Reboot 2003

Chapter 129 036: Split-Off and VIE Architecture
To say that the company's strategic U-turn this time, the most important thing is to spin off Galaxy Music. After all, the business of the people on the two sides is fundamentally different, and it is useless to gather together for meetings.

Recently, the software department has a lot of new tasks of their own, and there is no time to cooperate with the music, so it is reasonable to separate.

It's just that I didn't expect the boss to order Galaxy Music to be a subsidiary of Galaxy Software, which is a bit surprising...

Generally speaking, there are three plans for a company split, namely Spin-Off, Split-off, and Crave-Out. The difference is mainly reflected in the capital level, which is meaningless to Galaxy Software. Since the company’s equity is simple and there is no plan to introduce new investors, no matter how the split is performed, it will actually have no impact on the capital level.

In contrast, the important thing seems to be on the management level—usually, since the equity is so simple now, the company has been separated long ago, and it is enough to directly spin-off, that is, spin off the music department.

But the boss chose to split-off, and made the split Galaxy Music a subsidiary of Galaxy Software.

This doesn't seem like a good idea—the company's management model implements a dual-track system with layers of responsibility and business and personnel independent of each other.

Under such circumstances, even if Galaxy Music, which is the main business of the company, cannot be the parent company of Galaxy Software, it must be operated independently by both parties, rather than Galaxy Software as the parent company of Galaxy Music...

"This is to set up a VIE structure for the company. In the future, all of our companies will be registered in the form of a VIE structure. Galaxy Music is like this. Future browsers, input methods, and many other project teams will be the same. This will facilitate separate listings and legally bypass some future foreign investment restrictions that may arise in the future. It is relatively easier to manage all subsidiaries under one company name..."

As a senior executive of the parent company, Xu Tao explained to them the main idea of ​​the boss - the VIE agreement is a kind of holding scheme commonly used in Internet enterprise structures today, which is to use a special agreement to use foreign-funded enterprises to control non-foreign-funded enterprises, so as to realize the equity model in which foreign enterprise entities control domestic enterprise entities.

Generally speaking, the biggest use of the VIE structure is to go public overseas. In addition, Galaxy Software is already a bit large. Although there are no problems now, the boss is worried that there will be many fields in the future Internet industry where foreign investment is restricted, and the VIE structure can legally bypass these restrictions.

Sun Xiaomei and Chang You have never heard of this, and they don't take it seriously... The boss doesn't even talk about going public, it seems that he doesn't even have a plan to find investment, and there is no industry restriction at all.

Sun Xiaomei reminded: "After all, the music business is the company's main source of profit, and I feel that the competition over there is quite fierce; for the convenience of future management, I actually think it would be better to separate the music business into a company directly under the parent company of Xiangjiang."

This is just giving the boss an idea, not to mention anything else, if the debt of Galaxy Software is too high in the future, there is no need for Galaxy Music to pay it back.

Chang You also nodded, and Xu Tao pondered.

His current work is mainly in sales and law, and he has heard the boss explain the VIE structure, so he knows the main idea of ​​this decision.

However, he has a lot of experience working in small companies, and Galaxy Software’s management model is flat management at the project level, but layer-by-layer responsible at the personnel level. If Galaxy Music is turned into a “subordinate” of Galaxy Software, internal friction at various levels may bring many inconvenient links to future decision-making and execution.

However, at this point, he understood the boss's thoughts more and more.

"Actually, what you said makes sense. The factors at the management level are the most important." Xu Tao pondered, "But you probably don't know that the boss seems to be planning to make a new product in the music field recently. This product will be the main development direction of Galaxy Music in the future. In order to cooperate with this project, the business of Galaxy Music will also move closer to the software department..."

Xu Tao doesn’t really understand software, but since the boss asked about Galaxy Software that day, he seemed to have changed suddenly. He suddenly paid more attention to overseas business and Galaxy Software’s old development plan, and seemed less concerned about the music that is making money.

Of course, it hurts a bit to say this, and the boss doesn’t care about music at all, but compared to the past business, he suddenly wants to build a ‘website’, and it’s not an ordinary website, but a ‘platform’... To be honest, Xu Tao doesn’t understand what’s special about this ‘platform’, but the boss seems very excited. I talked with him about this project a few days ago, and my voice broke with excitement.

