Having prior experience in acquiring Embassy Pictures, Ronan quickly assembled an acquisition evaluation team of nearly 30 people consisting of professional lawyers, accountants, and third-party agents to assist Relativity Entertainment in completing the negotiations and deal with Reed Hastings regarding Netflix as soon as possible.

In the Burbank Business Club, the two sides also began the first round of negotiations.

"Relativity Entertainment is most suitable to cooperate with Netflix in the form of capital injection. ”

On one side of the long conference table, Reid Hastings is trying to get his hands on the right terms: "This will ensure the stability of Netflix and allow the Netflix management team to help you make a smooth transition." ”

He glanced at Ronan on the other side: "Mr. Anderson, Netflix's management team is the one who really understands this company!"

Ronan nodded, apparently agreeing with Reed Hastings' words: "No matter which way we work together, Relativity Entertainment will do everything possible to guarantee the stability of the Netflix management team. ”

Reed Hastings remained silent and asked, "So, you agree to cooperate in the form of a financial injection?"

Ronan said calmly: "It is not impossible to cooperate in the form of capital injection. He smiled: "I would also like Mr. Hastings to continue as CEO of Netflix, Mr. Randolph to continue to serve as COO, and the entire management team to remain stable." ”

"We have a completely unanimous view on this. Reid Hastings took the opportunity to say: "Relativity Entertainment's investment in Netflix will be a win-win outcome. ”

Ronan also wants to continue to try to keep Reed Hastings, although Mark Randolph is the most important operator of Netflix in the early stage, but the importance of Reed Hastings to Netflix in his previous life is self-evident.

It would be great if Reed Hastings was willing to work for Relativity Entertainment.

"How much stake can you give up if Relativity Entertainment invests in it?" Ronan asked.

Reed Hastings said bluntly: "Forty percent." "For the stability of the company and the decision-making power of the management team, the management team needs a controlling stake. ”

Garcia glanced at Ronan and interjected, "Mr. Hastings is trying to swallow all the benefits and put all the risks on Relativity Entertainment!"

Ronan has done a long investigation into Netflix, and of course knows that Netflix's shares are almost entirely concentrated in the hands of Reed Hastings, except for a very small part held by Mark Randolph.

What he just said can be said to be that Reed Hastings wants to ensure the stability of Netflix's management team, or it can be said that Reed Hastings wants to continue to have absolute control of Netflix.

For Ronan, investing in Netflix is completely different from investing in Apple, the latter is purely for asset preservation and appreciation, and the former is an extremely important part of the company's future development, and he can't let Relativity Entertainment follow Reed Hastings ass and beat soy sauce.

Although there is no other way to do it, he does not want to complicate the acquisition infinitely.

It is quite important to maintain the discourse of relativity entertainment.

Ronan only thought for a moment, and then said, "Mr. Hastings, I said before that if Relativity Entertainment cooperates with you in the form of capital injection, then absolute control is a must. ”

"This is a prerequisite!" he stressed.

Without a controlling stake, there is no need to talk about capital injection.

Reed Hastings' face was gloomy for a moment, and he returned to normal in an instant: "In this case, the stability of the management team will not be able to be talked about. ”

Ronan is well aware that with Netflix's current situation, Reed Hastings will leave Netflix nine times out of ten after losing a controlling stake, but it is difficult for the rest of the management team to say.

Ronan knows a lot more about the inside of Netflix than Reed Hastings thinks.

Reed Hastings had no idea that he had been preparing for Netflix for years.

In fact, within Netflix, more people recognize Mark Randolph, who is in charge of the company's operations, rather than Reed Hastings, who later strongly intervened in the company's business.

According to Netflix internally, it was first Mark Randolph's idea to start Netflix, and in the early days of Netflix, Mark Randolph served as the CEO, and it was he who planned the future of Netflix and drove the company's growth.

Reid Hastings first played the role of a funder and a puller.

If it develops according to the rhythm of the previous life, it will not take a few years for the friendship and cooperation between Reed Hastings and Mark Randolph to come to an end, just when Mark Randolph is working hard for the future of Netflix, Reed Hastings in order to completely control Netflix, the joint board members dismissed Mark Randolph and kicked him out of the company.

Later, the name Mark Randolph became taboo on Netflix, and Reed Hastings forbade anyone to mention it.

The effect of this long-term de-Randolph is more obvious than that of Mark Zuckerberg to Facebook, and after 2010, everyone who mentions the founder of Netflix is only Reed Hastings.

