hollywood billionaire

Chapter 206 A Game of One Body and Two Sides
The reason why Han Yi proposed to acquire Paradigm first, and then revealed his true intention - to take down Cara Lewis's personal agency Cara Lewis Group - is everyone's guess.

The mentality of "Meet me halfway" is not only a unique way of negotiating for Chinese people.

Especially in the industry of performing arts brokerage.

Generally speaking, when performing arts agents receive an inquiry letter from a sponsor, they will never take the initiative to disclose the artist's specific performance fee, and at most set a roughly acceptable price range for the sponsor's reference.Because, when carrying out a commercial transaction in which the value of the goods is not fixed and the price is floating, whoever quotes first between the buyer and the seller will be at a disadvantage.

This is true whether it is in the most dilapidated street market in Dhaka, Bangladesh, or in a skyscraper with a glass curtain wall in New York, USA.

After all, if the negotiating opponents are the first to know the quotation, they can quickly calculate the budget range that you are actually willing to accept, and use this as a basis to adjust the pricing strategy in a targeted manner.

The price quoted is too low, so I will tell you that the price given is not enough, at least how many thousands of artists need to be added before the other side nods in agreement.

What if the quoted price is higher than the brokerage company's expected price, or the artist's historical highest transaction price in the performance market?That's embarrassing, the brokerage company will directly accept your offer, and will anchor your offer as the artist's next acceptable performance fee benchmark.

From their debut to becoming famous, musicians gradually increase their performance fees from US$20 to US$[-] to US$[-], which is accomplished through repeated games between brokerage companies and various purchasers.

In the actual operation process, the organizer will try to keep the initial quotation as low as possible, and the performing arts agent will quote the highest price as much as possible. After several rounds or even dozens of rounds of games, the two sides will finally "take a step back" and use a two-sided Both signed performance contracts at "barely acceptable" prices.

As for who withdraws more, who is more reluctant, and who is more accepting, each transaction is different.

For leather bags, cars, and even private jets, no matter how staggering the price, the seller must at least clearly mark the price, and there are similar products of the same level on the market as benchmarks for reference.The Mercedes-Benz S-Class you fancy is too expensive, so it doesn’t make sense to bargain with the dealer. You can also go to the next door to buy a BMW.

In short, the space for buyers and sellers to operate is limited, restrained, and traceable.

But performances are not like that. There are no identical people in this world, and of course there are no identical artists.Justin Bieber's streaming data is much higher than Eminem's, and even the former does more concert tours, but Eminem can triple Justin's asking price.How can there be any rules to follow in this phenomenon, how can there be any reason to speak of?

You've worked your whole life to cobble together enough $500 million to start your own music festival brand.Saving here and there, I am only willing to give $[-] to Diplo, the top guest you want to invite.

And another person in this world was born with a gold spoon in his mouth. He didn't know what it means to be short of money since he was a child. He didn't even take a commercial flight, and he traveled by private jet.For him, giving Diplo 50 yuan to play a disc for an hour at a birthday party with only [-] people is a small matter that can be done with a little pocket money.

Both are potential customers, which one will the entertainment agency give priority to? Does Diplo need a clear market quotation?
Many industry rules that seem unbelievable to outsiders actually have a rough but strong realistic foundation.

From this point of view, the board of directors of the United Artists Brokerage Company, these old fritters who have been immersed in the entertainment brokerage industry for many years, are the most familiar group of people on this planet who are familiar with words such as game, compromise, concession, and taking the middle value.

That's why Han Yi boldly adopted this negotiation strategy.

He knew that whether it was Jim Berkus or Jeremy Zimmer, he could receive the signal he wanted to send.

A Circle Talent Agency acquisition isn't enough for me.I don't ask you to accept the proposal of annexing Paradigm, which seems unrealistic at present, but buying another music management company is my bottom line.

If you don't accept Cara Lewis Group, find an alternative that will satisfy me.

And in this industry, how many companies can perfectly replace Cara Lewis Group?
At least Han Yi couldn't think of it.