Talking about this to the people from these software companies now, Xu Tao himself doesn’t really know how to explain it... Fortunately, they have already heard it——

Chang You reacted halfway through hearing it: "Could it be that new project that Lao Zhao and Lao Zheng recently worked on?"

Sun Xiaomei was curious: "Which one? The one that changed face?"

Old Xu was stunned: "What face change?"

"It's the Sichuan opera..."

This is obviously a misremembering. After all, there are really many new projects recently. The boss turned his attention back to the software business and came up with a lot of new projects on the spot, which made everyone very nervous. The most confusing thing was a website promoting Sichuan opera face-changing. It seemed that the boss had suddenly developed a huge interest in Sichuan opera.

"No, it's the streaming media one." Chang You gestured and said, "Although it's just a website, I've seen the design of that website. If you can do the interactive part, the future prospects are still very high."

Sun Xiaomei came to her senses now: "By the way, could it be that 'Shuixie Getai'?"

Xu Tao wasn't sure if he could say it, but since they knew the name, he followed suit and said, "Yes, it's called 'Shuixiegetai'. Originally, the boss took a few domain names for the project team to choose. They chose 'Getai', but Yanjing's side is full of talented scholars and talented women with literary feelings, and later changed the name to 'Shuixiegetai'..."

"and many more."

Old Xu talked eloquently, but in the middle of speaking, he stopped suddenly.

Then he walked over in two steps, and at the corner, the two children were listening carefully.

"Lingling, you take Xiaoqin downstairs to Uncle Chen's, and Dad is talking to the company about work."

Old Xu patted the backs of the two children kindly. Xu Lingling was afraid that Chen Qin would upset the adults, so she quickly grabbed him and left. Chen Qin was a little unconvinced, and said awkwardly: "Cut, who doesn't know yet, but it's just a ugc platform..."

But he didn't dare to speak in front of the adults, and he muttered to himself after the two walked away.

This is his own company, but Mr. Chen is not here to inspect or supervise the work.

After the summer vacation started, Boss Chen came to his company for the first time to shoot the MV. He just arrived in Shanghai yesterday, and today he also came to watch the fun with the adults.

The staff still has some other work to do. Today, Chen Qin came to the company to play with Uncle Xu from the next door.

Although I saw the legendary Oriental Pearl across the river...

In 2004, Lujiazui was already the business card of Shanghai, but the people attracting investment said it was Lujiazui. Galaxy Software is actually on the opposite bank of Lujiazui, across a river, and there are quite a lot of small buildings from the last century nearby. It looks like a bare-bottomed peacock with its screen open.

As an international financial center, Shencheng has strong foreign investment in industry and many support policies, but due to a series of factors such as cost, in the past 20 years, apart from Shanda, there have not been a few big Internet companies.

But now that it's all here, it's too late to dislike it.

He's obviously the boss, so let's hear what's going on with his company.

However, he was sent by Lao Xu and a few executives to play nearby. Boss Chen was a little unconvinced, but he just arrived at the company rest area, where there is a water dispenser, candies and drinks.

"Ah Chin is here to eat candy."

"what"

"Okay, don't be angry, let's go play elsewhere."

"……Fine."

Idle is also idle, Chen Qin took Xu Lingling while eating candy, and looked at the job numbers one by one.

Seeing a sister who was in charge of art work while chewing gum while processing the web material blocks, Boss Chen nodded secretly while watching from behind, took a notebook and wrote down the job number, and saw a logistics uncle reading a newspaper at the workstation, Boss Chen wrote down his job number on the other side of the small notebook.

After a while, I saw a front-end brother wearing a headset writing code, shaking his head while writing, and looked quite devoted. Chen Qin was about to write his job number to the young lady, but when he took a closer look, he was furious: "You tm wrote 15 single-letter parameters without a single comment?"

The front-end brother wearing the earphones didn't realize the seriousness of the problem at all, and Chen Qin ruthlessly added a key mark to his job number.

He was about to take a closer look at what other tricks he had, but at this moment, the group of programmers who went downstairs also came back.

They didn't find the little star downstairs, but when they went upstairs, they saw Xu Lingling waiting for someone at the entrance: "Hey, you are Lina, our little singer!"

(End of this chapter)