China Entertainment: Starting from 07 Kuainan

Chapter 436 Three years! The headlines are finally here!

With the rapid development of the Internet, huge amounts of data have been accumulated, which has become popular in later generations. The familiar "big data" has long been a new hot spot in the industry.

Xingchen Department has a research institute that specializes in data structure and algorithm analysis.

This is a sole proprietorship of Xinghai Fund.

At present, the number of people is still very small, about a hundred, but the salary expenses are extremely high, with per capita expenses of 40-50+.

(Per capita means per capita. If the average of 120 million and 20 is averaged, the per capita is 70)

If you include social security and provident funds, the labor cost alone will be 6-7000 million yuan a year.

And this is only labor expenses, not counting server farms, data flows, energy consumption costs, etc.

Lone Star Research Institute has two directions, one is for data analysis algorithms, and the other is for film and television post-production special effects algorithms.

Algorithms and the film and television industry seem a bit incompatible?

The fact is, they are very similar!

Science and technology are the primary productive forces, and they also apply to the film and television post-production industry.

but.

In the area of ​​data analysis algorithms, we can definitely cooperate with [Toutiao] in the future, and [Douyin] can be used in the research of post-production algorithms for film and television.

In addition to directors, screenwriters, marketing, etc., they are also inseparable from the various research institutes behind them. Disney not only has various IPs, special effects companies, and the strongest legal team.

When Lu Yuan founded Xingyue Pictures, his goal was never to catch up with Disney.

When it comes to Hollywood, Disney's special effects production is at least king-level.

As for Disney, people create tools.

To give the simplest example, most of Xingyue Pictures' productivity tools are foreign software such as MAYA, 3DMAX, and AE.

Speaking of which, this company will also be a money-burning ancestor in the future.

Why are Pixar and Disney so awesome?

It is almost impossible for one company to catch up with others. If you want to catch up, national strategy, talent training in universities, and company investment are all indispensable.

His benchmark is the overall standard of Hollywood.

Recently, Disney is preparing to acquire Lucasfilm because of the technical reserves behind Lucasfilm.

That's not realistic.

Boss Lu has an extra move.

This is the power of technology.

If the institute makes new breakthroughs, it can also acquire a company and develop special effects software such as Face Cute, Ji Meng, and Meitu Xiuxiu.

Lucasfilm's most famous work is the Star Wars series. In addition, Industrial Light and Magic, which specializes in visual effects, is also a subsidiary of Lucas.

There are 5 research institutes behind Disney.

An algorithm breakthrough can save dozens of percent of later costs.

MIT Graphics and Zurich Institute of Technology Graphics are strategic partners of Disney. Pixar and Disney also have their own research institutes.

The current investment will be recovered tenfold or even a hundredfold from ByteDance in the future.

Boss Lu will never engage in loss-making business!

This is not.

The fish is already taking the bait.

Since Zhang Yiming went to the institute several times, it became increasingly difficult to contain the throbbing in his heart.

Real estate is not something he is really good at.

Data algorithms are!

Jiujiufang seems to be a vertical real estate project, but the essence behind it is still a set of data algorithms.

In this life, with Lu Yuan as the bridge, Jiujiufang's development momentum is much stronger than in the previous life.

Today, Jiujiufang is not only the first person in vertical real estate search, but also a rising star in the real estate website field.

The momentum of development is so fierce that even 'Yige' Soufun.com is aware of the threat.

In September last year, Soufun.com, a real estate portal website, landed on the New York Stock Exchange and was officially listed.

Since the listing of Soufun.com, I have contacted Jiujiufang many times and expressed my intention to invest/acquire shares.

Before this, Zhang Yiming had not let go. Recently, he has been a little excited.

SouFun’s offer is very sincere, with US$6000 million being used to acquire Jiujiu Fang.

More than 4 million, which seems like a lot, is just the net profit of SouFun.com for half a year.

Is it worthwhile to use half a year's profit to buy a competitor with a very strong growth momentum?

Cost-effective!

On the eve of the real estate boom, Soufun was simply making money. In the fourth quarter of last year, the company's revenue was US$9889 million, a year-on-year increase of 68%, and its net profit was US$3970 million, a year-on-year increase of 43.3%.

In a word, not short of money.

By the end of June, after several rounds of repeated negotiations, the merger and acquisition plan was basically finalized.

SouFun acquired Jiujiufang wholly for US$6800 million.

All cash method!

SouFun.com is not allowed to divest shares and has voluntarily abandoned the traditional acquisition model of equity + cash.

However, the cash will be paid in installments, with the first installment of US$3800 million and the remaining US$3000 million to be paid at the end of the year.

Lu Yuan approved of this transaction.

He has long been waiting for Zhang Yiming to start ByteDance.

Three years!

I have been waiting for three years!

This transaction also made Lu Yuan a huge profit. He is the largest shareholder of Jiujiufang, holding 47.8% of the shares and investing US$500 million.

3250 million was recovered.

Yield 650%!

However, this money is a dead debt. When Zhang Yiming starts ByteDance, he will invest it again.

In the new company, Zhang Yiming personally invested 1000 million US dollars, and basically all the money he earned from Jiujiufang went into it.

He only left a few million for living expenses.

Lu Yuan invested US$1000 million, but in terms of shares, the two parties were not evenly split -. Zhang Yiming had technology shares, and the startup team that followed Zhang Yiming also had original options.

In the end, Lu Yuan’s shareholding ratio was approximately 42.39%.

Zhang Yiming personally holds 45.88% of the shares and is the largest shareholder of [Bytedance]. The founder team holds 7% of the shares, and the remaining 4.73 shares are in the option pool.

Compared with the last time he started his own business, Zhang Yiming’s change this time can be said to be a shot in the arm.

I have started my business five times in a row, and I have never been so rich!

However, Zhang Yiming calmed down a lot when he thought about the bottomless pit of R&D expenses and marketing costs.

2000 million US dollars, save some money, it can last more than a year at most.

To be fair, Zhang Yiming was very touched by Lu Yuan's support.

Data algorithm research is a bottomless pit, and the news website he chose is a red ocean (fully competitive market).

There are portals such as Tengxun, Xinlang, Wangyi, and Sohun on the top, and various professional information portals on the bottom.

If you want to fight your way out of this track, there is only one word.

difficult!

It’s even more difficult!

Zhang Yiming himself has no confidence in whether it can succeed.

In comparison, Lu Yuan seemed to be more confident than him. During the video call between the two, Lu Yuan talked with him about his future blueprint.

What big data tracking, analysis, push, what 'the Daily Me' (my daily), what exclusive daily.

Thief!

In fact, what Lu Yuan proposed is not a new theory. Around the turn of the millennium, MIT media and technology expert Nicholas Negroponte proposed a similar theory.

Several major domestic portals have not transformed in a similar direction because they all have their own affairs.

Wangyi and Tengxun are fiercely competing in the field of online games.

Xinlang and Tengxun are fighting to the death on the Weibo circuit again.

Sohu, on the other hand, wants to get involved in everything, including games, scarves, blogs, and online videos.

(End of this chapter)