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  "docId": "019dd923-622c-750b-8b98-72ad4dd9da96",
  "docSlug": "86dfa89096f8",
  "documentTitle": "Momo, Inc. (MOMO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-27 00:00:00",
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  "pageNumber": 24,
  "pageCount": 70,
  "prevPage": 23,
  "nextPage": 25,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Includes a screenshot of a website and a flow chart showing ownership structure.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-72ad4dd9da96/24",
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      "kind": "callout",
      "text": "Normally an agent will receive its share of revenue from Momo at the end of the month and then pass on the broadcasters share of revenue. We can see no good reason why an agent should receive an advance payment",
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      "bbox": {
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      "kind": "diagram",
      "text": "Ownership structure flow chart",
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      "kind": "image",
      "text": "Website screenshot of Qindao Company Profile",
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      "kind": "list",
      "text": "70% of the revenue payments received by Hunan Qindao Culture Spread reside with Hunan Qindao Network Media Co., Ltd.",
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      "kind": "list",
      "text": "Curiously, this subsidiary received an advance payment of $5.1 million in revenue sharing from Momo Inc, disclosed in the 2017 20-F (Note 15(1)). Normally an agent will receive its share of revenue from Momo at the end of the month and then pass on the broadcasters share of revenue. We can see no good reason why an agent should receive an advance payment",
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      "kind": "list",
      "text": "In July 2017 Hunan Qindao Culture Spread established a subsidiary, Hunan Qindao Network Media Co Ltd, that we have discovered is now used to operate a Momo dedicated talent agency business. The Hunan Qindao Culture Spread branded agency website is registered to this subsidiary Qindao",
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      "kind": "paragraph",
      "text": "Momo disclosed in its 20-F Hunan Qindao Culture Spread Co as an equity investment of $4.4 million in 2016 and having shared live streaming revenue of $3.9 million. It has not been disclosed as a talent agent and we can't understand why it would be receiving a $5.1 million prepayment from Momo.",
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      "kind": "title",
      "text": "Red Flag 3: MOMO's Undisclosed Ownership of Talent Agencies + Related Party Transactions (Cont'd)",
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      "evidence": "The slide explicitly labels the content as 'Red Flag 3' and details undisclosed financial transactions.",
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Slides 7-69 systematically expose contradictions and red flags in Momo's business, including undisclosed charges, complex VIE structure, and regulatory risks.",
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      "confidence": 0.8,
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      "evidence": "Slides 17-28 expose the iceberg of Momo's problems, revealing undisclosed charges and complex VIE structure.",
      "position": 1,
      "objective": "What are the implications of Momo's undisclosed charges and complex VIE structure?",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
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