The Wind of China Entertainment 2005

Chapter 535 Buyback
"Big star, your tofu pudding and sugar-coated pancakes."

Lu Yuan thanked the shop owner and then looked at the steaming tofu pudding in front of him.

The white tofu pudding is topped with a layer of translucent orange-red sauce, which is bright in color and makes one salivate at the sight.

He picked up the browned sugar-coated cake with chopsticks and took a bite. The sugar coating on the outside was crispy, but the cake core was soft.

Then, he slowly stirred the tofu pudding with a spoon to make it blend perfectly with the marinade. He scooped up a spoonful and put it into his mouth together with the sugar-coated pancake. It was so delicious!
Gong Yu looked at his movements, feeling uncomfortable. She pursed her lips and said, "Why are you stirring it?"

As an authentic Beijinger, he felt that tofu pudding could not be stirred. If it was stirred, the marinade would be dispersed, messing up the taste and making it impossible to taste the original flavor of the tofu pudding.

"I loved eating it this way when I was a kid, and I'm used to it." Lu Yuan disagreed. There is also tofu pudding in the south, which mainly uses sugar water or honey as seasoning, similar to desserts. It will not taste good if it is not stirred.

It’s different in the north. Take Beijing for example, when locals eat tofu pudding, they will pour a layer of marinade on it.

The marinades of different ethnic groups are also different. For example, the vegetarian marinade he is eating now is made with daisy, black fungus, and gluten as the main ingredients. This is the marinade made by the Hui people. If it is a meat dish, it is made by boiling beef and mutton soup, and served with daisy, black fungus, eggs, etc.

The stew made by the Han people is mostly made by boiling shiitake mushrooms, pork slices, yellow sauce, aniseed, etc. and then thickening them with starch.

The above is narrated by Liu Shishi, who said she would get up early for a morning run last night but stayed in bed and slept in instead.

After swallowing a few spoonfuls of tofu pudding, Lu Yuan looked up at Gong Yu and returned to the topic.

"Tell me about it."

"The company's current intention is to buy back the shares you hold." Gong Yu said bluntly.

Lu Yuan was not surprised. When news of iQiyi and Providence Capital's contact came out in mid-last year, he was mentally prepared.

Baidu currently has very good development prospects. It is the leader in the domestic Internet industry and is unrivaled in the search field.

Before 2010, Baidu and Google jointly dominated the domestic search engine market.

In 2010, Google announced its withdrawal from the Chinese market due to sensitive content and its refusal to compromise.

Google's withdrawal is a godsend for Baidu.

Last year, in 2011, Baidu's market share soared, breaking through the unprecedented 70% in one fell swoop, setting a historical high, and its stock price reached 400 billion US dollars, making it the largest Internet company in China by market value.

Now, Baidu wants to make great strides in the field of video websites, and the premise for increasing its investment is definitely the hope of gaining full control over iQiyi.

Lu Yuan knew all this, so he was not surprised. He went straight to the point and asked, "What about the price? What did they tell you?"

Gong Yu was stunned by his straightforwardness.

In January 2010, when Baidu and Providence Capital jointly established iQiyi, Baidu used search traffic and brand investment to hold more than 1% of the shares, while Providence invested US$50 million to become the second largest shareholder.

Baidu is good at exchanging traffic for market share, and investing in traffic is one of its methods of external investment.

The strategic cooperation between Blueprint Copyright and iQiyi is an investment in content.

In the past two years, iQiyi has been overwhelmingly ahead of several other companies in terms of film and television content.

During this period, iQiyi has spared no effort to acquire high-quality film and television dramas on the market in the past two years, building its own copyright library, and has now achieved initial results.

But it is difficult to maintain long-term development relying solely on old dramas.

The essence of operations in the Internet era lies in attracting new users, retaining existing users, promoting activation, and converting existing users, and the same is true for video websites.

Let’s not talk about the latter ones for now. As the name suggests, attracting new users means attracting new users.

These require a steady stream of new hit TV series and movies to support them.

At the beginning of the year, the controversial "Palace Lock and Beads Curtain" was broadcast on Tencent. Although the heroine's acting skills were terrible, the drama brought a considerable number of users to Tencent Video, which proved this point well.

At a time when copyright prices are soaring, with TV dramas costing millions per episode, Blueprint Copyright is facing a financial crisis and is struggling in the copyright market. It is unable to provide new dramas and has little potential.

Last year, Blueprint spent only 2000 million to buy one drama, "The Legend of Zhen Huan". Although it was very popular and had an explosive number of clicks, it was far from enough.

Moreover, people in the industry had long heard that Blueprint had no plans to purchase new dramas last year, and Lu Jing went to disrupt LeTV, but accidentally bought "The Legend of Zhen Huan".

After all, in the eyes of many Internet practitioners, Lu Yuan is just a lucky guy who has snatched up a lot of film and television copyrights in advance.

Currently, the entire industry's profit expectations for video companies are soaring as advertisers' budgets increase rapidly.

