Research On The Motivation And Strategy Of The Privatization Of Giant Interactive Group Inc

Privatization of listed companies on the capital market is a special kind of enterprise merger and acquisition,the biggest difference is that it is composed of the controlling shareholders or the managers of companies,in the form of cash or securities to other small and medium-sized shareholders to repurchase the circulation issued shares from the shareholders,by increasing the number of shares the company changed from public to private companies.Although for our country's capital market,the cases of listed companies choose to privatise are extremely rare,for foreign capital markets,privatisation delisting of listed companies is a common way of capital operation.As a result of capital market has better financing function,many companies have listed capital market as the development direction of the enterprise,especially in overseas capital market.However,while domestic companies competing to foreign capital market,some overseas listed companies have chosen to privatisation.With China's domestic capital market is becoming increasingly abundant and the arrival of a series of favorable policies,there will be more companies choose privatization from the overseas capital market.Under the background of more and more companies' privatization,it is very important to deeply analyze the reasons and strategies of listing corporation's privatization,which is very important to improve the efficiency of capital market.Based on the privatization of Giant Interactive Group Inc.First of all,introduces the research background and significance of the privatization of listed companies,summarizes the research status and methods of listed companies at home and abroad,and puts forward the main innovation points of this paper.Then introduce the background of the privatization of Giant Interactive Group Inc from the wave of stock privatization and the development of the game industry.The next analyzes the reason of the privatization of Giant Interactive Group Inc from the enterprise value underestimate,listed company strategy adjustment,Listed maintenance costs,game industry profit model and whether through privatization seek listed.Secondly,it analyzes the corresponding strategies from the way of the privatization of Giant Interactive Group Inc,the choice of the timing,the source of funds,the repurchase price and the risk from small and medium-sized shareholders,institutional short risk,return to domestic market risk.Finally,summarize the privatization of Giant Interactive Group Inc to online game enterprises listed overseas and to be listed overseas online game enterprises bring inspiration and thinking.Due to the particularity of the game industry,the current study of privatization is not involved in online game enterprises,therefore Giant Interactive Group Inc as the first case of the concept of online game companies have a certain representation.This case study summary has general applicability for listed companies in the privatization process in consideration of the factors and risk response,and provide the reference for the later privatisation.