Vip com 110 million stake in Le bee network Sequoia Capital one stone three birds

this is a capital behind the push of the chain".

recently, has been listed in the United States announced a $112 million 500 thousand acquisition of Le bee network, a subsidiary of the company’s 75% stake. While and Lasafo with cosmetics electricity supplier concept said the upcoming U.S. listed.

It is worth noting that

,,, three companies have a common shareholders Sequoia capital.

analysts believe that has been in the United States, music bee with cosmetics sales, but sales of larger, so the small size of the sales to listed companies, the listed companies, and then enhance the market value of,’s market capitalisation is listed for reference.

split sell a stone three birds

music bee insiders on the "First Financial Daily" said, has been split before the transfer of a controlling stake, holdings is Lasafo channel business agent. At present, Le bee network proxy channel business is facing losses.

previously Le bee aspects of the data revealed that the contribution of Le bee network proxy channel business accounted for only 60% of the total music bee, while the remaining 40% of revenue from the music bee’s own brand business.

gross profit margin from the point of view, Le bee agent channel business gross margin was 15%~20%, while its own brand’s gross profit margin of more than 60%.

Business Analyst Li Chengdong believes that for fun bee distribution channel business divestment is a masterstroke for or le bee is good, but also enhance the valuation of listed valuation of can help. This is what they want to see the common investors sequoia.

Li Chengdong said that is from the clothing as the axis, to expand the "big Fashion" field, combined with the characteristics of its sale, also need to choose other types of industry gross margin, faster inventory turnover, and clothing, cosmetics category will meet this requirement.

but if the entire music bee acquisition, does not have such a volume. According to the earnings report, the third quarter of 2013, cash flow and its equivalents of $279 million, while the whole bee bee sales in 2013 of about $400 million to $500 million. If the majority of the cash out and then paste the Liuhua, part of the shares, not only increase the complexity of transactions, will also increase the difficulty of integration after the acquisition, such as capital market valuation to caused short-term negative impact.

secondly, needs is also the music bee network agent channel business. From the perspective of the expansion of the scale, there are two kinds of choice of, is a longitudinal expansion in the field of clothing, from the sale mode, extending to B2C and independent brand; another is the horizontal expansion, from clothing, extending to other categories of sale, but from now >

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