This star is wrong

Chapter 555 A Cooperation, One Stone Causes Thousands of Waves
Fang Xing likes the gambling agreement the most.

For others, a [-]-[-] bet on winning or losing, the other party wakes up and says, is just the difference between being stable and being more stable.

Moreover, the VAM agreement can also be signed in stages. For example, if the data of the first stage is reached, the terms of the first stage will take effect.

There may be a second stage and a third stage in the future.

Of course, the further you go, the more difficult it is to achieve.

Gong Jianbin's requirements for the first stage of gambling are actually not high, as long as the broadcast volume of the filmed drama reaches the passing line, it can be fulfilled.

Of course, the requirement is easy to meet, which means that the benefits are not high.

If only the first stage of broadcasting results is achieved, Ark Culture can still buy shares in Pea Video, but only 10% of the shares can be acquired, and it needs to be exchanged with shares of Ark Culture.

The current valuation of Ark Culture is around 100 billion, which is basically a 1:1 share exchange.

With a 10% stake in Pea Video, you can only be the fourth shareholder.

If it can only reach this level, Fang Xing is actually not very interested.

However, there are still two stages of betting ratios.

The second stage is that Ark Culture acquires 20% shares of Pea Video, but it also needs to exchange shares of Ark Culture 1:1.

In fact, this condition can barely be agreed.

With the current development momentum of video websites, the valuation of video websites will continue to rise in the next few years, and can easily double, triple, or even triple or quadruple.

Of course, the best strategy for investment and mergers and acquisitions is to obtain maximum benefits at the minimum cost.

Therefore, the third stage clause of this VAM agreement is that Ark Culture acquires 20% of Pea Video, of which 10% is acquired with funds, the amount is about 12 billion, and the other 10% is exchanged for shares.

It's just that the playback volume requirements for the third stage are a bit outrageous. Other film and television companies would not consider the playback volume requirements for the third stage at all. The playback volume requirements for the second stage are already a big challenge.

The overall framework of this VAM agreement can be signed, but the details need to be discussed.

Of course, this M&A case cannot be settled in one meeting. It is also necessary to discuss whether the M&A is beneficial to the company's development, and then calculate the cost of the M&A, which is the most appropriate.

……

The reason why Fang Xing is willing to discuss mergers and acquisitions with Pea Video is mainly because of the development of Ark Culture. The continuous output of film and television works really needs a stable broadcasting platform.

The current largest shareholder of Wandou Video is Gong Jianbin, and the second largest shareholder is Zhishu Group.

Therefore, in the investment industry, by default, Pea Video belongs to the Zhishu company.

However, since Gong Jianbin is the largest shareholder, chairman and CEO of Wandou Video, Wandou Video has strong autonomy.

Wandou Video can obtain diversion from the smart number platform.

Traffic diversion is a baseline for current video websites. Only by maintaining traffic import can the number of users be maintained.

The same is true for Penguin Video, which needs to rely on other platforms of Penguin Group for traffic import.

In the current Internet environment, it is difficult to develop a website without a traffic portal.

If Ark Culture acquires 20% of the shares of Wandou Video, it will become the second largest shareholder of Wandou Video, surpassing Zhishu Group in terms of shares.

This merger is a multi-party game.

Moreover, from the current point of view, it is a win-win situation, and it depends on who wins more.

According to the broadcast volume requirements of the three stages of this VAM agreement, if the broadcast volume requirements of the second stage are met, the interests of both parties will be relatively balanced. If the broadcast volume requirements of the third stage are met, then Ark Culture will win more.

After an initial exchange of views, the first M&A negotiations were concluded.

……

After returning to the company, Fang Xing held a high-level meeting to discuss the feasibility of this merger.

He Hongtian, director of the investment department, first expressed his opinion: "I think this merger and acquisition is feasible. In the past two years, video websites have developed rapidly, and watching TV programs on video websites will be the general trend in the future.

"From the perspective of company resources, the development of Pea Video is very good, and there is a high-quality content producer, Pea Video.

"There is still a good traffic entrance, Zhishu Group.

"Therefore, judging from the various data of Pea Video, it is a high-quality investment project.

"In the investment industry, there is another strategy, which is to invest in people.

"I have known Gong Jianbin for a long time. He is capable, courageous, and has a good vision.

“With Wandou Video in his hands, the development prospects will not be bad.

"So, I think this merger and acquisition case is feasible, and what needs to be discussed is the specific merger and acquisition plan."

Ben Jieren is the CEO of Nebula Special Effects. He joined the company in June last year, and single-handedly set up the company's framework for Nebula Special Effects.

The CEO of Nebula Special Effects was introduced by a headhunter. Fang Xing met with him and both parties reached a unified goal to become the strongest special effects company in China.

