My rebirth is different

Chapter 585 Getting Profitable

Establishing his own powerful legal department was something Yu Wenfei planned long ago, and this kind of talent cannot be cultivated by his own company, and he can only poach from big law firms.

Therefore, handing over the case to Fang Zhiyan twice in succession meant a test in itself.

The first time was to sue the winger for copyright infringement. This case is not big and the difficulty of the lawsuit is not high, but it needs to balance the relationship between multiple parties. Fang Zhiyan did a good job and took it down without bloodshed.

The second time was considered a large-scale lawsuit, and it tested his overall planning and ability to control the overall situation. This time it was also very well done, and the action was swift and decisive.

After these two tests, Yu Wenfei was very satisfied with Fang Zhiyan's ability, so he made up his mind to recruit him and let him lead the company's legal department.

Moreover, Fang Zhiyan is very good at intellectual property and commercial lawsuits, and these are what Facebook companies need to use in the future.

Games have copyrights, and after the music and film platforms are launched, copyright lawsuits will be filed more frequently, so a strong legal department is also essential.

…………

This time the Facebook game made a heavy blow to crack down on cheaters, and it also brought an unexpected harvest, that is, the sales of the half-life genuine game soared again.

Originally, Facebook Games acquired the agency rights of Half-Life and many other games through the acquisition of Ogilvy & Mather. A while ago, the North American branch of Facebook Games went through a lawsuit, forcing Sierra to seek a settlement. The two parties reached an agreement to release Sierra. The full rights to publish the Half-Life contract is tantamount to taking back the publishing rights of the Half-Life game.

In addition, Valve is a holding subsidiary of Facebook Games North America Branch. When purchasing the shares, the two parties agreed that Valve's game publishing rights will be handed over to Facebook Games!
Going around in a big circle, to put it simply, Valve’s Half-Life, Blizzard’s Warcraft, Diablo, StarCraft, and the publishing rights of all new games from these two companies are controlled by Facebook Games hands.

Anyone who is familiar with the game industry knows that when a game sells well, most of the time, the publisher makes more money than the producer.Of course, that kind of production and distribution is an exception for a company.

Facebook Games won the game publishing rights of Valverde and Blizzard, but it didn't squeeze them too much. The agency distribution conditions they gave were quite favorable. Every time a game was sold, Facebook Games only took [-]% and [-]% went to the game. Production Company.

Take Half-Life as an example, the retail price in the mainland is 38 yuan, of which 30 yuan is the profit of the retailer, and [-] yuan belongs to the Facebook game mainland company.

But this does not mean that Villefort can get 30% of the [-] yuan, because Facebook Game Continental is still an agent, and it got the agency right from Facebook Game North America Branch.

Since it is an agent, of course it has to make a profit. Ten of the 30 yuan is the profit of the Facebook Game Continental Company, and the remaining 20 yuan needs to be handed over to the North American branch.

This means that for the North American branch, the release price of the Half-Life game (the wholesale price given to agents in various countries) is 20 yuan.

After getting the 20 yuan, the North American branch of Facebook Games will split the account with Valverde for 12 yuan, keep [-] yuan for yourself, and give [-] yuan to Valverde. This is a game from production to distribution to agency to retail. The share ratio is roughly the same in the industry.

Of course, this refers to the model before the rise of online sales. After the rise of game online sales platforms such as STEAM, this link will be reduced and the share ratio will change again.

Why the Facebook game is so complicated, why not allow the mainland head office to directly control Valve and Blizzard and win the publishing rights? There are also particular points.

As we all know, domestic financial control is very strict, especially for foreign exchange outflows. If you want to earn money and spend it domestically, it is easy. If you want to spend it abroad or invest abroad, the process is more troublesome.

Moreover, in foreign countries, there are too many investment and tax avoidance methods for large companies.

Everyone knows that Microsoft and Apple are American companies, but few people know that even Microsoft and Apple save billions of dollars in taxes every year through reasonable tax avoidance methods!

In the United States, there is one of the simplest and most common means of tax avoidance, the tax arrangement called "Double-Double Irish-Dutch Sandwich" in the industry, which is basically used by large technology companies in the United States, such as Microsoft, Apple, Google, Facebook, etc.

Why do you want to do this, of course it is to reduce taxes.

In the United States, the tax rate can be as high as 30.00%12.00!It is one of the countries with the highest legal tax rate in the world, and Ireland only has [-]%.

And after passing through the multi-layer structure, the tax rate can even be reduced to less than [-]%, who would not be tempted.