Baidu is assessing the situation and believes that if it waits until iQiyi becomes profitable before discussing a repurchase, the price will inevitably be higher.

Therefore, management generally believes that the current blueprint is not that effective and it is time to take back the shares, even if it means taking a tougher stance.

Although Gong Yu felt that the company was a bit heartless in abandoning people after using them, from a business perspective, it was hard to blame. In business, maximizing profits is always the primary consideration for a company.

He didn't waste time and directly gave a number: "10 billion."

Lu Yuan frowned when he heard this. Considering the impact of the merger between Tudou and Youku, iQiyi's current valuation is about 16 billion US dollars.

His personal 18% stake should theoretically be worth RMB 19 billion.

Of course, the price of equity transactions often goes beyond simple market value calculations and requires comprehensive consideration of many factors such as market potential and company stability.

Against the backdrop of the market's generally optimistic attitude toward video websites, the billion-dollar offer seemed particularly shabby, as if the other party was testing the bottom line rather than making a sincere proposal.

Naturally, he couldn't accept such a price.

In a calm tone, he replied, "Too low."

Gong Yu calmly took out a tissue and wiped the corners of his mouth.

The offer of 10 billion yuan is relatively conservative, but considering that the blueprint copyright brought a return of billion yuan in just two years, compared with the investment, such a rate of return is already astonishing, and it would be enough to make people astonished if it were spread.

He changed his address and said, "Mr. Lu, we can still talk. This is just a preliminary discussion. Of course, if you are willing to sell the blueprint, the company is willing to double its offer."

Lu Yuan did not comment, but just lowered his head and stirred the tofu pudding slowly.

Seeing this, Gong Yu extended an olive branch: "You also know that in the era of content being king, without new dramas, there is nothing. This is the fate of video websites. The audience always craves new things. If possible, the company is willing to work with Yuanfang Media. In the long-form TV series track, you output the content and we provide a powerful broadcasting platform. This will be a win-win situation."

But this is not a reason for you to reduce the number from 19 billion to 10 billion, Lu Yuan replied in his heart.

The atmosphere was a little solemn, with only the gentle collision of the spoon and the porcelain bowl making crisp clinking sounds.

After a moment, Lu Yuan stopped stirring with the spoon in his hand, looked up, looked directly at Gong Yu, and suddenly laughed.

Gong Yu frowned, feeling somewhat puzzled. Just as he was about to speak, he saw the other party nod slightly and replied, "I will seriously consider it."

"If." Gong Yu continued.

"Let's eat breakfast first, otherwise it won't taste good if it gets cold." Lu Yuan waved his hand to interrupt.

At the same time, he looked at the paparazzi outside the window and had something in mind.

After separating from Gong Yu, Lu Yuan returned to the villa with the steamed buns.
Just after feeding Liu Shishi, I received a call from my brother-in-law Zhou Mingyuan.

He rushed to the community in a hurry.

"Dong dong dong."

"Who is it?"

"It's me, open the door quickly."

"Squeak." The door opened.

Zhou Qi stood on tiptoe, holding the door handle tightly. A tall and handsome man was standing outside the door. "Uncle." He called out obediently, and found that the other party was carrying a bag and his eyes were rolling non-stop.

Seeing his greedy look, Lu Yuan stuffed the orange into his arms, rubbed his head, changed his shoes and went into the house.

"If you mess with me, Baldy Qiang, I'll beat you up without mercy!"

"Xiong Er, run!"

The cartoon "Boonie Bears" was playing on the TV in the living room.

In the woods, two cute bears were avoiding the pursuit of Bald Qiang.

This cartoon was popular on the children's channel at the beginning of the year and has a good reputation. Not only children like it, but adults also love to watch it.

Zhou Mingyuan sat on the sofa, his legs casually draped over the coffee table, holding his phone, fiddling with something: "I'm here."

"Yeah, where's my sister?"

"Lu Jing dragged me to Xidan."

Today is the weekend. Lu Yuan walked around the living room and didn't see Yaoyao, the annoying little girl. He felt a little uncomfortable.

"Where's Yaoyao? Did she go with him?"

Zhou Mingyuan shook his head. Before he could open his mouth, Zhou Qi, who was peeling an orange and swallowing her saliva, took the lead and pointed to the bedroom with her little hand, complaining: "Uncle, my sister is sleeping in the room."

Hearing this, Lu Yuan raised his chin slightly and signaled with his eyes: "Go, wake her up and tell her I'm here."

Zhou Qi glanced towards the bedroom, eager to try, but then lowered his eyes and shook his head dejectedly.

"Don't you dare?"

"Yeah, my sister hit me." He lowered his head in fear and twisted his toes on the floor.

Lu Yuan couldn't help laughing and said, "It's okay, just run after you yell, and your uncle will help you close the door, so she can't catch up with you."

"Really?" Zhou Qi looked at him with clear and innocent eyes.

Lu Yuan pinched his face. He didn't know what the little brat had eaten in the morning, but his face was so sticky.

