China Entertainment’s Born Protagonist

Chapter 355 Financing and Divestment

The success of Crazy Stone has led more and more businesses to choose to advertise on the Daju.com platform.

They found that advertising on Daju.com videos can more accurately target customer groups, and the advertising formats are more novel and interesting, with very good results.

Investors have seen Daju.com’s profit model and future development potential, and are willing to give Daju.com a higher valuation.

So Xiong Xiaoge and Gao Qun wanted to come very early to the banquet tonight.

The two of them were dressed very formally. After entering, they met Zhang Nanyi standing at the door and started chatting with Zhang Nanyi.

Yang Xue and Yang Rong saw Zhang Nanyi chatting about business, so they took the initiative to leave and go chat with Yu Feihong.

Zhang Nanyi took Xiong Xiaoge and Gao Qunyao and sat down on the sofa in the lounge.

Xiong Xiaoge said straight to the point: "Mr. Zhang, we want to get 15% of Daju.com's shares.

We hired a professional valuation agency to conduct a fair valuation of Daju.com from all dimensions.

The valuation given by the appraisal agency is 60 billion, and we are willing to give a premium of more than 20% to increase the valuation to 80 billion. "

80 billion is already a very high valuation. After all, this is Daju.com’s Series A financing.

This valuation is actually acceptable to Zhang Nanyi, but business matters must be negotiated.

Zhang Nanyi said calmly: "I originally planned to talk to you about financing the day after tomorrow, on the 28th. I didn't expect you two to be so anxious. Let's exchange opinions today."

As soon as Zhang Nan came up, he pointed out the fact that the other party was anxious, so that he could take advantage of the negotiation.

He continued: "As far as I know, Yahoo is negotiating with Taobao about financing, and the two parties are close to reaching a conclusion.

Yahoo invested US$10 billion to acquire 39% of Alibaba's shares. The valuation of this investment alone puts Alibaba at more than 200 billion.

Moreover, Yahoo has also caught up with Yahoo China. Yahoo China will also be owned by Alibaba in the future. After comprehensive calculation, Alibaba's valuation is close to 250 billion. "

There are two very critical stages in the development of Taobao. One is Feidian, where everyone stays at home and does not go out, allowing some people to develop the habit of online shopping and become the first batch of Taobao users;
The other is Yahoo’s investment.

This time Yahoo's investment not only allowed Taobao to get 10 billion yuan in cash, making it rich and powerful, but Yahoo Huaguo also helped Taobao provide a lot of traffic and did a lot of positive publicity.

Zhang Nanyi mentioned Alibaba's valuation in order to raise the price. He continued: "Taobao's transaction amount in the first quarter of 2005 was only 10 billion yuan. The second quarter data has not yet been released, and it is estimated to be between 15 and 20." Around 600 million, its number of registered members has just exceeded [-] million.

This number is still watery.

In the e-commerce market, Taobao currently accounts for about 40% of the domestic market.

As for Daju.com, after half a year of development, the number of registered members has exceeded 500 million, including 21 paid members. The development of advertising business is also in full swing. Crazy Stone is the best example.

On the Daju.com platform, there are 48 podcasters with over one million followers, 50 with over 490, and 10 with over 5077 fans. These people can earn considerable income from Daju.com every month.

We have grown together with these podcasters to ensure that Daju.com has the best video content and can attract enough customers.

In the domestic video website market, Daju.com occupies an absolute dominant position, with a market share of more than 90%.

In this case, is our valuation less than half of Alibaba? "

Daju.com also has paid members, which are not expensive. Ordinary members cost 20 yuan a year and can enjoy privileges such as free advertising, special fonts, special accounts, etc.

Because of the easy-to-pay purchasing channels, paid membership has developed quite well, with a scale of 21.

Although the income from this area is not high, it can be considered a profitable model.

On top of ordinary members, there is also a premium membership with an annual fee of 100 yuan, which is less popular.

This is also the reason why the valuation of domestic video websites is not particularly high, because everyone’s income level is not high and membership prices cannot be afforded.

Like YouTube, annual membership fees start at 58 yuan, which is comparable to the price of pay TV stations in the United States.

