Get together at a critical juncture: front foot sold YY, back foot short

 Get together at a critical juncture: front foot sold YY, back foot short

Affected by the news, huanjus share price fell 26.48% to 73.66 US dollars at the end of November 18 us time, with a total market value of US $5.965 billion, which was US $1.758 billion evaporated compared with the announcement of the sale of YY live broadcast on November 17, Beijing time.

Outside the enterprises involved, the legal profession has taken action. In November 19th, the official account of WeChat public, operated by Hao Junbo law firm in Beijing, released an article entitled soliciting collective action for investors in the YY era. The article said, lawyers draw the attention of investors: if you invest in the companys shares or options before the crash and suffer heavy losses, you can contact us for free consultation on the details of this case and how to protect your investment rights and interests..

Then the reporter of Beijing business daily interviewed Hao Junbo, director of Hao Junbo law firm. He told Beijing Business Daily that according to the current situation of the reunion, the conditions for investors to file class action have been met. Our article has just been released, and there is no investor consulting on relevant matters at present..

What attracts the attention of the industry is also the time for muddy water institutions to get together. On November 17, two days before the announcement of short news, huanju just released the financial report of the third quarter of 2020. The data showed that the revenue of huanju in the third quarter of 2020 was 6.286 billion yuan, an increase of 36.1% over the same period of last year, of which YY contributed 2.892 billion yuan and bigo contributed 3.395 billion yuan. Regardless of YY and bigo, the revenue from live broadcast business accounts for the vast majority. At the user level, YYs total number of paid users was 4.1 million, down 4.7% from 4.3 million in the same period last year.

On the same day of the financial report, huanju also announced that it would sell its domestic live video entertainment business (YY live) for us $3.6 billion, including but not limited to YY mobile applications Website and yypc, the buyer is Baidu. The transaction is expected to close in the first half of 2021.

As for whether short will affect the acquisition, as of Beijing Business Daily reporter, baidu related people did not make a statement.

Wang Chao, founder of Wenyuan think tank, told Beijing business daily, the general terms of acquisition will include: keeping the share price basically stable, and no business fraud. If the short report is true, baidu may terminate the acquisition at any time, or ask for a price cut. .

Huanju shares fell 26.48% at the end of November 18 EST, but rose 14.73% after hours. In this regard, industry insiders speculated that it may be that huanju management is increasing its holdings, but in the end, how to go about the stock price and what effect short selling has on the party depends on whether the performance is true..

Source: Wang Xiaowu, editor in charge of Beijing Business Daily_ NF