Hong Kong: Rise of the Kings.

Chapter 978 0966 [Acquisition of Jiayi]

The Peninsula Hotel, Kowloon——
Deluxe Room.

A mixed-race man in his fifties turned on the faucet and waited for the turbid water to flow for a while and then became clear before splashing cold water on his face. In the bright mirror, his eyes were bloodshot and his face looked extremely tired.

He is the current general manager of ATV and also a famous entertainment tycoon in Hong Kong - Ho Cho-chi.

Ho Cho-chi is the illegitimate son of Ho Tung, a famous Hong Kong businessman. He studied at King's College in Hong Kong, then went to the United States and graduated from the University of California, Berkeley. After returning to Hong Kong, he worked as an employee at Sang Kee Property Management Company under Ho Tung.

Soon after, he was transferred to Ruitai Trading Co., Ltd. as a manager, and later he established Zod Company in a joint venture with Shanghai businessman Miao Weide, which represented foreign wines, cameras, home appliances, etc., and the business was booming. Later, he lobbied Sir Roberto Lobo, a Macau businessman, to jointly operate the Macau Green Village Radio Station.

In 1959, the Hong Kong government announced a tender for the hosting of a commercial radio station. He asked Executive Council members Law Man-wai and Tang Shiu-kin to be directors, and he submitted the bid for the hosting, which developed rapidly.

In 1975, He Zuozhi entered the television industry and founded Jiayi Television. After its launch, the TV station became famous!

Unfortunately, the good times did not last long. Who would have known that Jiayi TV has been on the verge of losses since its establishment?

In fact, this is also Ho's own fault. One of the conditions for the Hong Kong British government to issue a license to ATV was that ATV should use part of its time to broadcast educational programs, so that from 2pm to 6pm and from 9pm to 11:30pm, it could be used for teaching. However, these programs were not popular with the audience, and the ratings dropped, resulting in a sharp drop in advertising revenue.

He Zuozhi was also an ambitious man. In order to increase ratings, he spent huge amounts of money to shoot large-scale TV series. For example, he persuaded other shareholders to make Jin Yong's first martial arts TV series "The Legend of the Condor Heroes", claiming that the investment in filming would definitely allow Jiayi to reach a higher level and get rid of losses.

Facts have proved that this drama is indeed very popular. The TV program was well-produced with strong funding, allowing Jiayi's leading actress Michelle Yim and actor Bai Biao to shine, and the ratings also far surpassed ATV and TVB.

Unfortunately, when I saw the financial statements last night, I found that we were in the red again!

The reason is that the TV series are broadcast at the wrong time. Even if many advertisers invest in it, the audience will change channels at this time.

In the end, advertisers called and announced that they were withdrawing all their investments.

Those damn educational programs really can't retain viewers, which makes the TV station's advertising revenue increasingly less. In addition, the cost of investing in the TV series this time is too high, and the loss is even greater when the two are compared.

Last night, He Zuozhi stayed up late in this hotel to finish reading the information in his hands. The more he read, the angrier he became, especially when he saw the TV station's profit and loss figures. He almost got high blood pressure due to anger.

Looking at his extremely haggard self in the mirror, He Zuozhi sighed and said, "How can I explain this to the other shareholders? I boasted a lot at the beginning, saying that doing this would definitely take the TV station to a higher level, but now - hey, the hole is getting bigger and bigger!"

Boom boom boom!
Boom boom boom! "

There was a knock on the door.

Without waiting for the female secretary in the living room to open the door, He Zuozhi quickly walked out of the bathroom, made a hushing gesture to the female secretary, and then signaled her to go over and take a closer look before opening the door.

He Zuozhi did this because he was afraid that other major shareholders would come to him and hold him accountable.

He had had enough of the blame.

I am even more fed up with the consequences of my own wrong decisions.

That's why he chose to hide in the hotel, in the guest room, to avoid being found by those people at the TV station or the company.

The secretary was a slim Western woman. She had been with He Zuozhi for many years and of course understood what He Zuozhi was afraid of.

Sometimes the words of shareholders are sharper than swords and can hurt people without them even realizing it.

She also felt very sorry for the boss He Zuozhi. Since he founded the TV station, he had never had a comfortable night's sleep. Even when hiding in a hotel, he could only live in fear.

The female secretary walked to the door in her high heels, looked out through a nail hole in the door, turned back and nodded at He Zuozhi who was looking at her: "It's Mr. Du who made an appointment with you on the phone."

"Du Yongxiao?" He Zuozhi was stunned for a moment, his mind working rapidly.

Last night he suddenly received a call from Du Yongxiao in the hotel.

Du Yongxiao briefly introduced himself, which surprised the originally defensive He Zuozhi. He didn't understand why the first Chinese Commissioner of Police in Hong Kong and the tycoon of the Du Group wanted to find him.

Du Yongxiao went straight to the point and said that he was very interested in Jiayi Television.

After hearing this, He Zuozhi immediately became happy, thinking that Du Yongxiao wanted to invest in Jiayi TV and become a shareholder. This was a great thing, as they were worried about insufficient funds.