First of all, the ownership of CLG's corporate equity is extremely clear, because this limited liability company established in New York has only one shareholder, Carla Lewis.Secondly, unlike UTA, which has hundreds of agents, each of which has clients who have followed him for many years, and the influence is quite complicated, every artist in CLG's client list is a direct client of Kara-Lewis.As long as Kara-Lewis is satisfied in terms of transaction conditions, subsequent economic treatment, and company positions, CLG's artist resources will be used by UTA very stably.

Satisfying the requirements of one agent, even if that person is Kara Lewis, is much easier than coordinating the distribution of interests among dozens of people at the same time

When The Agency Group was acquired last year, 95 musicians were managed by [-] management teams.

95 groups.

Thinking of this number, and the related translation, promotion, dismissal, and countless lengthy negotiations behind it, Jeremy Zimmer and Andrew Toh's scalp tingles.

The same nightmare, they don't want to experience it a second time within a year.What's more, the board of directors has initially reached a consensus that to acquire Circle Talent Agency, although the specific number of employees is not yet clear, judging by the scale, there are at least [-], [-], or [-] or [-] agents to deal with.

If it is necessary to meet Han Yi’s requirements and promote the acquisition of two music performing arts brokerage companies at the same time this quarter, then Cara Lewis and her Cara Lewis Group, in terms of the complexity of the transaction and the benefits it can bring to UTA after the transaction In terms of actual value, it is indeed a matter of course... er, the second choice.

Although the artist scale and annual revenue are not very eye-catching, so far, Cara Lewis Group has only represented 46 artists, and signed only 800 performance contracts in the first year of its establishment, not to mention UTA, even CTA Not even one, but don't forget, CLG is full of hip-hop artists that United Artists Management Company urgently needs, and quite a few of them are top-notch hip-hop artists.

Eminem, Pitbull, Chance the Rapper, Travis Scott, Ludacris, Pusha-T, Bryson Tiller.

Chance the Rapper's Magnificent Coloring world tour with more than 30 schedules, Travis Scott's total annual performance of 2015 performances in 70, plus four South American Lollapalooza music festival tours for Eminem, Cara Lewis Group's single game profitability is quite scary.

Among other things, the four music festivals in Santiago, Chile, Sao Paulo, Brazil, Buenos Aires, Argentina, and San Isidro, Argentina brought CLG $1200 million and $120 million income.

In the first year of its establishment, the company’s internal revenue was close to 350 million US dollars. More importantly, because of its simple internal structure, low management and operating costs, CLG’s EBITDA profit margin can reach an astonishing 64.3%. In other words, a pocket company with only one agent and digital assistants can generate a gross profit of US$225.05 per year.

This kind of cash flow is quite healthy, and the client list is very strong, which can effectively boost the profit margin, popularity and industry status of UTA's music sector. Even if the premium is 100%, it is worth more than 2500 million U.S. dollars. of.

Because, for the United Artists Management Company, what they value is not only the 800 performance contracts and the turnover of three to forty million US dollars, but after the logos of this series of superstars are placed on the artist list on the UTA official website, Can help them tell stories in the capital market.

Every internal director in the conference room, even Peter Benedek, who looks like Han Yi, has a secret goal in his heart, that is, in the next round of financing, to introduce one or more The new capital has become a force to check and balance Han Yi and Baihui Capital.

Now, Han Capital and Parkway Capital are barbarians that make the management team have to bow their heads and obey, because at this moment, only these two closely connected institutional shareholders have enough capital and shares to affect the company's development plan.

And what is the best way to deal with barbarians?

Bring another blood-drinking tribe to them.

Still the same wisdom and strategy, if you want to swallow wolves, you must drive tigers away.

In a company, a single big capital is fighting with the management. In most cases, it is the capital that has the last laugh.The reason is simple. The management is usually not monolithic. More often, they are like the current UTA. Several factions compete with each other, cooperate in competition, and compete in cooperation.In the face of team integration and capital with the same goal, it is difficult to form a joint force.

It is obviously unrealistic to break this predicament and let the management form a united front. After all, a company is an organization that seeks business opportunities and grabs benefits from market fluctuations and conflicts.And such fluctuations and conflicts will naturally spread within the organization, especially between core business departments.

