Chapter 702: Strategic Acquisitions

Taking the information handed over by Mark Randolph, Ronan quickly browsed through it, he didn't know anything about those professional program terms, but the professional situation of Relativity Entertainment will also have professionals responsible for review, so he doesn't need to worry too much about his boss.

"This company has only been around for a year. Mark Randolph adds: "The team leader is Andy Rubin, who used to work as a robotics engineer at Carl Zeiss, a well-known company in the optical instrument industry, mainly working on digital communication networks. Later, he was introduced to Apple as a desktop system development engineer. He joined Microsoft in 1997 as a robotics communications engineer. He founded Android last year with the goal of designing a mobile platform that is open to all software developers. ”

When he heard this, Ronan also saw the name of the company on the profile - Android!

He may misremember anything else, but the name, the English word, will never be wrong.

There have been countless times when the phone is turned on and off, except for the Apple phone that has been used for a short time, and this name will be displayed when the system is started at other times.

Translated into Chinese, it is called Android.

Ronan asked curiously, "How did you find this company?"

Mark Randolph said: "I instructed the technical department and the business investigation department to collect information from the relevant companies, and Andy Rubin sent me an email and made a phone call when he learned about it, and we talked a few times, and the company also did an investigation, and the project they developed will be of great help to Netflix's future business in the mobile intelligent user terminal." ”

Ronan nodded slowly, and could only say that Netflix's Internet professionals and professional team are indeed unique.

Think about it, too, if it didn't have the ability, how would Netflix get to where it is now?

Mark Randolph seemed worried about Ronan's veto of Android, saying: "Ronan, now the global mobile phone users have reached 700 million, which is three times the traditional computer market, and this gap continues to widen, and the mobile phone operating system has a lot to offer." ”

"The mobile phone market will surpass the computer market in an all-round way. Ronan answered, "There is no doubt about that. Mark, I support the acquisition of Netflix, but have you thought about it, how to promote it? A great mobile operating system that not only Android companies can design and develop? ”

Mark Randolph clearly has something in mind: "The promotion of Netflix's mobile client needs to communicate with mobile phone manufacturers, which can be used to establish stable cooperative relations with them, and then cooperate with mobile phone manufacturers ......"

The specific Ronan is not very clear, but he knows a little bit of big goods: "This is far from enough." If you want to become bigger and stronger, you need to unite mobile phone manufacturers, software developers, telecom operators, and even chip manufacturers to form a strong alliance. ”

Mark Randolph only thought about it for a moment and understood.

Ronan continued: "To do this, you need a very strong Netflix. ”

In the past, Google really did this after its own development, and then Android gradually became the mainstream.

"Yes, Netflix is strong. Mark Randolph said.

As long as a company is strong enough, it is possible to unite other companies and form an alliance, Mark Randolph said with a smile: "Ronan, Netflix is about to go public, and I am full of confidence in the future of Netflix." ”

Ronan nodded slowly: "Me too." So, Mark, when the head office is done with the procedure, you can do it. Don't worry, Relativity Entertainment is Netflix's strongest backing. ”

Mark Randolph is well aware that even if Netflix goes public to raise money, Relativity Entertainment still has a controlling stake.

Ronan asked, "What about the preparations for going public?"

"The firms recommended by Goldman Sachs are very professional. Mark Randolph is very confident: "Goldman Sachs has also asked a number of investment companies about investment intentions, and the results are very good. ”

Ronan didn't ask too much and said, "You and Robert Iger are in control of the progress. ”

Netflix's performance is good enough that it will not be difficult to attract investors.

Moreover, the listing is still placed after the streaming business.

After nearly half a year of observation and analysis, Ronan knows very well that the biggest factor restricting the development of Netflix is the problem of funding.

With the big sales of movies and the income from offline operations and other aspects, Relativity Entertainment has maintained a relatively abundant cash flow, but Relativity Entertainment also has a series of plans in the future, which requires a large amount of money.

Even if the Pacific Foundation's financing and bank loans can be considered to solve a large part of the problem, Relativity Entertainment still needs to maintain abundant cash flow.

Therefore, it is impossible for Relativity Entertainment to inject large sums of money into Netflix, and listing financing is undoubtedly a more suitable solution.

It is also a shortcut for the company to grow to a certain extent and to combine with other capital groups, which can also provide great help for Netflix's future development.

