(Reprinted 2017-03-2308:35 The Paper)

Tencent plans to spin off China Literature Group to IPO in Hong Kong: the number of daily paying readers will double to 2.5 million

The news that China Literature, a reading platform owned by Tencent, plans to split and list separately has been confirmed. Pen? Interesting? Pavilion wWw. ｂiquge。 ｉｎfo

According to the Hong Kong Economic Times's media Economic Link, on March 22, at Tencent's annual results press conference, Tencent President and Executive Director Martin Lau revealed that Tencent is indeed preparing to spin off and list Reading Group, with the target listing location in Hong Kong.

Martin Lau said that as the largest reading platform in China, Reading Group can connect authors and users, and has also accumulated a lot of novel copyrights, which can provide a lot of value to film and television, entertainment and games in the future, and the spin-off of this business is conducive to its long-term development.

According to the Securities Times, Martin Lau also said that the main reason for the spin-off and listing of Reading Group was that it was the acquisition of Reading that year that introduced external investors, hoping to meet investor expectations.

However, he also stressed that the spin-off and listing of China Literature is only a pilot project and will not forcibly spin off other businesses for listing, but if China Literature's operation is smooth after listing, it is not ruled out that it will consider spinning off other businesses for listing.

At this point, the long-awaited listing plan of Wu Wenhui, CEO of China Literature, has finally been confirmed again.

According to its official website, Reading Group is a genuine digital reading platform and literary IP cultivation platform, with brands including QQ Reading, Starting Point Chinese Network, etc., with 10 million works in reserve, 4 million creators, covering more than 200 content categories, occupying a dominant share of the domestic IP adaptation market, and exporting adaptations such as "Step by Step", "Ghost Blowing the Lamp", "Notes on Tomb Robbery", "Langya List", "Choosing the Sky" and other adaptations.

Before the establishment of China Literature, Wu Wenhui, the current CEO of China Literature, had twice led Shanda Literature to IPO in the United States but failed. At the June 2016 China Literature "IP Ecology Conference", Wu Wenhui made it clear that "we are a shareholding company of Tencent, but China Literature itself is an independent company, and we would have pursued an independent listing." However, regarding the timing of the listing, Wu Wenhui said that there is no specific timetable, "listing when the capital market is performing better".

On February 6 this year, Reuters reported that China Literature planned to conduct an IPO this year, raising up to $800 million.

Wu Wenhui, who graduated from the Department of Computer Science of Peking University in 2002, is the founder of Qiqi Chinese Network. As early as 2003, Qiqi Chinese.com explored content payment, launched the "online paid reading model", and established a manuscript fee system shared between authors and platforms, which was subsequently imitated by most online literature websites.

In 2004, Shanda Group acquired Qiqi Chinese.com, and in 2008, Shanda Literature was established, with Wu Wenhui as the president of Shanda Literature. During Wu Wenhui's period of grand literature, mainstream online literary websites such as Red Sleeves Fragrance, Under the Banyan Tree, and Xiaoxiang Academy were also recruited by Shanda.

However, in 2011 and 2012, Shanda Literature's listing in the United States was blocked twice, and the differences between Wu Wenhui and Shanda Literature's management became more and more prominent. On March 26, 2013, Wu Wenhui left Shanda Literature with the start-up team of the original starting point Chinese Network. A year later, he joined Tencent, where Wu Wenhui became the CEO of Tencent Literature.

In March 2015, Tencent Literature and Shanda Literature completed the integration, and Wu Wenhui became the co-CEO of China Literature.

According to the iResearch report, in December 2015, China Literature ranked first among online literature companies with a total monthly coverage of more than 60 million people on PC and mobile.

According to the official disclosure of China Literature, in 2016, China Literature paid nearly 1 billion yuan to writers, and more than 100 writers with an annual income of more than one million yuan have been paid by the group.

In Tencent's 2016 earnings report, the online literature business was placed under the media and digital content platform, and Tencent said that the online literature business has strengthened its partnerships with leading authors, benefiting from the reduction in piracy, and the number of daily paying readers is close to 2.5 million, more than doubling year-on-year.

