Huayu: When the director changed his major

Chapter 141: Zhang Xi's Powerful Offensive

"Annual income is 10 million, Wentao, how much do you think Mahua is worth?"

Cheng Xi looked at the detailed information of Mahua and couldn't help but ask about Li Wentao.

Li Wentao thought about it and based on his two-day investigation over the weekend, he initially thought it was a very ordinary team.

But the boss was so interested and felt that Mahua was not as simple as he had imagined, so he went to Mahua for another on-site investigation on Sunday.

There were indeed different discoveries.

So he replied:

"I've been thinking about Mahua's business model these past couple of days and I think it's a very ordinary drama troupe."

"But I watched their 'The Earl of Wulong Mountain' on Friday, and yesterday I went to watch Mahua's flagship show. I think Mahua's most valuable asset is its talent."

"If I were to estimate the value, the company is not worth much, but the talent and repertoire resources are worth around tens of millions."

Cheng Xi listened to Li Wentao's analysis and sighed that he still saw the crux of the problem.

The level is okay.

But the company's operating strategy is also valuable, which is obviously different from other drama teams.

Mahua is down-to-earth, specializing in comedy, and has an eclectic performance style.

It even incorporates some performance styles of Stephen Chow, Charlie Chaplin and even Errenzhuan, all for the purpose of making people laugh.

There are very few such teams in Yanjing and even in China at present. Their dramas are often still the same old-fashioned, unwilling to let go of their status and very rigid.

Therefore, under this form, Mahua can cultivate a large number of practical performing talents.

They kept and improved the performances and jokes that made people laugh, and deleted all the ones that didn't.

We are making progress every day. After more than ten years of accumulation, we have created one classic after another based on the audience's feedback.

That’s why Mahua’s movies are so hilarious as soon as they are released.

Li Wentao's evaluation is that the talent and drama resources are worth tens of millions, but perhaps he doesn't know.

Since Shen Teng, the mainstay of the Mahua team, appeared on the Spring Festival Gala under the name Hao Jian next year, Mahua began to develop rapidly.

After Mahua's first movie "Charlotte's Troubles" was released, it became a complete success.

In later generations, its commercial value has been estimated to be 50 billion yuan.

Thinking of this, Cheng Xi said directly:
"Wentao, to be honest, I'm optimistic about the Mahua team. I'm planning to acquire their company. Do you have any good suggestions?"

Li Wentao was not surprised to hear his boss say this.

"Boss, if you seek to acquire shares, I think Mahua's shareholders will welcome it. But if you want to acquire the company, I'm afraid it depends on Zhang Chen's attitude."

"Also, if we make a big move, I'm afraid other small and medium shareholders will raise the price. After all, we have a bit of a reputation in the industry."

Cheng Xi nodded after hearing what Li Wentao said.

Yes.

The biggest key point in the acquisition is actually the attitude of the founder. If Zhang Chen insists on not selling, the usual acquisition method will definitely be ineffective.

The most difficult thing to know now is Zhang Chen’s attitude.

And Li Wentao was right, if he made it clear that he wanted to buy the fried dough twisters.

I am afraid that others will raise the price arbitrarily and even arouse the vigilance of other capitals.

Because it involves the copyright issue of a play, Zuibai Studio is in the film and television industry.

One of the problems Mahua faces is that it has good resources but cannot develop them. Apart from performances, it has no monetization channels.

If Cheng Xi intervenes, there will be a lot of room for imagination.

How could those old hands be willing to give up the shares they hold?

"If I insist on acquiring it, what method would be more appropriate?"

"Boss, I've consulted with lawyers and several company executives over the past couple of days. Generally speaking, there are two methods: a fast one and a slow one, each with its pros and cons."

Cheng Xi was a little surprised to hear Li Wentao say this.

It seems that he has made preparations for the next step of work in advance based on his instructions.

Yes, Li Wentao is making rapid progress.

"Well, let me listen."

"If you want to go slow, use people you trust to set up a few shell companies and quietly acquire the interests of small and medium shareholders."

"When the time is right, our studio will inject capital into Mahua and find a way to dilute Zhang Chen's shares to below 50%."

"Then we can directly show our control. If we are steady, it will take half a year."

"The advantage is stability, but the disadvantage is the high time cost. Fear of delay will lead to changes."

Cheng Xi thought that preparations for the Spring Festival Gala usually begin in May or June.

We will start selecting the programs in September and October, and by then I guess Mahua’s skits will be submitted for the Spring Festival Gala.

By then, Zhang Chen will definitely be able to see the clearer commercial value, and it will probably be troublesome.

And people with a keen sense of smell may also rush in.

It is almost June now. According to the current timeline, it will definitely not be enough to complete the acquisition in half a year.

Moreover, the later the better, the more changes will occur, so this method can only be ruled out.

So Cheng Xi could only continue to ask:

"What about the fast one?"

Hearing the boss's question, Li Wentao raised his glasses, thought for a moment, and continued to answer:

"If it's fast, it's a plan to wipe out the company. Since the company is worthless, we can set up a similar company and sign all the talent from the other side at a premium. If anyone needs to break the contract, we'll just pay them directly." "I've done some research. The mainstay of Mahua, director Peng Damo, and actors Ai Lun, Wang Chengsi, Wei Xiang, and Chang Yuan, all graduated from Beijing Film Academy. This gives the boss an advantage."

