The Strategy And Effect Analysis Of Giant Interactive Privaitization

Listing is no stranger to enterprises and investors.Enterprises hope to get a stable source of funds through listing and improve their brand awareness.The majority of investors hope to increase their capital gains by buying stocks of listed companies.Although listing has these advantages,some listed companies are no longer suitable for continuing listing on the stock exchange because of their own reasons,we need to establish an effective delisting system to help those companies which is the problem that needs to be solved in the development and improvement of capital market.Because early Chinese capital market has strict restrictions on the listing of enterprises,many Chinese enterprises have listed overseas capital markets such as the US,Singapore and Hongkong.Since 2010,a wave of “returning to China” has been set off in China's stock market,many companies that have gone overseas for listing have chosen to privatize,many of them have succeeded in re-entering the A-share market by re-listing or backdoor listing.They often attract the attention of investors due to the substantial increase in business value and the significant improvement in performance after the delisting.As a result,the issue of privatization delisting in recent years has drawn the attention of many experts and scholars.In 2014,Giant interactive successfully delisted from the NASDAQ.As the US investors are not optimistic about the potential development of the game company's market value and short-seller continue to remain short which led to a depressed price in stock price.With the gradual warming of China's securities market,the privatization of the Giant interactive is imminent in order to get rid of the shackles,to achieve a strategic transformation of Mobile Games market and future development layout.From the offer of the offeror to the board of directors and the privatization of the offer to the final privatization of the delisting agreement,the giant network took only four months or so,which is much more efficient than the other privatization delisting agreements that took many years to complete.Therefore,the privatization delisting strategy implemented by giant network during privatization delisting is also worthy of our attention.It can provide some experience for privatization delisting enterprises in the future,saving time cost and privatization delisting cost.The giant network mainly implement the privatization strategy by choosing the right way to conbinate,introducing institutional investors and selling the stock to lower the trading price?raising the stock repurchase price three strategies to prevent missing the perfect time for privatization.The privatization of giant network has brought three main effects——value effect,financial effect and governance effect.However,the implementation of privatization delisting can not produce these effects.These effects are the final result of privatization and the adjustment of corporate strategy and corporate governance.The main reason that Giant Network successfully implemented the delisting of privatization and its performance has been greatly improved is that it not only starts from the purpose of raising the value of the enterprise but also takes a rational view of the enterprise's own condition and fully understands the future development of the industry and knows that the enterprise is in A strategic turning point from the online game market to the mobile game market took hold of the timing of the delisting of privatization of the A-share market and the successful implementation of the privatization delisting.This article hopes to provide some advice and experience to the companies that intend to privatize by analyzing the success stories of the privatization of giant interactive privatization and hope that they can rationalize about their privatization instead of blindly following the actual situation and fully consider the adjustment of company strategy when privatization delisting,because only privatization can be combined with strategic adjustment to truly enhance corporate value and performance.At the same time,privatization is not a simple operation,but also needs a certain strategy basing on the law,so that we can better implement it.The government should also introduce more laws and regulations related to the privatization of the delisting and correctly guide more companies which want to privatize.