Leo's 2.3 billion acquisition of we media
Leo recently announced that the company plans to acquire 75% equity of Suzhou Mengjia Media Co., Ltd. (hereinafter referred to as "Suzhou Mengjia") at a premium of 2340 times of RMB 2.34 billion. Leo shares is interested in about 280 million subscribers accumulated by wechat we media operated by Suzhou Mengjia.
Of course, it is conditional for Suzhou Mengjia to get 2.34 billion yuan, which is valued at 12 times the P / E ratio of the promised performance in 2018; In the performance gambling part, the transferor confirms and guarantees to the transferee that the annual audited after tax net profit of the target company in fiscal years 2018, 2019 and 2020 shall not be less than RMB 260 million, RMB 360 million and RMB 450 million respectively.
People in the industry do not buy such a high acquisition valuation. Some people in the new media questioned its claim of about 280 million subscribers, and the authenticity of this data has yet to be verified.
Shenzhen Stock Exchange also expressed great concern about this and asked the company to explain the realizability and rationality of Suzhou Mengjia's performance commitment, as well as the basis and rationality of the selection of main parameters in Suzhou Mengjia's performance prediction.