Huayu: From charlatan to great entertainer

Chapter 170 I'm convinced

After stuttering a few words, Dong Shuangqiang quickly regained his composure.

"Director Lu, where do you get that from? How could Baoli be so interested in us?"

The talks have been conducted in secret because such a large-scale acquisition of a private enterprise by a state-owned enterprise is extremely sensitive.

If you are not careful, people with ulterior motives will accuse you of losing state-owned assets, making your investment a failure.

The news was not revealed until the end of December, and Dong Shuangqiang didn't know where he got the information from.

He suddenly remembered the topics that Yanzi and Jiang Wen had mentioned to him.

Little fairy?
Lu Kuan knew that Dong Shuangqiang would have doubts about this, but he didn't intend to explain, neither admit nor deny.

But we still have to give a reasonable explanation on the surface.

"Don't worry, Brother Dong, heaven and earth know, you and I know."

"That's all I'm saying, and please just listen to it."

"Wenjie's 'Chinese Paladin' is a collaboration with Hunan TV. I heard from Director Ouyang that Baoli's subsidiary, Baoli Culture, was interested in acquiring shares in Travel Channel, but someone else got there first."

"I was very curious about who had such great power to snatch food from state-owned enterprises. Later, after asking around, I found out it was your Huayi Film and Television."

Dong Shuangqiang's eyes flashed: "Then how did you know that Baoli wanted to acquire Huayi's shares?"

Lu Kuan was leisurely holding the teacup and shaking the floating leaves.

"Brother Dong, I understand the principle of being in possession of a treasure, especially when it comes to such sensitive media resources."

"This is a satellite TV station that reaches over a billion viewers nationwide! Even if you don't have controlling stakes, can the country trust you with this?"

"Otherwise, you wouldn't be so willing to accept them, would you?"

Before Yanda Huayi, it was Baoli Culture that negotiated with Hainan Provincial Radio and Television for equity acquisition.

As a result, a private enterprise got there first, and the former then considered directly investing in Yanda Huayi, which can be regarded as a roundabout way to save the country.

As for the power struggles behind this, outsiders have no idea.

Dong Shuangqiang smoked his cigarette expressionlessly, his heart filled with shock beyond words.

Whether the road width was calculated or inferred, this is not the mentality that a young man in his twenties should have.

What's more, his main job is film director, and he asked himself if he had ever seen anyone in the arts who could have such judgment on mundane affairs.

"Hahaha, brother, let's not mince words. I won't hide anything from you either."

"This matter is still under discussion. The main disagreement is that Baoli Culture wants to lower the price, and I don't agree!"

"But I don't have many tricks. If I want to keep my equity, I have to accept the investment."

After talking about this, Lu Kuan understood everything.

Dong Shuangqiang was carrying a treasure, like a child carrying gold in the market, attracting the covetousness of all parties.

At this time, it is necessary to release equity and introduce state-owned capital. Baoli Culture is a fire-fighting aid for him, so naturally he cannot offer too high a price.

Lu Kuan was curious: "If Brother Dong doesn't mind, I can give you some advice. How much have they come up with?"

"Over 6000 million to acquire 50% of Yanda Huayi's equity."

"Damn it! I've already put down 49 million in upfront capital just to buy 3000% of Travel Channel's shares. Who doesn't know this is a goose that lays golden eggs?"

Boss Lu sneered in his heart, thinking that the pretense was quite convincing, but there must be something fishy going on.

If it is true as he said, that Baoli Culture is so bullying in terms of investment, what are the resources behind Dong Shuangqiang for?
What they stole was not only Dong’s money, but also their money?
Dong said that he had no background and that it could be laughed off, but some clues could still be seen from the details.

For example, after he successfully took over Travel Channel, he personally served as the executive president.

In addition to Zhao Baogang from the Beijing circle, Inda is also listed as the program director.

Since he lost the competition for Travel Satellite TV in the early stage, it proves that the resource advantages of both parties in this industry are close and equal. Why should Dong Shuangqiang suffer this loss?

There was only one reason, that was he had a guilty conscience and had to submit.

This ghost is very likely to appear in the acquisition contract.

Lu Kuan didn't say anything, but was just trying to find a way in. How could he get involved...

"Brother Dong, you don't know the true face of Mount Lu because you are in the mountain!"

"how to say?"

Boss Lu was implying something: "Driving the tiger to devour the wolf."

"If I'm worried about you, a private enterprise, controlling a satellite TV station, why don't you bring in a strategic partner?"

