Bottom line: Baidu’s Robin Li could announce a deal later this week to buy 40 percent of soccer club AC Milan, while his company’s pursuit of Paramount was likely killed by internal fighting at the Hollywood studio.
Paramount spurns Baidu, Wanda
Internet search leader Baidu (Nasdaq: BIDU) is in a couple of major entertainment headlines as the new week begins, led by word that it could finally announce a highly anticipated deal that would see it buy a major stake of European football club AC Milan. At the same time, separate new reports are saying that the company was rejected in a recent bid for a strategic stake in Hollywood giant Paramount, the studio arm of Viacom (NYSE: VIAb). Those same reports are saying Wanda Group, another Chinese entertainment aspirant, was also rejected in pursuit of a similar deal. Read Full Post…
Bottom line: A rumored Chinese purchase of 80 percent of AC Milan, together with a new Chinese soccer buy in Australia and NBA purchase in the US, show a recent Chinese buying spree of western sports teams continues to gain momentum.
China in 3 new foreign sports team investments
China’s roll into western sports teams continues, led by word that a Chinese group including Baidu’s (Nasdaq: BIDU) chief Robin Li is on the cusp of a deal to buy 80 percent of soccer club AC Milan for 750 million euros. But that group isn’t the only one making soccer headlines, as a Shenzhen businessman has also reportedly bought Australia’s Newcastle United Jets club. And my prediction that someone in China would make a bid for an NBA club in the US is also in the news, with word that a businessman from southern Fujian province has purchased a small stake in the Minnesota Timberwolves. Read Full Post…
Bottom line: New complaints about deceptive and unfair practices by short seller Andrew Left and online cosmetics seller Jumei have some validity, but such actions are ultimately just forms of normal market behavior.
Jumei under fire for low offer
A couple of headlines are shining a spotlight on the recent wave of privatizations and an older flurry of short-seller attacks involving offshore-listed Chinese companies, amid accusations of unfair practices and market manipulation. One headline has Hong Kong’s securities regulator bringing a case against notorious short seller Andrew Left and his company, Citron Research, claiming they knowingly published false information about locally listed Chinese real estate developer Evergrande (HKEx: 3333). The other is seeing several smaller US fund managers protest the low value of a new privatization offer for online cosmetics seller Jumei International (NYSE: JMEI).
These cases share the common theme that each is market driven, and thus each seems perfectly acceptable. Short sellers are famous for issuing misleading information in a bid to drive down a company’s share price, but can only succeed if other investors believe them. Similarly, most of the privatization offers for Chinese companies over the last year offer healthy premiums to the latest trading prices, even if those prices are down sharply from earlier IPO levels. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 5. To view a full article or story, click on the link next to the headline.
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Bottom line:Wanda’s decision to set up its sports division headquarters in Guangzhou is part of a diversification away from Beijing, and could presage an IPO for the unit in Hong Kong as early as next year.
Wanda sets up sports HQ in Guangzhou
A recent series of major sporting moves is back in the financial headlines as 2016 approaches, with word that real estate giant Wanda Group is setting up a new headquarters for its growing sports business in the southern city of Guangzhou. Those same reports hint at another major theme in the new year, which could see a new wave of IPOs for some of these big new sporting investments by names like Wanda.
Sporting investments have become a major theme in the current year, reflecting a sudden desire for content and related services to feed China’s fast-growing entertainment sector. E-commerce giant Alibaba (NYSE: BABA) kicked off the wave last year with its investment in a domestic soccer club, and has been joined this year by a wide range of companies that includes Wanda, electronics retailer Suning (Shenzhen: 002024) and online video operator LeTV (Shenzhen: 300104). Read Full Post…
Bottom line: Alibaba’s new Disney tie-up is unlikely to gain much traction due to overcrowding in China’s Internet video market, while its tie-up to sell $8 billion worth of bad debt from asset manager Huarong looks mildly positive.
Alibaba in streaming tie-up with Disney
E-commerce giant Alibaba(NYSE: BABA) is in a trio of headlines as we head into the year-end holidays, led by a new tie-up with Disney (NYSE: DIS) as it looks to leverage its growing stable of media assets. But in a sign of how much attention the company now attracts, the other 2 stories in the headlines aren’t really ones that Alibaba would care to trumpet too much.
The larger of those is mildly positive, with media reporting that Alibaba’s Taobao C2C marketplace is teaming up with one of China’s leading bad asset sellers to auction off $8 billion in soured loans. The other headline is one that’s becoming a small headache for Jack Ma, and involves Evergrande Taobao the soccer team that he co-owns. That story has one of Japanese car maker Nissan’s (Tokyo: 7201) China joint ventures suing the club for breach of contract related to a high-profile sponsorship dispute. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 16. To view a full article or story, click on the link next to the headline.
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Disney (NYSE: DIS), Alibaba (NYSE: BABA) Team to Stream Films to Chinese Viewers (English article)
Huawei Says 2015 Sales to Top $60 Bln, up More Than 29 Pct from 2014 (Chinese article)
China Mobile (HKEx: 941) Expects to Break 500 Mln 4G Users by End 2016 (English article)
The following press releases and media reports about Chinese companies were carried on November 28-30. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) in $5 Bln Deal to Consolidate TieTong Assets (English article)
Oddo Counters Fosun (HKEx: 565) with 760 Mln Euro Offer for BHF Kleinwort Benson (English article)
Alibaba-backed (NYSE: BABA) Evergrande Soccer Team to Raise Over $400 Mln (English article)
P2P Lending Site Lufax to List on HK Stock Exchange in 2016 – Source (English article)
58.com (NYSE: WUBA) Hopes to Get Financial Services License in 2 Year – CEO (Chinese article)
Bottom line: Innovation Works’ China OTC IPO plan shows the year-old small-cap board is rapidly becoming a popular place to list for money-losing companies that might have previously gone to New York.
Innovation Works files for China OTC listing
China’s year-old over-the-counter (OTC) market is suddenly becoming the hot place for new listings by young tech firms, with word that the technology incubator founded by Google’s (Nasdaq: GOOG) former China head has become the latest in a recent string of companies to file for listings there. The OTC application by Innovation Works highlights a new path to market for money-losing Chinese companies that might have previously chosen to list in New York.
The main stock exchanges in China and Hong Kong don’t allow money-losing companies to list, with the result that many private start-ups used to go to New York where profitability isn’t a requirement. But New York investors are also increasingly showing lack of interest in money-losing Chinese firms, causing their shares to languish and some like online video site Youku Tudou (NYSE: YOKU) to sell themselves and de-list. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 7. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) in Talks to Borrow up to $1.5 Bln in Syndicated Loan (English article)
JD (Nasdaq: JD) Sues Alibaba for Misleading Users on Speedy Delivery (English article)
The following press releases and media reports about Chinese companies were carried on August 1-3. To view a full article or story, click on the link next to the headline.
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Hisense (Shanghai: 600060) Pays $23.7 Mln for Sharp Corp Mexico Operations (Chinese article)
Renren (NYSE: RENN) Acting CFO Resigns, Interim CFO Appointed (PRNewswire)