With this vision in mind, Ban Jieren joined Nebula Special Effects as CEO with a modest salary.

Of course, he has the option of nebula special effects, if the nebula special effects can be developed, he will get a lot.

One of the reasons why Fang Xing wanted to invest in Pea Video was because of Nebula's special effects.

Nebula special effects want to develop, not only need to spend money, but also need to feed it with projects.

As a new special effects company established for a year, no film and television company would hand over important special effects projects to Xingyun.

Therefore, Fang Xing needs to invest in Pea Video, and then feed it to Nebula Special Effects from Pea's self-made drama to raise it.

The high-level meeting discussed a general direction, and basically confirmed the plan to invest in Pea Video. The specific agreement value is calculated by the investment department, film and television production department, and marketing department.

……

Regarding the M&A talks between Ark Culture and Pea Video, it is difficult to hide it. After two days, everyone who should know will know.

The most vigilant is Penguin Video.

At present, Penguin Video ranks first among the three major video sites, thanks to the support of the parent company behind it, but the self-made content has not developed for a long time, resulting in a lot of pressure.

In addition, the strength of the taro video and the pea video are not much different.

Therefore, the competition between the three major video websites is very fierce. As long as one party stays still, it will be surpassed by the other two.

There is even a Xiangguo Video behind it. As long as the top three video sites have a few more stupid tricks, they may be overtaken by Xiangguo Video at any time.

Therefore, Li Xueying was the first to feel the danger when Ark Culture and Pea Video were talking about buying shares.

Li Xueying immediately invited Fang Xing to drink tea, wanting to find out what's going on:

"Mr. Fang, are you really going to invest in Pea Video?"

"Mr. Li received the news so soon?"

"The most popular film and television company in the industry is talking about mergers and acquisitions with Pea Video, one of the three major video websites. This level of mergers and acquisitions makes the industry tremble." Li Xueying joked first.

"I met and talked with Gong Jianbin at least once. I'm not sure if it will work." Fang Xing replied casually, with a relaxed expression on his face.

Li Xueying continued to test: "Is this the strategic level cooperation that Mr. Fang said?"

At the beginning, when she wanted to broadcast "Dark Glory" exclusively, what Fang Xing said was to cooperate in the company's strategy, but in fact it probably meant to talk about shareholding.

With the subsequent results of "Dark Glory", strategic cooperation is completely worth it.

According to Li Xueying's years in the online video industry, she can be sure that if Penguin Video broadcasted "Dark Glory" exclusively, at least it could widen the gap with Pea Video and Xiangtao Video, and even completely open up overseas markets.

However, there are no ifs in this world.

Before "Dark Glory" started broadcasting, Li Xueying and Penguin's viewing group only dared to say that the show would be popular, but they didn't know that it would be so popular that it would kill all Netcoms.

What's more, it's not Li Xueying, or even the president of Penguin Video, who has the final say. It depends on the face of the Penguin Group.

"Actually, some things are doomed from the very beginning. Pea Video can talk about shareholding because Gong Jianbin can call the shots and has courage. Penguin Video has no one to call the shots, so it's impossible to negotiate." Fang Xing spread his hands.

Li Xueying also had to admit this.

She has worked in Penguin Video for so many years and is very familiar with the investment strategy of Penguin Group.

When Penguin Group takes a fancy to a company, it will try its best to acquire shares in the company, but it will rarely sell shares in its subsidiaries.

In fact.

Xu Guangyi, CEO of Penguin Investment, expressed to Fang Xing more than once that he wanted to invest in Ark Culture.

However, Ark Culture has developed very well and has not encountered a bottleneck. It has become a top company in the entertainment industry in one fell swoop, and only has the opportunity to invest in other giants.

After meeting Li Xueying, the next day, I received an invitation from Xu Guangyi.

Xu Guangyi is the CEO of Penguin Investment, and Xu Guangyi's team is responsible for the investment plan of Penguin Group.

After all, we are old acquaintances, so we still have to meet by invitation.

When Fang Xing met Xu Guangyi, Li Xueying was with him, and Penguin Video's new CEO Qiao Zhongmin was also there.

After all, if the merger between Ark Culture and Wandou Video is concluded this time, Penguin Video will definitely be hit the hardest.

Not only the future film and television dramas, but also the copyright of previous film and television dramas may also change.

For example, "Wulin Biography" has been broadcast on Penguin Video for three and a half years, and it has also dominated Penguin Video's comedy category list for three and a half years.

The copyright of this drama is signed for five years, that is to say, the copyright of this drama has to be re-signed in one and a half years.

If Pea Video and Ark Culture reach a merger, then the copyright of "Wulin Biography" may not be available to Penguin Video.

There will also be TV series produced by Ark Culture in the future. If Penguin Video wants to compete, the difficulty will continue to increase.