Du Yongxiao decided to stop while he was ahead and said they would meet at the hotel tomorrow to discuss the details.

He Zuozhi was originally troubled by many things, and now someone was willing to invest in Jiayi, which was of course a good thing, so he agreed without thinking.

"Hurry, open the door quickly! Invite Mr. Du in!" He Zuozhi was overjoyed. He didn't expect that Du Yongxiao was not joking and actually came to him.

The female secretary opened the locked door. Outside, a young man in his mid-twenties, handsome and elegant, exuding the aura of a superior, walked in. He smiled before he spoke, with a friendly smile on his face: "Boss He..."

He Zuozhi hurried over and shook hands with him, saying, "Mr. Du! I didn't expect you to come!" He turned around and told the female secretary, "Please bring me two cups of coffee, thank you!"

Then he invited Du Yongxiao to sit on the sofa in the living room and said tentatively, "When I heard you call me last night, I thought you were joking. I didn't expect that Mr. Du is such a sincere person that he actually came today!"

"Boss He, please forgive me for making fun of you! I am a man of status after all. I am serious about my work and I dare not joke around. Now, let me make it clear to you once again that I am really interested in Jiayi Television, which you founded."

Du Yongxiao looked serious, sat on the sofa and spoke with a smile.

He Zuozhi rubbed his hands together with an expectant expression, but he finally sighed, "Although I don't quite understand why Mr. Du is interested in Jiayi, but... it's better to be sincere when doing business. Jiayi's current financial report is in the red..."

He Zuozhi hesitated for a moment, but still told Du Yongxiao about Jiayi's current dire condition.

Du Yongxiao nodded without saying anything.

He thought that He Zuozhi would talk about the benefits and advantages of Jiayi, but he did not expect that Boss He would take the initiative to reveal his family background and the fact that Jiayi was not doing well. This made Du Yongxiao admire this man. He was worthy of being the son of Sir Robert Ho Tung, the King of Macau, and he was responsible in his work and life.

He Zuozhi finished speaking, smiled bitterly and said, "After saying this, you may praise me for being responsible, but the fact is not so. If I was really responsible, I would not be hiding in this hotel suite to read the financial statements - I am afraid, really afraid!"

He recalled that every time the financial statements came out, the shareholders would rush to his house and loudly criticize him for all his foolish decisions, such as agreeing to the unreasonable demands of the British Hong Kong government, giving up a good time slot, and persuading them to spend money to make a TV series. In a word, every decision he made seemed to be wrong. He Zuozhi wanted to defend himself, but found that he had no reason to defend himself.

Because those decisions have proven to be really wrong.

"So am I in a very miserable state now? Am I like those defeated soldiers who were forced into Diaojing Ridge back then?" He Zuozhi smiled bitterly, looking somewhat pitiful.

Du Yongxiao stared at him, and waited until he had vented his emotions before he said, "Boss He, I know your current situation very well. I'm not saying this to make fun of you or look down on you, but running a TV station is the worst choice you've ever made. You made one mistake after another, and didn't do a good job of increasing revenue and reducing expenditure. Instead, you spent a huge amount of money on making TV series, thinking you could win back advertisers. In fact, doing so will only make your losses bigger and bigger. The reason is that advertising also requires good time slots. You've essentially entered a vicious circle."

He Zuozhi's face turned ugly, but he had to admit that what Du Yongxiao said was right.

"I know that you keep shooting excellent TV series in order to change your fate. You want to win the audience and advertisers' favor by relying on high quality. I don't believe that Jiayi will continue to lose money like this, but I can guarantee that if you keep doing this, Jiayi will go bankrupt in three years at most."

"You--" He Zuozhi stood up suddenly and glared at Du Yongxiao. Du Yongxiao's words were a bit too much and hurt his self-esteem.

"Don't get excited, Boss He! I told you before that I came here to help you, not to provoke you!" Du Yongxiao said as he took out a brown paper briefcase from his pocket and handed it to He Zuozhi, "Maybe the contents inside can help you."

He Zuozhi walked over quickly, picked up the briefcase, opened it, and took out a plan from it.

The plan was only a few pages long, but He Zuozhi's hopes were pinned on these six thin sheets of paper.

He looked through it carefully.

His expression changed from excitement to surprise, then from surprise to astonishment, and finally to a complicated expression, with his face changing from gloomy to bright.

This is an investment plan. Du Yongxiao clearly wrote on it that he was willing to spend a huge amount of money to acquire 50% of the shares of Jiayi TV Station, which would be equivalent to becoming the de facto president and person in charge of the TV station.

However, the purchase price was extremely low, so low that even He Zuozhi could not stand it. The shares were originally worth 18 million, but Du Yongxiao was only willing to pay 6 million, directly cutting it by two-thirds. It felt like Du Yongxiao was "taking advantage of the fire."

Secondly, the plan also states that if He Zuozhi is willing, he can continue to be a shareholder of the TV station. If he is not willing, he can sell all his shares and withdraw from Jiayi.

