Chapter 586 - Start Profiting
The establishment of his own strong legal department was planned by Yu Wenfei for a long time, and this kind of talent could not be cultivated internally by his own company, so he could only be poached from a big law firm.
Therefore, handing over the case to Fang Zhiyan twice in succession carries the meaning of a test.
The first time was to sue the winger for infringement, this case is not big, the difficulty of the lawsuit is not high, but it requires multiple parties to balance the relationship, Fang Zhiyan did a good job, and he took it down without blood.
The second time was a large-scale lawsuit, and it tested his ability to coordinate and control the overall situation.
After these two tests, Yu Wenfei was very satisfied with Fang Zhiyan's ability, so he made up his mind to poach him and let him lead the company's legal department.
Moreover, Fang Zhiyan himself is very good at intellectual property and commercial lawsuits, and these are all things that Facebook companies will need to use in the future.
The game has copyright, and after the music film and television platform is launched in the future, copyright lawsuits will be fought more frequently, so a strong legal department is also essential.
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This time, Facebook Games hit the plug-in with a heavy blow, and it also brought an unexpected gain, that is, the sales of the Half-Life genuine game soared again.
Originally, Facebook Games obtained the agency rights of Half-Life and many other games through the acquisition of Ogilvy, and the North American branch of Facebook Games forced Xueleshan to seek reconciliation through litigation, and the two parties reached an agreement to terminate the contract of Xueleshan's full power to issue Half-Life, which is equivalent to taking back the distribution rights of Half-Life Games.
In addition, Villefort is a holding subsidiary of Facebook Games North America, and when acquiring the shares, the two parties agreed that all the distribution rights of Villefort's games would be handed over to Facebook Games!
Going around in a big circle, in simple terms, Villefort's Half-Life, as well as Blizzard's Warcraft, Diablo, StarCraft, and all the publishing rights of new games from these two companies in the future, are in the hands of Facebook Games.
Anyone familiar with the gaming industry knows that most of the time, the publisher makes more money than the producer when a game sells well. Of course, that kind of production and distribution are the exceptions of one company.
Facebook Games won the game distribution rights of Villefort and Blizzard, but it didn't squeeze them much, and the agency distribution conditions given were relatively favorable, for every game sold, Facebook Games only took 40%, and 60% went to the game production company.
Take Half-Life as an example, the retail price in mainland China is 38 yuan, of which 8 yuan is the retailer's profit, and 30 yuan is owned by Facebook Games Continental.
But this does not mean that Villefort can get 60% of 30 yuan, because Facebook Games Continental is still an agent, and it is an agency from the North American branch of Facebook Games.
Since it is an agent, of course, it also needs profits, and 10 yuan of the 30 yuan is the profit of the Facebook Games Continental Company, and the remaining 20 yuan needs to be handed over to the North American branch.
This means that the North American branch, for the release price of the game Half-Life (the wholesale price given to agents in various countries), is 20 yuan.
After the North American branch of Facebook Games got the 20 yuan, it divided the account with Villefort for four or six yuan, kept 8 yuan for himself, and gave Welford 12 yuan, which is the proportion of a game from production to distribution to agency to retail, which is roughly the same in the industry.
Of course, this refers to the model before the rise of online sales, and after the rise of game online sales platforms such as STEAM, this link will be reduced, and the share ratio will change again.
Why Facebook Games is so complicated, and why not let the mainland head office directly control Welfort and Blizzard and win the distribution rights, there is also a point in this.
As we all know, the domestic financial control is very strict, especially for foreign exchange outflows, if you want to earn money to spend in China, it is very easy, if you want to get foreign spending, or foreign investment, the process is more troublesome.
Moreover, abroad, there are too many investments by large companies, as well as tax avoidance.
Everyone knows that Microsoft and Apple are American companies, but very few people know that even Microsoft and Apple save billions of dollars in taxes every year through reasonable tax avoidance!
In the United States, one of the simplest and most common tax avoidance methods is the "two-tier Irish-Dutch sandwich" tax arrangement in the industry, which is basically used by large technology companies in the United States, such as Microsoft, Apple, Google, Facebook, etc.
Why, of course, is to pay less tax.
In the United States, the tax rate can be as high as 39 percent, one of the highest statutory tax rates in the world, while in Ireland it is only 12 percent.
And after the multi-layer structure, the tax rate can not even be reduced to 0.1 percent, who would not be impressed.
