China Entertainment’s rescue plan is hard to come by

Chapter 228 Two Small Goals [Please subscribe]

"Mr. Sun, congratulations."

"We are happy together, we are happy together, we will be a family from now on."

Sun Yi put on the signature pen and closed the investment agreement that had just been signed. The two shook hands and exchanged contracts. The entire signing ceremony was completed.

This is a high-end business suite in a five-star hotel. There are no media reporters. There are only Sun Yi, Wang Xing and Xiong Xiaoge, an investment partner from IDG Technology Venture Capital Fund.

Since Sun Yi invested nearly 700 million in Xiaonei Network for the second time a few months ago, he has been busy with his own affairs. He traveled all over the country and had no time to pay attention to the trends of Xiaonei Network.

Anyway, with the future Big Ox King under his management, he felt relieved.

Since the major update of Xiaonei.com in May, it has introduced a new spokesperson, the fairy sister Liu Yifei. At the same time, it detonated the entire network with an advertisement, which caused a wave of popularity and attracted a large number of new users to register.

With the launch of various new functions suggested by Sun Yi, the social model of the entire Xiaonei network seems to be an era ahead of its time. Not only has the interest group been updated, but the circle of friends function and likes and comments have also been launched.

Various novel ways of playing have greatly attracted the attention of college students.

For a time, the entire Xiaonei network seemed to be leading the trend of Chinese social networking sites, and the number of daily active users skyrocketed.

In just four months, the number of registered users of the entire school network doubled to 700 million. You must know that in 2007, the number of college students in China was only 1400 million including various vocational colleges. , which is equivalent to an average of one out of every two people being a registered user of the school network.

And this ratio is still rising, completely confirming the top spot of China SNS social networking site, and leading No. 2 in more than one dimension.

After this battle, Xiaonei Network immediately became popular in the eyes of major investment institutions.

Since the market value of Facebook in the United States exceeded US$150 billion this year, SNS social networking sites have completely become popular.

People from Sequoia Capital, SoftBank, Goldman Sachs, and IDG Capital almost broke through the threshold of Wang Xing’s office.

In September, Wang Xing called Sun Yi specifically and told him that the money was almost burned out and it was time to introduce a strategic investment company.

At that time, Sun Yi was eating sand in Inner Mongolia and did not comment on Wang Xing's proposal. He understood that he was destined to be tied to the entertainment industry in this life. In the initial stage of the school network, he had already helped everything he could. After that, there was nothing he could do. What useful resources can be provided to the school network?

Therefore, after thinking again and again, he agreed to Wang Xing's plan and gave Wang Xing full responsibility. When the time comes, he will wait to return to Beijing to sign.

Unexpectedly, this wait lasted for more than a month.

Wang Xing and his team were almost dazzled by the various plans proposed by various investment companies. After several inspections, they finally chose IDG Capital.

Among several investment companies, IDG’s valuation for Xiaonei.com was not the highest. On the contrary, it was low and ranked second to last. However, IDG used their successful cases of investing in Internet companies over the years and their broader resources. The platform attracted Wang Xing and his entrepreneurial team.

IDG Capital has long been focusing on emerging industries such as high technology, emerging services, medical health, industrial technology and media content, and provides capital financing for emerging startups.

The investment stage covers the start-up stage, growth stage, mature stage, and various stages, and the investment scale ranges from millions of dollars to hundreds of millions of dollars.

In the early days of the company's establishment, it boldly invested in high-tech companies such as Tencent, Baidu, and Sohu, and made a lot of money.

Compared with IDG Capital’s rich experience and strong financial strength in China Investment, what attracts Wang Xing more is the value-added services they can provide.

This includes providing strategic guidance for the company's development plan, financial management, organizational structure and legal affairs, helping companies establish sales networks, expand markets, help train senior managers, and provide technology, expert opinions and market research information.

Introduce other international and domestic investment institutions to provide enterprises with more financing channels, and provide assistance in the process of corporate mergers, acquisitions, reorganization and listing in the later period.

