The 21-day offer period passed in a flash, and Ruixiang accepted a total of 45.1% of the shares from independent shareholders.
In addition to the shares held by Li Jiacheng Family Fund Redmond, Xie An, and Zhou Yongming, it also accepted a total of 7.72% of the shares from retail investors.
The total shareholdings add up to 95.2%, and only 4.8% of the shares are still in the hands of some retail investors.
These retail investors do not want to accept the offer, mainly because the stock price has risen to more than HK$0.3, more than double the offer price of HK$0.15.
Whenever there is a tender offer or privatization in the market, there are those who are not afraid of death and want to take advantage of it.
They are betting that the privatization of Digital Domain will not succeed, or that Rui Xiang, the major shareholder, deliberately prevents the privatization from succeeding.
In their view, Ruixiang's behavior is to absorb as many retail investors' shares as possible.
Then assets may be injected. If Ruixiang injects its own US$200 billion in assets, they will make a fortune.
Therefore, after the announcement of the tender offer, Digital Domain's stock price continued to rise, and some people rushed in and bought shares at HKD 0.3 or 0.4.
Now that Ruixiang's shareholding ratio exceeds 90%, compulsory acquisition will be initiated. The remaining shares of small shareholders will be sold to Ruixiang at a price of 0.15 Hong Kong dollars until Ruixiang's shareholding ratio reaches 100% and the privatization and delisting process is completed.
It also went through two procedures: a court hearing and a special general meeting of shareholders.
Fortunately, there were not many retail investors who were trapped by buying shares at high prices, and the opposition vote did not exceed 10%.
It would be terrible if Digital Kingdom was registered not in Hong Kong, but in the Cayman Islands. The latter also has a procedure to count heads.
Many privatizations fail at this step. Retail investors don’t have much voting rights, but they have many people.
There are still some procedures to go through for delisting, but it is basically a foregone conclusion.
At this time, some financial experts and stock recommendation experts were dragged out by retail investors and whipped to death. They expressed their opinions as soon as Ruixiang issued the tender offer announcement.
They also put forward such imaginative ideas as "Ruixiang will be listed through a backdoor merger".
Many people were slapped in the face and thought that Ruixiang was not really going to be privatized and delisted.
After all, a Hong Kong stock market went from one or two billion a few years ago to five or six billion now.
Although Zhang Yida is very wealthy, he shouldn't give up on a few small goals just because he doesn't want them.
There is another basis to support this view. Zhang Yida does not have A-share listed companies and cannot make injections.
The most popular thing in the market in recent years is to delist from Hong Kong stocks and go to A-share arbitrage.
Because Hong Kong stocks are more mature and have lower valuations, large A-shares are more crazy.
After 360 was delisted from the United States, it borrowed money from Jiangnan Jieyue and its value increased several times.
Digital Domain’s market is too small, it’s not cost-effective to go public through a backdoor A-share market, and it’s too long to wait in line for listing.
It’s not like Zhang Yida has never thought about injecting assets into Digital Domain, such as Company M, which is difficult to go public.
But this shell is not very clean. The owner of the car was the son-in-law of a wealthy family, so he still had to avoid some taboos.
No matter how much Ruixiang wants to be listed on the Hong Kong stock market in the future, it still can’t go too far.
On the New York Stock Exchange, Nasdaq, and Yimin Group, three companies fell terribly, and there were class action lawsuits every now and then.
It's also true that he didn't reveal any "financial fraud", otherwise his notoriety would have spread across the Pacific Ocean.
The delisting process is still going on, but the company's normal business has not stopped.
First of all, Lao Mouzi's crew of "White-haired Soldiers in the Lonely City" has reached a cooperation with Digital Domain, and the special effects production work will be handed over to the latter.
Of the 1 billion production cost, 300 million will be spent on special effects, and another 400 million will be spent on props, scenery, and the starring film remuneration is less than 300 million.
The movie star Fu Dalong who was invited to star in the movie was the one who played Emperor Yang of Sui Dynasty. This time he guarded the border for Li Tang.
His acting skills are excellent and he is also cheap. Zhang Yida feels that this kind of actor is worth recruiting.
It is said that he was not good at socializing, so he had no scenes to film, and the actor was reduced to delivering food.
Zhang Yida was curious and asked Huang Xin if there was any one named Fu Dalong among the 600,000 delivery riders.
Later I found out that this was a rumor. Although she has few acting roles, she still teaches students at the film and television academy.
In the crew, I heard Zhang Yimou's feedback that Fu Dalong was also very serious. He learned skills from martial arts instructors, understood the characters' lives, and learned the etiquette of the Tang Dynasty. He really treated acting as a career.
In addition, DouYu and Kuaishou will introduce Zeus, a 360-degree panoramic VR camera from Digital Domain, for small-scale live broadcasts.
If the use effect is satisfactory, we will help promote it to major M organizations.