The main reason why He Zuozhi looked uncertain was that the purchase price was only one-third of his investment in Jiayi at that time.

"Impossible, your acquisition price is too low, so low that I don't know how to describe it!" He Zuozhi grabbed the plan and looked at Du Yongxiao.

"You can describe it as taking advantage of someone's misfortune. It's okay, I don't mind." Du Yongxiao smiled slightly, his expression calm.

He Zuozhi's female secretary next to him saw for the first time a young man who could control the overall situation and be calm and composed. She didn't understand how he cultivated it?
"Boss He, I understand your thoughts and your ideas. You founded Jiayi, and even if it suffers heavy losses, you are unwilling to sell it cheaply. After all, you still have fighting spirit and want to continue to fight, right?" Du Yongxiao took out a box of Marlboro cigarettes from his arms and handed one to He Zuozhi.

He Zuozhi gritted his teeth and snorted coldly: "I want to continue to gamble. After all, no one can predict the future of business."

Du Yongxiao nodded in understanding: "I understand, I understand. Boss He doesn't treat the TV station as an entertainment program, but as a casino! So many bets are made to make you lose unconvinced. Maybe the last few bets will turn around and you will win three prizes in a row! Luck is something that no one can predict, right?"

It seemed that Du Yongxiao's attitude was too gentle, allowing He Zuozhi to vent his resentment without worry. He walked around the room a few steps: "You are the Commissioner of Police, and also the President of Du Group. Logically, you are also a businessman. Since you are a businessman, you should understand that sometimes doing business really depends on luck. Good luck and bad luck are half and half..."

Du Yongxiao continued to nod: "No one can predict luck. But do you think Jiayi's losses are just bad luck?"

"Uh, this--" He Zuozhi was stunned, only then he realized that Du Yongxiao had led him into a ditch.

Du Yongxiao smiled and said, "To be honest, I am taking a big risk by purchasing half of Jiayi's shares for six million. If you continue to run Jiayi at this rate, the losses will only get bigger and bigger. By then, let alone one-third, I don't think anyone will be willing to take over this mess."

He Zuozhi was about to speak, but Du Yongxiao stopped him: "Please let me finish what I'm saying."

He Zuozhi opened his mouth, snorted coldly, sat back and looked at Du Yongxiao.

"In the final analysis, what you care about is not the price, but the face issue! You founded Jiayi, but you sold it in less than a year. You are unwilling to accept it, and you are even more afraid of being laughed at. Is that right?"

He Zuozhi was hit on the spot and avoided looking at Du Yongxiao.

Du Yongxiao continued: "So I have a solution that has the best of both worlds—"

"Speak!" He Zuozhi lost his temper. He didn't understand why Du Yongxiao was so young, but his words and deeds were so sophisticated? He was even more experienced than an old fox.

"I will acquire 50% of Jiayi's shares, and you will withdraw to become a minority shareholder. I will announce to the public that Jiayi has undergone reforms. As for the other shareholders, I promise you to add another two million to the purchase price just now, making it a total of eight million. It's auspicious, how do you say?"

He Zuozhi hesitated.

For him, passing on the blame is the best option at the moment.

As long as I don't quit the TV station immediately, I can tell the outside world that I'm still working hard and save my face.

As for other shareholders, they can withdraw or not, because this TV station is a big black hole anyway.

Seeing that He Zuozhi was still hesitating, Du Yongxiao stepped up his firepower: "Well, the opportunity is fleeting! Moreover, as far as I know, Jiayi is not only losing money, but also has a large foreign debt, at least three million. If I acquire 50% of the shares, I will have to bear half of this debt, which is one and a half million. Add to that the miscellaneous expenses, such as actor salaries, staff salaries, etc., and it is estimated that it will be another large expense. After all the calculations, it must be tens of millions! Therefore, you are not at a disadvantage, but you are transferring the biggest risk to me..."

He Zuozhi was really shaken. He licked his slightly dry lips, looked at Du Yongxiao seriously for the first time and said, "I only have one question that I'm curious about now."

"Speak!" Du Yongxiao gestured as he picked up the coffee.

"Since you knew Jiayi was a big black hole, why did you acquire it?"

Du Yongxiao was slightly startled when he heard this, and then said: "Because I love Jiayi."

He Zuozhi closed his eyes and said, I don’t believe you!
But what Du Yongxiao said was true. In his previous life, he had watched many TV dramas produced by Jiayi and felt extremely sorry for this meteor.

While controlling the power of entertainment broadcasting, he really wanted to save the TV station, and he had already thought of a way to save it, which was to renegotiate with the British Hong Kong government, cancel the conditions placed on ATV, and take back the production rights for the prime time.

Given Du Yongxiao's current status and position, the British Hong Kong government should seriously consider his opinion, otherwise Du Yongxiao would not mind a Hong Kong-wide strike.

In this way, Jiayi was revitalized and Du Yongxiao became a new entertainment tycoon. So, doesn't it mean that he really loves Jiayi?

(End of this chapter)