meet the stage needs of these business. In addition, many LeTV sub-businesses will also have normal equity financing, such as LeTV Sports will carry out equity financing and even listing plans in the future.

　　Regarding LeTV's next step, Jia Yueting previously said in an exclusive interview with First Financial News that after solving the capital problem, LeTV will enter the next stage and adjusted its strategy: First, LeTV's pricing strategy will undergo a great change, and it will begin to pursue rapid growth of positive cash flow, while still maintaining rapid growth of the scale of the number of users; Second, slow down the pace of some major projects of LeTV, although important but not so urgent; Third, it is necessary to quickly enhance the capabilities of LeTV's capital team.

　　In addition, LeTV will also carry out all-round cooperation with Sunac China in the fields of business cooperation, equity cooperation, capital market cooperation, etc. In Jia Yueting's eyes, a global value migration is happening. Chinese companies that rely on hundreds of millions of Internet users and have advantages in the fields of intelligent manufacturing and technological innovation should seize this opportunity.

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