Bilibili, Himalaya, Daya Media and Digital Domain will also launch a series of cooperation around virtual idols and try to promote them in the form of animated short films, virtual singers and other forms.
The goal is to successfully create virtual idols like Luo Tianyi and Hatsune Miku.
sses is a VR headset hardware manufacturing company under Digital Domain. In addition to using its short videos such as Dou Vision and Kuaishou to help place advertisements, Pinduoduo has also included it in its tens of billions subsidy plan.
Sprawly is a VR content creation tool platform. Developers can use the platform's tools to develop VR games, VR animations, and VR movies.
Zhang Yida’s idea is to turn it into an app store, just like the relationship between Apple and the APP Store.
However, to realize this idea, the sales of hardware headsets must increase, and a large number of developers must be attracted to the VR application mall to provide rich content. This requires the establishment of a large VR ecosystem.
Facebook spent US$2 billion in 2014 to acquire VR startup Oculus. With the help of Facebook, Oculus has become one of the top companies in the world in terms of sales and has its own VR app store.
Apple tax is a good thing, and now everyone is being taught to be smart by it.
Microsoft, Sony, Samsung, and HTC are all making VR hardware and building their own VR content distribution platforms.
Even Steam, the game distribution platform, has opened up a VR area where you can download VR games.
As far as Zhang Yida knows, Facebook, HTC, and Steam are opening up VR stores with each other and working together to make the VR pie bigger.
This is also the current situation. The market is still too small and needs to be cultivated.
However, there is also a problem, that is, the content and devices are not compatible. Only two or three out of ten models may be compatible.
This is just like Apple and Android not interoperable, it involves the underlying architecture and standards.
Digital Domain also has its own VR game team, which has developed many games.
Zhang Yida poached some VR game-related talents from Silicon Valley and plans to hand over the VR version of "PlayerUnknown's Battlegrounds" to them.
As a game with IP effect, the VR version of PlayerUnknown's Battlegrounds has not been launched for a long time, and companies have rushed to launch chicken-fighting VR games.
However, Zhang Yida was not in a hurry and let the other party run for a while.
In a short video that was very popular on TikTok in the previous life, a girl wore VR glasses, and the player waved the lightsaber in her hand according to the beat of the music to chop rhythm blocks and dodge obstacles.
This game is called "Rhythm Space" and it is a VR music game. The developer is Beat Games, a small studio in the Czech Republic with only three people.
Ruixiang's strategic investment department has already sent people to the Czech Republic to discuss mergers and acquisitions. In the future, acquiring VR content developers, especially small game studios, will become the norm.
Ruixiang is also evaluating internally and wants to explore such a closed business loop: studio development - app store sales - short videos, live broadcast display - e-commerce platform sales of equipment - head display manufacturer manufacturing.
Digital Domain has the last business segment, Digital Domain Space, also called DD Space.
Establish offline VR experience centers with large commercial complexes such as Wanda and Poly, and cooperate with Hengdian Cinemas, Poly International Cinemas, etc. to open VR cinemas.
However, the number is not large at present, and it is still in the early stages of business exploration and has not yet formed a scale.
In addition, it stood out from 14 companies and won the bid for the VR experience center of Beijing Daxing Airport.
Zhang Yida said in the work report that a number of digital entertainment experiences will be built in the future, including fantasy cinema, fantasy space, fantasy theater, magical zoo, apocalyptic battlefield, X-cube and other digital entertainment experiences.
It can be regarded as a cultural tourism project with the purpose of creating a unique digital paradise.
Zhang Yida didn't know whether this business could make money, and Ruixiang had very little offline business, so he couldn't give him much support.
However, the existence of this kind of experience center, in addition to promoting the brand and selling VR equipment, is also building the so-called "oasis" project.
Digital Domain is the special effects producer of "Ready Player One", and the virtual world inside is called Oasis.
Zhang Yida decided to wait and see and not rush to make additional investment. He would first look at consumer acceptance in first-tier cities.
Digital Domain spent a total of HK$3.9 billion on the acquisition, which was a small savings compared to the expected figure.
The business seems to be very comprehensive, but Zhang Yida knows that he is a bit broad but not expert.
In the past two years, I have been busy fighting in the fields of finance and e-commerce, so I have neglected this market.
At present, companies such as iQiyi, Pig Factory, Penguin, etc. are all squeezing into this track, and those engaged in content industries such as film, television, and games are afraid of missing out.
Especially after the issuance of 5G licenses next year, network bandwidth, network balance, and data latency will bring greater improvements.
Everyone is looking forward to what kind of energy technological innovations such as 5G+VR and 5G+cloud gaming will inject into the industry.
Because VR and cloud gaming are two areas that are recognized to benefit from the early implementation of 5G.
The development of the two also complements each other. The introduction of VR/AR devices into cloud games will bring more innovative gameplay and new gaming experiences.