Shi Yuzhu giant behind privatization: Stocks wait to see the Chinese game companyi dark horse: November 25, Shi Yuzhu issued a tender to privatize the giant network, if the transaction is accepted, Shi Yuzhu, and the consortium will pay $ 1.33 billion acquisition of the outstanding shares. In this regard, the media widely interpreted as a giant network in the US stock market valuation is too low, delisting from the United States, there may be landing A shares. Chinese game concept stocks listed in the US, compared with the A shares of similar companies, the valuation is generally low. Today, the market is still the United States tour, perfect world, Netease game stocks, earnings between 5 times to 14 times. At the same time, A-share stocks suffered stir game in 2013, valued in the hundreds of times. Giant delisting health care costs of $ 1.33 billion is not fading when Shi Yuzhu choose to enter the game industry; in health care lost its day, the game of fame; now the heat of the game is declining, especially where the giant network client game market, but profit performance is still remarkable giant network. Currently he is ready yet to privatize Shi Yuzhu giant network moves to comment, the reporter linked to the giant network, the other cautioned that there is no news except announcement may be disclosed. But in the market, investors tend to think the reason privatization is a giant network of the US market given low valuations. Shi Yuzhu made in accordance with the initial privatization offer, the proposed price of $ 11.75 per share to acquire the company's outstanding common shares, paid a total of approximately $ 1.33 billion. This price corresponds to less than 16 times earnings, while the privatization before making an offer, valuation giant network of only 14 times, far lower than its A-share counterparts. A valuation of shares in mobile games palm interested in science and technology has reached 217 times, while the giant network of business structure is more similar to that at the end of the tour a lot of the younger Bao income share, the valuation reached 235 times. Prior to the acquisition of Zhejiang newspaper media gaming company Shanda's two, the valuation of its acquisition of more than 20 times. The A-share listed companies in the stock (not purely gaming stocks) with a game concept valuations are at the top of 50-60 times. In April this year, Shi Yuzhu retirement, he also expressed undervalued argument. This also has a certain relationship with the overall A-share market, the current A-share valuations lowest in the industry, Air Jordan 5 Retro only banks have single-digit price-earnings ratio, TMT industry companies are showing a state of high valuations. A foreign bank analysts said that from this point of view, then return to A-share listed privatization is possible. \u0026 Ldquo; to get more money, why not do it \u0026 rdquo;? He said. Stocks \u0026 ldquo; play \u0026 rdquo; valuation is \u0026 ldquo; not high \u0026 rdquo; as of last Wednesday's data show that in the privatization of the expected impact, the giant network of trades at 15.48 times, which is currently listed in the US gaming companies estimate a higher value. With respect to the A-share concept ebullient game in the US capital markets, the game company's Nike Shoes valuation remains consistently low. Changyou estimates is about 5 times the valuation of 6 times grand game, Perfect World valuation of 13.2 times, a larger proportion of Netease game revenue valuation is only 14 times. Wish to look at these games the company's specific performance. State Press and Publication Administration of Radio data show that in 2012 the domestic online game publishing industry, the actual sales income of 60.28 billion yuan, an increase of 35.1%. Where the actual end of the travel market 45.12 billion yuan, accounting for 74.9%, an increase of 23%; web game revenue 8.11 billion yuan, an increase of 46.4%. Disclose the 11th Chinajoy data showed the first half of the game market the actual sales revenue reached 33.89 billion yuan, an increase of 36.4%. But in the context of the overall industry outlook flourished in the United States listed companies of the situation of the game slightly Johnson. Part of the game company's valuation decline has its performance factors. In the latest quarterly report, only 7 percent dip in revenue growth, while Shanda saw a decline. Lost the 'World of Warcraft' is the ninth city continued losses being caught, as yet there are signs of turnaround. Looks thriving is Tencent and Netease, rely on its huge user former, while the latter won the World of Warcraft power of attorney. 