Huayu: From charlatan to great entertainer

Chapter 343: Speech at the University of Southern California (Extra chapter for the leader, a braised egg Z!)
The average temperature in Champagne in early April is around 10 degrees Celsius.

This is also the first stop for the crew.

The temperature was a little cool. A scene had just been finished, and Zhang Chunru was busy putting a thin coat on the girl in the green dress.

Xiao Liu smiled brightly: "Thank you! Sister Chunru."

Today is the last show in Champaign.

The following will fully reconstruct Zhang Chunru's journey from a Chinese girl in Champagne to a patriotic female writer who wrote books about history.

Concubine Liu Yi was very excited because this was the road she had personally walked for three months.

Every night I toss and turn in bed, my mind filled with the feelings I deeply experienced a year ago.

She hardly needs to review or rehearse the performance details and movement designs written or drawn in her notes, and can draw them instantly like an Impressionist master.

These two months are the final steps for her to move towards the next dimension of her acting career.

Even in the handling of certain details, like the clip from the Beijing Film Academy textbook material, she could already vaguely grasp the veins of a top actor.

"Ka! That's it for today."

After the filming was completed, Boss Lu called the local North American staff.

"How's it going out today?"

“There were Asian protesters of unknown origin, but there were also Chinese people in Champaign who came spontaneously to drive them away.”

"Haha, okay, please help me contact the organizers of these Chinese communities. I have some small gifts for them before the crew leaves."

"Good guide."

Just as Boss Lu had told Xiao Liu before, once you go abroad, you will enter a "foreign land" full of dangers.

The constant clamor from pro-Japanese media in North America and the slander and smear campaigns by university professors and commentators bribed by the right wing.

There is also constant intimidation and harassment that lingers on the legal bottom line.

This includes but is not limited to spray painting the crew's vehicles, obstructing the crew's meals, and making high-intensity noise outside the filming location that affects filming.

It’s just that when the enemy comes, we will fight him; when the water comes, we will block it with earth.

In addition, the young director was prepared in advance and arranged measures to rectify the situation one by one.

These ugly faces were also recorded by Zhao Fei using the lens of the world's top photographer.

At the right time, Xiao Liu’s millions of Chinese fans on Mytube will naturally see this Vlog.

8 p.m., Hilton Garden Inn, downtown Champaign.

In addition to Lu Kuan, Huang Anna and the big short seller Paulson were also sitting in the luxury suite.

Paulson knew Huang Anna's identity. This former senior Chinese legal officer of Google had an outstanding reputation in the industry.

Later, Anna Huang worked at Google as vice president and general counsel.

After leaving Google in 2012, he joined Twitter as legal director.

In May 2013, she was appointed by Obama as the first White House Chief Privacy Officer, focusing on internet and privacy policies.

Guanhai is well aware of the horror of being monitored and eavesdropped on, so he asked this female lawyer who has worked for an Internet company for a long time to tailor a privacy strategy for him.

However, Huang Anna didn't know much about Paulson's role, although she knew that he was a famous short seller on Wall Street and had been in the spotlight recently.

"Sir..." Paulson seemed to be hesitant to speak.

Boss Lu smiled and said, "Speaking of which, Anna is the president of Wenjie's North American subsidiary. She coordinates all matters and is my right-hand man!"

Paulson nodded: "Based on the current equity structures of Blockbuster and Netflix, I still strongly recommend taking Blockbuster first."

Huang Anna was shocked when she heard this!
She only knew that her boss wanted to get involved in the DVD rental business in North America, but now it sounded...

It seems like he wants to unify the world?

The Chinese female lawyer was pleased to have gained his trust, but what Boss Lu called "go ahead and talk" was only limited to the strategy against Netflix and Blockbuster in the past six months.

Even Liu Yifei doesn’t know about the CDS fund, which has already risen by 480%.

Paulson of later generations achieved a return rate of 2007% in 600, the highest in the United States, and is now in the state of having completed half of the journey of a hundred miles.

"Anna, how is Blockbuster doing now?"

Huang Anna came back to her senses.

Under the instructions of Boss Lu, she had previously cooperated with Xiao Liu in his investment in Netflix and acquired a 15% stake from Wall Street Wolf Carl Icahn.