Most people believe that Reed Hastings single-handedly founded Netflix and led Netflix through the difficulties and dangers of the early and mid-stage entrepreneurial development stage, and it is not clear whether it is someone else.

Ronan completely gave up the idea of capital injection, and also gave up the possibility of retaining Reed Hastings in his heart, and said directly: "There is no need to talk about capital injection. Mr. Hastings, Relativity Entertainment's wholly owned acquisition of Netflix. ”

Hearing this, a trace of disappointment and helplessness flashed in Reed Hastings' heart, if Relativity Entertainment is just registered, and he can still hold the holdings, there will always be a way to marginalize Relativity Entertainment in the future, continue to control Netflix, and even if you are lucky, you can not only use Relativity Entertainment's funds and movie platforms to develop Netflix, but also play Relativity Entertainment in the future.

But Ronan Anderson, a young man, was so decisive that he didn't seem to be given a chance at all.

Reid Hastings is still trying to do his best: "This kind of cooperation could lead to instability in Netflix's management and a period of chaos, which neither you nor I want to see." ”

Ronan replied lightly: "With the development of relativity entertainment in the film industry, it is not difficult to manage a peripheral channel. ”

When Reed Hastings heard this, his heart throbbed, and he thought of the situation in the last interview, Netflix was nothing more than a replacement for the original plan in the eyes of Relativity Entertainment.

The treasures in your own hands are not irreplaceable in the eyes of others.

This point, when rejected by Pepsi and ridiculed on the spot, Reed Hastings came to his senses.

Mark Randolph looks at Reed Hastings and wants Reed Hastings to fight for it a little more.

But Reed Hastings has already seen the determination of the other party, and Relativity Entertainment's future plans for Netflix simply have no need for their own existence.

And he doesn't want to go from a top manager of a company to being managed.

Netflix can sell a large sum of money, and after paying off the loan, it is enough to ensure that he still has money in his hands to continue the business.

There is a good saying, I would rather be the head of a rooster than the tail of a phoenix.

Almost every executive who has made it to the top of the company has a similar idea.

Reed Hastings is no exception, and he hasn't even thought about working for Relativity Entertainment.

It's impossible to work part-time, and it's impossible to work for someone else in this life.

In Mark Randolph's slightly surprised gaze, Reed Hastings said, "I can accept your full acquisition of Netflix. ”

He has tried his best to transfuse blood for Netflix for many years, and he is not happy!

A good life needs to be maintained, loans need to be repaid, and the next start-up fund has not yet been settled......

In the face of money, everything else is empty.

Ronan remained calm and said, "Very well, we now have a basis for continuing the conversation. ”

At the beginning of the negotiations, Ronan was able to reach a consensus on the acquisition method, which was already quite satisfactory to Ronan.

Ronan is most worried about Reed Hastings' stubborn bite.

But Reed-Hastings is a businessman after all, and the first thing to consider is the gain or loss.

As with all M&A negotiations, the pace of negotiations was not fast, and the first negotiation only reached a consensus on the approach of the acquisition.

It is never easy for a company to acquire another company.

For some large-scale acquisitions, it is not uncommon to talk about them for a year or two or even longer.

For example, in the previous life, Walt Disney acquired Twentieth Century Fox.

Fortunately, Netflix's business is relatively monotonous, the company structure is not complicated, Relativity Entertainment's evaluation team moves very quickly, and Ronan has made sufficient preparations before, and by mid-November, the evaluation team submitted Netflix's evaluation report to Ronan.

This also means that the negotiations between Relativity Entertainment and Netflix can enter the stage of substantive operation.

At the end of the day, after Reed Hastings agreed to Relativity Entertainment's wholly acquired Netflix, there was only one key factor that really affected the conversation.

That's the price.

Reed Hastings certainly wants to sell Netflix for a good price.

Ronan has also done enough preparations, Reed Hastings previously wanted to sell Netflix to Pepsi for $50 million, and this matter has gradually spread out, according to his estimates, Reed Hastings' asking price cannot be higher than $50 million.

From a perspective of future development, the $50 million transaction price is a good deal.

Even, Netflix has spent far more than $50 million on its development from its inception to today, and according to the team's estimates, Netflix has actually invested at least $80 million in addition to its own income.

But Ronan is still ready to lower the price, because the current Netflix is not worth the price.

As a businessman, of course, you have to buy the most ideal goods at the lowest price, the future of Netflix has not happened, and now it is generally not recognized, and Ronan will certainly not pay for the so-called unlimited development of the future.

Since it is possible to win Netflix at a lower price, it is only called a problem if the price is not lowered.