Giant Network Group Co.Ltd(002558) 3 announced on March 10 that its shareholding subsidiary Shanghai jukun Network Technology Co., Ltd. (49% shareholding ratio) plans to sell the shares of playika holding Corp. (NASDAQ: pltk), a global leisure and social game giant. This means that the company is expected to increase a large amount of cash income through this move, so as to increase the layout and investment in its cutting-edge innovative business.
According to the announcement, the company recently received a letter from jukun network, a joint-stock subsidiary. According to playtika’s previous announcement, “in order to maximize shareholder value, its board of directors has begun to evaluate playtika’s potential strategic options. As part of this process, the board of directors intends to consider a full range of strategic options, which may include the overall sale of the company or other possible transactions”.
At present, the evaluation procedure of potential transaction has been started. Playika holding UK II Limited indirectly controlled by jukun network, as the controlling shareholder of playika, is one of the participants in the potential transaction. If the potential transaction is completed and leads jukun network to sell all or part of its indirectly held playtika shares, it may have a significant positive impact on the company’s financial status and operating performance. The actual impact shall be subject to the conclusion of the company’s subsequent audit report.
It is understood that since 2021, Giant Network Group Co.Ltd(002558) chairman Shi Yuzhu has publicly expressed his concern about the development of the meta universe for many times. He believes that the era of the meta universe is bound to come, the development is gradual, and the giant will actively participate in the development and layout of the meta universe Giant Network Group Co.Ltd(002558) previously, the company also said on the investor interaction platform that the company attaches great importance to the trend of metauniverse and the opportunities it brings to the game industry, and determines metauniverse games as one of the directions of long-term layout.
Not long ago, take two, an American game developer, announced that it would spend more than $12.7 billion to acquire Zynga, a social game platform, at a 64% premium Zynga’s main business is very similar to playtika’s. According to public data, Zynga’s net profit attributable to the parent company in fiscal year 2021 was – 104 million US dollars, an increase of 75.73% year-on-year; Playtika’s net profit attributable to the common shareholders of the parent company in the annual report of fiscal year 2021 was US $308 million, with a year-on-year increase of 234.96%. Playtika has better business indicators than Zynga, and the valuation of its transaction is also expected by the outside world.
Giant Network Group Co.Ltd(002558) also indicates that this potential transaction is only a preliminary intention, and there are uncertainties in whether it can be concluded, as well as the counterparty, transaction time and transaction price. After determining the specific transaction scheme for sale, the company will perform relevant approval procedures and disclosure obligations in accordance with the requirements of relevant laws and regulations.