"It's getting worse." Huang Anna used numbers to prove her conclusion: "Nearly half of all stores in the United States have closed, and layoffs have attracted the attention of the Department of Labor and the Bureau of Labor Statistics."

"There have already been employee protests in states like North Carolina and Virginia, and the situation isn't looking good."

"The most important thing is..." She flipped through the documents in front of her again: "At last week's board meeting, Antioch resigned because his $760 million bonus was denied."

The mastermind blew out a smoke ring and smiled with satisfaction.

As mentioned earlier, Blockbuster's acquisition pressure lies in the fact that its stores are a huge debt burden.

Before actually taking over, Wenjie's core strategy was to use Netflix to defeat it.

But there was a small obstacle, and that was Antioch, the president of Blockbuster.

During his confrontation with Netflix, he proposed a network integration strategy, which was to bring offline traffic online, thus stagnating Netflix's pure online advantage.

If the situation is allowed to continue, Blockbuster may be able to survive for a while in the short term.

It’s a pity that capital has a short-sighted vision.

Just like in later generations, Blockbuster's shareholders unanimously decided not to pay Antiochus's high bonus and forced him to resign through public pressure.

Of course, Huang Anna, who has become one of Blockbuster's shareholders, has made many connections.

Antiochus is to Blockbuster what Yuan Chonghuan of the Ming Dynasty is to Boss Lu. He must not be allowed to stay!

Dismiss him first, and then when he takes over Blockbuster again, untie him and give him food, and recruit him back into your team.

As the three of them sipped their coffee, the current situation became clear.

According to the previous idea, Paulson's professional team will use offshore companies to absorb funds in the secondary market and make direct tender offers through block trades by institutional investors.

It's obvious that no one is interested in this kind of fun now.

After several months of planning, it can be said that this was a very cost-effective acquisition. All that remained was to deal with the review of foreign committees and the Ministry of Justice.

However, this conspirator from the East seems to have a new idea.

"Anna, Paulson, I have a proposal."

"The day after tomorrow I will go to USC to donate and give a speech to build momentum for the Blockbuster acquisition. I will invite many Hollywood stars, directors, and practitioners from USC."

"I can reveal two things in my speech."

"First, I have already invested in Blockbuster and am preparing to acquire it."

"Second, I want to declare in front of the American media and film industry that I am optimistic about streaming media and that it is Blockbuster's core strategy for the future!"

Paulson didn't know much about this business and was still trying to figure out the meaning between the lines.

But Huang Anna had already frowned: "Boss Lu, doesn't this expose our true goal?"

"Hastings is already optimistic about streaming. If he knew that Blockbuster would be taken over by someone who also believes in streaming, and a successful internet entrepreneur and film director like you, he would..."

The senior Chinese lawyer's analysis came to an abrupt end.

Two exclamations were heard in the room!
"Netflix?"

"Netflix!"

Huang Anna and Paulson screamed at the same time!
Paulson suddenly realized: "Lu, you want to lure Hastings out of the cave!"

"That's right!"

Boss Lu calmly put down his coffee cup. “Netflix’s Hastings is extremely powerful. He has absolute control over the company and has never given up his ambition for streaming.”

"If we want to establish our dominance in the DVD market in North America, Netflix is ​​a hurdle we cannot overcome. Sooner or later, we will have to deal with them again."

"Either we beat it in the market or we take it over in a hostile takeover."

The young director laid out his plan: "I want to throw out some bait at USC to see if Hastings will react."

"If he sees the crisis and tries to use his funds to snatch up the dying Blockbuster, we can take advantage of the chaos and launch a surprise attack on Netflix!"

Paulson said solemnly: "Netflix's equity structure is AB type, and Hastings owns as much as 97% of the voting rights."

"If our hostile takeover is discovered, he can simply call a shareholders' meeting and make us pay the price, whether it's a white knight, a golden parachute or a poison pill."

These three methods are common strategies for dealing with anti-takeovers.

The white knight is to introduce friendly capital to hold shares and maintain an overall controlling position.