After jailbreaking became popular, YouTube's revenue from paid memberships exceeded 3000 million yuan, and this number is still growing rapidly.

Hearing Zhang Nanyi's words, Xiong Xiaoge smiled bitterly and said, "Mr. Zhang, Taobao and Daju.com are two industries. Taobao's future will be set against Wal-Mart.

Daju.com, on the other hand, targets TV stations and has different potential. Moreover, Taobao is already in its fourth round of financing, and you are only in your first round. "

Wal-Mart is now the number one super company in the Fortune 500, with an annual turnover of 3000 billion yuan and a profit of more than 100 billion yuan. One of Taobao's visions is to become an online Wal-Mart.

So the valuation is very high.

Daju.com is similar to an online TV station. If you look at the gap between the market value of foreign-listed TV stations and Wal-Mart, you can clearly understand the gap between the two industries.

Zhang Nanyi said: “There are gaps in the industry, but the Internet in China is developing very rapidly, and the number of Internet users in our country will exceed [-] million this year.

And my video website’s market share exceeds 90%. Using a simple calculation method, this means that I have a vast market of 9000 million customers.

And this market will get bigger and bigger.

In a few years, the number of Internet users in our country will exceed 5 million, or even 10 billion. These are my markets and customers.

What would be the valuation of a TV station with hundreds of millions of viewers? "

Due to the rapid development of Daju.com, although Tudou.com was established in April this year, its development status is very poor, and other video websites have not become popular at all.

In the current video website market, Daju.com is indeed the only one.

Xiong Xiaoge felt Zhang Nanyi's tough attitude and was helpless. The key is that Zhang Nanyi does not lack cash flow now.

He asked: "Mr. Zhang, please quote a price first. We also know what you think."

Zhang Nanyi said: "Didn't you prepare 12 billion in cash? Give this 12 billion to me, and we will sell 10% of the shares."

Zhang Nanyi directly increased the valuation by half to 120 billion.

Xiong Xiaoge thought for a while and said: "Mr. Zhang, we don't want to be too irritating. I'll give you 12 billion and get 12% of the shares. Do you think it's okay?"

The valuation of 100 billion is in line with Zhang Nanyi's expectations. He thought about it and estimated that there would be little room for it to go higher, so he nodded and said: "Okay, the number 100 is more auspicious." After talking about the financing, Xiong Xiaoge He and Gao Qunyao breathed a sigh of relief.

When their new media fund was established, it had a total investment capital of 2 million yuan, but it has not been able to find any good projects.

It is also very uncomfortable to hold a large amount of money in your hands.

Now that most of the funds are invested in Daju.com, the next work will be easy.

After finalizing the most important valuation issue, the details of the cooperation will be discussed slowly.

Zhang Nan got up and walked out. The theme of tonight was to celebrate Crazy Stone. He couldn't stay in the lounge all the time.

As a result, as soon as he walked out, he saw Wu Weidong, Mr. Wu from Ciwen Film and Television, walking towards him. He said slightly awkwardly: "Mr. Zhang, um... our company has been relatively short of funds recently. The investment in Kung Fu Panda may not be available." The payment was made as scheduled.”

Hearing Wu Weidong's words, Zhang Nanyi smiled and understood that he felt that Kung Fu Panda was too risky and wanted to give up investing.

Mainly the top Hollywood animated film "Madagascar" was released in China some time ago. The box office was less than 1000 million in two weeks of release.

The domestic box office of Madagascar's previous life was only 2800 million. At this time, because of direct competition with Crazy Stone, the box office was even lower.

This makes everyone even less optimistic about the domestic animated film market.

It is a top-notch Hollywood production, and the quality of the film is not bad, but it has been ignored in China.

The Kung Fu Panda movie really has no chance of success.

As Madagascar encounters Waterloo, more and more people in the industry are looking down on the Kung Fu Panda project.

Even outside the entertainment industry, there are many experts and viewers who feel that Kung Fu Panda is a waste of money.

Under such circumstances, Wu Weidong naturally wanted to give up. Originally, he was prepared to bite the bullet and invest with Zhang Nanyi with his eyes closed.

As a result, the Seven Swords incident forced Wu Weidong to save money on food and clothing.

