Top of the big era

On September 12, Zhou Buqi, together with Zhen Yu and Xue Baoshan, participated in a multi-party meeting with more than 20 people, including General Electric, NBC Universal, Comcast, SoftBank, Vivendi, and two third parties. accounting firms and law firms.

The main study is the case of NBC Universal.

very complicated.

After half a year and 15 rounds of negotiations, all parties finally reached a unified plan.

The total offer price is US$32 billion.

Comcast couldn't come up with that much cash, so the acquisition method it proposed was very complicated, including $6.5 billion in cash, Comcast's cable TV stations were added to the mix at a discount of $7.5 billion, and it also took on $5.5 billion. of debt. And it will be paid in installments, and you will get 75% of the shares of NBC Group first. The remaining 25% will be compulsorily bought out after 5 years.

In comparison, it is much easier for Universal Pictures.

Pure cash transaction!

Zhou Buqi didn't want to delay any more. He expressed his willingness to bear more in terms of the cost of splitting NBC and Universal Pictures, and gave a very beautiful figure in Chinese style, with a total quotation of US$8.88 billion!

For NBC's two major shareholders, General Electric and Vivendi, what they hope most is to recover cash flow and tide over the economic crisis.

Comcast's transaction plan is really a scam, part cash, part physical assets, part debt, and 25% installment shares...

The fundamental reason why this transaction was concluded so smoothly was the sincerity from Ziweixing Global!

US$8.88 billion in pure cash, plus US$6.5 billion in cash provided by Comcast, such a large amount of cash is the fundamental reason why GE and Vivendi are willing to accept this plan.

If there were no Ziweixing Global, let’s talk about this big case worth tens of billions of dollars!

Comcast wouldn't have been able to get this done without dozens of rounds of negotiations over two to three years.

This is also the main reason why Comcast is willing to spin off Universal Pictures and sell it. GE and Vivendi only want cash, Comcast is short of money, and MSI is rich.

Adding Ziweixing Global to the mix can move the case forward more quickly. If we really talk about it for two or three years, Comcast will go crazy. The key is that California's policies will change if it is delayed.

Hollywood's economic situation is obviously recovering, and California's preferential policies will increasingly favor manufacturing. The opportunity was delayed, and now the preferential policies for Hollywood are gone. At that time, the additional cost of the transaction will increase significantly.

In short, Universal Pictures won.

The most important piece of the puzzle for the big project "Purple Star Global" is finally here!

If there were no Universal Pictures, "Ziweixing Universal" would have to be renamed.

"There's still one last step to go, don't be too happy."

After the meeting, Sun Zhengyi happily took him to drink coffee and joked.

"What's the last hurdle? Publicity period? Regulatory evaluation? Who can compete with us for Universal Pictures now?" Zhou Buqihun didn't care and sighed, "If word of the price of US$8.88 billion gets out, the whole United States will have to take us down. They both take advantage of each other."

It stands to reason that acquiring a high-quality asset like Universal Pictures for US$8.88 billion is definitely a good deal. However, this Universal Pictures is not that Universal Pictures.

Now Universal Pictures has divested its two core assets, one is its USA television network and the other is its amusement park business. These two major businesses are worth US$6 billion to US$8 billion at least.

Son Zhengyi smiled and said: "Isn't this exactly what you expected?"

"Well, it's right to streamline." Zhou Buqi nodded, "Hollywood film companies are managed by a group of producers. Those who make movies and TV series should just do professional things. Let's do that. They go to build amusement parks and TV stations, but they don’t have that level, so why not just make movies and TV series honestly.”

Son Zhengyi smiled and said: "Now the most critical part has been basically solved. Universal Pictures, MGM, DreamWorks Animation, Summit Entertainment, Marvel... it feels like they didn't spend much money."

MGM: $2.76 billion

Summit Entertainment: $270 million

“Spider-Man” related rights: $700 million

Marvel: $3.82 billion

DreamWorks Animation: $2.96 billion

Universal Pictures: $8.88 billion.

The total investment is US$16.43 billion.

Far less than expected.

When the big project "Purple Star Global" was first designed, SoftBank's plan was to invest US$20 billion, and Zhou Buqi would raise another US$5 billion from various channels, bringing the total funding to US$25 billion.

This is considered an overfulfillment of the task.

Another very important point is that not all of the $16.43 billion in expenditures is pure cash. In three transactions with Marvel, DreamWorks Animation and Summit Entertainment, it also assumed $1.05 billion in debt. Katzenberg's stock in DreamWorks Animation, worth $500 million, was still traded in a share swap.

In other words, the real cash expenditure is only $14.88 billion.

MGM and Universal Pictures are currently debt-free and will have strong debt-raising capabilities in the future. Taken together, it seems that there is no need to invest so much money in the Ziweixing Global project now.

Of course Zhou Buqi disagreed.

As chairman and CEO, he received 10% of super management shares.

This is a fixed ratio.

Of course, the higher the investment, the better.

Zhou Buqi said in a deep voice: "It didn't cost much to acquire the assets, but the consulting fees and taxes cost 1 billion U.S. dollars. Coupled with asset restructuring and business adjustments, at least 3,000 people need to be laid off and 1,000 new people need to be recruited. This part of the expenditure will cost another US$500 million to US$800 million. There will also be a new headquarters building, as well as some large-investment film and television productions that need to be approved..."

