The company spent $1.3 billion to acquire about 20 percent of the shares, which would have been spread across many different accounts. Pen × fun × Pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

Some of the accounts are Wang Qinian's private accounts, and there are even executives such as Yu Dong and Zhang Wei who have set up a special trust product.

After the dust settles on the equity acquisition, these shares will be transferred to the name of the small partner financial holdings. At present, the small partner financial holding is moving firmly towards a route similar to Warren Buffett's Berkshire Hathaway, but with its own style.

For example, Berkshire Hathaway does not account for a majority of venture capital, and listed companies such as BYD, which invests in China, are considered venture capital.

Because, Munger, another soul figure of Berkshire Hathaway, directly admitted that investing in BYD was not based on optimism about the company's value, because traditional value investment, and even the logic of growth stocks, are difficult to apply to companies like BYD. Using the logic of venture capital, betting based on feeling is a better explanation for Berkshire's investment in BYD. But for Berkshire, which has a very cautious investment style, there are very few venture-like projects.

This is not the case with the small partner financial holding company, because the growth and living habits are different from those of people a few decades ago. Therefore, the small partner has invested in a lot of Internet entertainment, as well as some products that are very popular with young people now, for example, the small partner company is full of confidence in the investment of such a company.

This confidence, mainly because of the experience and business model, can indeed be better than traditional TV media.

In the new era, there will be new media!

In the era of Internet media, it should be regarded as a leader!

The era of video sites replacing TV media is about to begin. In the future, the audience of traditional TV media will decrease rapidly, and the value of TV media will also plummet. But. Internet video sites are developing rapidly. Not only can it be used to snatch the viewers of TV media, but there are also many Internet users who don't watch TV before, and they also watch videos.

Wang Qinian immediately announced: "The small partner company and its persons acting in concert hold a total of LIX shares, and have become important shareholders holding more than 5% of the shares, and they need to disclose their shareholdings." The purchase of an equity interest in this company is based on our optimism about its business model. Because, in the Chinese market ourselves, we have also invested in companies with similar business models. We respect the rights of the company's founders and original team to the management and leadership of the company, and do not seek control. But we hope that we can cooperate with some business parties to achieve a win-win situation! ”

……

The small partner company is menacing. With a huge investment of 1.3 billion US dollars, it has become a heavyweight shareholder. Although, it is not enough to become a controlling shareholder, but with so much equity, it is impossible not to alarm the company and the regulators in the United States.

In fact, more than 5% of the equity. If you want to continue to increase your holdings, it constitutes a tender offer. An announcement is required for each increase and decrease in holdings.

As for the acquisition of a company, it is not possible to have money. Requires government approval from the location of the company.

China has made a lot of large-scale investments overseas, trying to control some companies, but the main reason is that the threshold is not capital, but policy.

Even if you have acquired enough equity and negotiated with the original shareholders and employees of the company. However, if the government department does not approve it, it is not possible to obtain a controlling position in the company.

At the same time, some mergers and acquisitions are negotiated with those shareholders. The deposit has been paid before the transfer of ownership. Hypothesis. If the merger fails, for example, because the government does not approve it, the deposit will not be returned.

It is precisely for this reason that the kind of merger that requires a deposit to be paid in advance, and then the transaction is not completed, but the deposit will not be returned, can be called a real failure.

Buying a little stock in the open market is not a private agreement and a large deposit in advance. This approach, whether it succeeds or fails, is not considered a failure.

In fact, the small partner company did not plan to merge and acquire, but only participated in the shares.

An Internet streaming media company like this, which involves tens of millions of users, has a guiding effect on public opinion in the United States, so it is almost impossible for such a company to be successfully acquired by Chinese companies. Even if the merger is acquired, it may be suppressed by the US authorities, causing the company to gradually lose its influence.

……

Soon after Wang Qinian submitted the information, the first person to visit was not the company's management and board of directors.

Rather, officials from the U.S. Securities and Exchange Commission (SEC), about five or six people, arrived at Mr. Wang's hotel in California and made some inquiries.