If there are a few more TV series of the level of "Langya Bang", "Dark Glory" and "Hurricane", the development of Pea Video will be very rapid.

Therefore, Penguin Video felt the crisis. President Qiao Zhongmin, Vice President Li Xueying, and Penguin Investment President Xu Guangyi invited Fang Xing to dinner together, wanting to hear the news.

"Boss Fang is really stomping his feet, the film and television industry is shaking three times." Xu Guangyi joked first.

"I'm just planning the company's development direction, but I didn't expect to alert the three bosses." Fang Xing answered with a smile.

"It doesn't matter if you don't want to be alarmed. Mr. Fang is going to take a stake in Pea Video, and the structure of the video website will have to change." Qiao Zhongmin, the president of Penguin Video, sighed.

"We've just started talking, and we haven't written a word yet." Fang Xing replied casually.

"Based on my general understanding of the other party, Fang Xing has always acted vigorously and resolutely. When he bought Huahuo Media, it was just a meal." Xu Guangyi joked.

"After all, it's a 5000 million acquisition, and Boss Tao is easy to talk about. This time, it's a multi-billion cooperation. How can it be so fast." Fang Xing said so, but in fact, after the investment department calculates the contract value, this merger The case can continue to be discussed.

If you want to be fast, you can be fast.

Xu Guangyi stopped playing around and asked, "Mr. Fang thinks there is still a possibility for us to deepen our cooperation?"

Fang Xing replied noncommittally: "This... depends on how we cooperate."

Xu Guangyi continued: "Our group has invested in Ark Culture."

Fang Xing shook his head: "Mr. Xu seems to have proposed this proposal for the fourth time."

Xu Guangyi shook his head: "Mr. Fang, listen to what I have to say. This time it is a premium, and the premium is very large. The valuation can reach this amount."

As he spoke, he stretched out a finger, patted the back of his hand, and then spread his five fingers and patted it again.

Fang Xing understood what he meant, this is a valuation of 150 billion for Ark Culture.

At present, Ark Culture has not really entered the investment industry, so all valuations are only calculated.

The valuation offered by the investment industry to Ark Culture is currently around 100 billion.

This valuation is actually not low.

Because Guangguang Entertainment is owned by Fang Xing and Tong Fei, not Ark Culture, Huahuo Media is indeed a subsidiary of Ark Culture, but currently there is only one popular artist, Wang Kai, and the valuation will not exceed 8000 million.

Nebula Animation and Nebula Special Effects are indeed subsidiaries of Ark Culture.

However, Nebula Special Effects has only been established for a short time, and the special effects company burns a lot of money in the early stage. If it fails to develop in the end, it will be a pure loss.

Therefore, when calculating the valuation, Nebula special effects are negative assets.

Besides.

Fang Xing also has a Linjiangxian Resort Villa under construction in his hometown of Baitang Town.

This holiday villa is owned by Fang Xing personally, and part of the shares has been transferred to Fang's parents and mother.

In addition, Fang Xing also has a 20% stake in Songshi Records.

Calculated in this way, the valuation of Ark Culture is basically only the valuation of Ark Culture, Nebula Animation and Nebula Special Effects. The valuation of 100 billion is very accurate.

Of course, this 100 billion valuation does not include Fang Xing's personal value, and the potential of Nebula animation and Nebula special effects.

If it is only valued at 100 billion, it is impossible for Fang Xing to agree to Penguin Group's investment.

However, Fang Xing did not expect Xu Guangyi's valuation to be so much a premium.

in fact.

For an investment like this where one party takes the initiative and the other party is indifferent, a premium is inevitable.

However, Xu Guangyi offered a valuation of 150 billion, and the premium was too much, a full 50% premium.

Because the premium was too high, Fang Xing didn't know how to answer for a moment: "This..."

Fang Xing was indeed taken aback at first, causing his brain to short-circuit for a moment, but he quickly figured it out.

With such a high premium, the Penguin Group will definitely add restrictive clauses to the contract, such as restricting how many movies and TV series Fang Xing can make that meet the standards each year.

"Mr. Xu, thank you for your kindness. It's just that Ark Culture does not lack funds, so it doesn't need investment."

Fang Xing is now ready to buy the shares of the video website, there is no shortage of funds at all, so there is no need for investment.

Penguin Group has invested in many companies in the entertainment field, from live broadcast to film and television to short videos, investing in various fields.

That's because these companies need to burn money crazily when they expand their markets in the initial stage, and they can't survive without investment.

However, the development of Ark Culture does not need to burn money, and even the application for bank loans is not much, and bank loans are used for the second phase of the headquarters park.

Therefore, even though Penguin offered a high premium, Fang Xing still refused.

(End of this chapter)