Golden parachutes restrict hostile acquirers, prohibiting them from dismissing management or offering them ten or twenty times the compensation.

Mergers and acquisitions themselves involve industry reshuffles and personnel purges, which will undoubtedly increase the costs of the acquirer.

The poison pill has been mentioned before, so I won’t repeat it here.

Lu Kuan smiled and said, "If I now have an affiliated party that holds 14% of Netflix's stock, would that be of some help?"

"What?" Paulson was a little horrified.

"Don't be surprised. I have an affiliate, Chinese Capital, which invested 300 million last year to acquire Netflix stock. This is why Netflix has been able to attack Blockbuster with impunity for the past six months. They have plenty of ammunition."

Paulson nodded. "There's a certain chance, but I'm not sure how to circumvent the concerted action agreement."

Boss Lu sneered in his heart and thought to himself, you don’t have it, but I do.

Boss Lu smiled indifferently: "Let's give it a try. After all, we have to trick this old fox first."

"Hastings is an outstanding entrepreneur and a member of Microsoft's board of directors. Microsoft's current CEO, Ballmer, is very optimistic about him. He is not so easy to defeat."

This is a tycoon who later made Netflix's market value the world's number one in media and entertainment. It is never too cautious to be with such an opponent.

Huang Anna asked: "What if Netflix and Hastings don't fall for it and still go according to plan..."

"Let's acquire Blockbuster as planned. At worst, we can fight him in a real fight. We're not without advantages."

The conspirator smiled slyly: "Anna, contact this Antiochus in advance. Maybe he will find a job again soon."

"Yes, boss."
-
As planned, Wenjie quickly created momentum among the North American media, claiming that it was interested in taking over the dying Blockbuster and took the lead in spreading the word.

There were countless jokes at once.

Most of them were the high-handed Wall Street analysts who mocked this wealthy young Chinese man, saying he was like a frog in a well, who had never fought for wealth or lived a wealthy life.

He sold his good Twitter to someone else, but now he's thinking of begging for food by collecting scrap.

If there are a few people in the industry who can smell something is wrong, Hastings is obviously one of them.

The secretary knocked on the door and came in: "Sir, this is the invitation."

"Is it from that oriental director?"

"Yes, tomorrow at USC, Disney President Bob Iger, Miramax's Harvey, and some Hollywood stars and directors will be there."

He had never seen Hastings actively ask to attend such events, and most of the time he was not invited.

Maybe he is interested in the "potential new owner" of his old rival?
April 2007, 4, 20:10 AM, East Coast time, University of California, Los Angeles.

After shaking hands and greeting a group of industry insiders, Hastings sat down in his seat. Looking back at the auditorium of the Film Academy, he found that it was already full.

A handsome young director walked up to the podium, and students from USC and UCLA in the same city gave him wild applause and cheers, shocking Hastings.

Is this oriental director already so popular in North America?

For a long time, Boss Lu has built himself up as a world citizen in North America.

Because this is beneficial to his subsequent business planning.

From the fame that began with "Drummer" to the huge hit of "Foreign Land", he directly defeated his compatriot Fang Long and became famous.

His witty humor at several Golden Globe Awards and Oscars ceremonies, unlike the casual and nonchalant style of most other Chinese directors, left a deep impression on North American movie fans and industry insiders.

By the time the Mytube sale myth was born, this foreign creator of the modern "American Dream" had already been widely recognized and accepted by the North American film and Internet circles.

In 2006, Newsweek conducted a survey to select the most famous Chinese faces in North America.

The top three are Fang Long, Lu Kuan and Yao Ming, and the top ten are also among Liu Xiao.

Others include well-known director Ang Lee, actress Gong Li, US Secretary of Labor Elaine Chao, designer Lin Ying, cellist Yo-Yo Ma and others.

Obviously, after today, this young director will be more accepted in the North American film industry.

This is Hastings' judgment based on the current situation on the stage -

USC President Steven, USC graduate George Lucas, and Lu Kuan shook hands and greeted each other on the stage.

Then Steven and Boss Lu held up the $5000 million donation certificate and accepted the inspection of cameras.

