Top of the big era

Chapter 3011 Social + Games

Just when Zhou Buqi and Chen Dong were discussing Jingtao's next capital operation, a Wall Street boss came over, Mr. Peake, the president of Morgan Stanley.

First, clink glasses, drink, and chat.

Mr. Peak asked a very pointed question when he came up: "Will Changyou be delisted?"

Zhou Buqi smiled and said: "Of course not. The board of directors has made many statements."

"Why do so many Chinese gaming companies choose to delist?"

"Well... maybe I want to make more money!"

“Why does the A-share market give gaming companies such high P/E ratios?”

This is Pique's biggest concern.

In the past year or so, there has been a trend among Chinese concept-stock game companies, which is to delist from the United States one after another, and then return to China to list on major A-shares through backdoor transactions. As soon as they enter and exit, several companies can explode. Times, ten times the wealth.

Because in the US stock market, the P/E ratio of Chinese concept game companies is generally only 5-15 times, and the P/E ratio of A-shares is very exaggerated. For example, the P/E ratio of Zhangqu Technology is 132 times, and the P/E ratio of Zhongqingbao is 126 times.

This is mainly due to the lack of A-share technology companies.

Because there are few high-quality technology companies, coupled with the recent thawing of domestic financial policies and the increase in hot money, the stock prices of a series of game companies have been stirred up, and game companies have been invested as Internet companies with great potential.

In fact, game companies should not have such a high value in the first place.

The risks for game companies are extremely high. A popular game may lose popularity after three to five years. Game companies need to constantly look for new concepts and develop new games. This lack of long-term performance contains huge risks. It is a bit like a movie company. If a movie becomes popular, it will make a lot of money, but if a blockbuster fails, it will lose money. It is full of uncertainty.

In the U.S. stock market, even game companies such as Changyou, Blizzard, and EA have price-to-earning ratios of dozens of times. For some game companies in Europe, South Korea, and Japan, the price-to-earnings ratios are generally around 20 times.

Zhou Buqi smiled and said: "There may be some differences in the understanding of the game between the two parties."

Mr. Peake nodded, hesitated for a moment, and then said slowly: "Mr. Zhou holds a lot of Momo shares?"

"Um?"

Zhou Buqi raised his eyebrows.

Peake quickly explained and said with a smile: "We are in contact with Momo and are having some discussions about Momo's listing in the United States."

Zhou Buqi asked: "Momo wants you to be the underwriter?"

Pique nodded and said: "Yes, both parties are indeed interested in advancing this project. However, I still don't understand some of the details. I hope Mr. Zhou can help me analyze it."

Zhou Buqi did hold some shares in Momo, but they were actually distributed to the little secretary in the office.

Because Guan Nanqing, Yao Yao, Liang Lexin, Zhuo Wensi, and Li Shuruo had all left one after another, the Momo stocks originally allocated to them had all been repurchased and were temporarily in Zhou Buqi's hands, and he planned to distribute them next To other newly promoted female secretaries.

It can be said to be extremely generous.

Working as a female secretary next to Boss Zhou, eating, drinking and having fun, not only has the opportunity to be favored by the world's richest man, but also has the opportunity to achieve financial freedom in a few years that many people cannot achieve in their lifetime. Now, Momo is finally going to be listed, and the stocks in the hands of Mai Feixue, Gu Zanli, Yan Qiqi, and Zhang Zetian can finally be exchanged for shiny golden numbers.

“In which month will Momo be launched?”

Zhou Buqi held very few shares in Momo and was not a member of the board of directors, so Momo did not inform him of the relevant situation.

Mr. Peake said: "It may be in the second half of the year, maybe it will be delayed until the end of the year, to avoid Ziweixing International and Alibaba. However, there are some obstacles now, and our positioning of Momo is still a bit vague."

Zhou Buqi could only give a general idea at most, "I may not know the specific situation. However, isn't Momo's positioning a social one?"

Pique said: "It is indeed social, but most of Momo's revenue comes from games."

"ah?"

Zhou Buqi was slightly startled, he really didn't know.

Peake was very worried about this, "Momo's main business income is very small. In order to hit the IPO, they made a lot of commercial designs, including games. They developed a game called "Momo Hegemony" game, which accounts for more than half of the company’s total revenue.”

"Well……"

Zhou Buqi is not quite sure about this situation yet.

Relying on games to make money is indeed not in line with Momo’s own social attributes.

If it is a social company, the P/E ratio can reach 100 times when listed in the United States. If it is a gaming company, it may only be 10 times. What kind of concept is used to impact IPO means different financing scales.

Zhou Buqi pondered: "I don't know the specific situation, and I'm not even a director of Momo. However, based on my experience, Momo may want to follow Penguin's route. You should know Penguin Company, right? Our country One of the best Internet companies.”

Mr. Peake smiled and said: "Of course, it is an excellent company."

Zhou Buqi said: "Maybe Momo wants to imitate Penguin's model. In the past few years, Penguin has achieved great success. One of its important business plans is the 'QQ+QQ game' model. Relying on social products to attract traffic and relying on game products to monetize traffic. Such a 'social + game' architecture has great potential and market competitiveness."

Mr. Pique nodded, "I hope so."

Zhou Buqi also had an idea in his mind.

No wonder Momo's stock price was half dead later.

This is because the business model did not work!

It is not an easy task to copy the "social + game" architecture model of Penguin. Social is social, and games are games. There are huge differences between the two, and even two different product concepts are needed.

Big companies can diversify, and small companies can also do so, which can easily cause the company to split internally.

This is destined to make it difficult for Momo to become a high-quality investment project.

The dinner ended that day.

After returning home, Zhou Buqi sent a text message to Zhao Limuge, who was currently in China, telling her that Momo was about to go public, but he still had a batch of Momo's original shares left.

These shares were meaningless to him.

It would be best to distribute them before Momo went public to help more people.

It was still daytime in China, so Zhao Limuge quickly replied to the text message: "Huo Hua's visa has been issued, I will arrange it now and take her to the United States to see you! Do you want to take Wang Langli with you? Just say... just say that you are taking her parents to the United States for medical treatment."

Zhou Buqi thought it made sense and replied: "Indeed, curing diseases and saving lives is the most important thing."