Chapter 431: Netflix, which is going to go bankrupt
The next day, tonight, is the Grammy Awards ceremony.
Taylor has been preparing for this for less than half a month, and for the final rehearsal, she will basically have to prepare at the Grammys all day today.
But before leaving, Taylor still had someone send Lin Chen an infield audience ticket, telling him to go there.
After the explanation, Taylor left first.
During the rest of the time, Lin Chen and Ivanka dealt with investment matters together.
The good news came from Yubu first.
After all, the other party was very surprised that Ivanka made an investment equivalent to all the funds they raised in the previous stage. They did not expect that someone would be so optimistic about their company.
Therefore, after receiving the news, the other party responded very positively and invited Ivanka's investment adviser to discuss it in detail this morning.
The final result was that Ivanka could get 30% of the company's shares for US$50 million.
Lin Chen was naturally not happy about this. After knowing this, he directly asked Ivanka to tell the other party on the phone that he could guarantee not to participate in the management and operation of the company, but the shares and controlling rights must be guaranteed.
Although the actual profit of Youbu was not high later, its stock price was wildly sought after by investors. Lin Chen did not expect Ivanka to gain any commercial status by relying on Youbu, but he wanted to ensure that she could get the most profit for her money.
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After some final bargaining, Ivanka got 45% of the shares and became the largest shareholder of the company.
On the other side, Taylor's investment adviser also received good news.
Muska, Tesla's major shareholder, was very happy to see someone willing to take over the business from those shareholders, so after learning that Lin Chen wanted to acquire Tesla's shares, he came forward to help negotiate the deal. It was estimated that the final result would only be available in a few days.
Compared with the smooth progress of the first two projects, there was a little problem on Netflix's side.
After learning that Lin Chen planned to invest in Netflix, Taylor's investment advisor thought about investing in Netflix all night.
Out of professionalism, he suggested to Lin Chen: "Mr. Lin, I really don't mind your investment in Netflix, please think about it again."
Lin Chen was surprised, so he asked about it, and then he realized that Netflix's current situation was not very good, and in terms of its situation, it was actually much worse than Tesla.
Netflix is an online video rental provider founded in 1997. If compared with domestic platforms, it can be regarded as the Youku of the other side of the ocean. However, its strength is inferior to that of all domestic video platforms combined.
of.
In 2011, its online movie revenue exceeded that of similar services provided by Apple.
However, also in 2011, Netflix announced a 60% increase in network subscription fees, which resulted in the company losing more than 1 million users and causing the stock price to plummet by 50%!
When Lin Chen tried to acquire their shares for Ivanka, although Netflix managed to recover some of its stock price through a series of operations, investors on the other side of the ocean had already seen Netflix’s nature of being strong on the outside but weak on the inside from its previous plunge, and they downgraded it
investment rating.
The stock price has also suffered a setback. Compared with Netflix, although Tesla is also not favored by others, its new products are under development. As long as the new models are launched, Tesla may be able to get rid of its predicament.
But Netflix is different. The loss of users caused by this increase in subscription fees has made Netflix's Achilles' heel clear to the outside world.
It is essentially just a platform that provides DVD playback services online. The content on the website cannot be viewed by others but can be viewed elsewhere.
Moreover, with the popularity of the Internet, DVD sales, which was once one of Netflix's main businesses, have also greatly declined. Netflix's future is completely dark.
Therefore, Taylor's investment adviser said to Lin Chen on the phone: "Mr. Lin Chen, investors don't have high confidence in Netflix now. This company has become a laughing stock in the business world. Their last decision to increase user fees has already
It has become a negative teaching material for Harvard Business School.”
"So I suggest, Mr. Lin, you should give up your investment in Netflix. The market value of this company may continue to fall in the future, and investing in them is not cost-effective at all!"
Lin Chen also felt a little strange when Taylor's investment adviser said that Netflix was worthless.
Before he asked Taylor's investment adviser to investigate Netflix's stock price yesterday, he did not use his own ability to check the investment value of Netflix.
After all, whether it was Yubu or Tras, Lin Chen's ability test results were the same as in the previous life, so on Netflix's side, he also took it for granted that this company would become the online video giant in the future just like the previous life.
You know, in Lin Chen's memory in his previous life, Netflix was a super online video giant whose market value once exceeded Disney in the future.
But now that Taylor's investment adviser said Netflix was worthless, Lin Chen couldn't help but use his own ability to do the math.
The probability that Netflix's market value will exceed Disney's in the future is... 0%!
What? Is there really a difference between Netflix in the two worlds?
Let me lower my requirements. If I invest $500 million, the probability of getting a 100% return on Netflix is... 0%!
Can’t achieve 100% return?
Is Netflix really going to fail?
100%!
Seeing this result, Lin Chen was immediately confused. The Netflix of this world might actually go bankrupt?
He then said on the phone: "I understand, thank you for reminding me, I will consider it again."
After hanging up the phone, Ivanka, who was in charge of translating next to her, immediately asked Lin Chen: "Lin, do you still want to invest in Netflix? Taylor's advisor seems to be very unfavorable about this company... How about I ask too?
My advisor?”
Lin Chen thought for a while and said, "No, let me think about it first..."
Lin Chen originally wanted to invest in Netflix, partly because he considered the company's astonishing market value prospects in the future. It is rare for a company to surpass Disney in market value.
On the other hand, the future is the era of the Internet, and Netflix is the media giant in the Internet era.
Keeping it in his pocket will also be of great benefit to Lin Chen's plan to send Tang Pu to move into the White Palace.
So after thinking about it for a while, Lin Chen felt that he still had to invest in Netflix.
But according to his calculations, the possibility of Netflix failing in the future is 100%. If Lin Chen doesn't do something, investing in Netflix is almost like using money to draw water from a dipper.
What is the reason why there is such a huge difference between the Netflix in this life and the Netflix in Lin Chen's previous life?
Lin Chen opened Taylor's laptop and searched for information about Netflix on the Internet.
Seeing his serious look, Ivanka stopped disturbing him and started preparing lunch.
Then, just as Ivanka's lunch was about to be prepared, she suddenly heard Lin Chen in front of the computer slam the table.
"So that's what happened!"
Ivanka walked over curiously and asked: "Lin, what's wrong?"
Lin Chen smiled and shook his head: "It's okay... By the way, Ivanka, can you translate the novel for me?"
Ivanka was a little confused by Lin Chen's jumping thoughts.
"Yes, yes, but dear, what novel do you want me to translate? Who wrote it?"
"Me," Lin Chen said with a smile, "I plan to write a novel, please translate it into English for me."
While talking, Lin Chen had already opened the software and started typing the title of his novel.
Ivanka stood next to Lin Chen, looking curiously at the three words "House of Cards" he typed.