He explained in a low voice: "Mr. Zhang, it's not that I don't want to submit. It's true that I encountered difficulties with the lyrics and writing. The reputation of the finished film and the premiere of Seven Swords were not ideal."

When Wu Weidong watched the finished film of Seven Swords last month, his heart dropped.

From his personal perspective, this movie has no attractive features. Whether it is special effects or plot, it is very average.

But he kept these words in his heart. After all, Xu Ke was a great director and it was hard for him to say anything.

On July 7, Ciwen Film and Television and Mango TV held the premiere in Changsha.

Although the company invited many film critics to help brag, it also secretly surveyed the opinions of the audience, and the reputation was very poor.

The same was true for the premiere on Hong Kong Island on the 22nd.

Wu Weidong realized that something was wrong. The total investment in the movie Seven Swords was 1.4 million, and Ciwen Film and Television invested 6000 million.
Once a loss occurs, the company's cash flow will naturally be affected, and foreign investments must be made with caution.

The production of Kung Fu Panda requires an investment of 1500 million, and subsequent publicity and distribution will also need to be invested. It is a heavy burden for Ciwen Film and Television.

That’s why Wu Weidong wants to withdraw from Kung Fu Panda’s investment.

Zhang Nanyi is very clear about the situation of Seven Swords. After all, Yan Danchen was also running promotions with the crew of Seven Swords during this period.

Although the Kung Fu Panda project has been launched and production has begun, the investment and payment are in batches, and Wu Weidong has not received payment yet.

Hearing Wu Weidong's words, Zhang Nanyi said: "It's okay, just treat it as a breach of contract. This is a small matter."

Zhang Nanyi will not be angry because Wu Weidong withdraws his capital, but he will not be generous and do nothing. Everything will be in accordance with the contract.

Because everyone supported Zhang Nanyi when the investment was made, the penalty for the investor's breach of contract in the investment contract was not serious, and the penalty for breach of contract was 3%, which is 45.

This is acceptable to Wu Weidong. With 45 yuan, he avoided 1500 million yuan and more subsequent losses.

Hearing Zhang Nanyi's words, he clasped his fists and said, "Thank you, Mr. Zhang, for your understanding. I hope we have the opportunity to cooperate again next time."

After hesitating for a moment, he asked: "Withdrawing my investment will not affect Mr. Zhang's project, right?"

Zhang Nanyi said calmly: "What do you think? I was just talking about a 100 billion business deal. Will I worry about a mere 1500 million?"

Wu Weidong was immediately speechless.

Gao Qunyao said immediately: "Mr. Zhang, we at Hearst Capital feel that the investment share is not enough. Give us 1500 million."

Xiong Xiaoge also said: "Mr. Gao, you have invested a lot before. How about investing in the name of the New Media Fund this time and giving 1500 million to the fund."

These two people are not optimistic about Kung Fu Panda, but simply want to have a good relationship with Zhang Nanyi, especially Gao Qunyao, who knows how much Amanda values ​​Zhang Nanyi.

Zhang Nanyi shook his head and said: "My company paid for the 1500 million by itself. Mr. Xiong and Mr. Gao, please excuse me. You can do what you want."

Zhang Nanyi came to Liu Xiaoli and greeted the guests at the celebration banquet with her.

Now the company is very familiar with the process of organizing this kind of banquet, so Crazy Stone's celebration banquet was very lively, with many guests and reporters coming.

Let Ning Hao, Huang Bai and others have a good time.

After the banquet, Zhang Nanyi followed Yang Xue and Yang Rong to appreciate the clothes that Yang Xue had transformed.

I have to say that Yang Xue is very talented, and the clothes she changed are very interesting. She reveals everything but still hides it, looming, and has a kind of beauty that is like holding a pipa and half covering her face.

This feeling is the most alluring and can satisfy a man’s visual experience to the greatest effect.

Not only the visuals, but when communicating, Yangxue's clothes also have many focal points, which make it easier for Zhang Nan to ride the horse and whip, which is very wonderful.

……

While Zhang Nanyi was appreciating the clothes, a piece of news about Kung Fu Panda’s investors withdrawing their capital spread on the Internet.

(End of this chapter)