Ending the topic, Jing Jian continued to ask: "How about the copyright acquisition?"

At present, although Seed Entertainment has acquired all kinds of copyrights on a large scale, it still accounts for a small proportion of the total number. In Hollywood, what is willing to sell is basically a matter of price, and the rest are not for sale. For example, several major studios, as long as there is a copyright concern, whether it is a finished film or the most basic script, they are only in and out, and they will not even give the opportunity to discuss.

In fact, this paranoia really wins in the end. With the development of future technology, DVD, 3D version, web-on-demand ...... , the copyright operation again and again, brought about the dollar rolling again and again.

However, Jing Jian knows that technology will develop in the future, which is why he is so obsessed with copyright. Especially the planned film professional website, if there is no film rights from those big studios, it is like a restaurant without a signature dish.

And Ding Sheng's answer was a little surprising: "Jing Shao, you know, it is too difficult to make a direct acquisition, and there is basically no progress." So I wanted to acquire a curve, and although the steps are a little more complicated, it can be done in one step. ”

"Oh?" Jing Jian suddenly became interested.

"I've asked people to inquire that it's not just the studios that own the rights, but also the rental companies. Although the copyright owned by the leasing company is not complete, and the studio has to share it for each operation, at least there is, and there is no limit. As long as the share is paid according to the contract, it is basically equivalent to permanent ownership. But there are still shortcomings, and the new films within three years are not very complete. However, in general, the price is not very high, mainly because the volume is relatively large. ”

In the leasing of new films, major leasing companies also have competition. Exclusive issuance after auction within three years. After three years, it can be sold to other leasing companies that do not have exclusive distribution rights.

Jing Jianjian immediately understood what Ding Sheng meant: "You mean, you can buy a leasing company? Anyway, within a few years, the technology will not reach that level at all." Let's fill our library first. Oh, and since you mentioned it, there must have been a plan in place. Let's talk about it!"

Ding Sheng was prepared: "Our goal is Miracle Rental. This is currently the third-largest videotape rental company in North America. The advantage is that the equity is relatively concentrated, and there are few institutional investors. And after contact, they have the willingness to sell. But when they found out that the buyer was us, they made a strange request......"

"Hehe, don't sell it. ”

"Okay, Jing Shao, I apologize. Miracle Leasing has a 72 percent stake in three individual major shareholders, Bank of America has an 11 percent stake, and the rest are minority shareholders. However, the current operating conditions are not good, and the statements of the last three years are: a profit of 4.21 million US dollars in the previous year, a small profit of 810,000 yuan in the previous year, and a slight increase in profit last year to 1.49 million. As for this year, due to the continuous acquisition and expansion of the top two leasing companies, and the competition for market price reductions and promotions, the profitability level may decline again. Even if you lose money, it will be a small profit at most. ”

Jing Jian nodded, this is another story of the eldest and the second boss, and the last to fall is the story of the third. Moreover, the penetration of the video rental market by various media groups is also very strong. Like the first two video rental companies, they have long been controlled by media groups. Therefore, Miracle Leasing, a private company with "no background", will only have a harder and harder time, and it is no wonder that they want to get rid of it as soon as possible.

"What about the price?" Jing Jian asked.

"The three major shareholders made a joint offer to us. There were two prices, one for $50 million and the other for $28 million, and they helped convince Bank of America and the minority shareholders. ”

Jing Jian smiled: "They forced us to choose the second offer." Tell me, what's the embarrassment?"

Ding Sheng shrugged: "These three major shareholders are actually the second generation, and their style is not as conservative as the first generation that founded Miracle Leasing. They are already dissatisfied with the traditional video rental industry, believing that the level of profitability is too low. Enthusiastic about the latest and hottest high-tech companies, so they want to cash out the money and invest it in Silicon Valley. In fact, I asked insiders to estimate that even with a 30% premium, their shares would be worth only $33 million. That 50 million is a sky-high asking price, and it can't be taken seriously. And the cost of a wholly owned acquisition should be between $45 million and $50 million. ”

Jing Jian nodded, this price should be about the same.

Ding Sheng continued: "Jing Shao, in fact, you also know that investment in Silicon Valley is high-risk and high-return, and there are also many traps for outsiders. Therefore, the three major shareholders asked that the 28 million can be exchanged for angel or A round financing of your high-tech companies in the form of shares. ”

"Damn!" Jing Jian couldn't help but burst into foul mouth, he laughed and scolded, "They're not afraid of dying?"

To be honest, Jing Jian has persevered until now, and basically has never let go of the angel round financing of his own companies, let alone any A and B rounds. I just don't want to dilute the equity, so that the company is absolutely controlled by myself, and I can control the company's future strategic direction. Otherwise, those angel investors would have waved dollars to kiss. Colwell, a Wall Street predator, will not poison his back several times, trying to force Jing Jian to comply.

However, Jing Jian admires the vision of those three investors. I have identified the hot industries in the next ten years, especially if I want to take my own ship. And he is very bold, daring to open his mouth. To be honest, they were really given those original shares, not to mention, it will rise at least 100 times in the future, and they can easily become billionaires.

Ding Sheng also smiled: "Jing Shao, I understand, you have never set such a precedent. However, it is true that the opportunity is rare, and they still have a lot of high-quality assets. There are limited rights to more than 43,000 films and TV series, and there are more than 800 facades in six southern states. There are also two studios in the San Fernando Valley, one wholly owned and the other 65 percent. And the profitability of these two studios is quite good, to be honest, the reason why they haven't lost money in the past few years is because of the efficiency of these two studios. ”

"Ahem, ahem. Jing Jian almost dropped his jaw in shock, "San Fernando Valley?"

Ding Sheng's reaction to Jing Jian was a little strange: "Jing Shao, as long as it's legal money, you shouldn't wear colored glasses, right? We are talking about investment, and the only judgment is the rate of return." Here in the United States, including many famous companies and individuals, like General Electric, have invested in the San Fernando Valley, and it has not affected their reputation, right?"

"Okay, okay! Jing Jian didn't want to say more here. Anyway, after a successful acquisition, there is always a need for asset restructuring. That one...... San Fernando Valley?Let the book capital play!