Huayu: When the director changed his major

Chapter 144: Catching all the Mahua talents

The next day, Cheng Xi took Li Wentao and others to the Mahua Company.

The total cost of acquiring Mahua is around 20 million, which is basically in line with Mahua's valuation.

For a revenue of 3 million, the general industry valuation is times the revenue, which is million.

However, Mahua's monetization method is limited and can only barely break even, with profits of less than one million yuan a year.

Based on a PE valuation of 20 times, the highest is only around million.

Of course, this is just an valuation. If no one takes it, it is worthless.

Accompanying Cheng Xi this time were two company accountants, an agent, a lawyer, etc.

When they arrived at Mahua Company, Zhang Chen, Yu Kai and Mahua CEO Liu Hongtao were waiting for Cheng Xi and his party at the door.

After the greetings, it was soon nine o'clock.

Zhang Chen immediately organized an expanded meeting of Mahua shareholders, with all employees in attendance.

This was announced yesterday.

Everyone was very curious about the content of today's meeting because they had never attended an expanded shareholders' meeting before.

And all the company members were present.

Shen Teng, Peng Damo and others vaguely felt that something important was happening.

When all the Mahua employees entered the meeting room, they saw a young man sitting in the boss's seat, which was the seat where the former chairman Zhang Chen sat.

You looked at me and I looked at you, not knowing what was going on.

Assistant Zhang Chen, who is now Cheng Xi's assistant, has distributed the meeting agenda to all participants.

Zhang Chen coughed at this time and said into the microphone:

"Now we move on to the first item on the agenda of the expanded shareholders' meeting."

When everyone heard that Mahua Company had been acquired by Cheng Xi, they were shocked.

When Zhang Chen introduced Cheng Xi as Zuibai, everyone was even more surprised. Zuibai was so young?

Except for Shen Teng and a few others, many people still don’t know that Cheng Xi is Zui Bai.

But Shen Teng found it difficult to accept it for a while. They were just friends some time ago, but now Cheng Xi suddenly became his boss.

And after years of cooperation, the founder of the company is just going to quit Mahua?

Everyone began to feel a little uneasy.

"Now, please welcome the company's new chairman, Cheng Xi. Chairman Cheng will give a speech to everyone."

After Zhang Chen finished speaking, he made a gesture of invitation to Cheng Xi.

Cheng Xi nodded and looked around at everyone.

Among them were Shen Teng and Liu Hongtao, whom he knew, as well as his senior brothers from the academy, Peng Damo, Ai Lun, Wang Chengsi, Wei Xiang, Chang Yuan, etc.

They didn't know Cheng Xi, but Cheng Xi was very familiar with their faces.

I saw that everyone was surprised, excited, puzzled, and more confused and worried.

After all, a new emperor appoints new ministers. I'm afraid many of you here will be laid off, right?
Cheng Xi took in everyone's expressions and slowly said:
"As everyone knows, I'm a young man. Like you, I don't like to talk too much, so I'll just say three simple words."

"First, all of Mahua's staffing will be retained."

When everyone heard this, they felt relieved.

"Second sentence, all Mahua employees will get a salary increase of at least 15%."

Everyone's salary increased by more than 15%, and everyone's eyes turned towards Cheng Xi differently. Many people even began to forget about Mr. Zhang.

"Third, let's thank Mr. Zhang and Mr. Yu for their contributions to Mahua. They are still fighting alongside us, just in a different capacity."

After that, everyone, led by Cheng Xi, applauded enthusiastically.

Zhang Chen and Yu Kai listened to everyone's enthusiastic applause and stood up emotionally.

Cheng Xi's simple words ignited everyone's enthusiasm.

I have to sigh that the young people are really formidable. He only said three sentences, and they all addressed the issues that everyone cares about most.

He immediately grasped the bull's nose.

I hope Mahua will get better and better under his leadership.

All attendees of the subsequent agenda left the venue.

Cheng Xi had already asked his assistant to remind Shen Teng, Ma Li, Peng Damo and Yan Fei to stay.

"Those remaining are the core members of the company. To make a long story short, the company's future development direction will undergo a major adjustment, shifting from performance ticket revenue to the big screen."

Cheng Xi glanced at the surprised crowd and continued:

"Of course, income from drama performances is still our foundation. But we use this as a foundation to hone our professional abilities and, with the assistance of Zuibai Studio, enter the film and television industry."

At this time, Cheng Xi looked at Liu Hongtao and asked:

"Mr. Liu, what do you think the valuation of our Mahua will be in ten years?"

When Mr. Liu saw the new boss taking over and directly appointing his men, he knew that it was a test.

So he thought for a moment and answered seriously:
"If I use the boss's resources to make a film or TV adaptation."

"I think Mahua's valuation should more than double. If it's a ten-year cycle, I'm confident it will increase tenfold, which means a valuation of 200 million yuan."

When everyone heard that Mr. Liu dared to give a valuation of 200 million, they couldn't help but be surprised.

That's really bold of you to say.

You know, the annual revenue of Mahua is only 10 million now.

The profit margins are not high either.

The estimated value is around 20 million at most.

Ten years later, it will be 200 million, which means it will double every year on average.

How can it be?

After hearing what Liu Hongtao said, Cheng Xi smiled but did not answer.

He turned to look at Shen Teng and asked:

"Shen Teng, we are old friends, what do you think?"

"Boss Cheng, I'm just an actor and don't know much about business matters. But I think Mr. Liu's judgment is definitely professional, and I also support the 2 million."

