"Hello, Mr. Anderson. ”

In the reception room of the Burbank Business Club, Márquez Perlman shook hands with Ronan gently: "I've heard of Hollywood's youngest billionaire for a long time, but I didn't expect it to be younger than I thought." ”

Ronan responded politely: "It's a pleasure to meet you." He invited, "Feel free to sit down." ”

From the point of view of the acquisition of Ruiou, the two are competitors, but neither of them showed undue emotions, and there is no doubt about what kind of development there will be in business.

Moreover, the previous trial contact between the two parties also helped to understand each other.

After a few pleasantries, Ronan went straight to the point: "Hollywood Video intends to buy Ryo?"

This time, he was trying to solve the problem, and Márquez naturally would not deny it: "Actually, we have been talking since November, and if it weren't for the sudden appearance of Relativity Entertainment, an agreement would have been reached with Ruiou." ”

Ronan could tell that this was Márquez's suggestion that Relativity Entertainment was not very particular about it, and suddenly intervened in the acquisition of Hollywood Video.

According to his analysis, there is a possibility of cooperation between the two sides, and there is no need to oppose each other, Ronan asked: "You have secret contact with Stuart Coleman, right?"

Marquez only thought about it for a moment before he understood what Ronan meant, and said, "Yes, of course this kind of thing must be kept secret. ”

Ronan spread his hands slightly: "So, when Relativity Entertainment approached Stuart Coleman, it didn't know that Hollywood Video was buying Ryo, otherwise it wouldn't have been so much trouble now." ”

He immediately turned the conversation to a common adversary: "This also led to Stelt Perlman using our willingness to buy as capital to raise prices. ”

Márquez said lightly: "Stelt Perlman, who seems to be a cheerful person, is actually very clever. ”

"I feel the same way. Ronan only had one contact and realized this: "So, we don't have to be a competitor and let Stuart Coleman profit from it. ”

Marquez glanced at Ronan and preemptively said: "The acquisition of Ryo is related to the development plan of Hollywood video, and we can't give up." ”

Ronan said calmly: "Ruiou is also the key to the next development of my newly acquired company, Netflix. ”

After saying this, the atmosphere in the reception room suddenly became a little tense.

Neither side will give up, and can only evolve into competitors.

Ronan was the first to break this atmosphere and said, "Mr. Perlman, can I ask a question?" But without waiting for Márquez to agree, he asked directly: "I have come to a guess about Ruiou from your company's recent operational adjustments and financing, and you acquired Ruiou for their chain stores all over Southern California, right?"

Márquez didn't answer immediately, and after thinking about it for a while, he nodded slowly: "So to speak." ”

Hearing this, Ronan immediately said, "I'm not interested in Ruiou's chain stores. ”

"What?" Márquez was rather surprised.

In the eyes of Hollywood Video, this is the most valuable asset of Reio.

Heavy assets don't mean anything to Netflix, and Ronan can't let Netflix run an offline videotape rental business anymore.

Isn't that putting the cart before the horse?

Márquez then asked: "Why did you buy Ryo?"

Ronan didn't go around in circles, and said tentatively: "The 18,500 film and television works in Ryo's hands, including Hollywood, are rented and sold for copyright. ”

Hearing this answer, Márquez's heart relaxed a little.

Ronan glanced at him and said, "Mr. Coleman, in fact, it seems to me that there is no conflict between us in the acquisition of Ruiou, and there is no competition. ”

Marquez had already thought about it based on Ronan's answer just now.

Ronan continued: "Hollywood video is much larger than Ryo's, and the library is only a lot more than Ryo's. ”

Márquez had fully understood what Ronan meant: "You want to spin off Ryo's library in the acquisition?"

"That's right. Ronan said in a slightly accentuated tone: "Your company wholly acquired Ruiou, Stuart Perlman will not separate the film library, right? This is a completely unnecessary expense, if it is split, Hollywood video can be saved." ”

Márquez tapped his finger lightly and said, "You have some truth in that. The two sides have found a consensus, and he said simply: "The one-time acquisition of all the assets of Ruiou is the premise of this transaction." ”

Ronan smiled and said, "This could save tens of millions of dollars for Hollywood video." First, without competitors, Stewart Coleman can't ask for a sky-high price. Second, the copyright fees for 18,500 film and television works are paid by Netflix. ”

Netflix can likewise save a lot of money because the store assets are of no use to Netflix.

"You really don't have any interest in the Ryo chain?" Marquez confirmed.