The U.S. Securities and Exchange Commission (SEC) is China's equivalent of the China Securities Regulatory Commission. Moreover, the power is far greater than that of the China Securities Regulatory Commission, which can review most M&A projects of American companies, but a very small number of more sensitive projects may require the review and approval of the Committee on Foreign Investment in the United States, which is mainly the U.S. Department of Defense, the Department of State and the Department of Homeland Security. All kinds of high-tech sensitive projects, as well as threats to U.S. defense and security, or any other reason, can be difficult for this department.

It's like Intel, Microsoft, IBM, Qualcomm, Boeing, Google, Lockheed Martin and the like, can you buy them with money? Impossible! You need to check your ancestors for eighteen generations. You have to be well-established in the U.S. to be a director on the board of directors of these companies. If you want to become the controlling shareholder and legal person of the company, it is not a matter of money at all, but a matter of political situation.

Even if you want to buy some stocks, no one will judge you. But a foreigner, or a Chinese who is both a cooperative and the biggest competitor of the United States, must be particularly strict.

"What is the main purpose of your company's purchase of equity, and whether there are political intentions?" An official from the U.S. Securities and Exchange Commission (SEC) asked cleanly when he came to visit.

"The main purpose is economic gain. We hope to form a closer relationship with us through the investment. Because, according to my research, if we can work together in business, it will be beneficial for both parties. Like what. Our film and television works are distributed on the platform, and in addition, we will introduce film and television rights for distribution in the Chinese market. Wang Qinian said with a smile.

"You don't seek a controlling stake?" The SEC officer asked.

"We have been researching and observing this company for 7 years and have found that this is a very visionary and executing team. We don't think it's necessary to hold. Because. After the holding, we have to provide an excellent management team, which we think is not cost-effective! Wang Qinian shrugged his shoulders and said.

"Wang Qinian, what are your political beliefs? Is it a member of a certain party in China? Suddenly, an official asked.

"I don't have any clear political beliefs, and I don't belong to any political party. I hope that there will be peace in the world and that China and the United States will never go to war. Two big countries like ours have risen sharply. Not only China and the United States will be the losers, but it is even possible that all of humanity will become losers. Therefore, world peace is my greatest hope. In addition, there is order, and I like a society with order and the rule of law. Any country or region. Stable order trumps everything. Without order, inclusive, it will be worthless! Wang Qinian said.

After being asked. These SEC officials returned with the information they had exchanged.

……

In late April 2012, an article began to be published in the Wall Street Journal, detailing the company's development history and business model, as well as the background of the partner.

It seems that Wang Qinian, the founder of the small partner company. Not only a strategic investment master, but also a financial investment master.

years in the financial markets. Most of the companies that Wang Qinian is optimistic about are rare bull stocks that are ten or even a hundred times larger. And. Most of them are not hype, but their stock prices are rising, and it is indeed driven by the performance explosion.

As a result, the company is favored by small partner companies and is sought after by many retail investors and institutional investors.

The stock price, which was originally below $100, soared 35% in one trading day and returned to above $100.

"Oh my God!" Although the stock price has risen, the company's management is not in a very good mood, because any team is actually an unhappy barbarian.

A person who is not starting a business with them, has no long-term communication between the two parties, and does not know each other very well. Becoming a colleague in the same company, even, the barbarian may become their boss, it is possible to fire them, so think about it, this is why many companies do not like the barbarian.

In particular, many speculators are advocating: "Let Wang Qinian be the boss of the company, he has the ability to turn stones into gold!" ”

"The small partner company acquired Golden Harvest Entertainment in Hong Kong, and then Golden Harvest Entertainment rose a thousand times, a thousand times higher, how many times have you seen a thousand times rising bull stocks in your life?"

"Replacement, substitution, we agree with the chairman and CEO of a more high-level partner company!"

In fact, these speculators don't care who the boss is, what exactly the company runs, and what the future prospects of the company are. They advocate all kinds of things, just hoping that the stock price will skyrocket, and then, let them get out of the trap, or get huge profits, and then, just throw away the stock and care about the future of the company, which has nothing to do with me.