2011, has diversified Shanda privatization, after a lapse of two years, the giant network has embarked on the road of privatization. In the Chinese game companies in the United States valuations generally not high, privatization will become a trend? Market had also once heard swim possible privatization of companies such rumors. Some foreign analysts believe that the tour, the grand game companies such as privatization is a better choice. \u0026 Ldquo; reasonable valuations giant network \u0026 rdquo; and A-share valuation concept of the game compared to the hundreds of times, the US stock market game company's valuation is clearly too low. But analysts believe that the US stock market game company's share price much cheaper, as it's A-share stock price bubble serious game. For the proposed privatization of the giant network Shi Yuzhu, public opinion holds that the Chinese game companies in the US market lower valuation related, a foreign investment bank analyst in an interview with Beijing News reporter interviewed expressed a different point of view, he thought the giant network The value is not underestimated by the market. \u0026 Ldquo; the game is different from other industries, which is a relatively high risk industries. Because the game is heavily dependent on a particular product. For example, the giant network, in fact, 80% of which comes from the journey of two Air Jordan 8 Retro games. \u0026 Rdquo; It is understood that the pharmaceutical companies in the US stock market, the drug, the risk is relatively dispersed many varieties on the market, its price-earnings ratio is only 10 times. Back to the game industry, the Chinese game company Netease highest price-earnings ratio, but its earnings reflect its gaming income dispersion, high total gaming revenue. But even so, the Company's earnings did not exceed 15 times the time. Giant network shares have had time to $ 7 or less, and more recently on the rise. Therefore, insiders believe that if the valuation is low resulting in privatization, it should be started early; the privatization of the rise, the valuation should not only be the reason, there are other considerations. ? The possibility of the existence of a giant network of A shares back to the analyst said, there is indeed such a possibility, \u0026 ldquo; to get more money, why not do Air Jordan 2 it \u0026 rdquo;? However, in his view, the domestic market the game or game company stocks, as a whole is overrated. Distribution from the industry point of view, Air Jordan Fusion in the domestic game companies listed stocks, its R \u0026 D strength is relatively strong in this market, it has also experienced a market test. From the relative prices, the much cheaper stocks, as it is the domestic market overvalued. Privatization Privatization giant or a case of obstruction of giants will not be smooth sailing? In the US market, common action may make privatization adding twists and turns. The beginning of the giant network listed, that in November 2007, it suffered a law firm filed a class action intent was to counsel, the giant network did not disclose third quarter of 2007. 'journey Online' average and the highest number of Air Jordan 5 Retro players simultaneously online the fact that the decline in the number of online players simultaneously. But subsequent investigations found that this argument does not hold. In the privatization process, the same lack of collective action for the industry's lawyers questioned, there are already two law firms questioned. US law firm Robbins Arroyo LLP believe that this acquisition may not be in the best interests of the shareholders of the giant Internet company, for which the firm was privatized on this preliminary merger agreement non-binding investigation. Robbins Arroyo LLP survey will be on the board of directors to consider the offer of the consortium, focusing, for example, the board of directors of a non-binding offer to evaluate the above-mentioned consortium program is fair, and whether to deal in the best interests of shareholders and must be Nike King met to allow shareholders to obtain The maximum value of the relevant provisions of the negotiations. There are also some investors believe that the privatization of the giant network prices remain below the issue price in 2007 when the market is. 2007 giant network market, its IPO price of $ 15.5. However, considering the giant network listed six years of continued dividends, dividend + share price performance will have more than the offer price. Earlier this year, Tian and CITIC Capital intends to privatize AsiaInfo, its proposed price of $ 12 US stocks, compared with its previous proposed privatization of shares 52 percent higher, but the deal is still subject to the law firm questioned, saying the transaction prices are lower than company value. Insiders pointed out that many of the privatization transaction will encounter similar question, investment purports to improve the offer. But published in the Robbins Arroyo LLP website information display, action against this law is still in the stage of a giant network of solicitation of investors.