"Who is Tiger?"

"China Film."

Dong Shuangqiang was stunned: "Then why would China Film Group help..."

He suddenly reacted and raised his head sharply.

There was vigilance, scrutiny, and suspicion in the look he gave Lu Kuan.

The real purpose of the map is revealed. Director Lu, this map of Yan State is quite long!

Lu Kuan said with a relaxed expression: "Brother Dong, your cigarette is about to burn your fingers."

Then he said meaningfully: "Cigarette butts may look like they are burning brightly, but when they are finished they will just be a pile of ashes. Just throw them away."

As he said this, he handed him a new cigarette.

Dong Shuangqiang silently picked it up and sniffed it, feeling complicated and indescribable.

He even considered himself a capital tycoon and wanted to find an opportunity to invest in Wenjie.

I didn't expect that just after I had some little thoughts, my anus would be exploded.

Dong Shuangqiang held his cigarette upright and puffed on the tea table, and his mood calmed down.

Smart people always focus on the main contradictions. If it is true as Lu Kuan said, this cooperation is not impossible.

"Two questions."

"First, why would China Film Group help you?"

"Secondly, China Film is a film company. Why would it intervene in local TV stations?"

Seeing that he also understood his purpose, Boss Lu no longer concealed it.

"Huaxia Film and Television was just established on the 8th of this month, breaking the monopoly of China Film. Don't the leaders have any sense of crisis?"

This refers to China Film Distribution Co., Ltd., the second institution in China with the right to distribute imported films.

In addition to the competition among the forces behind it, this is also to break the monopoly and enhance the vitality of development and innovation in the domestic film market.

"I have a $7000 million film project, a Hollywood co-production, a science fiction film. This is not only an achievement, but also a political achievement. I am confident that I can convince Han Shanping."

"As for the second question, that's easier to handle."

"Next year, the China Film Academy will be included in the national cultural industry reform pilot unit and will have more autonomy in industrial development."

"Which law says that film companies can't invest in local satellite TV stations? If there's nothing prohibited by law, then it's allowed. Anyway, it's just a clever trick."

"What's wrong with Wenjie, Huayi, and China Film jointly establishing a film and television company, investing in local satellite TV stations, exploring positive linkages between Taiwanese companies and media in the new era, and contributing better works to the general public?"

"Leaving aside TV dramas and variety shows, who says movies have to be shown on the big screen? Can't we make a TV movie?"

Dong Shuangqiang was mentally shaken when he heard him talking about the $7000 million masterpiece.

He waited for Lu Kuan to give China Film Group a perfect excuse to make a breakthrough, knowing that the low-key young man in front of him was fully prepared.

Otherwise, it would be hard for him to imagine how Lu Kuan could find a new way and transplant flowers and trees in such a short time.

He has always been proud of his forward-looking and agile maneuvers in the capital market.

But the talented director he just met today gave him another shock. He seemed to see another self.

Every move he made used the martial arts inherited from his family!
Dong Shuangqiang breathed a sigh of relief: "Director Lu, I, Old Dong, consider myself a wise man. I've lived for over forty years and have never surrendered to anyone. Today is the first time!"

"Thank you for taking care of this business, brother!"

Boss Lu doesn't buy it. Since they want to cooperate now, he must first find out whether there is anything fishy about the contract between Huayi and Travel Channel.

This involves the valuation of this scarce asset. Even if he doesn't delve into it, China Film Group will have to conduct a thorough investigation.

"Brother Dong, I've always been a man of action. Let's be frank. I need to see your contract with Travel Channel first."

Dong Shuangqiang pondered for a few seconds, turned around and took out the contract documents from his bag. This was the biggest thing for Huayi this year, and he always carried it with him.

He was thoughtful and there was no hesitation on his face.

As for what Lu Kuan could figure out from the contract that had been reviewed by legal experts, that was his own ability.

It can be seen that my boss is convinced. At worst, the valuation can be lowered. I feel confident about cooperating with such a capable person.

If you can't tell, then let's be business-minded and don't accuse me of not being fair and just to cheat you.

The staff member who came in to announce the start of the movie was scolded away by Dong Shuangqiang, and no one has come into the reception room since then.

There was a faint background sound of a movie, and the only sound left at the scene was the rustling of pages turning.

Dong Shuangqiang stared at Lu Kuan with a gloomy expression. He had no idea how talented this young man could be. It was debatable whether Lu Kuan was talented or not, but Old Dong was truly a genius!
Boss Lu remained expressionless, but he became more and more frightened the more he watched.