Countless investors who have sworn to stick to the company for the rest of their lives, but the vast majority of them have a hard time holding on for a few months. It is already rare to be able to hold on for more than a year, and it is rare to be able to hold on for ten years, oh...... God, such a person is either a real value investor, or the management and boss of the company.

Reid Hasting, the company's founder, said: "We welcome anyone who buys shares in the open market to become our shareholder. However, we have no plans to give up the controlling and management of the company, even if we are not financially strong, but any attempt to buy our giants, you have figured it out, if we don't cooperate, you will pay a dearly price! ”

Many listed companies in the United States have poison pill plans, and the so-called poison pill plans are different from company to company. In some companies, there is a hidden clause that in the event of a hostile takeover, the company's management can get a cheap subscription option, and they can buy the additional shares at a very low price. As a result, the equity of the majority of shareholders is compromised.

There are also poison pill plans that in the event of a hostile takeover, they can acquire the company's core assets from other institutions. In this way, even if the hostile taker buys the company, after losing the core assets, it is naturally buying an empty shell. The original purpose of the acquisition was not achieved.

In this regard, Wang Qinian said in the media: "I have no acquisition plan, really! I can guarantee that I will not increase my stock holdings for 10 years and will not become the controlling shareholder of the company. Buy, not to snatch it. We are not so superficial, like children grabbing toys, we will grab what we like. We are here to seek a win-win cooperation, and I believe that there is room for cooperation between the two sides in terms of copyright, and to achieve a win-win effect. ”

"Oh, I want to hear about it!" Reed Hasteen was curious. As long as he does not snatch his controlling stake in the company, then he is not a new shareholder added to the company.

"Content, channels!" Wang Qinian said. "We provide cheap film and television content that does not require prepayment of royalties, and we divide it on the platform, and we split it according to the sales. Secondly, we provide access and invest in a lot of copyrighted content. These contents will definitely help the company's performance by increasing the sales channels in the Chinese market! The cooperation between these two aspects does not require additional money. It will benefit both of us! ”

"Oh, is it? What copyrights can you provide? "Reed Hastings though feels. Film and television rights from China are unlikely to dominate the U.S. market. After all, the level of film and television production in the United States is currently the highest in the world. Works from the highest level of market can easily be sold overseas and become successful, but works from other markets are rarely sold in the United States.

Of course, even if it is a small minority, it is not so successful, and if you don't need to pay royalties, you can adopt a sharing model. It can still save a lot of capital expenditure, and it will also gain a little content advantage to attract more users.

In fact, the business started as an online rental of DVDs, inspired by the founder of this company, who was previously fined an extra $40 for returning DVDs late. Later, Reed Hasteen came up with the idea of making a better DVD rental company, he created the Internet as a rental platform, and built many warehouses across the country, and users can choose to rent them on a monthly basis, starting with 4 per month. $9, which was gradually raised to $10. After placing an order for a rental disc on the website, the website will mail the DVD to the website with a return envelope for which the postage has been paid. In this way, after watching the disc, the user can mail the DVD back without paying additional postage. Once the disc is returned, the user can select a new DVD disc.

This is currently the main profit model, in 2010, its performance once reached more than $1 billion in revenue, and the profit exceeded 1. $600 million.

But the company has long felt the impact of the Internet and knows that this traditional DVD rental model may soon be eliminated. Therefore, since 2007, it has been actively transforming into an online streaming site, which does not need to mail DVDs to users, so that users can watch them directly online. For $10 a month, the price rises to $20 and you can see most of the site's content.

This transformation has not led to an increase in profits, but rather a rapid decline in profits since 2011, when the company's share price hit a new high.

Because, after the transformation to streaming, you need to pay more copyright fees, after all, exclusive content needs to be purchased with money.

For example, Lix alone spent more than $700 million on royalties. Since then, the annual cost of purchasing rights has increased dramatically, and in 2012, the cost of copyright exceeded US$1 billion. At the same time, profits fell to less than $20 million.

The scale of users and revenue are growing rapidly, but the profits are not as good as before. This is actually everyone who transforms, but if you don't transform, you will definitely wait for death.

After the successful transformation, it has a new future. (To be continued~^~)