"Mr. Jing, Phoenix Films is still making a profit at present. The total profit in the first three quarters of this year is 530 million yuan. But as the salaries of stars are getting higher and higher, and the production costs are getting higher and higher, our profit
Levels will decrease year by year."
Fang Shaofan reported on the elite situation of Phoenix Film and Television, and said carefully every word. Now that Mr. Jing's authority is growing, professional managers like them are still in awe, "Mr. Jing, I suggest that we learn from the big film and television companies in Hollywood.
Currently, you can no longer make much money by investing in a movie. What makes money is the peripheral products and film copyrights of the movie."
In fact, there is another way, but he dare not mention it. It is the mainstream method in the film and television industry today: using financial means to make money in the stock market.
What about Feite Zhao, Huayi, Alibaba, Hong Kong circles, and "Beiwen" who have been particularly popular recently and have successively invested in many hit movies such as "I'm Not the God of Medicine". This is how they operate! Stars conduct capital operations, and then
Engage in acquisitions, increase stock prices and other tricks to cut leeks.
This is the best way to play in the entertainment industry. You can make a lot of money. That's why there is capital willing to support stars.
He knows that Mr. Jing hates this kind of operation method. Even Miss Zhao, who is so favored by Mr. Jing, is prohibited from playing in film and television finance like this. He knows that Miss Zhao proposed it to Mr. Jing but was rejected. How can he be a professional manager?
Dare to mention it?
Zhao Qinghan is Mr. Jing's woman, which is almost an open secret in the circle. Not long ago, Miss Zhao was caught and brought to court. There was a quarrel for a month or two. The Internet was overwhelmingly condemning her.
In the end, he took action to settle the matter. This shows how much he loves her!
If it were an ordinary relationship between a financial sponsor and a lover, how could he care about it? If this kind of thing is not handled well, it will cause a lot of trouble. Giving up is the lowest-cost solution.
"
Shaofan, can’t the film and television industry make money as they should? I see self-media people on the Internet and netizens clearly list the various shortcomings of the film and television industry.
As a leading company in the domestic film and television industry, we at Phoenix Film and Television must have a sense of passion for doing things and a sense of industry responsibility. We have our own theaters, stars, and online platforms like iQiyi. Are we still afraid of the so-called ban?
We have to let some bad coins play by our rules. If they don't play by our rules, they will be eliminated by the audience who want to see high-quality products."
After returning to China in July, he finalized a series of agreements with Li Yanhong of Baidu to purchase iQiyi. He wanted to use iQiyi to block Youku, a subsidiary of Alibaba.
According to this part of the agreement, Phoenix Group will first receive 40% of iQiyi's shares. In addition to the 10% of iQiyi's shares purchased previously, Phoenix Group will hold 50% of the shares and control the iQiyi website.
iQiyi was listed on Nasdaq on March 19 this year, and its market value was as high as US$7 billion when it was announced in July.
50% of the equity is enough to control a listed company. Gong Yu, the founder of iQiyi, only holds 1.8% of the shares. Including the shareholding of his team, it can be regarded as the voting rights design of AB shares. In the end, Phoenix Group is in control!
In the future, Baidu will continue to sell 20% of its equity to Phoenix Group, retaining only 10% of the equity and one board seat.
The conditions for triggering the acquisition offer are: within two years, when iQiyi’s market value doubles to US$14 billion; if iQiyi’s market value does not reach US$14 billion in two years, Phoenix Group will still acquire it at this price.
Therefore, in order to control iQiyi, Phoenix Group currently paid US$2.8 billion. The payment method is: US$600 million in cash + Uber’s equity.
Jing Gao used to like to pay in full cash for business. That was really unfavorable! Who can resist Shenhao who has unlimited cards?
But after more than two years of cultivation, all the companies under his name have begun to get on the right track, and most of them are making profits. He has now begun to learn the methods, concepts, and principles of the market: cash is the lifeblood of a company, and he can’t do it all at once.
Instead of smashing it out, payment will be made in the form of equity exchange.
It’s hard to say who lost and who didn’t in this transaction!