It was obvious that Shen Teng was still a little uncomfortable calling Cheng Xi boss.

Cheng Xi heard this and thought:

Well, Shen Teng is really a veteran.

Well, Cheng Xi didn't want to beat around the bush. He just stretched out his right hand with his palm open and said:
“That’s the valuation we’re going to be at over the next decade.”

At this time, a small discussion was heard in the conference room.

"Estimated value of 5 million?"

“Can Mahua really do that?”

Cheng Xi could vaguely hear it, so he smiled and said:

"I think people's imaginations may need to be expanded a bit."

“It’s not 200 million, nor 500 million, but”

Cheng Xi paused and said word by word:

"five billion!"

After hearing what Cheng Xi said, everyone present took a deep breath.

Including Mr. Zhang, Liu Hongtao, and even Li Wentao all stared at Cheng Xi with wide eyes.

50 billion, 5% of the equity is 2.5 million.

No one expected that Cheng Xi would have such ambitions.

But the pie is too big, it's just what young people want.

Very angry!

Next, Cheng Xi asked Li Wentao to announce the new equity structure adjustment.

Of course, before the announcement, new artist contracts were given to Shen Teng, Ma Li, Peng Damo and Yan Fei.

On the left hand is the new artist contract, with the term increased to fifteen years, a 20% increase in basic salary, and a 25% artist share.

It is a contract more suitable for new actors. New actors usually split the profit with the agency in a 280% or 370% split.

Although they later became famous actors and directors.

But I'm sorry, we are all complete newcomers in the film and television industry now, and we haven't even entered the circle yet. We are still stuck in the drama industry.

Since the term was quite long, Cheng Xi gave them 25%, which was considered generous.

On the right hand side is the equity transfer contract, in which Cheng Xi gave 1%, 0.5%, 0.5% and 0.5% of the shares to Shen Teng, Ma Li, Peng Damo and Yan Fei respectively.

Only after signing the contract on the left can the equity transfer contract on the right be signed together.

Four people, you look at me, I look at you.

Shen Teng saw the conditions, looked at Cheng Xi, and signed it decisively.

Because in addition to the longer term, this contract is much more generous than the previous one, and you can get 1% of the shares.

Why not?

He believed that Zuibai acquired Mahua because he really wanted to do something big.

Moreover, he had long wanted to be an actor under Director Cheng. With such a good opportunity, he obviously valued himself the most.

Why not sign?

Even if it doesn't reach the 50 billion valuation that Cheng Xi promised, even if it's 5 million, this 1% is worth 500 million.

So Shen Teng decisively picked up the pen and signed.

When the other three saw Shen Teng sign, they also signed.

Finally, the equity ratio of Mahua Company becomes:

Zhang Chen 5%, CEO Liu Hongtao 4.5%, Yu Kai 2%, Li Wentao 1%;

Shen Teng 1%, Ma Li, Peng Damo, and Yan Fei 0.5% each;

Cheng Xi owns 85%.

Cheng Xi did not keep the shares in Zuibai Studio. After the acquisition, Cheng Xi also understood the principle of a cunning rabbit having three burrows.

We cannot merge all assets into Zuibai Studio, as there will be great risks in the future.

Once something goes wrong, it will cause a chain reaction.

And Cheng Xi did it for safety reasons.

He even transferred the copyrights of Liu Cixin's novels, including "The Three-Body Problem" and "The Wandering Earth", owned by Zuibai Studio, to his own name for one yuan.

On the Mahua side, Cheng Xi also bought back a certain amount of shares from CEO Liu Hongtao.

In view of Li Wentao's outstanding performance in this acquisition, he was rewarded with 1% of Mahua's equity.

So far, the five soul figures of Mahua are:
Liu Hongtao from the management team, core actors Shen Teng and Ma Li, and Peng Dami and Yan Fei from the content creation and directing teams.

All of them were locked up by Cheng Xi with contracts and equity, and were on a chariot.

Cheng Xi gave them salaries, equity, and a platform, so he quickly won them over.

Zhang Chen and Yu Kai became the company's mascots and did not hold any positions in Mahua, but were only pure shareholders.

At the end of the meeting, Cheng Xi also gave Mahua the first task, which was:
Strive for the 2012 Spring Festival Gala skit program.

This was the starting point for the rise of fried dough twist in the previous life. Cheng Xi naturally would not miss such a good free publicity channel.

He wants to become famous overnight.

And to get a decent background.

This is the sketch troupe that will take over from Uncle Benshan, so we must hold on to it firmly.

Every year brings top traffic and opportunities to appear on camera.

Next, Cheng Xi brought in the accountant from Zuibai Studio to conduct a detailed accounting of Mahua’s finances.

Asked lawyers and agents to review and fine-tune Mahua's contract and re-sign it.

The contract period of all actors' contracts will be extended.

The next step is to have the company apply to change its name to Yanjing Zuibai Mahua Entertainment Culture Media Co., Ltd.

And re-engraved the official seal and replaced all company logos.

At this point, the Mahua has completely become Zuibai Mahua.

The actors and creative team of Mahua are now in Cheng Xi's hands.

Shen Teng, Ma Li, Ai Lun, Chang Yuan, Wang Chengsi, Song Yang, Wei Xiang, Yan Fei, Peng Damo
These are all familiar names, and these are all faces that are still young and confused.

Perhaps they themselves cannot imagine how far Mahua will develop in the future.

For a moment, Cheng Xi thought about the future prospects of Zuibai Mahua and that these were all his people.

I couldn't help but feel excited!
(End of this chapter)