(Reprinted 2017-03-2308:35 The Paper)

Tencent plans to spin off China Literature Group to IPO in Hong Kong: the number of daily paying readers will double to 2.5 million

The news that China Literature, a reading platform owned by Tencent, plans to split and list separately has been confirmed.

According to the Hong Kong Economic Times's media Economic Link, on March 22, at Tencent's annual results press conference, Tencent President and Executive Director Martin Lau revealed that Tencent is indeed preparing to spin off and list Reading Group, with the target listing location in Hong Kong.

Martin Lau said that as the largest reading platform in China, Reading Group can connect authors and users, and has also accumulated a lot of novel copyrights, which can provide a lot of value to film and television, entertainment and games in the future, and the spin-off of this business is conducive to its long-term development.

According to the Securities Times, Martin Lau also said that the main reason for the spin-off and listing of Reading Group was that it was the acquisition of Reading that year that introduced external investors, hoping to meet investor expectations.

However, he also stressed that the spin-off and listing of China Literature is only a pilot project and will not forcibly spin off other businesses for listing, but if China Literature's operation is smooth after listing, it is not ruled out that it will consider spinning off other businesses for listing.

At this point, the long-awaited listing plan of Wu Wenhui, CEO of China Literature, has finally been confirmed again.

According to its official website, Reading Group is a genuine digital reading platform and literary IP cultivation platform, with brands including QQ Reading, Starting Point Chinese Network, etc., with 10 million works in reserve, 4 million creators, covering more than 200 content categories, occupying a dominant share of the domestic IP adaptation market, and exporting adaptations such as "Step by Step", "Ghost Blowing the Lamp", "Notes on Tomb Robbery", "Langya List", "Choosing the Sky" and other adaptations.

Before the establishment of China Literature, Wu Wenhui, the current CEO of China Literature, had twice led Shanda Literature to IPO in the United States but failed. At the June 2016 China Literature "IP Ecology Conference", Wu Wenhui made it clear that "we are a shareholding company of Tencent, but China Literature itself is an independent company, and we would have pursued an independent listing." However, regarding the timing of the listing, Wu Wenhui said that there is no specific timetable, "listing when the capital market is performing better".

On February 6 this year, Reuters reported that China Literature planned to conduct an IPO this year, raising up to $800 million.

Wu Wenhui, who graduated from the Department of Computer Science of Peking University in 2002, is the founder of Qiqi Chinese Network. As early as 2003, Qiqi Chinese.com explored content payment, launched the "online paid reading model", and established a manuscript fee system shared between authors and platforms, which was subsequently imitated by most online literature websites.

In 2004, Shanda Group acquired Qiqi Chinese.com, and in 2008, Shanda Literature was established, with Wu Wenhui as the president of Shanda Literature. During Wu Wenhui's period of grand literature, mainstream online literary websites such as Red Sleeves Fragrance, Under the Banyan Tree, and Xiaoxiang Academy were also recruited by Shanda.

However, in 2011 and 2012, Shanda Literature's listing in the United States was blocked twice, and the differences between Wu Wenhui and Shanda Literature's management became more and more prominent. On March 26, 2013, Wu Wenhui left Shanda Literature with the start-up team of the original starting point Chinese Network. A year later, he joined Tencent, where Wu Wenhui became the CEO of Tencent Literature.

In March 2015, Tencent Literature and Shanda Literature completed the integration, and Wu Wenhui became the co-CEO of China Literature.

According to the iResearch report, in December 2015, China Literature ranked first among online literature companies with a total monthly coverage of more than 60 million people on PC and mobile.

According to the official disclosure of China Literature, in 2016, China Literature paid nearly 1 billion yuan to writers, and more than 100 writers with an annual income of more than one million yuan have been paid by the group.

In Tencent's 2016 earnings report, the online literature business was placed under the media and digital content platform, and Tencent said that the online literature business has strengthened its partnerships with leading authors, benefiting from the reduction in piracy, and the number of daily paying readers is close to 2.5 million, more than doubling year-on-year.