Fang Zhuo received a phone call from Sony, and Senior Vice President Albert conveyed Stringer’s meaning.
Sony Music wants equity in Yike.
If we can talk, then come to the headquarters for a second meeting.
If we can’t talk about it, let’s stop there.
The attitude is quite tough.
Fang Zhuo can understand the other party. No matter what the new music business model is, no matter what the future development trend of records is, he is strong now and has the initiative.
If it were you, you would have to consider using equity to complete the cooperation.
Because it involves changes in equity, Fang Zhuo held a conference call with shareholders out of courtesy. Two IDGs, Capital Today, Shenxin Science and Technology, and Xiangjiang Huanyu participated.
After some explanation, everyone has a clearer understanding of the current situation that Yike is facing.
On the surface, Yike’s M1 and P1 still have an advantage in the market due to their price and quality. However, once the music copyright is closed by the opponent, everything will be in vain.
Enterprises equipped with the Internet can develop very quickly or collapse very quickly. In many cases, its competition cycle cannot be calculated in years, but in quarters and months.
Today’s Sony is a counterexample.
Shareholders had no objections and were fully aware of the seriousness of the matter, especially Wang Fengyi of Shenxin, who felt as if he was facing an overturning situation in a short period of time.
This, is this change too fast?
The all-round competition currently faced by Yike is beyond the reach of domestic institutions, and the US IDG cannot provide much help. What it can do is to mediate and provide people with Yike with a chance to sit at the conference table.
It is impossible and incapable for IDG in the United States to let copyright agencies and record companies harm their own interests to help an Eastern company.
However, Fang Zhuo asked them to help find media resources, and he was thinking about offering price reduction discounts to clear stock out of the products. If that happened, he would announce the new features of iMu privately before Apple.
The shareholders' meeting was over. Fang Zhuo was sitting in the office and refilling his tea. Then, the phone rang. Everyone expressed their concern for the company after the meeting.
“Old Xiong, this sounds serious, but it’s actually an opportunity. I have to look at Sony Music’s conditions before making a decision. If it doesn’t work out, we still have a domestic market.”
“Mr. Xu, new sister, how is it possible? How could I have predicted this change? I can’t catch someone cheating me a second time, so who am I? Don’t worry, don’t worry.”
“Mr. Liang, hahaha, I’m not under a lot of pressure. I’m just afraid that you are under a lot of pressure. I’ll make sure to report the latest situation in a timely manner.”
“Brother Wang, oh, the matter is very complicated, and you don’t understand even if I explain it to you. I’ll buy you a drink when I go back.”
The situation has changed too fast, and the communication between the company and shareholders has been broken. Even Xiong Xiaoge is still immersed in the shock of Sina President, let alone others.
Fang Zhuo finished answering all the calls and just finished a cup of tea.
Then, he convened another company meeting without stopping, without allowing people from the United States to attend, to discuss Sony Music matters.
It is said to be a discussion, but it is more about asking others to supplement their own thinking. It is difficult for a middle-level manager like Qi He, who has just been promoted, to consider issues from a big perspective.
Even product directors like Yu Hong, who has been in charge of the U.S. market for some time, dare not express more opinions for fear of misleading the boss.
But one good thing about Yu Hong is that she is also a shareholder and can bear the consequences together.
As for the forward-looking development of the industry and the key nodes of the company's competition, it is destined to be decided by Fang Zhuo.
“Sony Music wants to use our money to invest in our shares.”
“Stringer wants to have sex for free.”
"Hey."
Fang Zhuo couldn't help but sigh melancholy after listening to everyone's obviously cautious discussion.
"It doesn't count. They provide the music copyright in their hands, and we save a lot of cash expenditure." Yu Hong glanced at the boss strangely, "Only this equity, equity is indeed very important, and it is easy to control
A weapon in the power struggle."
After all... the president in front of me has already demonstrated this with his own hands.
The employees in the conference room all thought about domestic affairs and noticed the implication of the marketing director's words.
Fang Zhuo didn't pay attention to everyone's expressions and said casually: "Sony Music has obtained the equity this time. If there is a next round of financing, it will definitely find a way to follow up or even increase investment in proportion."
“There is also American IDG in the company. I don’t know what the situation will be like after the next round.”
“We are going to amend the articles of association.”
Fang Zhuo's mind was filled with many operations involving equity. This was a legacy left over from the Sina dispute. He also subconsciously immediately considered ways to ensure control of the company.
But the company's articles of association alone are not enough. Actions within the rules must be relative and everyone will be bound.