After a while, he raised his head and said, "Brother Dong, what a good trick."

Dong Shuangqiang handed him a cigarette and said, "Brother, tell me everything you know."

"Okay, then I'll pick out a few important points to talk about."

"According to Article 8000, Paragraph 8000 of the contract, Yanda Huayi invested million yuan in advance for use by the satellite TV station. However, this million yuan was not invested in Travel Satellite TV, but in the two newly established companies. In other words, it was registered capital, not an investment."

"Although the Company Law stipulates that paid-in registered capital cannot be withdrawn at will, I think it won't be difficult with your means."

Dong Shuangqiang remained silent, and Lu Kuan continued to turn the pages.

"According to Article 1, Paragraph 5 of the contract, Yanda Huayi's additional investment of 3000 million yuan will be paid in five installments, with the first installment of 2004 million yuan in September 9, and 3000 million yuan each in the next two years."

"But at the same time, Article 800, paragraph , stipulates that during the cooperation period, Huayi will be compensated first for the distributable profits of the new company. If the profit for the year is less than million, it will all belong to Huayi."

"Brother Dong, to put it bluntly, you lend a certain amount of money to Travel Channel every year, and then use the profits from our joint venture to make up for it every year."

"You're essentially playing with someone else's wife, having a child with her, and then selling the child back to someone else as payment for prostitution!"

Dong Shuangqiang was so upset by Lu Kuan's words that he spat out a mouthful of tea onto the tea table and looked at Boss Lu with a helpless look.

"Brother, you are so mean!"

This is tantamount to implicitly admitting one's intentions.

Or rather, he knew that he couldn't hide it even if he wanted to.

"I won't go into the details of the other details. Mr. Dong, anyone with a discerning eye can see through this contract. You should be careful."

Brother Dong becomes Old Dong, and their offensive and defensive strategies are different.

Dong Shuangqiang pondered, "Over at China Film..."

"Let's not mince words. I don't recommend you resolve this matter privately."

Lu Kuan understood what he meant. On the surface, everyone just got by, and in private, everyone just pretended not to see the deal.

This was his usual method. Most of the people who were taken away for tea in later generations were related to these activities.

"Your information says that last year, the combined revenue of Qiong Province TV's comprehensive, public, and broadcasting channels was less than 5000 million. Even if we give him a reasonable valuation, it won't cost much more."

Boss Lu said word by word, "Boss, this is a long-term business. Don't just take a bite and leave."

This person's idea was to acquire, invest, increase valuations, and cash out through listing, so he took many risks during the operation.

But Boss Lu came here with the purpose of managing and developing this high-quality resource, so of course he couldn't sow the seeds of disaster from the beginning.

He didn't want to take over a fetus with congenital defects, otherwise it would affect many of his plans and give people who wanted to take advantage of it later to use it.

Dong Shuangqiang's mind raced, and he didn't know how to start his excuse. Lu Kuan blocked all the causes, consequences and escape routes of this matter.

He now even suspected that if he didn't agree to cooperate, this bastard would reveal that there was something fishy about the contract!
We are all dirty bastards, so don't overestimate your bottom line.

"Director Lu, I really regret this!"

Boss Lu asked curiously, "What do you mean?"

"You came up with a surprising plan for Lao Jiang in Cannes. Liu Xiaoqing was released from prison yesterday, and he hired a paparazzi named Zhuo Wei to take a lot of photos, portraying her as pathetic and trying to gain public sympathy."

"I'm just curious! How can this guide who gave him advice, who's still so young, be so insightful about the world?"

"I'll ask him and Yanzi to invite you to the premiere."

"Oh! Curiosity killed the cat. I got myself into trouble!"

Boss Lu laughed heartily. This was really a coincidence. This person had always been elusive in the circle.

Dong Shuangqiang said that he regretted it, but he solved the huge pressure brought by Baoli, and was able to get involved in the project of this talented director and establish a stable cooperative relationship with him.

With this Travel Satellite TV as the link for our cooperation, won’t we be the first to get any good projects in the future?

The domestic film industry these days is actually not producer-centered, much less screenwriter-centered, and it has not yet reached capital-centeredness.

It is a veritable director-centered system.

Zhang Weiping's new visual style relies on Zhang Yimou, the director who has supported him for more than ten years.

Huayi, owned by Wang Xiaowang and Wang Dawang, relied on Feng Kuazi. Even though Wang Jinhua left later, it did not affect them at all, and they were still successfully listed.