Steven held the microphone. Unlike the domestic school leaders who were eager to express themselves, he was more concise and to the point: "Thank you to Director Lu Kuan from China. This is a great gift to the art of film. Now, please let him speak!"

Those who can come to the scene today, except for those who have connections with Boss Lu, are basically all his fans.

There was thunderous applause from the audience.

Boss Lu took the microphone leisurely and walked to the podium.

For this former public relations company boss, building his own image in North America is an important proposition.

He is an artist and filmmaker, especially in various movies that were a huge hit, such as “Alien Land”.

He is an Internet entrepreneur who successfully started and sold Mytube and participated in the nation's most popular interview show "Larry King Live".

There is also the humor at the Oscars and his close relationship with old white men like Quentin and Harvey.

All of them are broadcasting their subtext to all walks of life in North America:
I "yearn" for this warm land, I hope to integrate into you, I am a citizen of the world!

Please do not have any doubts or precautions about my business operations and industrial mergers and acquisitions.

Like your Labor Secretary Elaine Chao and Yahoo CEO Jerry Yang, I am a firm believer in the American Dream!

Just a disguise from Eastern conspirators.

But the North American people buy into his tricks!

Including today, at this moment, this Chinese director who speaks fluent American English came on stage and showed off his American humor.

"Yesterday I called Steven and asked if Mr. George Lucas had caught a cold recently and couldn't come to the event."

"Steven said it's no problem, he'll definitely come! After all, he donated $1.75 million to the school this year and is our honorary trustee."

Boss Lu looked at the USC president with some resentment: "Steven, you still don't understand the euphemisms of Oriental people."

"I only donated $5000 million, and Mr. George Lucas donated $1.75 million. Do you think he's a suitable guest?"

The audience burst into laughter instantly!

Steven and George Lucas on the stage both spread their hands.

Quentin in the first row put his fingers in his mouth and blew two hooligan whistles.

He likes Boss Lu's humor and madness.

The only regret was that he hadn't gone to a brothel with these bad friends for a long time.

"Okay, just kidding."

"Mr. George Lucas is a filmmaker I respect very much. He built a magnificent worldview from scratch and promoted the revolution and application of special effects technology."

“And this is also the original intention of my donation to USC this time.”

"After communicating with the university, this fund will be used for cooperation between the Butian Film Team and the USC School of Cinematic Arts in areas such as motion capture, 3D modeling, and 4K HDR equipment development."

In other words, this money is a targeted funding for USC's research and development and application of special effects technology, and the resulting results and patents are shared by Butian Films, the school, and the academic group.

This is the same partnership as George Lucas's donation, except that the latter also donated a teaching building named after him.

A thief never leaves empty-handed. Even if it is to create a persona or do public relations, Boss Lu will not treat himself unfairly.

This is the same as hiring a top foreign special effects team when making "Alien Land", both of which involve spending money to buy technology.

After a round of applause, Boss Lu continued to talk.

"Last year, I gave a speech at a domestic university and told my colleagues that Hollywood is not only a business rival, but also an object of dissection."

"Hollywood's concept of film industrialization is worthy of consideration and practice by domestic practitioners and every individual in the industry chain."

Everyone in the audience nodded in agreement. Hollywood appears to be a dumper around the world, so it is normal for it to be regarded as a rival to be studied and surpassed.

These powerful people in the North American film industry should be even happier to hear this, because in their eyes, this is praise from followers and imitators.

"As a film director with work and entrepreneurial experience in both China and the United States, and a bridge for Sino-US film and cultural exchange, I talk about North American films in China, but in North America, today I want to talk about opportunities in China."

"As you all may know, Q&A and Disney formed a partnership last year. Our first Marvel superhero film will be released in 2008." "In addition, we also have many other collaborations on independent films."

"I'm grateful to Mr. Iger for his exceptional business acumen, for recognizing the vast potential of the Eastern market and for promoting in-depth cooperation between Wenjie and Disney in the context of global economic integration."

"Recently, my company in North America is planning to enter Blockbuster and explore online streaming services."

Boss Lu glanced at Hastings, whose expression suddenly changed in the front row, and continued to give data as if he was just narrating a trivial matter.

"Regarding the Chinese market, I would like to give you some figures for your information."