“Mr. Fang, since Sony Music needs to be converted into shares for calculation, then this ‘discount’ can be considered to be an additional discount.” Deputy Director Qi He said.
This is the right thing to say.
Fang Zhuo has decided to cooperate with Sony Music, and now he has to consider how to strive for greater benefits for himself. He nodded towards Qi He, indicating to continue.
“Our market performance is dominant. Although there are some litigation issues now and it is not easy to buy copyrights, but Sony’s copyright comes in, which will solve the biggest problem in the future.”
“Our valuation cannot be viewed based on the current situation, but must be viewed based on a new music model that is growing at an extremely fast rate.”
Qi He spoke faster and faster: "Sony Music is declining, but we are growing rapidly. Besides, there is a Chinese market behind us."
“This copyright model is not suitable for China.” Yu Hong reminded.
Fang Zhuo slowly spoke: "It's not suitable now, but what about the future? It's really not suitable. What if Sony thinks it's suitable?"
What is needed now is not the existence of a domestic model suitable for copyright authorization, but the existence of a possible future direction.
Why does Sony Music want to take shares in Yike?
Because it also agrees with Fang Zhuo's judgment and because it also tries to promote the progress and stability of the current digital music market.
The giants are all confident.
The current domestic situation is not good. Giants must have the courage and confidence to tame the environment. Without trying, how can there be progress?
Fang Zhuo's thinking was further opened up and he returned to the company's equity.
Sony Music is carrying out equity bundle cooperation at this point in time. If it is determined, it will definitely want to further strengthen its influence on Yike.
This process seems to have a high chance of being completed because Sony Music has the copyrights, the singers, a steady flow of content production, and it also has money.
When a hardware product evolves to an integrated combination of hardware and software, it will also be restricted by the content of the software.
Fang Zhuo feels that if he were in Stringer's position, there would be many ways to gradually influence a downstream company in the industry chain.
But……
What if the coordinates of time are slightly stretched?
The record industry will inevitably decline step by step with the development of the Internet and digital music in the next ten years.
Digital music may seem like a useful supplement and good competition to records at the moment, but it is actually a steadfast gravedigger that is destined to make the record industry that has been glorious for decades lose its luster.
Can Sony Music stop this process?
Can such a deep player in the recording industry turn around?
Even if it wants to be gorgeous, can its parent company Sony, which is already in decline, allow it to execute its strategy comfortably?
It’s hard to tell who is dragging down whom among these two men for a while.
Fang Zhuo’s thoughts on litigation, copyright, competition, and cooperation were suddenly linked to the industrial development in the next ten years, and his vision became profound.
Human beings will always need music, but they will not always need records.
Sony and Sony Music will definitely be in dire straits over the next few years.
Stringer, you want the equity in my company, and I also want the life of your company.
“Mr. Fang?” Yu Hong reminded the boss who was obviously distracted.
Fang Zhuo came back to his senses and smiled: "Well, Qi He just said it right. Regarding the market position of Yike, it is necessary for our opponents and potential collaborators to know about it."
“The company’s articles of association need to be revised and the authority obtained by the board of directors from all shareholders must be strengthened.”
“We will launch a relatively large-scale promotion in the United States and China to continue to capture users and prepare for iMu private sales.”
“We must correctly assess our value and assess the value that Sony Music can bring.”
“Since we want to cooperate, we should not limit ourselves to copyright, and we must face up to the position of shareholders.”
"Sony Music wants to use our money. It will reduce the figure first and then make an offer. Apple is willing to spend 200 million US dollars to acquire Yike. The pure copyright licensing fee is not enough. Sony Music will have to spend some cash.
"
“Alternatively, let Sony Music convert it into a long-term music copyright authorization, and we should also pay attention to the measurement of this part.”
Fang Zhuo issued orders one by one.
Finally, he said: "I will not go to the second meeting. I first expressed my willingness to cooperate with Albert on the phone, and Xiao Yu led others to chat, leaving a room for maneuver."
People in the conference room responded one after another, and there was still a lot of work to come.
Yu Hong did not leave. She stayed and talked about her observations: "You seem to be more confident all of a sudden?"
"Really? Aren't I always sure?" Fang Zhuo said with a smile.
Yu Hong raised her hand and pointed at the boss's face: "Yes, yes, it's this kind of smile, this kind of smile after smoothing it out. I've seen it many times!"
“…” Fang Zhuo shook his head, “You can’t be cautious about equity, but your contact with Sony Music must be neither humble nor overbearing. We are still the leader in the market.”
