On September 21st, 2017, Nextainment Group and Maoyan Movie declared to achieve strategic cooperation and co-established a new company, named “Entertainment Plus”. By integration of the two parties, the new company occupied an absolutely leading position in the online ticket industry. On September 3rd, 2018, it filed an initial public offering (short for IPO) to Hong Kong Stock Exchange, by which, it raised about 1 billion dollars, and its prospectus was published at the night of September 3rd. Before evaluating the IPO, let’s review the indissoluble bound between Nextainment Group and Maoyan Movie.
After its establishment, Entertainment Plus became the largest movie ticket sales platform in China. At that time, Enlight Media, the controlling shareholder of Maoyan Movie, once announced the new company valuation was approximately RMB 13.6 billion yuan. After two months, Tencent invested RMB 1 billion yuan on Maoyan Movie, by which, its evaluation was further raised to over RMB 20 billion yuan.
In the two parties of win-win cooperation, Nextainment Group was a marketing and distribution company in movies, performance and sports based on mobile social networks, which was jointly invested by Tencent, Wanda Group, Culture Investment Huaxia, Lucion, Gangtai Culture, China Culture Industry Investment Fund and others. Its business covered three large fields of movies, performance and sports, and “Yupiaoer”, its subordinate mobile ticket platform, owned three ticket purchasing entrances, including “movie shows and competitions” in WeChat Wallet, “Movie & Entertainment” in QQ Wallet and “Yupiaoer” APP. Cooperated with such ten large cinema chains as Wanda, Jinyi, Dadi, UME, Bona, Huayi Brothers and Golden Harvest, Nextainment Group owned over 6,000 cooperative cinemas and more than 90% of coverage rate of attendance, and became an online seat selection platform with the largest cooperative cinemas and the first viewers coverage rate.
On December 17th, 2015, Nextainment Group combined with Guevara. Guevara previously owned 45 million active ticket purchasing users. Furthermore, the market share of Nextainment Group kept a high-speed growth with single day peak ticket volume of about 6 million, to be the largest entertainment ticket platform in China. At that time, one ticket out of three those ever been purchased was from Nextainment Group.
And the other party of the strategic merger is Maoyan Movie, which has experienced 4 rounds of financing, in November, 2017, it gained RMB 1 billion yuan of investment from Tencent Collaboration Fund.
Nextainment Group and Maoyan Movie are both excellent movie ticket service companies, and it is more powerful after merger, according to the data published by Entertainment Plus itself, at present, the ticket sales of Entertainment Plus cover 60% of those on the whole networks. In this sense, Entertainment Plus strongly controls sale channels of movie tickets.
After merger, the management of Entertainment Plus is constituted by the united teams of Nextainment Group and Maoyan Movie: the chairman is Wang Changtian, the chairman of Enlight Media, the vice-president is Linning, the president of original Nextainment Group, CEO is Zheng Zhihao the CEO of Maoyan Movie, and the president is Gu Sibin, the original president of Nextainment Group.