His expression remained unchanged, his smile still warm, he wiped his hands on his nephew's clothes, and promised solemnly: "Is your uncle going to lie to you?"

Zhou Qi believed it, clenched his fist, hesitated for a few seconds, then rushed to Zhou Yaoyao's room, turned the bedroom doorknob a little clumsily, and turned back to look at Lu Yuan, as if to confirm.

Lu Yuan smiled and nodded in encouragement.

Zhou Qi then mustered up the courage, opened the door and stepped into the room.

Lu Yuan leaned against the door frame and saw his silly niece lying on the bed in a strange sleeping position.

The quilt was thrown casually on the ground. In her arms, she held a fat cat with only its eyes open and a look of despair. One of the little guy's chubby feet was hanging on the edge of the bed.

As the door opened, the cat instantly regained its energy, jumped up from the bed, and slipped out as if escaping.

Zhou Qi tiptoed to the bed, trying not to make any noise, and softly called "sister".

Zhou Yaoyao was sleeping like a little pig, with her mouth slightly open and making soft snoring sounds, without any response.

Zhou Qi tried to push her gently again, but still to no avail. He looked at his uncle helplessly.

Lu Yuan encouraged him and said, "Speak louder."

Zhou Qi raised his voice carefully, but it was obviously not enough.

After a few times, Lu Yuan became impatient, walked into the room, and slapped the little guy on the butt.

"Snapped!"

Zhou Qi opened his eyes wide and was stunned. His uncle was so powerful.

Lu Yuan smiled and subconsciously wanted to pinch his face, but suddenly realized that it was inappropriate and quickly withdrew his hand. While his nephew was still immersed in shock, he quietly left the bedroom and closed the door with his heels.

"boom!"

Zhou Qi looked at the closed door, felt something was wrong, and slowly turned his head.

At this time, Zhou Yaoyao had already opened her eyes, staring with her round eyes and her dark eyebrows wrinkled.

Then he scratched his butt.

"Ouch~~"

Zhou Mingyuan was speechless as he listened to the ghostly howling coming from his daughter's bedroom.

Lu Yuan sat down next to him and glanced at the screen of his mobile phone. It was a two-dimensional game with a Q-version girl flying through levels, killing monsters and eating beans.

He watched for a while and found it boring: "You called me here just to watch this, what a crappy game."

"You don't know this." Zhou Mingyuan laughed and explained, "I met a few junior students from the class of 09 at school a few days ago. They just graduated this year. This game was made by them. I have heard of their names before. This time I had the opportunity to meet them and chat with them. I found that their technology is quite good."

"Oh? Tell me."

Lu Yuan knew that while he was in Hong Kong, his brother-in-law also returned to his alma mater to attend a symposium, and also planned to recruit several outstanding senior students for his own game studio.

Zhou Mingyuan put down his phone and said, "Last November, the Magic City University Student Science and Technology Entrepreneurship Foundation joined forces with 11 universities to hold the New Talent Entrepreneurship Competition, and they won third place."

"The first one is a chicken farmer, the second one is a medical equipment company, and they are the only gaming company."

"When their representative came on stage to receive the award, he proposed a concept called the Virtual Idol Project. He called himself a otaku and said that the target users of the game were also otakus. The game would solve the needs of otakus who are afraid to communicate with the opposite sex due to social pressure. Every otaku would have a virtual idol partner and say goodbye to loneliness."

Lu Yuan curled his lips. What the hell? Why does it sound so unreliable?

Zhou Mingyuan was not interested and summarized: "Let's not talk about whether the concept is good or not, anyway, the technology is very good."

"So, you plan to invite them to join?"

"Hmm." Zhou Mingyuan shook his head and said regretfully, "They are all influential figures in the school and are full of hope for the future. I also heard from them that they set up a studio in February this year and even applied for a delayed graduation in order to devote themselves to entrepreneurship. They are determined to follow this path to the end and will not join us."

At this point, Zhou Mingyuan felt emotional. He also had great ambitions when he just graduated. Unfortunately, for the sake of being conservative, he thought about finding a company to work for a few years first. As a result, the years quietly smoothed out the edges of his dreams.

"What about you..." Lu Yuan pointed at his phone, looking confused.

Zhou Mingyuan raised his eyebrows: "Their team originally had four people, one of whom received an offer from Cisco in early March. I want to try to poach him."

In the bedroom, Zhou Qi stopped screaming and Zhou Yaoyao stopped yelling.

Zhou Mingyuan looked over suspiciously. The child was so quiet, he must be doing something strange.

Lu Yuan urged unhappily: "And then?"

"Then, I talked to him about dreams, technology, and the future. I made big promises and offered him a salary higher than that of Cisco, hoping to lure him over. As expected, he rejected me. I can understand that, after all, he is Cisco. But maybe he was impressed by my technology and wanted to transfer his 13% stake in the studio to me."

"What studio?"

"MiHoYo."

(End of this chapter)