Masayoshi Son waved his hand, "It doesn't matter. I said that SoftBank's budget for this project is US$20 billion. As long as it does not exceed this budget, you decide how much!"

Zhou Buqi said with great satisfaction: "Well, next I have to buy as many copyrights as possible."

"Scattered distribution rights?"

"Not only that, but try to buy two sitcoms."

"sitcom?"

Sun Zhengyi was stunned for a moment. He had never looked at this kind of thing, so he felt that this kind of laughter was really low-end and unnutritious.

Zhou Buqi said: "There are two types of TV programs that Americans like most, talk shows and sitcoms. The threshold is low and the audience is wide. But there are no good sitcoms under Ziweixing Global."

This has to do with business structure.

Universal Pictures used to own some cable TV stations, and when producing TV series, it was more for its own TV stations. Cable TV stations are generally boutique channels, while sitcoms are more for wireless TV stations.

After the merger of NBC and Universal Pictures, Universal Pictures tried to launch the top-notch sitcom "The Office" because of the NBC wireless television network.

This is the only one.

There is no nine-year compulsory education in the United States. The so-called "quality education" and "happy education" are actually educational models that solidify social classes. As a result, the middle and lower classes in the United States are almost idiots. They know nothing about "Breaking Bad" except eating, drinking and having fun. I can't stand serious American dramas like "True Detective", "Game of Thrones" and "Westworld", so I can only watch shitty sitcoms for fun.

Therefore, if the streaming media business wants to complete its expansion in the future, it is not enough to have excellent and high-quality movies and TV series. It must also reserve enough simple content for mid- to low-end users that they can understand.

You have to plan ahead and plan ahead.

Son Zhengyi said: "Is it difficult?"

Zhou Buqi smiled and said, "Try it. The best producer of sitcoms is Warner. Friends, Seinfeld, The Big Bang Theory, and Two and a Half Men are all theirs. Warner is now asking for help." We are cooperating with MGM to produce the "Hobbit" trilogy, maybe there will be a chance."

Sun Zhengyi couldn't tell whether he was telling the truth or deceiving him, so he said helplessly: "What you said makes perfect sense. I don't understand anything. If you think it will work, then it will work. I am 100% committed to your decision." support."

Zhou Buqi just likes this kind of investor, or that SoftBank can be very popular all over the world, "By the way, there are two other things you must know."

"oh?"

"First, I would try to make an offer to Lucasfilm."

"Lucasfilm, I came to the United States under the influence of "Star Wars", this is a good deal!"

Zhou Buqi continued: "Second, Ziweixing Global will invest in Netflix and reach strategic cooperation."

Son Zhengyi said: "Support Netflix first?"

Zhou Buqi said: "Yes, streaming media is an emerging industry after all. All parties will work together to promote Netflix first, accumulate some experience, and master the operating model. We will launch our own streaming media platform in two or three years."

This matter must be explained clearly to avoid misunderstanding.

Zhou Buqi is a major shareholder of Netflix.

This wave of operations is suspected of using Ziweixing Global's public resources for personal benefit.

Sun Zhengyi is a person who does big things, and he is very organized. He smiled and said: "You don't need to explain to me. Again, do whatever you want! I can't even trust you, who can I trust? If There is one person in this world who can lead the reform of the Internet industry in Hollywood, and that person must be you! Only you can implement all the plans we have designed for Ziweixing Global!"

In this case, Zhou Buqi would not be polite.

Purple Star Global’s investment structure has been officially confirmed, with a total scale of US$25 billion!

Among them, SoftBank invested US$20 billion, Zhou Buqi's family fund invested US$4 billion, Ziweixing International invested US$500 million, and Jeffrey Katzenberg used DreamWorks Animation shares for US$500 million.

Because Purple Star Global is a technology-oriented company, some options must be reserved to promote future technology teams to enter the field to develop streaming media business.

This 5% reserved option pool will be borne by SoftBank.

As a strategic technology investment, Ziweixing International will receive a share premium and obtain 5% of the shares.

At this point, the ownership structure of Ziweixing Global has been basically determined.

Zhou Buqi personally holds 10% of the shares. This is a management stock that is obtained without spending a penny. It has super voting rights with one vote worth ten votes.

The rest are ordinary shares, with the Zhou family fund holding 16%, Ziweixing International holding 5%, Katzenberg holding 2%, and a reserved option pool of 5%.

The remaining 62% is divided among five investment funds under SoftBank Group.

"well!"

After finishing the draft planning of the equity structure, Zhou Buqi sighed and sighed.

Son Zhengyi asked curiously: "What's wrong?"

Zhou Buqi said: "You took 62% of the shares! You really took advantage of it!"

Son was almost furious, "Did I take advantage? That's a real US$20 billion! There are also dry shares, options, super voting rights, as well as airplanes and yachts!"

Zhou Buqi doesn't think so.

SoftBank's 62% stake is indeed a bit too much.

It seems that it is necessary to further buy into Netflix stock.

Netflix's current market value is US$2.4 billion, but Wall Street has been badmouthing it over the past six months, believing that its stock price is too high.

You might as well find an opportunity to eat some more!

Using the exclusive broadcast rights of "The Hobbit" and Ziweixing Global's massive film library as bait, Netflix's board of directors will definitely support major shareholder Zhou Buqi to further acquire Netflix stock.