Ronan swore that "I can guarantee that." Netflix is in the Internet rental business and has never had any plans to enter offline chain stores. ”

Márquez said: "Relativity Entertainment has a multi-faceted business partnership with Hollywood Video, and there's really no need for someone else to benefit because a small company like Reo has evolved into a competitor. ”

Once again, Ronan said, "That's exactly what I meant. He further said: "We can join forces, sign an agreement in advance, and then complete the acquisition under the name of a company, and then split it up according to each other's needs, each taking what it wants." ”

Márquez thought for a moment and said, "That's a solution, but Mr. Anderson, I need to report to the company's board of directors and can't give you an answer right away." ”

Ronan basically achieved his goal, and said with a smile: "I hope your company can make a decision quickly to avoid further changes." ”

"I'll keep an eye on it. After Márquez said this, he suddenly asked curiously: "Netflix is in the Internet video rental business, right?"

It's not a secret, Ronan replied, "It's Netflix's only business." ”

Márquez was even more curious: "The rental and sale of copyright of 18,500 film and television works, this is really a big deal, and with such a large amount of money to expand the business, there is a future for Internet video rental?"

In fact, he had heard that the founder of Netflix had approached companies such as Hollywood Video and Pepsi to ask for an acquisition, but they were all rejected.

Of course, Ronan will not tell the truth, and responded: "In every industry, there are always pioneers and pioneers, and what the prospects are, you always have to try to know." ”

Márquez shook his head secretly, the video rental industry is very mature now, and the new path is destined to be very difficult.

The vast majority of the so-called pioneers and pioneers died under the difficulties and dangers of the new road, and very few were able to get out of the way.

Even if you can get out of the way, the ones who profit are often the more powerful latecomers.

Hollywood video companies in the film and television rental industry, with a successful operating model, a stable source of profits, and a familiar operating method, there is no need to take such a huge risk.

Netflix's almost stagnant development in recent years has actually foreshadowed the future of the industry.

Márquez knew very well that after Hollywood Video acquired Ruiou, Ruiou's online rental videotape business could not survive and would only be shut down.

"Hopefully we can work together again. Márquez shook hands with Ronan before taking his leave.

Ronan also said, "I hope so. ”

Marquez was the first to leave the reception room, and before leaving the door, he glanced at Ronan, and secretly guessed in his heart: How much money will Relativity Entertainment lose on Netflix?

Judging from Ruiou's situation, maybe even the head office will be dragged down to the end.

Ronan returns to the office and immediately contacts Robert Lee, asking him to keep an eye on Ryo while keeping in touch with Hollywood Video.

Just two days later, there was good news from Hollywood Video, which was willing to partner with Relativity Entertainment to acquire Ruiou.

Immediately, Ronan sent Robert Lee to secretly negotiate with Hollywood Video to discuss the specific operation.

The two sides must find a mutually acceptable cooperation model, such as the proportion of the rental and sale rights of film and television works in the total assets of Ruiou.

Hollywood Video is eager to expand its store chain business to catch up with its industry leader Pepsi, while Netflix on the Relativity Entertainment side is eager to expand its film source to support the soon-to-be-expanded Skydome project.

With their own needs, the two sides quickly found a balance and signed a legally binding agreement.

Netflix will openly withdraw from the competition to acquire Ruiou, with Hollywood Video as the main body of the acquisition.

The most important part of the agreement is undoubtedly the division of assets.

The rental and sale rights of the film and television works required by Netflix account for 30% of Ruiou's total assets, but after the completion of the acquisition, all the physical videotapes in Ruiou's inventory will be owned by Hollywood Video, except for the copyrights.

In addition, all company assets, such as stores, employees, websites, equipment, and software, all belong to Hollywood Video.

But Ryo's debt problems are also responsible for Hollywood Video.

This operation is not complicated, after Hollywood Video completed the acquisition of Ruiou, it separately stripped the rental and sale rights of 18,500 film and television works, and then sold them to Netflix.

Ronan had professional legal advice beforehand, just like the copyright of a comic being resold by different companies, and the copyright of a movie being converted back and forth, in full compliance with the provisions of copyright law.

Moreover, after obtaining the lease and sale rights, according to the "Millennium Digital Copyright Supplemental Terms" in 1998 under the Copyright Law, even if Netflix transitions to streaming media in the future, as long as the relevant licensing fees are paid on time, these works can be broadcast on Netflix's website.

This acquisition is not only for the present, but also for the future.

No one knows better than Ronan that movie DVDs will gradually decline after less than a decade of prosperity, and in the previous life, Netflix successively shut down most of the DVD rental business and completely transformed into streaming.

With Relativity Entertainment quietly signing an agreement with Hollywood Video, Ronan officially informed Stuart Coleman that he would withdraw from the competition for Ryo.

。 m.