After signing licensing agreements with Disney Studios, Disney Animation Studios, and Miramax as Netflix's representative, Mark Randolph ended his trip to Los Angeles and returned to the San Francisco area to focus on other Netflix matters.

With the support of Relativity Entertainment, Netflix got enough film sources during this trip to Los Angeles.

More importantly, Netflix's new acquisition plan was approved after being reviewed by Relativity Entertainment.

Mark Randolph convened a series of Netflix executives to discuss the acquisition plan, and got people in touch with Andy Rubin, founder and CEO of Android.

Both parties are Internet practitioners, and they are no strangers to each other's business, and the communication and conversation went very smoothly.

After talking about technical and business aspects, the conversation between the two fell on the most critical price.

Andy Rubin is also not new to the workforce and wants to add more leverage to himself: "I emailed a lot of big companies, and I got a reply from Mr. Larry Page from Google, who has been following Android. There is also a venture capital firm that is willing to provide investment ...... to Android"

Mark Randolph has a faint smile on his face: "They may have an interest in investing in Android, but they will have to wait until the Android product is completed or is about to be completed." He said directly: "Netflix acquired Android for $20 million, and injected another $8 million into Android after the acquisition is completed." ”

Andy Rubin also wanted to say that Mark Randolph didn't give him a chance at all: "Andy, think about it. There are many companies in Silicon Valley that do this, and Netflix is not the only Android to choose from. ”

Hearing these households, Andy Rubin understands that this is the condition of Netflix, either accept it or break it up.

Netflix is already a large company in Silicon Valley, and Android is a nobody who has just started a business, and Android needs capital and support from large companies if it wants to continue to develop.

Android requires Netflix, and Netflix doesn't necessarily need Android.

This offer is not a special project, and it is certainly not low.

Andy Rubin said: "I need two days to think about it, and I'll get back to you by the end of the week. ”

"Yes. Mark Randolph said.

The two shook hands and left.

After the new weekend, when Ronan watched "Shark Gang" win three consecutive North American titles, reaching a cumulative box office of $151.2 million, he was informed by Mark Randolph that Netflix had reached a preliminary agreement with Android to buy Android for $20 million.

That's good news, but it doesn't excite Ronan too much, because Android's own strength in development and technology, as well as its open-ended strategy, are partly the reason why Android has become what it once was, and the real key is that there is a strong push from Google behind it.

What would happen if Google had chosen a different company? Android or Android?

So, from the time Mark Randolph mentioned Android, just as he had gone to great lengths to do when he first bought Netflix, Ronan never took it for granted that Android would be successful in the future.

Android still has a long way to go, and the advantage of Netflix's acquisition of Android is that it can be one step faster than other companies.

Luo An specially communicated with Mark Randolph again, and asked Netflix to start with client cooperation and establish contacts with many software developers, mobile phone manufacturers, and chip manufacturers such as Qualcomm.

Apple doesn't have to think about it, and Steve Jobs won't allow Apple to use operating systems other than its own.

A team from Netflix, in cooperation with the Pacific Investment Foundation, has reached out to South Korean investors to act as intermediaries with South Korea's Samsung Group.

Mark Randolph also put forward an idea to develop a professional software that can provide entertainment services for future intelligent end users based on Netflix's increasingly powerful platform and based on Android.

The source of this idea is, of course, borrowing, from iTunes, the software that supports Apple's MP3 player IPOD.

Ronan approved the development and design of the project, which was to be done by Android.

After Netflix signed the acquisition agreement with Android, Ronan made a trip to San Francisco and chatted with Mark Randolph and Andy Rubin, who is already the deputy director of development and CEO of Netflix, in Silicon Valley for a whole day.

In terms of technology, Ronan doesn't know anything, but he has used too many apps and various Android operating systems.

At one time, he changed his smartphones at a rate of one a year.

Android also has a negative impact, and anyone who knows a little about the smartphone industry knows that Android has sparked numerous patent lawsuits.

Ronan is not afraid of this, because the appearance of a popular Hollywood movie will also trigger countless copyright lawsuits.

For example, after "Pirates of the Caribbean" became a big hit, at least 20 people or companies sued Ronan and Shahai Entertainment for infringement.

But how much has Android gained for Google?

It's hard to estimate how much money Google makes with Android, because Google doesn't make money directly with Android, but Android has significantly increased the usage rate of Google's search and services, and it is search and service that have promoted the development of Google's mobile business.

If Ronan were to be asked, Android's success for Google was more strategic than financial.