“It’s a given, the worst thing is that I won’t do the market here, I won’t work overtime, I won’t stay up late, I won’t work hard when I return home.” Yu Hong understood the spirit.
Fang Zhuo praised: "Well, Director Xiao Yu has such an enterprise-level understanding, I feel relieved."
Yu Hong disagreed with Fang Zhuopian and asked: "Is there anything else that needs attention? You pay more attention to venture capital this time than before."
“There’s nothing else. Let’s take a look at the situation before reacting. The hardware market is the basic market, so pay more attention to Apple’s competitive product information.” Fang Zhuo muttered, “This time it involves Sony Music’s investment, so we can’t ignore it.”
He continued: "Sony Music is not like the capital investment of venture capital. The online music model between us must have deeper cooperation. Such negotiations between companies are dangerous."
“Is it our danger or Sony Music’s, Mr. President of Sina.” Yu Hong made a joke.
“Hahaha, of course it’s our danger.” Fang Zhuo laughed several times.
What bad intentions can a small CEO of a small company have? They just want to survive in the harsh competitive environment in the United States.
Yu Hong chatted a little more about professional managers in the United States. She now has a similar feeling to Fang Zhuo. From Luzhou to Shanghai, from China to the United States, she always felt that the company was lacking people in various ways.
Nowadays, Yike recruits basically middle-level people in the United States, and the legal department has a slightly higher level. As a result, the boss killed him as soon as he came.
Yu Hong feels that she is more suitable for the market, and the company’s management needs to be clearer.
At the end of September, Yike and Sony Music began to have formal and secret contacts, and the discussions involving equity were different from the previous copyright authorization.
Fang Zhuo is considering cooperating not by selling old shares, but by allowing Sony Music to conduct a separate Pre-B round of financing with long-term licensing and part of the cash.
But this still has to be communicated with institutional shareholders, because it will mean the reduction of their shares, or they will have to add additional funds.
On the first day of October, Fang Zhuo was sitting in his office, looking through information, and considering the cooperation between Yike and Sony Music.
Before he could read a few pages of the report, the door to the president's office was pushed open with a burst of noise, and Li Xinyue from the Anliang Association broke in.
"Mr. Li, what's the matter?" Fang Zhuo waved to the employees who failed to stop him, and looked at the group of three people who appeared in his office.
Li Xinyue laughed angrily: "Mr. Fang, Mr. Fang, you said you wanted to have an interview with me and explain the fund's issues to me, but since you came to New York, I have been pushed away several times when you called me."
She didn't sit down either, and said with gritted teeth: "Mr. Fang, you, the president of Sina, can't bully people like this, right?"
Fang Zhuo actually couldn't bear to deal with this group of people. He used the Anliang Society's money, but he definitely made a fortune.
“Mr. Li, didn’t I tell you? Things will change when Sina’s third quarter financial report comes out.” He frowned, “What else do you want me to say?”
“When will it come out?” Li Xinyue lives in New York and still has some confidence. The worst he can do is not go to the mainland again!
“Recently.” Fang Zhuo said succinctly.
Li Xinyue became increasingly dissatisfied with the perfunctory attitude of the young man in front of her. The amount of money An Lianghui paid was not a small amount!
She said with a semi-warning: "Mr. Fang, I hope everything goes well. Sina is a listed company after all, and we don't want to hear any bad news that affects the stock price. Our money has to be delivered in one year."
Fang Zhuo was furious, but his face remained calm: "No problem, the delivery will be done in one year."
Li Xinyue stared at Fang Zhuo and turned to leave the office.
“Wait a minute, Mr. Li, you’re all here. Lend me the double red stick to an envoy.” Fang Zhuo recalled briefly and made up a random reason, “Fan Xiong, come and help me shock people.”
"Hmm." Li Xinyue didn't think it was anything, so she responded in her nose and left Yike Company.
That afternoon, Fang Zhuo met Fan Xiong, a copper pea who had also been to the mainland.
“Mr. Fang, if you have something to say, please tell me.” Fan Xiong showed extraordinary respect.
“Brother Fan, sit down.” Fang Zhuo said something casually and asked casually, “Oh yes, your chamber of commerce has invested money in my fund. Brother Fan, if you want to have some fun, I will take you with me.”
Fan Xiong said honestly: "I don't understand this, it's easy to be fooled."
“That’s right.” Fang Zhuo smiled, “Funds do have twists and turns sometimes. Let’s do this, Brother Fan, take 50,000 yuan and I’ll show you the effect.”
This chapter has been completed!