Apple has a subsidiary in Ireland, and Apple puts almost all of its sales business in this subsidiary. In 09, its pre-tax income was 380 billion US dollars, but through the "double-layer Irish-Dutch sandwich" tax arrangement In the end, only 100 million U.S. dollars in taxes were paid, which is equal to six ten thousandths!
Of course, Yu Wenfei will not be taken advantage of, so the investment in the United States also went through this tax avoidance process, saving a large amount of tax and making it easier to reinvest in the future.

As for domestic business, they should pay taxes honestly and at most seek some policy relief.Because in China, it is best not to leave anyone with a clue, it is easy to be settled by Qiuhou...

In the future, Facebook companies will be divided into two major parts, one system in the mainland, and another system in foreign countries. The two parties only have a shareholding relationship, and their respective finances are independent.

In fact, even if it is equity, Yu Wenfei plans to re-divide it. In the future, domestic and foreign Facebook companies will have no connection at all except for their names and shareholders.But there is no hurry now, after all, Facebook companies have not yet begun to expand foreign markets on a large scale.

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Facebook Games spent 2000 million to acquire Ogilvy & Mather, and then set up a department to manage the sales of stand-alone games.

Benefiting from the launch of Battle.net on Facebook, the sales of games such as Half-Life and Diablo ushered in a wave of skyrocketing!
In fact, many players are not unable to afford 50 yuan to buy genuine games, but because there is no difference between playing genuine and pirated games in the past.

Take Half-Life as an example, the original version costs 68 yuan before the price cut, while the pirated version only costs five yuan, the game experience is exactly the same, why buy the original version.Moreover, pirated copies are very convenient to buy. There are hawkers selling them at the gate of the school, or you can find them in any electronic market in the computer city. You can find them everywhere, but genuine copies are not easy to find.

But the launch of Battle.net on Facebook changed all that.

Playing CS on Facebook Battle.net and playing CS offline on the LAN, that part-time job is two games.Battle.net's unique division of ranks, points system, ranking battles, etc., all make CS players hooked.

After experiencing this feeling, there is no going back, so most people choose to buy genuine games just to be able to fight on Battle.net.

Even if you don't have a computer, you can still play genuine games in Internet cafes, because in order to attract people, Internet cafes must use genuine serial numbers to activate Battle.net.These days, if you can't even play Battle.net CS in an Internet cafe, why would you open an Internet cafe?

From the acquisition of Ogilvy to the present, in just two months, the Half-Life game alone has sold nearly 500 million copies!

Does that sound exaggerated?
But compared to the huge base of domestic CS players, this number is a bit too small.

After all, there are still many students who do not own computers and can only go to Internet cafes to play. If personal computers become popular in a few years, this number will be even more exaggerated!

For example, in foreign countries, where copyright protection is better, the sales of stand-alone masterpieces are amazing, which may exceed the imagination of domestic players.

To give a simple example, the total sales volume of the Call of Duty series exceeds [-] million!
Call of Duty 16, the three-day sales revenue exceeded [-] million US dollars!

GAT5, just this one game, sold more than 60 million, with a total revenue of more than [-] billion US dollars, making it the most profitable game in history.

In contrast, the domestic game market still has great potential to be tapped.

Half-Life sold 500 million original copies in just two months, of which about 100 million were purchased by Internet cafes, and the price is relatively cheap.

But in this way, the 400 million retail version earned 4000 million yuan for the Facebook game, and the 100 million Internet cafe version also earned 500 million yuan for the Facebook game.

Calculated, Half-Life game earned 500 million RMB for the Facebook game in two months!

There are also games such as Diablo, Warcraft, and StarCraft. Although they are not as popular as Half-Life, because they are also online on Facebook Battle.net, the sales of genuine copies have also ushered in a wave of growth. Earned a small 1000 million for the Facebook game.

It only cost 2000 million RMB to acquire Ogilvy & Mather, and now not only has the investment been earned back, but also an extra 500 million RMB in net profit!

Ogilvy & Mather has been selling games for seven or eight years, but they haven’t earned 1000 million yuan, while Facebook games can earn several times in just two months. This is because the models and layouts are different, and the results are naturally different.

Yu Wenfei has invested in Star Technology and Facebook companies for so long, and each company is constantly spending money. Although except for the initial capital of [-] million, the rest of the money was paid by venture capitalists. Sooner or later, it is necessary to make a profit, and it is not good to keep losing money.

Separating the Facebook game separately is to let it take on the important task of making money. Now, the Facebook game finally has the first profitable department, which lives up to Yu Wenfei's expectations.

It's a good sign that Facebook Games is turning a profit.

(End of this chapter)