Wang Jianlin, the actual controller of Wanda Films, decided to transfer his 51% stake to Shanghai Ruyi, which is not the first time Wang Jianlin has sold his equity to Shanghai Ruyi. As a low-key but lucrative film and television company, Shanghai Ruyi has a number of popular film and television works such as "Langya Bang", "The Legend of Miyue" and "Hello, Li Huanying". It is worth mentioning that Shanghai Ruyi, formerly known as HengTen Information, was jointly established by Evergrande and Tencent, and then Tencent became its major shareholder, making the company renamed Ruyi. Wang Jianlin** Wanda Film's shares were given to Ma Huateng, the reason is only two words, "lack of money"!However, Wanda Film has always been Wang Jianlin's heart, with stable cash flow and good performance, and the operating income achieved in the first three quarters of this year reached 1134700 million yuan, a year-on-year increase of more than 49%. In addition, Wanda Film has 877 theaters across the country, accounting for 16% of the market5%。However, the biggest difficulty faced by Wanda is the difficulty of listing, and the end of this year is the listing deadline of Wanda Commercial Management. If it is unable to go public within the deadline, Wanda Commercial Management will need to pay investors about 30 billion yuan in cash for share buybacks, which is not a small amount for Wanda. At present, Wanda Commercial Management has a total of 12.7 billion yuan in cash and cash equivalents on its books, without taking into account 12.3 billion yuan of domestic bonds and 1.8 billion yuan of overseas debt. Ma Huateng's intervention also means that the control of Wanda Film will change.
As an important asset of Wang Jianlin, Wanda Film has always been the core business of Wanda Group. However, as the difficulties faced by Wanda deepened, Wang Jianlin had to consider the way to save himself. First of all, the difficult birth of Wanda Film's listing gave Wang Jianlin a lot of pressure. Although Wanda has completed the transformation from a real estate company to a commercial management company, it has encountered many difficulties in listing applications. If it fails to go public within the deadline, Wanda will face the risk of huge financial compensation, which is a huge burden for Wanda, which is already strapped for cash. Secondly, Wang Jianlin's wealth is shrinking at an alarming rate, which is one of the reasons why he cut his flesh to save himself. As of October this year, Wang Jianlin's wealth had decreased by 53 billion yuan, making him one of the richest people in China with the fastest shrinking wealth. Moreover, time is running out for Wang Jianlin, and seeing that the deadline for 2023 is approaching, the pressure on Wanda is also increasing. In this case, Wang Jianlin's decision to transfer the equity of Wanda Film to Ma Huateng is a last resort, and this transfer is also a strategy for Wang Jianlin to cut his flesh to save himself.
Wang Jianlin transferred the equity of Wanda Film to Ma Huateng, making Ma Huateng the new controlling shareholder of Wanda Film. This also means that Wanda Films is about to usher in a new era of Ma Huateng. As one of the founders of Tencent, Ma Huateng enjoys a good reputation in the technology industry, and also has a certain layout and influence in the field of film and television. As a film and television company controlled by Ma Huateng, Shanghai Ruyi has a number of popular works and box office champions, showing its strong strength and potential. Ruyi, formerly known as HengTen Information, has a close relationship with the cooperation between Evergrande and Tencent. Now, Evergrande has withdrawn and transferred its equity to Tencent, making Tencent a major shareholder of Ruyi. In addition, the name of the company has also been changed from HengTen Information to Confucianism, which is full of literary and artistic flavor to make Confucianism more in line with Tencent's tonality. Ma Huateng's takeover of Wanda Film will bring new development opportunities and changes to the company.
In the current business environment, many enterprises are facing huge challenges and dilemmas, especially after the impact of the epidemic. And Wang Jianlin's decision to cut his flesh to save himself is undoubtedly a choice he made in order to deal with the current predicament. Although Wang Jianlin transferred control of Wanda Films to Ma Huateng, for Wanda, it also means a new beginning and development direction. As a giant in the technology industry, Ma Huateng's involvement in the film and television field will inject new vitality and changes into Wanda Films. At the same time, Shanghai Ruyi, as a film and television company controlled by Ma Huateng, will also become a strong support for Wanda Films, bringing more popular works and box office success. For Wang Jianlin, cutting meat to save himself is certainly a helpless move, but it is also a pragmatic and wise decision in the current predicament. Faced with the pressure of huge buyback risks and shrinking wealth, Wang Jianlin could only choose to give up control in exchange for cash flow and seek new breakthroughs for himself and Wanda. Although this shift is due to economic considerations, it also opens a new door for Wanda Films, hoping to usher in better development. The plight and bankruptcy of private enterprises is undoubtedly a social problem. In the face of operational difficulties, it is difficult for some private entrepreneurs to obtain financial support and help when they are facing bankruptcy. Whether or not appropriate assistance should be given to enterprises in difficulty is an issue worthy of discussion and consideration. Personally, I think the state can come to the rescue of private enterprises, but it is also necessary to conduct a comprehensive assessment of the operating conditions of enterprises to ensure that they are rescued with real potential, and to establish an effective regulatory mechanism to avoid the abuse of rescue funds. In the current economic situation, maintaining the stability and development of private enterprises is very important for the stability and prosperity of the social economy, which requires the joint efforts of enterprises and enterprises to formulate effective policies and measures to provide enterprises with a better development environment and support.