Yesterday (14), Tenjin Entertainment issued an announcement announcing that it has sold Oasis Games (i.e. Fantasy Delight) to a third party for 903 million yuan. After the completion of the transaction, Tenjin Entertainment does not hold any equity interest in Oasis Games and will no longer include Oasis Games in the statement.
According to the announcement, Tianshen Entertainment sold all of its stake in Oasis Games (93.5417%) to Feichi Qianli Technology and Creaction Network for 903 million yuan. At that time, Tenjin Entertainment spent 3.417 billion yuan to acquire 93.5417% of the equity of Oasis Games. Over the years, Oasis Games' valuations have depreciated by more than 70%.
Since the transaction price was higher than the appraisal price of Oasis Games (the fair price given by the asset appraisal company), Tianshen Entertainment made a profit of 120 million yuan on its books.
Oasis Games is a representative of the early domestic manufacturers, and has released well-known games such as "Divine Comedy" and "Naruto Ol" overseas, and has been somewhat silent in the past two years. It is worth mentioning that Oasis Games is also the publisher of "Journey to the West: The Return of the Great Sage", but the game's reputation has failed miserably.
Tenjin Entertainment said that in view of the layout of many game giants to go to sea, the current competition in the overseas market is fierce. In recent years, the cost of games and promotion costs of Oasis Games has continued to rise, and its performance has continued to decline, and it has lost money for consecutive years, and there is uncertainty about future performance. Therefore, Tenjin Entertainment decided to sell all of the shares of Oasis Games.
Oasis Games has lost money since 2019: 361 million yuan in 2019 and 131 million yuan in 2020. This year's q1 oasis game achieved a turnaround, with a profit of 5.25 million yuan.
Oasis Games recent financial data
Since the completion of the backdoor listing, Tenjin Entertainment has been a large company with a market value of 35 billion yuan through continuous debt mergers and acquisitions. In the past few years, Tianshen Entertainment has successively acquired companies such as avazu, Yihua Technology, Oasis Games, and Herun Media, with businesses spanning many fields such as games, advertising, film and television, and digital marketing.
Unfortunately, with the changes in domestic game, film and television regulatory policies, the acquisition of Tenjin Entertainment began to thunder. Yihua Technology stopped operating, the revenue of a number of game subsidiaries declined, and Tianshen Entertainment recorded a sky-high loss of 7 billion yuan in 2018. The dominoes immediately poured out, the debt default, the sharp decline in revenue, resulting in tenjin entertainment losses for two consecutive years, one foot on the verge of delisting.
Fortunately, Tianshen Entertainment achieved book profits last year through debt-to-equity swaps, asset sales and other means, and gained a glimmer of life.