according to media reports, the President and CEO of the9 zhu jun is meeting with overseas investment Banks and private equity funds, its purpose is to seek a lot of money. According to reliable sources, zhu jun to raise the money could be used to promote the9 privatisations. Authorities say, zhu jun is stepping up its startup for the9 privatisation plans to raise funds. The money will be used by the9 shareholders, private consortium and bankers, zhu jun to raise large amounts of money to ensure their place in the “new the9” big shareholders.
cloud network think hunting, the9 privatisation exist several suspects:
1, who will pay for the the9
the9 results show that in August last year, the9 has 14 consecutive quarterly loss, over the past four quarters the9 losses increase, equivalent to the loss of $71 million a year, far more than $25 million in revenue in the first quarter, nearly three times as many revenue.
performance is really bad!
the9 currently valued at $67.58 million, about 800 million yuan of cash flow. Market value is lower than the company’s assets. There are two problems. One problem is that the9 outside in the current market value less than $20 million, the9 800 million cash himself completely have the ability to purchase the shares outstanding. Also need to find a third party? Another problem is that, assuming that the9 wants to raise more capital, leverage capital through privatisation, but who will pay for? With what to convince investors?
2, $10 million?
last December, the ninth city announced a maximum amount of $10 million stock repurchase plan. And the board of directors has approved the project, in the next 12 months the buyback worth up to $10 million American depositary shares.
to buy back shares plan and privatization is not a contradiction, but now 3 months passed, and the9 repurchase plan has not fall to the ground, now preach to privatisation, constantly release news high suspected of share price is hard to avoid.
3, privatization of another game
the9 on April 17, 2013, the United States after the market closes on April 18th morning (Beijing time) published in 2012, the third and fourth quarter unaudited results. At this point, spread the message of zhu jun privatisation the9 is rather odd.
the9 release news, a show that the9 games has huge potential, hype the game itself. Second, the9 company owns the game studios Red5 control, to seek foreign investors or packaged Red5 for a new round of capital operation!