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Zhou Buqi and Sun Zhengyi chatted for two hours.

Basically reached a strategic consensus.

This wave of investment in the entertainment industry is all about investing in content. Even if you don’t make money for many years, it doesn’t matter. First, take control of the content in your own hands!

This kind of investment logic is impossible for ordinary investment institutions. Isn’t it nonsense to make a big deal and end up with poor returns?

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

But investment 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 soars into the sky. Therefore, the vast majority of investment funds reject technology companies, let alone early-stage venture capital, and are not even willing to touch stocks on the secondary market.

This time Zhou Buqi and Sun 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 that 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 market value is now only US$2 billion.

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

who is it?

Son 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, television and audio" is the foundation of all streaming media platforms.

So it’s easy to strategize.

Maintaining the status quo.

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

This is the reason why Sun 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 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, not long after the Disney+ platform was launched, the number of users reached 130 million, surpassing Amazon's 110 million, becoming second only to Netflix's 200 million, becoming the world's largest platform. second.

For Zhou Buqi, his layout is more stable.

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

Netflix's current market value is only US$2 billion, which is extremely poor. To make a high-quality American TV series or movie, it basically requires an investment of more than 50 million US dollars, which is really affordable.

It will be different later. As long as you 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 content will exceed US$20 billion.

For Netflix, money is not an issue, the key is content. I'm afraid that if you encounter the likes of 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 said amusedly: "So confident?"

Zhou Buqi said calmly: "You can rest assured. If the entertainment industry does not make money, I will personally become the 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 Terra Firma 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 incurring debt, he was evicted. The creditor Elliott Fund became the major owner of AC Milan, and the two parties also began to litigate.

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.

An agreement is reached directly with the shareholders and creditors. The shareholders accept the losses, and the creditors also accept a part of the losses, and reach an agreement with the acquirer. Three parties cooperate to change the destiny of MGM.

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

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

Zhen Yu knew something about it and said softly: "MGM is in chaos right now, its cash flow has collapsed, and 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 to pay up to 250 million a year. 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 movie companies are really ruined.

Well...it seems like 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."

"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.

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

"Well……"

Zhou Buqi was speechless.

We really 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 for a moment, Zhou Buqi was very happy.

Sun Zhengyi glanced at him and said, "What should I say?"

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, so Don’t care too much about Universal.”

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 Zhengyi spoke loudly, 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 developers can be eaten together. I think DreamWorks is very good. When the time comes, we will establish a MSI Global Group and build it into a company more powerful than Warner Movie giant.”

"Purple Star Global?"

Zhou Buqi's eyes lit up.

Um!

This advice is very good!

With the help of Hollywood’s signboard, Ziweixing’s brand was promoted. Just like Time Warner's "Time", Sony Columbia's "Sony", and Vivendi Universal's "Vivendi", this is a huge brand effect.

This will be of great help to Ziweixing's overseas business promotion, and it can earn a wave of free publicity by leveraging Hollywood's huge popularity!

Zhou Buqi will definitely not be able to come up with this US$15 billion investment. At most, it will be a loan. US$3 billion or US$5 billion will be good. It mainly depends on SoftBank.

The name of the new company is not SoftBank Global, but MSI Global, which shows that Son Zhengyi is quite reliable.

Then, there is the specific implementation plan.

There are three main mission targets: NBCUniversal, MGM and Marvel.

MGM is controlled by Sony, and Son took the initiative to apply to resolve the case. Zhou Buqi repaid Li by saying that he could handle Marvel's affairs well.

NBCUniversal is the most complex and the largest, and it will need to be split up, involving General Electric, Vivendi, NBCUniversal management, Comcast and other forces.

This matter requires Zhou Buqi and Sun Zhengyi to work together. Sony and Comcast are both shareholders of MGM, and people from Sony can be hired as consultants behind the scenes.

…

The action was swift.

On April 2, the Wall Street Journal, New York Post, The New Yorker, Yahoo News, Google News, CNN, CBS and many other media exposed important news - Disney intends to acquire Marvel!

The market reacted immediately, with Disney's stock price falling 4.6% that day.

On April 3, Comcast notified the boards of directors of General Electric and NBCUniversal that it was temporarily canceling acquisition talks to be held on April 5.

There are new changes in the acquisition case.

At the same time, General Electric, Vivendi, and NBC Universal also received emails from SoftBank expressing interest in this case.

Recently, the news that SoftBank will invest in the entertainment industry has been rumored in the capital market for a long time, and it has finally been confirmed!

Well……

It’s not SoftBank either. What was introduced in the email was a consortium composed of four parties, namely SoftBank Group, Ziweixing Group, Jieyu Media and Fangfei Fund.