"Besides, there are only about 30 of them in total, so even with the compensation, it won't cost that much."

"When the time comes to compete, Zhang Chen's funds will definitely not be as strong as our studio's, and Mahua Company will naturally not be able to resist. We can even force them to sell at a low price and take over the copyright resources of the drama."

"This method is quick and less expensive, but it's more damaging to the team and can easily cause damage. We'd also have to set up another company. After all, Mahua is already quite famous, so I'm afraid this struggle will take some time to determine the winner."

When Cheng Xi heard Li Wentao say this method, he also looked at him.

I have to say that this method is quite vicious. Cheng Xi had only thought about what to do if they did not agree to the acquisition.

Just sign Shen Teng and others, as well as director Peng Dama and Yan Fei.

With the core team in hand and Cheng Xi's foresight, it can't be bad at all.

Unexpectedly, Li Wentao was more ruthless and wanted to beat them to death or cripple them, and then take everything away.

Maybe this is more in line with business considerations.

But if this happens, the team will definitely break up. With Zhang Chen's courage, he will probably be able to keep some people, and the harmony of the team will also be damaged.

Cheng Xi didn't want to come up with so many variables, he wanted to use the most stable method and was willing to spend a little more money.

So he said:

"This method is too offensive and not good for the reputation of Zuibai Studio."

"We are now on the right track. We don't need to carry the guilt like we did when we first started digging for gold. We just need to stay down to earth and follow the right path. This will be beneficial to the long-term development of our studio."

Upon hearing this, Li Wentao also replied:
"Of course, the best scenario would be if Zhang Chen is willing to sell everything and we can just buy it directly. But once we reveal our intentions, there will be more uncontrollable factors involved."

Being steady is too slow, being fast is too ruthless, and a direct showdown may lead to failure.

What should we do then?

Cheng Xi thought for a moment, and suddenly an idea flashed in his mind, and he said:

“Can we combine fast and slow?”

"First, set up two shell companies to buy out the small and medium shareholders as quickly as possible. When the time is right, confront Zhang Chen and tell him directly that if he doesn't agree, we will immediately start the plan to wipe out the company."

"I believe if we analyze the pros and cons clearly, offer him a good price, even let him retain some shares, and give him a reason he can't refuse, he will agree."

"We'll consult a lawyer about this method to see if there are any loopholes and fill them in advance."

Relying on the information gap from his previous life, Cheng Xi, to put it bluntly, got someone else's rabbit in advance.

But Cheng Xi will give an objective price, leaving him room and a way out.

After all, no one could have imagined that Mahua would develop to that point, so cashing out at this time might not be a bad choice for him.

And once the acquisition is completed, he will receive a large sum of cash as compensation.

I believe that with his abilities, he can continue to shine in other places.

Even if it doesn't work, I believe that once Mahua becomes bigger, Zhang Chen can achieve financial freedom with the shares left to him by Cheng Xi.

Thinking of this, Cheng Xi is not an indecisive person.

So we discussed the details, consulted lawyers, and finalized the plan.

Cheng Xi and Li Wentao started to move.

Cheng Xi used his mother Li Guiqin's ID card to register a company to acquire two middle-level shareholders.

Mainly 15% of the shares of China Cultural Industry Investment Fund and 10.64% of Tianjing City Dijian Trading Co., Ltd.

Then he asked his childhood friend Gao Chunyang to register a company to buy out some small shareholders.

Mainly 4.6% of the shares of Yanjing Kaixin Brothers Investment Management Center and 0.99% of Zheng Peimin.

These four small and medium shareholders only invested a total of 4 million when Mahua increased its capital in 09. I believe that if Cheng Xi gives them a good premium, they will be willing to sell.

If someone is still confident enough to hold on, all we can do is give him a little more premium.

This is a precautionary measure. If nothing works out, Cheng Xi will sell his shares and start the bottom-out plan immediately.

Even 200 million is nothing to Cheng Xi now.

If you want to save these 200 million, what if Zhang Chen agrees all of a sudden?

If we try to buy their shares again, we will have to face price gouging.

That would be a waste of time.

At Zuibai Studio, Cheng Xi also instructed Li Wentao to send someone to contact the actors of Mahua.

Li Wentao even found a reliable employee to join the Mahua team.

Learn more about their contract details, how they operate, and other specific details.

Understand the general conditions of compensation and their willingness. After all, only by knowing yourself and your enemy can you win every battle.

Finally, Cheng Xi also made a special visit to Wang Jingsong, the vice president of the School of Performance at the Film Academy.

Important members of the Mahua team include director Peng Damo, Ai Lun, Wei Xiang, Wang Chengsi, Chang Yuan, etc., all of whom are students of Wang Jingsong.

If the contact is not smooth, you can use this card.

Cheng Xi wanted to fight a battle that was sure to win and avoid any possibility of failure.

When everything was ready, an invisible big net was cast over Mahua.

To be precise, it was directed at its founder Zhang Chen.

Can he withstand Cheng Xi's attack?

(End of this chapter)