Reinventing the Millennium

Fang Zhuo received a phone call from Sony, and Senior Vice President Albert conveyed Stringer's message.

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, that’s the end of it.

Quite tough in attitude.

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 ties to complete the cooperation.

Because it involves changes in equity, Fang Zhuo held a conference call with shareholders out of courtesy. Both IDGs, Capital Today, Shenxin Science and Technology, and Xiangjiang Huanyu participated.

After some elaboration, 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 come to nothing.

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.

The 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, this change is too fast, right?

The all-round competition currently faced by Yike is beyond the reach of domestic institutions, and the American 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 American IDG 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 considering offering price reduction discounts to clear out the products. If this failed, he would announce new features of iMusic before Apple.

After the shareholders' meeting ended, Fang Zhuo sat in the office and refilled his tea. Then, the phone rang, and 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 the domestic market."

"Mr. Xu, new sister, how is it possible? How could I have expected such a change, and I can't catch someone cheating me a second time. Then 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, things are very complicated. Even if I tell you, you don't understand. I'll buy you a drink when I go back."

The situation changed too fast, and there was a gap in communication between the company and shareholders. Even Xiong Xiaoge was 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 held another company meeting non-stop, without allowing people from the United States to attend, to discuss Sony Music matters.

It's a discussion, but it's more about asking others to supplement their own thinking. It's difficult for a middle-level manager like Qi He, who has just been promoted, to consider issues from a big perspective.

Even marketing director Yu Hong, who has been in charge of the U.S. market for some time, does not dare to express her opinions for fear of misleading her boss.

But one good thing about Yu Hong is that she is also a shareholder and can bear the consequences together.

Regarding the forward-looking development of the industry and the key nodes in the company's competition, Fang Zhuo is destined to make the decision.

"Sony Music wants to use our money to invest in our shares."

"Stringer is trying to have sex for free."

"Hey."

After listening to everyone's obviously cautious discussion, Fang Zhuo couldn't help but sigh melancholy.

"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, it is easy to control A weapon in the struggle for power.”

After all... the president in front of him 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 scene will be like after the next round."

"We are going to amend the articles of association."

Fang Zhuo's mind was full of many operations involving equity, which were the sequelae of the Sina dispute. He also subconsciously immediately considered ways to ensure control of the company.

But company articles of association alone are not enough. Acting within the rules must be relative and everyone will be bound.

"Mr. Fang, since Sony Music needs to be converted into shares, then this 'discount' can be considered to be an additional discount." Deputy Director Qi He said.

This is correct.

Fang Zhuo had already decided to cooperate with Sony Music, and now he had to consider how to strive for greater interests for himself. He nodded at 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: "If it's not suitable now, what about the future? Even if it's really not suitable, what if Sony thinks it's suitable?"

What is needed now is not a domestic model suitable for copyright licensing, but 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.

Giants are confident.

It’s not working in China now. Giants must have the courage and confidence to tame the environment. Without trying, how can there be progress?

Fang Zhuo's mind 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. As long as it has the ambition, 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 software content.

Fang Zhuo felt that if he were sitting in Stringer's position, there would be many ways to gradually influence a downstream company in the industry chain.

But……

What if the time coordinates are slightly stretched?

In the next ten years, with the development of the Internet and digital music, the recording industry will inevitably decline step by step.

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 it, a deep player in the recording industry, turn around?

Even if it wants to be gorgeous, can its parent company Sony, which has already shown 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 of 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 certainly be in dire straits over the next few years.

Stringer, you want equity in my company, and I 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, what Qi He said was right just now. It is necessary to let our opponents and potential collaborators know about the market position of Yike."

"The company's articles of association need to be revised to strengthen the authority the board of directors obtains from all shareholders."

"We will launch a relatively large-scale promotion in the United States and China to continue to capture users and prepare for iMusic."

"We need to correctly assess our value and the value that Sony Music can bring."

"Since we want to cooperate, we should not limit ourselves to copyright, but we should face up to the position of shareholders."

"Sony Music wants to use our money. The amount of the money will be reduced first before making 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 license. 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 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.

After the meeting, 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 stroking it off. I've seen it many times!"

"..." Fang Zhuo shook his head, "You can't be careless when it comes to equity, but your contact with Sony Music must be neither humble nor overbearing. We are still the leader in the market."

"Absolutely. The worst thing is that I won't do the market here. I won't work overtime or stay up late or 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 the venture capital this time than before."

"There's nothing else. Let's take a look at the situation before reacting. The hardware market is a fundamental market, so pay more attention to Apple's competitive product information." Fang Zhuo mused, "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 are just trying 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 had similar feelings 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 is slightly higher-level. As a result, the boss killed him as soon as he came.

Yu Hong felt that she was more suitable for the market, and the company's management needed to be clearer.

At the end of September, Yike and Sony Music began to have formal and secret contacts. The discussions involving equity were different from the previous copyright authorization.

Fang Zhuo is considering cooperating without selling old shares and allowing Sony Music to conduct a separate Pre-B round of financing with long-term licensing and part of the cash.

But this still requires communication with institutional shareholders, because it will mean a reduction in 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 Club broke in.

"Mr. Li, what's the matter?" Fang Zhuo waved to the employee 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 interview 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 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 it was definitely a way to make 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 is in New York, but she still feels confident. At worst, she won't 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 him. The amount of money An Liang would spend was not a small amount!

She said half-warning: "Mr. Fang, I hope everything goes well. Sina is a listed company after all, and I don't want to hear any bad news that affects the stock price. Our money will be delivered in one year. Is there any problem?"

Fang Zhuo was furious, but his face remained calm: "No problem, the delivery will be made in one year."

Li Xinyue stared at Fang Zhuo and turned to leave the office.

"Wait a minute, Mr. Li, you're here, please lend me the Double Red Stick as an envoy." Fang Zhuo recalled it briefly and made up a random reason, "Just Fan Xiong, come and help me shock people."

"Yeah." 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 anything to say, you can 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, do you want to have some fun? I will take you one."

Fan Xiong said honestly and courteously: "I don't understand this, I can easily be fooled."

"That's right." Fang Zhuo said with a smile, "Funds do have twists and turns sometimes. Let's do this. Brother Fan, you take 50,000 yuan and I will show you the results. You will definitely make money by making money. You can treat it as pocket change." alright."

50,000 yuan, can the dignified CEO still cheat this little money?

Fan Xiong hesitated for a moment and then agreed. He wouldn't lose much, and he wouldn't make much profit either. It was just for fun.