Zhou Buqi and Son Zhengyi chatted for two hours.

Basically reached a strategic consensus.

This wave of investment in the entertainment industry is all about investing in content. It doesn’t matter even if you don’t make money for many years, you must first take control of the content!

This kind of investment logic is impossible for ordinary investment institutions. After making a big deal, the results are not good. Isn’t this nonsense?

The profit-seeking nature of the capital market is often reflected in short-sightedness and the inability to see the longer-term future.

But investing in the technology industry is different.

This is a money-burning industry.

It is often the case that one investment does not make a profit for more than ten years, but after making a profit, it suddenly skyrockets. Therefore, the vast majority of investment funds reject technology companies, let alone early-stage venture capital, and even stocks on the secondary market are rejected.

Don't want to touch it.

This time Zhou Buqi and Son Zhengyi cooperated to invest in the entertainment industry, but they were actually investing in the future technology industry.

Both of them have the same understanding. In the future, Internet streaming media will definitely replace TV stations. People with insight are already taking action, such as Netflix, Apple, and Amazon. However, this direction is not favored by the capital market. Netflix’s

The market capitalization is now only $2 billion.

In the future, there will definitely be several streaming media giants.

Who is it?

Son Zhengyi doesn’t know.

But one thing is clear, no matter how fierce the competition in this industry is in the future, no matter who the streaming media platform is that survives in the future, it will need content to support it.

The content of "film, video and audio" is the foundation of all streaming media platforms.

So it's easy to formulate a strategy.

Respond to all changes by remaining unchanged.

Once you get the content, you will surely occupy a place in the future streaming media market.

This is the reason why Son Zhengyi thought and researched for a long time and finally decided to enter the market.

This idea is correct.

In the field of streaming media, Amazon and Apple entered the market very early, but they lacked enough high-quality content. Disney entered the market more than ten years late, but because the content library is rich enough, the number of users of the Disney platform reached 20% not long after the Disney platform was launched.

has surpassed Amazon’s 110 million, becoming second only to Netflix’s 200 million, becoming the second in the world.

For Zhou Buqi, his layout is more stable.

Netflix on the left, content on the right, very safe!

Netflix's current market capitalization is only US$2 billion, which is extremely poor. Making a high-quality American TV series or movie requires an investment of more than US$50 million, which is really unaffordable.

But it will be different later. As long as we wait for time and the wind comes, Netflix will take off. By then, spending money to buy content will not be a problem at all. In ten years, Netflix’s annual investment in the content field will exceed 20 billion US dollars.

For Netflix, money is not an issue, the key is content. Just like Disney and Warner, they won't sell it even if you give them money. They want to build their own streaming media platform.

Zhou Buqi must solve this problem now.

Regarding Sun Zhengyi's statement that he can endure not making money for many years, Zhou Buqi snorted: "It is impossible for the business I do not to make money! My investment in the entertainment industry is not only a strategic investment, but also a business investment. Not only does it look

The future also depends on the present!”

Son Zhengyi laughed and said: "So confident?"

Zhou Buqi said calmly: "You can rest assured that if the entertainment industry does not make money, I will personally become CEO and revitalize this industry!"

Masayoshi Son laughed and said, "Okay, it's settled! I'll take action immediately when I turn around. SoftBank will give a more competitive offer, lead Disney, and win Marvel!"

Zhou Buqi smiled and said, "Congratulations on making the right decision."

He only owns 20% of Marvel's shares. If Marvel's board of directors approves the sale to Disney, he can't stop it at all, unless someone offers a higher offer than Disney.

Son Zhengyi said loudly, "There is also MGM."

Zhou Buqi frowned slightly, "Decided?"

Masayoshi Son sighed, "After I heard that SoftBank was interested in entering the entertainment industry, many friends were contacting me, such as Providence Capital and Sony. One is the major shareholder and the other is the actual controller. MGM is heavily in debt and about to go bankrupt.