"In 2002, China's box office was about $1.6 million. Last year, the figure was around $4.8 million, a threefold increase in four years."

"In the first half of 2007, domestic box office figures have already surpassed those of the entire previous year. This year's conservative estimate puts it at over $7.5 million. This is an incredibly high growth rate."

Boss Lu paused and said, "Just like the Todai Threat theory promoted by some newspapers, do you feel threatened by Chinese films?"

Egg and others in the audience smiled and applauded.

Mocking the authorities and opposing war are politically correct in Hollywood, and are a regular feature of the Golden Globe Awards and the Oscars.

"If we continue with this compound growth rate, and take into account the appreciation of the RMB, the Chinese film market will be on par with the US market around 2017, which is only 10 years away."

The first time that mainland China’s box office won the global film market championship was in 2020.

In this life, we have butterfly wings that will lead the development of the industry, and it will only be faster.

"By then, the combined box office revenue of China and the United States could account for 75% to 80% of the world's total."

"I think this should attract the attention of all the practitioners here to the Chinese market, right?"

There was an uproar in the audience, and many industry elites were pondering this number and the meaning behind it.

Boss Lu used the same old trick again, using the blue ocean Chinese market as bait to eliminate any possible hostility towards the acquisition.

At the same time, it is also a reminder to all the Hollywood power figures present!
The importance of the Chinese market now exceeds that of the Japanese benzene market. Some of the six major media outlets that have recently made strange remarks about "The Sky of History" should consider the seriousness of the matter!

It is impossible to make them empathize with the blood feud of their compatriots, but it is feasible to use money to force the capitalists to bow their heads.

The supporting actors arrived, and a USC student raised his hand: "Lu, tell us how we can collaborate with Chinese films."

When the microphone was handed to this USC directing student, who still had a few pimples on his forehead, frankly said, "After watching 'Alien Land' and watching videos on Mytube, I really longed to go to China."

"Your film school was recruiting last year, and unfortunately I wasn't selected."

Boss Lu smiled and said, "Thank you for your support."

"Regarding cooperation with Chinese films, I believe the farsighted Mr. Iger has already set an example. I would like to make two additional points."

"The first is the addition of technical means and professional talents."

"Hollywood's film industry is well developed, with more than 150 types of jobs, many of which are in short supply in China."

"Even taking the most common lighting technician as an example, the Beijing Film Academy where I graduated has even cancelled its lighting major because lighting technicians have switched to photography, screenwriting, and directing."

“Without students and teachers, there is no way to maintain the scale of the major.”

"Most of our lighting technicians in China now come from Yanling, Xuchang, Henan Province. Lighting technology is passed down from father to son, and from master to apprentice. The industry is relatively small, and high-end lighting technicians are relatively scarce."

"Because they haven't learned systematic theoretical knowledge, they mostly rely on experience and feelings, and cannot provide the director with more professional lighting effects and combinations."

Lighting technicians are called Deng Ye in the country. Because such talents are scarce, they have a high status in the crew.

If an actor offends the lighting technician, it will bring shame to you;

If the crew offends the lighting technician, they will ask you to pay money.

This was stated in a clear and melodious voice by Wang Changtian, Chairman of Fiber Optic Media, at the 2017 Shanghai International Film Festival.

He claimed that lighting technicians in Henan Province control China's film and television lighting industry village by village.

The young director changed the subject: "But from what I know, there is a surplus of talent in this industry in Hollywood."

"At least this time, when the crew of 'History's Sky' was recruiting lighting technicians through the union, the number of applicants exceeded my expectations."

"Like countless graduates who are desperately trying to get into Industrial Light & Magic, maybe you could consider Dongfang Butian Films?"

There was laughter in the audience as the young director tried every possible way to insert a small advertisement for himself.

"In addition to the lighting industry, professionals in all fields, including production, directing, finance, and production management, are all welcome to come to China, especially many international students and Chinese graduates. China's future opportunities are no less than those in the United States, and necessary talent exchanges are reasonable."

Boss Lu proposed the industrialization of the film industry in the country, and directors can now receive targeted training.