Apple has a subsidiary in Ireland, and Apple is putting almost all of its sales business in this subsidiary, with a pre-tax income of $38 billion in 09, but after the "two-tier Irish-Dutch sandwich" tax arrangement, it finally paid only $21 million in taxes, which is equivalent to 6/10,000!
Of course, Yuwenfei will not do a big deal, so the investment in the United States has also gone through this tax avoidance process, saving a lot of taxes, and it is convenient to reinvest in the future.
As for domestic business, then pay taxes honestly, and at most seek some policy exemptions. Because in China, it is better not to leave a handle on people, it is easy to be settled after the autumn......
In the future, the Facebook company will be divided into two parts, the mainland side is one system, and the foreign one is the other system, the two sides only have equity connections, and their respective finances are independent.
In fact, even if it is an equity, Yuwenfei plans to redivide it, and in the future, he will make domestic and foreign Facebook companies have no connection at all except for their names and shareholders. But it's not a rush yet, after all, Facebook companies haven't started to expand foreign markets in a big way.
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Facebook Games spent $20 million to buy Ogilvy & Mather, and then set up a division to manage the sales of single-player games.
Benefiting from the launch of Facebook Battle.net, the sales of games such as Half-Life and Diablo have skyrocketed!
In fact, many players can't afford to pay thirty or fifty yuan to buy genuine games, but because there is no difference between playing genuine and pirated games before.
Take Half-Life as an example, the genuine version costs sixty-eight before the price is reduced, and the pirated version only costs five dollars, and the game experience is exactly the same, so why buy the genuine version. Moreover, pirated copies are very convenient to buy, there are vendors selling them at the entrance of the school, or just find a computer city electronic market or something like that, you can see it everywhere, but the genuine copy is not easy to find.
But the launch of Battle.net has changed all that.
Playing CS on Facebook Battle.com.,Playing CS on an offline LAN.,That's two part-time games.。 Battle.net's unique division of ranks, point system, ranked battles, etc., all make CS players addicted.
After experiencing this feeling, there is no going back, so the vast majority of people choose to buy the original game just to be able to play on Battle.net.
Even if you don't have a computer, you can play genuine games when you go to an Internet café, because in order to attract people, you must use a genuine serial number to activate Battle.net. These days, if you can't play Battle.net CS in an Internet café, what Internet café do you still have?
From the acquisition of Ogilvy to the present, in just two months, the game Half-Life alone has sold nearly five million copies!
Doesn't that sound exaggerated?
But compared to the huge base of domestic CS players, this number is a bit too little.
After all, there are still many students who don't own computers and can only go to Internet cafes to play, and if in a few years, after the popularization of personal computers, this number will be even more exaggerated!
For example, in foreign countries, where copyright protection is relatively good, the sales of stand-alone masterpieces are very amazing, and may exceed the imagination of domestic players.
To give you a simple example, the Call of Duty franchise has sold more than 300 million copies!
Call of Duty 16, revenue exceeded $600 million in three days of release!
GAT5, the game alone, sold more than 120 million and grossed more than $6 billion, making it the most profitable game in history.
In comparison, the domestic game market still has a lot of potential to be tapped.
In just two months, Half-Life sold 5 million genuine copies, of which about 1 million were purchased from Internet cafes, which was relatively cheap.
But in this way, the 4 million retail version earned 40 million yuan for Facebook Games, and the 1 million Internet café version also earned 5 million yuan for Facebook Games.
After all, Half-Life is a game, and it makes 45 million yuan in two months for Facebook Games!
There are also Diablo, Warcraft, StarCraft and other games, although they are not as popular as Half-Life, but because they are also online on Facebook Battle.com, genuine sales have also ushered in a wave of rise.
It cost 20 million yuan to acquire Ogilvy, and now not only has this investment been earned, but also 35 million more net profits!
Ogilvy has been selling games for seven or eight years, but they have not earned 10 million, while Facebook games only need two months to earn several times, which is different models and patterns, and the results are naturally different.
Yuwenfei has invested in Star Technology and Facebook companies for so long, and every company is constantly throwing money and burning money, although in addition to the start-up capital of 500 million, the rest of the money is paid by venture capitalists, but sooner or later the company will be profitable, and it is not good to lose money all the time.
Separate the Facebook game, is to let it take on the important task of making money, and now, the first profitable department has finally appeared, living up to Yu Wenfei's expectations.
Facebook Games is starting to make a profit, and that's a good sign.