Because these days there are so few directors who can make stable profits at the box office, this is the most scarce resource in the entertainment industry.

Lukuan has now become a hot commodity favored by various investors, but they are not short of money at all.

Except for China Film Group, which relies on its special status, it is difficult for everyone else to get involved in the cooperation.

Dong Shuangqiang can establish a partnership through this opportunity of joint venture between the three companies.

Overall, if he had any regrets, it was that he didn't get in touch with Lu Kuan earlier.

Lukuan, ah Lukuan, you have a good name!
As soon as the thought of taking the "road" came to mind, I suddenly felt that the world was "vast"!
The two of them talked for a long time in the reception room until the end of the premiere. Lu Kuan would choose a day to go with him to meet Han Shanping.

However, the entire process must be cautious because it involves investment from state-owned enterprises, and the approval process is also complicated.

It is estimated that it will take some effort to truly achieve cooperation.

"Boom boom boom!"

"Please come in."

A head popped in from outside the door. It was Concubine Liu Yi.

"The movie is over, why are you hiding here?"

She suddenly saw Dong Shuangqiang opposite her, and she put away her joking expression and looked like a little lady again.

"Xiao Liu, this is President Dong."

"This is an artist from my company, Liu Yifei. Mr. Dong should have seen her on TV."

Dong Shuangqiang was a very knowledgeable person, so of course he could see that the relationship between the two was unusual.

"I recognize her, I recognize her, Bai Xiuzhu, Zhao Linger!"

"Ms. Liu, like Director Lu, became famous at a young age. It wasn't easy."

Liu Yifei nodded and smiled: "Thank you, Mr. Dong, you are too kind. I was lucky to appear in a few good works. I still need to practice."

Dong Shuangqiang nodded silently. She spoke appropriately and handled things properly. She was a presentable lady from a noble family.

But I heard she's only 16, isn't the road too wide...

After the premiere, Lu Kuan said goodbye to Jiang Wen, Yan Zi and others, and asked A Fei to send Liu Yifei home first.

Lu Kuan and Liu Yifei sat in the back row. Boss Lu slumped in his seat with his hands on his head, thinking about money.

If this continues, cash flow will soon run out.

【expenditure】

It would cost at least 5-6 million to buy Golden Harvest, and even more if they were to buy shares from Li Jiacheng in advance.

Although "Alien Land" only requires a personal investment of 1000 million US dollars, you still have to pay that part of the money yourself before pre-sales and tax refunds, right?

Even if everything goes well, he will still need about $2500 million in turnover until the pre-sale agreement is signed.

Then there is the new company to be established with Dong Shuangqiang and China Film. The specific amount of funds required depends on whether he can hold a majority stake in the company. A conservative estimate is that it will require more than 3000 million yuan.

The acquisition of shares issued by Xiying by intercepting Huayi is estimated to be around 3000 million.

This does not even include the funds needed for the industry's own development.

For example, the investment in Ning Hao’s next movie, the investment in Xue Xiaolu’s youth film, etc.

【income】

Of course, the income over the past year has not been small.

The net profit of "Drummer" was over 5000 million, but it was all invested in the company's operations and blog network, leaving little;
The copyright transfer fee for "Hard Candy" is about 2000 million yuan;

"Blind Well" earned around 1900 million yuan in overseas copyright revenue;

The profit of "Stone" is about 800 million;

The first payment for "Chinese Paladin" is about 3150 million yuan, and the subsequent round of broadcast rights and advertising revenue have yet to be settled;

The DVD of "Paranormal Activity" was a huge hit in North America, with the current profit equivalent to RMB 4000 million. The movie had already opened in theaters, but he hadn't had time to ask Emil;

The biggest gain would be "Fahrenheit 911/" which will be released next year, but this part of the revenue cannot be touched as it is prepared for Golden Harvest.

Then there was the overseas rights to "Thief," and the North American rights were converted to $400 million and given to Harvey to buy "Fahrenheit 911/";
The copyright for Europe, North Africa and South America was later sold to Luc Besson's Europa Films for $350 million. As for how he made the deal with MK2, Lu Kuan is not involved.

Then there is the mainland box office revenue of "Thief", which is already scheduled to premiere in October to compete with "Heroes of Heaven and Earth"!

Roughly speaking, even without counting the $2500 million in advance payment for the film.

There is still a gap of more than 2 million RMB to the entire plan he planned for next year...

Don’t forget, Blog.com is still burning money!

(End of this chapter)