But what about talents in other areas?
The domestic training mechanism is unable to provide blood transfusion for the time being, but these talents in different categories are in excess in Hollywood.

However, due to the development of the times, these surplus talents have not yet seen opportunities from the East.

Boss Lu, this is called leading the way, not leading the way.

"This is the first point. On behalf of domestic film companies and practitioners, I welcome North American film talents to come to the mainland for exchanges and learning."

"Secondly, with the increasingly close film and cultural exchanges between China and the United States, if Hollywood wants to seize this blue ocean of China, it must pay attention to Chinese audiences."

"Understanding the tastes, preferences, ethnic taboos, and beliefs of mainland audiences doesn't necessarily have to be political. Instead, I urge everyone to treat mainland audiences with the same care as they treat North American customers. This is a conscious act as a producer of cultural products."

"Otherwise, the audience will definitely vote with their feet."

"Just like the filming obstacles our crew of 'The Sky of History' encountered in Germany and the United States some time ago, I hope that all media can report truthfully and pay attention to the feelings of Chinese audiences."

"I am very pleased to see that both the White Rose and the Peace Association in Germany and anti-war organizations in the United States, including people of different races and ethnicities, have expressed solidarity and support for us."

"They spontaneously came to the vicinity of the crew, applauded and cheered for us, and drove away the disruptive protesters. Thank you very much!"

Boss Lu used the usual tone of a Chinese intellectual to address the Americans, his voice and behavior revealing a sense of sincerity:

"Art has no borders. This is the meaning of cultural exchange. It is the warmth and touching moments brought to us by film, the seventh art of humanity."

He paused and said, "Okay, let me end today's discussion with what I think is a rather romantic statement."

The young director reiterated the topic and gestured to the donation certificate in his hand:

"These checks are not investments, but love letters to movies. I hope Chinese and American films will get better and better. Thank you!"

An unconventional speech has ended, and the subsequent interviews and public relations are still on the way.

USC students and Hollywood professionals have all seen the opportunities that come from China;
The film industry bosses saw a blue ocean;
Harvey, Quentin and other friends saw the consistent and stable performance of their old partner, who is simply a perfect orator.

The temptation of human nature, the guidance of topics, and timely jokes are all just right.

It seemed that only one guest in the audience was preoccupied.

Because he saw a potential competitor!
This is a competitor with huge cash (Mytube was sold), proficient in the film industry, and backed by China's blue ocean market.

Boss Lu, Iger and others walked out of the door, laughing and chatting. Hastings came over politely and said, "Hello, Lu, I'm Reed Hastings."

Boss Lu looked him up and down in amazement. "Mr. Reed, I've heard a lot about you. I have to thank you for defeating Blockbuster. You are a true industry leader!"

Hastings wasn't impressed by his flattery: "Lu, can I talk to you for a few minutes?"

"of course."

Egg understood the meaning of the music and said, "I'll go to the cocktail party first."

"Lu, I'm very interested in the streaming media you just mentioned. Can we discuss it?"

The Berlin Film Award winner was just about to speak as he did on stage, but he seemed to suddenly remember something and pursed his lips.

"Well... Reed, this is just an immature idea. I think now might not be the best time to discuss it."

He nodded to the principal, Steven, Egg, and the others waiting outside, "How about we make an appointment to talk later?"

Hastings' expression remained unchanged: "Okay, goodbye."

He looked at the young director's departing figure and suddenly took out his cell phone: "Drive the car over here and go back to the company."

I don't eat anymore, I don't drink anymore.

Reed Hastings was a little confused by Boss Lu's maze and couldn't figure out what he meant.

In the office, there is a slogan "Fast is better than perfect", but Hastings' hands can't flip through the documents faster.

He found a brilliant point, but it was also a little ridiculous.

The relationship, cooperation experience, and scandals between Liu Yifei and Lu Kuan.

Does it have anything to do with Blockbuster and Netflix?
Hastings remembered the pretty oriental girl, who kept talking about the bleak prospects of streaming media.

For the sake of the life-saving $3 million, I had no choice but to give in.

He inevitably had a thought: were Crystal and Lu colluding? Were they plotting against Netflix?

But it doesn't make any sense!

