Lehman Holdings plans to acquire China Television New Culture for RMB 780 million to expand sports media resources

Lehman announced on the evening of the 15th that the company planned to acquire 100% of the equity of Shenzhen China Vision New Culture [0.00% Fund Research Report] Media Co., Ltd. for 780 million yuan. Lehman and China Vision New Culture will use media resources from different channels to provide customers with comprehensive advertising services, extending sports media resource customers to Metro TV resources, and Metro TV resource customers to sports media resources to achieve market synergy.

According to disclosures, before this transaction, China Television Media Group Co., Ltd. and Shenzhen High-Definition Digital TV Industry Investment Co., Ltd. jointly held 100% of the equity of China Television New Culture Media Co., Ltd., which is a holding subsidiary of China Television Media (NASDAQ: VISN). Its main business is to provide subway TV media advertising services to advertisers nationwide. China Vision New Culture promises that the net profit after deducting non-recurring gains and losses will be no less than 60 million yuan, 80 million yuan and 100 million yuan in 2016, 2017 and 2018 respectively.

Up to now, China Television Media has divested its entire subway TV media advertising business and injected it into its holding subsidiary China Television New Culture. The acquisition of China Vision New Culture can help Lehman Sports break through development bottlenecks and rapidly expand market share. China Vision New Culture’s rich customer resources can provide a powerful platform for Lehman to seize and operate various sports resources.Support, realize virtuous cycle development through rapid sales and realization of resources.

Lehman shares introduced that the company is currently implementing a dual-main business strategy of joint development of high-tech LED and sports industries. On the one hand, as the competition for brands and channels in the LED industry becomes increasingly fierce, and the industry competition environment gradually intensifies, the company continues to optimize and integrate the LED business, strengthen brand building, and further enhance the company's competitiveness in the LED industry through combination with capital operations; on the other hand, the company also actively increases the development and marketing of sports media resources to promote the growth of sports industry revenue.

Lehman has become a strategic partner of the Chinese Football Association and the official sponsor of the Chinese Super League since 2011, while Vision Media has become the only mobile TV strategic partner of the Chinese Super League since the beginning of 2013. Lehman Holdings and China Television have cooperated with the Chinese Super League. Both parties have accumulated good resources, are familiar with the operation of the league, and have a common understanding of the huge commercial value of Chinese football. This reorganization is an important layout of Lehman Holdings in promoting the development of its main sports business. Through the integration and coordination of resources from both parties, Lehman Holdings' layout in the football industry chain will form an interconnected value chain, and there will be unlimited possibilities for future development.

Regarding this acquisition, Lehman Holdings believes that the company can lock in high-quality products through subway advertising.User, open the B2C business space. Subway advertising reaches hundreds of millions of urban middle class in first-tier cities in Beijing, Shanghai, Guangzhou and Shenzhen and more than ten second-tier core cities every day, which is the core force of Chinese consumption. Through China Television New Culture’s nearly 100,000 subway screen terminals, Ledman can push its Internet products such as the 12th Man to the audience, thereby quickly acquiring a large number of high-quality users. In the future, the subway network will also become a push platform for Ledman's sporting goods and services. Combined with mobile Internet products, it will become a powerful promoter of Ledman's B2C business.

In addition, Lehman shares also stated that the acquisition of China Television New Culture will likely prompt the company to enter the upstream of the media industry chain-the content production field, thereby obtaining its own IP. Subway commuters are also the largest audience for sports program content. While mastering the subway network, Lehman does not rule out integrating its domestic and foreign football match resources to produce sports-related program content for subway audiences. Through content production, Lehman Sports will have its own IP and conduct in-depth development.

Analysts pointed out that the acquisition of China Television New Culture is another major capital operation for Lehman after a series of previous sports layouts. It provides synergy for the development of the company's sports industry and is closely aligned with Lehman's strategic layout of developing its main sports business. It will quickly increase the revenue and profit level of the company's sports media business and deepen its future prospects.Development has far-reaching strategic significance.