Yike unilaterally cooled down its business negotiations with Sony Music.
This puzzled the people at Sony Music.
In October in October, for more than half a month, do n’t talk about love and affection, that ’s also eyebrows. Why do you suddenly pull your brother ruthless?
Soon, they heard news that they didn’t know whether it was true or not.
One, Yi Ke is said to have hooked up with Universal Music.
Second, Yike considers focusing on hardware products and is committed to consolidating the two huge markets of the United States and China.
Second, President Yike actually owns a Nasdaq-listed company. This "Sina" company has performed well recently.
The first two messages are just smoke and mirrors.
Sony Music tried to confirm the news with Universal Music and got completely different answers from the two executives. Regarding Yike's hardware strategy, this is not entirely impossible.
The U.S. and Chinese markets are both in the development stage. The music copyright we are talking about now belongs to future planning, and the current market is dominated by Yike over Apple.
Even if Apple completes a comprehensive music copyright layout, the process of the Yike hardware market going from strong to weak will not last for a year and a half.
Furthermore, Yike seems to have no rivals in China.
In addition, an Internet company has gone public and its performance has improved...
While Sony Music keeps cooling down at the same time, it is inevitable to think inwardly, the young president who only appeared in the first meeting will not really give up on the layout of software and hardware, right?
Sony Music did not pounce immediately, but kept observing, and soon discovered that the stock price with the trading code private NA was continuing to rise.
The Internet bubble is gradually coming out of the haze. Sina is backed by the rapidly developing markets of Eastern countries and is known as "China's No. 1 portal." Its third quarter financial report seems to show that it has found a suitable profit model.
Sina Hotline, a wholly-owned subsidiary established in the second quarter of this year, successfully exerted its efforts in the third quarter and achieved higher value-added profits than advertising revenue.
Furthermore, this business is not temporary and there is still a lot of room for development.
This directly gives confidence to the stock market.
Sina’s stock price had been fluctuating around US$1.4 before October. After the Q3 financial report was released on October 17, the stock price quickly broke through US$2, then hovered at US$2.6 for a while, and then surged to US$3.3.
October 24, Sina's stock price fell back, closing at US$3.1 that day.
In just one week, Sina’s stock price went from US$1.4 to US$3.1, a full 2.21 times the previous price!
The other two major portal websites, NetEase and Sohu, also announced their Q3 financial reports during this period.
NetEase’s net loss in the current quarter was US$1.1 million, compared with a net loss of US$7.7 million in the same period last year.
Sohu’s net income in this quarter was US$112,000, compared with the net loss of US$870,000 in the previous quarter, and it also made a profit for the first time.
Similarly, the capital market also responded to these two stocks. NetEase's stock price remained stable at US$1.6, and Sohu's stock price once exceeded US$2 and then fell back to US$1.9.
The share prices of the three major portal websites all rose, with Sina being the most impressive.
On October 25, after Sina’s stock price stabilized, an internal open letter from the company’s president appeared in front of all employees.
There are only two sentences in total.
“Sina’s issue price is US$17, and we will continue to work hard.”
“The spring of the Internet is here!”
Fang Zhuo ousted Duan Yongji, and Fang Zhuo took the position of president.
Sina hotline is energized and Sina’s Q3 financial results are impressive.
All the people who followed, cared, ridiculed, and watched Sina’s excitement a while ago all saw the third quarter financial report, and all witnessed the soaring of Sina’s stock price.
This time, after the change of rights, Sina has gone from a low of more than 40 million U.S. dollars to a market value of 100 million U.S. dollars.
More importantly, Sina Hotline is still vigorously developing, and the Q4 financial report released under such circumstances will surely further stimulate the capital market.
Sina looks like it will enter an upward phase of a positive cycle.
Since then, the second sentence of Sina’s president’s internal open letter, “The spring of the Internet is coming,” quickly spread throughout the entire Internet industry.
Everyone knows Fang Zhuo's judgment. Expectations are greater than doubts, and respect is greater than ridicule.
As long as there are achievements, anything you say can make people think well.
Sina's performance is better than that of its peers, and Sina's president has also changed from a "hostile takeover" to a "forward-looking" image.
Because of the increase in Sina's stock price, Sohu President Zhang Chaoyang thought that the last time he had a drink in Beijing was a good atmosphere, so he made a special call to Fang Zhuo, hoping to have another round to talk about this "spring of the Internet."
Unfortunately, other Internet people responded to the call, but Fang Zhuo, the president of the first portal website, declined the invitation, saying that he was abroad and it would be a while before he could return to China.
“Mr. Fang, your Sina situation is so good, why are you going abroad?” Zhang Chaoyang complained that Mr. Fang didn’t give him any face.
“Hey, it’s very difficult for me to work together in a foreign country.” Fang Zhuo gave this answer with some complaints. He responded to Sony Music by retreating in exchange for the other party’s calmness.
The two sides are quite trying to compete for patience.
Zhang Chaoyang did not ask in detail, but at the Internet industry gathering at the end of October, even if the young CEO Fang Zhuo was not present, many people could not help but discuss Sina's emerging momentum.
October 26, Fang Zhuo had a headache after having a meeting in the office to discuss how to stimulate Sony Music’s nerves.
Finally, he decided to try to restart acquisition negotiations with Apple as a way to give Sony Music a serious shot.
You want to lower my valuation, right? You want more equity, right? Then I won’t play. I’ll let you use the music copyrights in your hands to face Apple, which acquires hardware rivals and integrates most of the copyrights.
Once Apple completes its acquisition of Yike, and once Apple finalizes licensing cooperation with each company, Sony Music will be left alone and will completely lose its bargaining power.
Fang Zhuo doesn’t know how to choose Sony Music. Maybe if he really just sits back and watches the negotiations between Yike and Apple, then he will have no choice but to have another failed acquisition with Apple.
He is now using lose-lose intimidation in exchange for win-win negotiations.
This is an invisible competition that requires the vision, toughness, and judgment of both parties to be tested, but the winner will be determined quickly.
That evening, Fang Zhuo received news from employees that Apple was willing to restart acquisition negotiations and was happy to use funds to solve competition problems in the market.
If nothing else happens, Sony Music will receive deliberately leaked news tomorrow or the day after tomorrow.
Fang Zhuo was wandering in his thoughts until the phone in the office rang.
“Mr. Fang, I heard that my daughter had some trouble with you. Today I want to ask Mr. Fang for a favor. I must ask her to apologize to you in person.” came the voice of Li Taimao from the Anliang Chamber of Commerce.
“It is normal for customers to want profit delivery, there is nothing pleasant or unpleasant about it.” Fang Zhuo said calmly.
Li Taimao was full of apologies and apologized repeatedly, with a very low attitude.
"I'm not going to eat anymore." Fang Zhuo didn't want to meet, "I'm young, straight-talking, and the number of customers who are obsessed with GA funds is limited. The five million principal before Anlianghui barely passed the threshold, and now the threshold is tens of millions.
principal."
He continued: "Anliang will either continue to invest money or deliver profits at the end of the year."
"This..." Li Taimao didn't expect that the young man wouldn't give him any face.
“The more funds a private equity fund has, the greater the possibility of making money.” Fang Zhuo explained this.
“Mr. Fang, let’s think about it, this is not a small amount after all.” Li Taimao was not angry.
Fang Zhuo ended the call.
He thought for a while, then called Fan Xiong of Copper Pea again, patiently explained the real rise of the stock this time, and made it clear that the other party would bring some funds from friends to enter the market.
There are still fewer people tied up by Fan Xiong now, so he has to help this copper pea to save more energy.
This chapter has been completed!