According to the U.S. Securities Exchange Act, once a person holds more than 5% of the company's shares, he or she must report to the exchange within ten days to indicate whether there are any related parties.

This is what later generations called "persons acting in concert."

To make an analogy:

Lu Kuan acquired 2% of Netflix shares and let Xiao Liu acquire 3%. At this time, they had to make a joint public announcement to explain that they were acting in concert and were a "family."

If it is not made public, it will be proven to be a conspiracy.

Then it will be deemed invalid in subsequent voting on various roles in the company, and this part of the equity will have no voting effect.

It is true that Liu Yifei obtained about 14% of Netflix's shares, but if she and Lu Kuan are related parties and have not made public disclosure, it would be a violation and she would be deprived of this voting right.

The fact that these two parts of equity cannot be merged poses no threat to Hastings, who has a firm control over Netflix's other shareholders.

They shouldn't be that stupid, right?

Hastings carefully reviewed his control over Netflix again, but still couldn't find any vulnerable parts, so he felt a little relieved.

Since the enemy has no chance to get involved in Netflix, do I have a chance to get involved in Blockbuster?
Regardless of whether the streaming strategy described by this Chinese director is true or false, Blockbuster, which has declined to this point, has a market value of around US$8 million.

Taking into account the price increases during block trades and the absorption of floating shares, the cost of a full acquisition is only around US$14 billion (excluding debt).

I don't have this money, but someone else does.

Microsoft.

In January this year, Steve Jobs launched the first generation of iPhone at a press conference, and it was scheduled to go on sale in June.

At the same time, he announced that starting this year, he will increase content development for Apple TV and iTunes Store to provide users with more high-quality works.

This is a move that will affect Microsoft's business.

Microsoft is currently engaged in the set-top box business, which is similar to the concept of Chen Tianqiao of Shanda in China. In addition, Microsoft's game console Xbox can also watch online movies.

In other words, Hastings knew that Microsoft also had plans to enter the streaming media industry and wanted to tempt them to take action and swallow Blockbuster together!

He himself is also a director of Microsoft.

Hastings was excited about his plan and visited Microsoft headquarters the next day with great execution.

In Ballmer's office, the CEO who had succeeded Gates at the helm of Microsoft for seven years frowned. "Is Blockbuster still valuable? What are you going to do with those stores?"

The helmsmen of top companies always worry about failure before they think about success.

Hastings dodged the main issue: "Blockbuster is garbage in anyone's hands, but I'm worried that in the hands of that Chinese, it will be revived."

"After all, he's the man who built Mytube. I've thoroughly researched his business in China. He's a business leader that shouldn't be underestimated."

"I don't believe he acquired Blockbuster just to find a rental channel for his Golden Harvest film library. This is pure bullshit!"

"Trust me, Ballmer, streaming is the future! This is a great opportunity!"

Ballmer was a little surprised by his excitement, and smiled and shook his head: "Streaming media is too constrained by format issues. Just like us and Apple, we are still betting on our own."

The truth is always in the hands of a few people. Hastings' vision is unique, but not all companies in North America agree with his judgment.

As for Apple and Microsoft, they are just making plans based on the idea of ​​diversified development, and are far less radical than Netflix led by Hastings.

At this stage in the later life, Hastings has shut down all DVD rental businesses and switched to online streaming.

It's just that in this life, Xiao Liu's $3 million tied his hands and feet, slowing down his pace, allowing Boss Lu to seize this opportunity and plan his Netflix empire.

Ballmer mused, "How much money does Netflix need?"

Hastings was confident: "Netflix will issue 45 million shares to Microsoft at $1000 per share. Together with our own assets and equity pledges, we will raise $15 billion. This is more than enough for Blockbuster, whose market capitalization is less than $8 million."

The Microsoft CEO suddenly laughed and said, "Aren't you worried that this is a Chinese ploy? What if they turn around and attack your Netflix?"

"They're the ones who wrote 'The Art of War,' which is a required course you take at West Point."

West Point Military Academy provides regular training courses for American business leaders, similar to domestic MBAs.

"I had my doubts, but there is a concerted action agreement in place. I hold 97% of the voting rights and can apply for a trading halt at any time, and then activate the shark repellent clause."