It’s very troublesome for all parties.”

Zhou Buqi nodded.

Through the Manchester United case, he can understand the leveraged buyout very well.

Just like MGM, once it goes bankrupt, the restructuring plan will inevitably require all shareholders to get out, and then the creditors will become shareholders and the owners of the company.

However, the creditors don’t want the company either, which is very troublesome.

It's easy to fall out.

There are several major capitals on the shareholder side, and several major capitals on the creditor side. The two parties have cooperated too many times over the years, and no one wants to break up.

Just like EMI Records, after it went bankrupt, the original shareholder Tai Feng Capital withdrew, and the creditor Citibank became a shareholder, and a lawsuit started; another example is AC Milan, a mysterious rich man in China bought AC Milan through a leveraged buyout, but later did not pay for it.

After the debt was incurred, he was kicked out. The creditor Elliott Fund became the big boss of AC Milan, and the two sides also started a lawsuit.

Among other things, MGM is controlled by Sony, and Son doesn't want to offend too much.

The best way is not to go bankrupt.

Directly reach an agreement with the shareholders and creditors. The shareholders will accept the losses, and the creditors will also accept part of the losses, and reach an agreement with the acquirer. The three parties will cooperate to change the fate of MGM.

Son Zhengyi smiled and asked: "Have you studied the MGM case?"

Zhou Buqi shook his head, "I didn't pay much attention to it."

Zhen Yu knew something about it and said softly: "MGM is in chaos right now, and its cash flow has collapsed. Now it can no longer produce new movies. It can only make money by selling DVDs and TV broadcasts from its content library, but it can't afford the annual up to 250 million yuan."

Interest on dollars.”

Zhou Buqi twitched the corner of his mouth, "How much debt do you have now?"

"$3.7 billion."

"What a trap!"

Under the capital game, Hollywood film companies have been completely ruined.

Well...it seems that we can't criticize them. After all, Zhou Buqi and Sun Zhengyi are now working together to divest Universal Studios, the soul headquarters of Universal Pictures, which is located in Los Angeles...

Son waved his hand, "That's not the point."

"Then what's the point?"

"When Sony formed a consortium to acquire MGM with leverage, one of the investors was Comcast."

"ah?"

Zhou Buqi was surprised.

Masayoshi Son shrugged, "Comcast holds 20% of the shares, the same as Sony. So you understand, NBC Universal and MGM are actually the same thing."

"Well……"

Zhou Buqi was speechless.

We actually met.

If they want to take over MGM, they can't do it through forced bankruptcy and then bankruptcy reorganization. This would be too offending, especially the shareholders include Comcast.

Comcast is still acquiring NBCUniversal and is working with them to spin off Universal Pictures.

"Haha, good thing!"

After thinking about it for a moment, Zhou Buqi was very happy.

Son Zhengyi glanced at him and asked, "How do you say that?"

Zhou Buqi smiled and said: "MGM has the largest content library in Hollywood. As a shareholder, Comcast has no intention of taking action. It shows that they really don't pay enough attention to content. They don't care about MGM, that is.

I don’t care too much about Universal Pictures.”

Son Zhengyi nodded, "I hope so."

Now Universal Pictures has a much stronger development momentum than MGM.

Next, some specific details were discussed, and the general strategic plan was finalized.

It only takes more than 2 hours before and after.

This efficiency is what people in the Internet circle can achieve.

Son was very aggressive, saying that he would spend at least US$15 billion to enter the market. If it is not enough, it can be increased to US$20 billion.

This made Zhou Buqi's face darken.

Depend on!

Universal Pictures, MGM, and Marvel combined don't necessarily have to spend as much as $15 billion.

Son Zhengyi then said: "Look at what other excellent content providers can be eaten together. I think DreamWorks is very good. By then, we will establish a MSI Global Group and build it into a company more powerful than Warner."

Movie giant."
To be continued...