These are what Wang Xing and Xiaonei Network are in urgent need of.

Regarding this investment in the school network, IDG's requirement is that the strategic investment amount is no less than 20.00%.

After Wang Xing discussed it with Sun Yi, he chose to agree.

In the end, IDG Capital invested US$1 million, or nearly 2000 million yuan, in Xiaonei.com, with an overall valuation of US$1.4 million, and acquired 20.00% of the shares of Xiaonei.com.Sun Yi, as the second largest individual shareholder holding 40.00% of the shares, still holds 30.00% of the shares after the equity dilution.

In order to ensure his veto power in the company's major decisions in the future, he spent another 2800 million yuan in cash and, with Wang Xing's help, acquired 30.00% of the equity from his entrepreneurial team. It reached [-]%, which is only one percentage point lower than Wang Xing.

Nearly one-third of the money he earned from the stock market was lost before he could even warm it up.

However, Sun Yi did not regret spending this money. You must know that in his previous life, next year, that is, in 08, the valuation given by Softbank's investment in Xiaonei.com was US$4.3 million.

In just half a year, it has quadrupled again. No matter how he calculates this account, he will not lose money.

At this point, Sun Yi's entire net worth has skyrocketed, reaching two small goals.

After the agreement was reached, Xiong Xiaoge opened a bottle of champagne at the bar in the room and celebrated briefly with Wang Xing and Sun Yi.

Today is a secret signing, which was requested by Sun Yi.

I am already in the entertainment industry with high exposure, so it is better to keep a low profile on the investment company before it goes public. At least it can be used as a trump card in case it comes into use.

After two days, there will be a formal signing ceremony for the media. At that time, Sun Yi's identity as a shareholder will be concealed and he will attend as the spokesperson of the website.

"Mr. Sun"

"Mr. Xiong, please stop calling me that, I can't afford it."

As the current senior partner of IDG Capital and the future global chairman of IDG Capital, Xiong Xiaoge is no ordinary person.

Moreover, Xiong Xiaoge was born in the 60s and is about the same age as Comrade Lao Sun. There is nothing wrong with being called Xiao Sun.

However, Sun Yi occasionally laughed at himself. Since his rebirth, the people he has been in contact with are all older people, and they are all juniors everywhere. He is really speechless.

Xiong Xiaoge smiled, raised his glass to Sun Yi, and said:
"Xiao Sun, you don't know how surprised I was when Wang Xing told me that the mysterious second largest shareholder was you."

"Why, Mr. Xiong knew me before?"

"Of course, I am personally very interested in the film, television and entertainment industry. There is no reason why I should not know you, a 20-year-old billionaire director."

"Mr. Xiong is overly praised. Our film market is constantly developing. Needless to say, in a few years at most, the box office of [-] million yuan will no longer be an upper limit, but a lower limit. A movie with qualified quality will have a box office of over [-] million yuan." It’s the most basic.”

Sun Yi's answer made Xiong Xiaoge's eyes light up.I couldn't help but feel a little emotional.

"Sure enough, a person's success is no accident. I didn't expect you to have such insight at such a young age."

"I very much agree with your point of view. I analyze that the investment trend in the next ten years will definitely be the combination of the Internet and the entertainment industry. To be honest, I already have plans and am preparing to invest in a film and television company."

Hearing Xiong Xiaoge's praise, Sun Yi felt a little ashamed.

You know what level you are at.It's nothing more than taking advantage of rebirth.

This person in front of me is the real big boss. He started planning a few years in advance, accurately predicted the changes in the industry, and stepped on the trend of every investment.

"Hey, I can't compare with Xiong. If you make a movie or something, I'm fine with it. The future of the industry is just a casual comment, and it can't be taken seriously."

"It's great to make a movie. Maybe we can collaborate in the future."

　Ask for recommendations, ask for monthly tickets, ask for subscriptions.

　　Thank you!

　　
　
(End of this chapter)