Millennium director

Beijing, home.

Wu Yuan, who had returned to Beijing after a long journey, was holding Liu Yifei's arm and introducing to her the gains of this trip to Los Angeles.

"Yes, we bought two Gulfstream G450s, each costing 250 million RMB. The fixed management fees, pilots, flight attendants, and pilot salaries, insurance premiums, etc. for the following year will cost about 7 or 8 million RMB per aircraft."

"This does not include the irregular fuel costs, route fees, and maintenance and repair costs."

"It is indeed a bit expensive, but it is still worth it."

"If you order now, it will be delivered almost by the end of next year."

Listening to Wu Yuan's enthusiastic description of the details of the visit to the Gulfstream headquarters, Liu Yifei frowned: "It's too expensive, it's a complete waste!"

"500 million, we can't spend so much money on flying for a lifetime!"

"That's right." Wu Yuan smacked his lips. He did feel a little distressed, but he still said stubbornly: "Anyway, it's the money from the company account that is being spent."

"And this plane is not just for the two of us, all the company's executives can use it."

"I didn't make any super luxurious decorations or family planes. The interior can seat 14 people, which is enough to meet the needs of the company's executives on business trips and our daily travel needs."

When Wu Yuan and Liu Yifei go out, it's not just the two of them. Wu Yuan has to bring an assistant, and Liu Yifei has to bring the entire brokerage team of five or six people, which adds up to almost ten people.

It's really like those rich people who buy a Gulfstream and then modify it to only seat four or five people. It's really luxurious, but the entourage is troublesome.

Although Wu Yuan was a little impulsive, he didn't lose his mind.

He bought these two planes to satisfy his "rich" plot. After all, he has made so much money in these years, but he has hardly bought any "luxury goods" of the rich. It's understandable to indulge.

But these two planes are really used for official business, not for enjoyment.

"There are 20 to 30 billion in Guangying Times' account, and Guangying Kuaibo has more. Spending this little money is nothing."

"And after several rounds of financing, my shares have been diluted to 42.6%. In fact, half of the company's money is paid by other shareholders."

"If they didn't disagree, I would have thought of registering both planes under Guangying Kuaibo, and then renting one to Guangying Times, which would be more cost-effective."

"Unfortunately, the shareholders of Guangying Kuaibo are more cunning than each other, and they don't agree to such a good thing at all."

Wu Yuan's expression was full of regret.

He really wanted to spend the company's money to benefit himself.

Especially Guangying Kuaibo.

After all, after several rounds of financing, Guangying Kuaibo has introduced funds from many international venture capital companies such as Softbank and Sequoia. At present, his shareholding ratio does not reach 50%, let alone absolute control.

Of course, his words are still very effective in the company. After all, these venture capital companies basically will not intervene in the operation of the investment company. They care more about financial operations. The actual operation of the company is generally the responsibility of the entrepreneurial team.

Let alone Wu Yuan, Mr. Ma does not have many shares in Alibaba, but doesn't he still have the final say in the company?

Now after several rounds of investment in Guangying Times, the estimated market value given by various venture capital companies is around 45.5 billion US dollars, which is already a very high number.

You should know that the market value of Qiyi Video next door is only 13.7 billion US dollars, and the number of users of Guangying Kuaibo in China is not as many as Qiyi Video.

The reason why it can have such a high estimated market value is mainly because Guangying Kuaibo's overseas strategy has developed well, and the company's financial report is good enough.

A comparison will make it clear.

In 2019, iQiyi's full-year loss hit a new high of 10.3 billion yuan, exceeding 9.1 billion yuan in 2018. The loss has further expanded, which can be said to have set a new record for losses.

This is the public financial statement of the listed company.

Although Guangying Kuaibo has not yet gone public, its internal financial statements are no secret in the hands of major venture capital companies. In 2019, Guangying Kuaibo not only did not make a loss, but also achieved a net profit of 800 million US dollars.

This is all thanks to Guangying Kuaibo's Asian market. After all, in Japan, South Korea and even the entire Southeast Asia region, Guangying Kuaibo is now the largest online streaming platform, isolating Netflix from the Asian market.

Among Guangying Kuaibo's revenue, membership services account for 85% of its revenue, and other business revenue accounts for only 15%

That is, it earns back its expenditure costs and achieves profitability purely by selling VIP membership fees.

Although this number is not much, compared with iQiyi, which has lost more than 10 billion yuan, it is amazing.

Once upon a time, in the early stages of the company's development, advertising revenue accounted for more than 70% of Guangying Kuaibo's revenue, but now it is only 15%

The 15% of advertising revenue basically comes from the mainland market. There is no other way. Chinese people are used to watching videos for free. Video websites can only make profits from free content, that is, through advertising. These are market habits cultivated in the piracy era, and it is difficult to change now.

In contrast, Guangying Qvod completely follows the Netflix model in other Asian markets, charging membership fees, and there are no advertisements to affect users' viewing mood.

Of course, it is still not comparable to Netflix in the United States.

Compared with iQiyi Video, which has been making huge losses, most American video websites are now profitable.

Netflix has been profitable since its listing, with revenue of $20.156 billion and net profit of $1.867 billion in 2019.

Netflix is ​​even more extreme than Guangying Kuaibo, with membership service revenue of $19.859 billion, accounting for 99% of its revenue, and other business revenue accounting for only 1%.

So Netflix's current market value in the US stock market is $147.6 billion, which is not only far higher than Qiyi Video, but also far higher than Guangying Kuaibo.

However, Guangying Kuaibo is currently preparing for an IPO, and it is expected to be listed on the US stock market at the end of this year or early next year. When this estimated market value becomes the actual market value, it is estimated that the number will rise and will probably stabilize at around $700 billion or $800 billion.

Although Wu Yuan's shares should be diluted again by then, it is estimated that he will have a net worth of $300 billion or $400 billion.

Of course, net worth is actually all fake as long as you don't sell your shares, especially the market value of Internet companies.

In fact, Wu Yuan can only get $100 million or $200 million in dividends from Guangying Kuaibo a year, and this is only in the past two years since it started to make a profit. Before it was not profitable, he had to invest money in it.

It would take at least three to five years to earn back the $1 billion he invested previously through dividends.

As for the seemingly attractive valuation of tens of billions of shares, unless he sells the shares, he won't get a penny.

This is why he wants to use the money of Guangying Kuaibo to buy a private jet. He doesn't have much money, but Guangying Kuaibo has a lot of money in its account. These are the company's operating and investment funds, and Wu Yuan doesn't feel bad about spending them.

This is also the normal practice of most wealthy people, using the company's money to buy all kinds of luxury cars, yachts, private jets, and mansions for themselves.

Unfortunately, Wu Yuan failed to do this. At this stage when Guangying Kuaibo is approaching its IPO, the company's shareholders are not willing for him, the founder, to increase the company's expenditure by $100 million or $200 million.

"What a pity." Wu Yuan still sighs with regret. (End of this chapter)