"No, you're wrong."

"I think I need to remind you not to get carried away by your crazy industrial plans."

Ballmer revealed a piece of news to his old friend that he didn't want to tell anyone else:

"As you know about the case between CSX and TCI, based on the ruling of our Microsoft legal team, the Supreme Court Justice may dismiss CSX's request that TCI violate the concerted action agreement!"

Hastings seemed to be struck by lightning, and his face changed suddenly!
"What reason?"

Ballmer smiled mysteriously: "Stock income swap agreement."

CSX is a transportation company and TCI is a fund.

I will not elaborate on the professional legal term "stock income swap agreement".

In short, this is a means to legally exploit existing laws and circumvent the agreement of persons acting in concert.

But why didn't Hastings think of this before?

Because the United States is a country of common law, this is just the judgment of Microsoft's top legal team.

But as long as the judgment takes effect, similar cases in the future will most likely be judged in the same way!
In other words, Hastings believes that Lu Kuan and his rumored girlfriend Liu Yifei, who is suspected to be his accomplice, have absolutely no possibility of getting involved in Netflix.

Looking back now, it was a fatal misjudgment!
Hastings naturally believed in the strength of Microsoft's top legal team.

What he doesn't believe is!

Could it be that from the beginning to the end, from the little Chinese girl who came to ask for shares, to Carl Icahn of Blockbuster selling shares, to the streaming strategy revealed in his speech at USC today!
Could this be his complete plan?!

Just thinking about it makes the extremely conceited head of Netflix's hair stand on end!
Why did he invest 20 to 30 billion yuan in the DVD rental industry?
Could it be that he saw the future of streaming media just like he did?
This is simply a lunatic!
And he is a sinister, cunning and vicious madman!
Hastings's back was already wet with sweat.

Under the guidance of Ballmer, the helmsman of a top company, the Netflix CEO initially appreciated the strategy and wisdom from the East and understood Murdoch's initial astonishment.

Suddenly it dawned on him.

Why did that Chinese girl Liu Yifei ask herself not to use the 3 million yuan for streaming business?

Why did Lu Kuan leak the news and initiate the acquisition just before Blockbuster entered its complete decline?

This was the time to delay his own layout, acquire Blockbuster at the lowest price, and then...

He set a trap for himself that almost resulted in his death.

What a poisonous bait!
Hastings' face was gloomy and it took him a while to come back to his senses.

"Ballmer, according to my business research, all he has is the proceeds from Google's acquisition of Mytube, plus Focus Media's shares on Nasdaq. All pledged is just over $20 billion."

"He's also trying to acquire Marvel and form a partnership with Disney, which will only leave him with even less cash."

"I've checked his fund inflow records for the past six months, and there's very little."

Hastings' eyes lit up as he spoke. "Can Microsoft provide another $5 million in corporate bonds? I'll think of other ways to raise $25 billion in cash and completely drive this despicable Chinese director out of the North American DVD industry!"

In fact, what he had in mind was the streaming industry.

Ballmer stared at his old friend for a few seconds, then shook his head helplessly: "Netflix's total market capitalization is less than $25 billion. There's no way this resolution will pass."

This isn't just a matter of tens of millions; it's a transaction worth nearly $10 billion! It must be approved.

"Use my shares in Microsoft as collateral!"

Ballmer looked at him helplessly, gently picked up the coffee cup, and did not respond for a while.

What a lunatic.

Hastings thought Lu Kuan was crazy, but wasn't he the same?

In any case, the young director's painstaking plan failed.

But it doesn't seem surprising that they were defeated by the two top business leaders in North America.

Hastings is clearly prepared to join forces with Microsoft to go all in. He would rather Microsoft become a major shareholder in Netflix than be successfully schemed by this conspirator from the East.

In his mind, allowing such a person to get a ticket to the streaming media track will make him Netflix's lifelong enemy.

Why not fight a desperate battle and nip this disaster in the bud when he is most vulnerable?

The young director who was filming for Xiao Liu on the set at the moment had no idea that the danger of being counterattacked was approaching.

(End of this chapter)