In terms of wealth on paper, iQiyi's listing in March was a bust. Its market capitalization dropped from US$11 billion on the day of listing to US$7 billion in July. Of course, the stock price has rebounded in the past month.
In short, Netflix's business and stock price are soaring as the industry benchmark for video websites. Even though there are three major video websites in China, iQiyi's market value will definitely be more than this in the long run!
Uber's market value has also slowly declined from its peak of US$55 billion at its listing peak, and now only has a market value of US$42 billion. But the prospects are still promising. According to Jiang Zi's report, when overseas markets make profits, the stock will naturally rebound.
.
Phoenix Fund currently only holds 21.3% of Uber's shares, and it held 28% of the shares when it was listed. The reduced shares are naturally reduced at a high point. It still needs to increase its holdings later. This shareholding ratio is a bit dangerous.
Of course, selling high and buying low is a routine operation. Jing Gao will not interfere with the daily operations of his subordinates.
…
Faced with Jing Gao's words that were half criticism and half instructions, Fang Shaofan opened his mouth cowardly and said, "Okay, Mr. Jing."
Liao Rong, who was waiting nearby, couldn't help but chuckle, covered her mouth and said with a charming smile: "Mr. Jing, please don't embarrass Mr. Fang!
The film production model you mentioned is a very old monopoly model: self-produce and sell! The film and television industry has developed to the current production model, which naturally makes sense!
At that time, Shaw Brothers Pictures, which dominated the Hong Kong film industry, had a closed-loop model of 'self-production and self-sales' like yours. The result? It was defeated by newly emerging companies such as Golden Harvest. Golden Harvest's core strategy was simply to support a large number of middle and lower-level companies.
movie company.
Monopoly and closed-loop operation have their own advantages, but the shortcomings and disadvantages are equally obvious! The later it gets, the more difficult it is to produce works that meet market needs. Because no matter whether the movie is good or bad, there is a place to show it!
The director and the staff get their salary and that's it. There is no rush process at all.
After all, the film and television industry belongs to the category of creation and creativity. The broadest creativity is always in the hands of the majority of people! In the hands of young people who are new to the industry! Furthermore, the capital of our Phoenix Film and Television company can be compared with the capital coming in from the entire industry.
What?
Therefore, the major Hollywood film companies have transformed from the early model. Even with antitrust laws, they now monopolize theater channels and media publicity resources to achieve monopoly and seize excess profits.
In real film production, it is not uncommon for large companies to fail. It is only because of survivorship bias and large amounts of film investment that they appear to have strong production capabilities. In fact, this is not the case.
Phoenix Films can still be a leader in the industry because of the cruel internal elimination mechanism. However, with Mr. Jing’s self-produced and self-sold ideas, it will definitely be surpassed by latecomers.
Phoenix Films must implement a strict elimination system internally, and it is not allowed to rest on the credit book! One code is one code, business is business! If you have merit, you will be rewarded, and if you lose money, you must take responsibility!
Moreover, Phoenix Film and Television must not be stingy about opening up and cooperating with outsiders. Platform facilities such as theater chains and video websites must be liberalized to select film and television dramas. Allow outsiders to create a more intense competitive environment!
Moreover, Phoenix Films will also introduce a large number of potential newcomers to constantly replace those so-called traffic stars who demand high salaries."
Whatever Liao Rong said casually, they were all insightful! At the same time, she demonstrated her strong work style and her outstanding abilities. After all, Phoenix Films has become the leading film and television company in China in her hands!
In comparison, Fang Shaofan, who was born as a secretary, seems too mediocre and weak. He is simply unable to take charge of Phoenix Films, a company whose valuation has reached 85 billion yuan and is preparing to be listed on the A-share market!
Fang Shaofan guessed what he was thinking, and he was very serious about carrying out his orders. Of course, there are many arrogant soldiers, ghosts and snake gods in Phoenix Film and Television. If Fang Shaofan wants to implement the policy forcefully, he probably can't do it!
Jing Gao pondered for a few seconds and invited: "Liao Rong, do you want to come back and take charge of Phoenix Films?"