The lack of resources and the nature of profit-seeking lead to group conflicts. This is the underlying logic of human society that cannot be changed in a short period of time.

Therefore, the most rational and pragmatic approach is to let the management also fall into the struggle.

One employer cannot fight, only two employers who are evenly matched in financial and material resources, have very different strategic goals, and are both interested in controlling the company, will fight over the distribution of the cake, so as to give the management team room for mediation .

In other words, it is now Han Yi who sees Jim Berkus, Jeremy Zimmer, and Peter Benedek fighting among the three giants. No matter who he favors and who wins in the end, he can get benefits.

And the thinking of the Big Three is that you, Han Yi, don't even think about it.Just invested in, became the largest institutional shareholder, want to strongly influence the company's development direction?no problem.Do you want to buy a music agency? OK.Cultivate your own cronies and influence in the music sector in this way?Please feel free.

As long as the acquisition of Paradigm is not forced to use more funds, it will eventually lead to UTA’s board of directors accepting more investment from Han Yi, making his influence so huge that it is out of control. Small goals", the Big Three are willing to nod.

You must know that getting into Circle Talent Agency and Cara Lewis Group can help not only the proposed promoter Han Yi.

A stronger music business line equals a higher valuation.

A higher valuation equals more interested parties.

More interested employers equal to chaos.

When Han Capital and Parkway Capital want to fight against a larger Wall Street consortium, Han Yi will have to surrender a large part of his interests to the existing management team in exchange for their support.

There is no doubt that Han Yi's opponent will do the same.

The spoils you get when you are proud, when you are in prison, you have to spit them out one by one.

Spend the money you invested, increase the value of the investment target, and then introduce new investors through the resolution of the board of directors, weakening your power.

So far, Han Yi's shareholding in UTA has been all based on conspiracy.

Correspondingly, the three giants of UTA took advantage of the trend to check and balance Han Yi's strategy, which was also a conspiracy.

One body with two sides, inseparable.

Therefore, it is actually not too difficult to get the twelve board members to reach an agreement to attack CTA and CLG at the same time.

Because everyone feels that they will be the big winners of this acquisition.

"Yi, I think your proposal to acquire Cara Lewis Group is more pragmatic. Although this brokerage company is small in scale, its influence and strength in the music industry cannot be underestimated. By merging Cara- With Lewis and her team, we can further consolidate UTA's position in the music field and become a powerful force in the music field. This is a promising and very feasible direction at present, and I am in favor of it."

After drawing a general strategic framework for himself in his heart, and the stakeholders that need to be contacted immediately, Jim Berkus showed a smile that was sincere and enthusiastic that he had not seen for a long time.

"Jim, I have to say that I agree with you unreservedly this time, Kara Lewis... really provided us with a valuable development opportunity, and the amount of capital required was within the scope of the company's affordability. Guilt. This is, without a doubt, an investment goal we should pursue. Yi, thank you for enlightening us, and Jim, I thank you for your unwavering and passionate support.”

After saying this, Jeremy Zimmer looked at Peter Benedek with a smile, waiting for the latter's response.

"You know me, Jeremy, I trust Yi's investment vision very much. It can be seen from investing in UTA that he is a genius investor..." Peter Benedek is still full of words, no one is right. He looks like an old urchin, "I will fully support any suggestion he makes."

"Thank you Peter, it is wonderful to be recognized by the most senior person in the industry."

Han Yi leaned over exaggeratedly, patted the shoulder of Peter Benedek who was sitting on his left, and shook hands cordially.

“I am deeply humbled and grateful for the full support you have shown for both the proposed acquisition of Cara Lewis Group and the Circle Talent Agency. Seeing that when we come together we are able to envision a brighter future for UTA. It’s really exciting for the future. I’ve always believed in the collective wisdom of this team, and today’s situation confirms that again.”

Han Yi, who spread his hands open, seemed to be very happy and satisfied that the Big Three agreed with him.

"Now, with the same spirit of teamwork, I would like to open the conversation and return this table to our hard-working management team. I am eager to hear your strategic proposals, as well as your thoughts on how to further drive UTA forward."

"Let us continue this journey together to chart the best course for UTA's future."

(End of this chapter)