Only after being reborn did I realize how fascinating the world of the rich is.

Soon it was 2006, and Li Xiaofeng formulated a rapid development strategy for Wanzhong Media, which was to establish four major network systems for his LCD screen advertising company.

The first is the building advertising system, the second is the cinema advertising system, the third is the shopping mall advertising system, and the fourth is the apartment building advertising system.

The most valuable part here is the building advertising system, which targets white-collar workers and is the most popular advertising channel for high-end brands.

As for cinema advertising systems and supermarket advertising systems, they also target specific customer segments.

For film and television directors and producers who want to promote their works, the most direct and effective promotional platform is the LCD screen advertisements in cinemas across the country.

The owners of fast-moving consumer goods companies also prefer to advertise directly on the LCD screens in shopping malls and supermarkets, as this is definitely more direct and effective in targeting users than advertising on television.

As for advertising channels in apartment buildings, they are similar to advertising on television, belonging to the category of general advertising. Customers have a relatively low willingness to invest, but the advantage lies in the large volume.

In addition, Li Xiaofeng can also classify these apartment buildings according to the housing prices in the community, making the investment of advertisers more targeted.

Currently, Wanzhong Media mainly focuses on advertising in building advertisements and high-end communities, while the advertising spaces in cinemas and shopping malls have mostly been occupied by print media.

Print media, simply put, are billboards, and the lease contracts for these billboards are for at least several years, or even more than ten years.

If Wanzhong Media wants to occupy these advertising spaces, it either has to wait for the billboard contracts to expire and then snatch them from other advertising companies, developing slowly.

Either acquire these advertising companies directly, quickly secure their advertising space, and also gain a group of advertising clients.

Li Xiaofeng's choice was to acquire these advertising companies at a premium, and to establish these four advertising systems as soon as possible in order to consolidate Wanzhong Media's position in the domestic advertising industry.

The advantage of this approach is that it allows the company to complete its development strategy ahead of time, strengthens and weakens the company's competitive advantage, and prevents other companies from competing with Wanzhong Media in the same arena.

Acquisitions can also be used to rapidly expand the company's size, increase total revenue, significantly boost stock prices, and increase the company's market value.

With the stock price rising, Li Xiaofeng's personal wealth can increase significantly, and the company can raise more funds when issuing new shares.

The downside is that acquiring at a premium will definitely reduce the company's profits significantly, and a significant reduction in profits will affect shareholders' confidence and lead to a substantial drop in the stock price.

When Li Xiaofeng handed over his operational development plan to Liu Qianqian and Miao Peipei respectively, both of them were somewhat surprised.

"Acquiring three advertising companies at once?"

"Yes, a cinema advertising company, a print elevator advertising company, and a shopping mall advertising company. The purpose of acquiring the cinema advertising company and the shopping mall advertising company is to establish two advertising sub-systems based on these two companies."

This way, when clients advertise with us, they can be more targeted, enhancing the effectiveness of their advertising and increasing our company's attractiveness to clients, thus helping us retain them.

The purpose of purchasing this print elevator advertising company is to quickly secure more elevator advertising space and expand our revenue from LCD screen advertising.

"Xiaofeng, there's no need to rush. Right now, in the entire advertising industry, there's no advertising company that can rival us in the LCD screen field. We can develop steadily step by step."

Liu Qianqian expressed her different opinion.

Although these companies are not publicly listed, the cost of forcibly acquiring them is still very high. A high market premium must be offered before they will sell you a well-run company.

Li Xiaofeng shook his head seriously: "Qianqian, Peipei, you must be aware of potential problems when doing business. Luo Siqi's current investment in the media advertising company is also integrating domestic advertising companies."

Although they are print advertising companies, they will still compete with us for advertising clients. Moreover, once they consolidate these advertising companies, they might very well try to turn those print ads into LCD screen ads.

"Do you think Luo Siqi's Architecture Media will compete with us for the LCD screen advertising market?" Miao Peipei asked cautiously.

She was originally a bit assertive, and after two years of training, she has grown very quickly and is already showing the demeanor of a strong woman.

Li Xiaofeng said noncommittally, "It's hard to say. A company's strategic choices are often determined by market conditions. Once the infrastructure media has completed its resource integration, no one can say for sure how it will develop next."

After all, Luo Siqi owns an investment company, and the Luo family has considerable influence and financial strength that should not be underestimated. We certainly can't compare to them.

Therefore, we must widen the company's competitive moat as quickly as possible, keeping competitors out and forcing them to pay a heavy price before they even have a chance to compete with us.

"Now that you mention it, I think you make a good point. Where will our acquisition funds come from?"

"The same method as when we acquired Hezhong Company: part of it will be financed by our own funds, and part of it will be raised through private placement."

A private placement is a type of share issuance where the shares are issued but not invested in the stock market. Instead, the money is directly paid to a specific entity or individual to purchase company assets.

The advantages of private placement are that it can save the company's cash, avoid stock market volatility in the short term due to the increase in the number of shares, and rapidly increase the company's size.

However, once the shareholders' holding period expires and the shares are released from lock-up, they will eventually flow into the stock market, which is much better than buying things with cash directly.

This feeling is like a company having the right to issue currency. As long as you print a few more sheets of paper, you can exchange them for a large amount of money. No wonder companies can't help but make large-scale mergers and acquisitions after they go public.

Liu Qianqian reminded him, "Xiaofeng, after we complete the acquisition of these advertising companies, the company's cash flow will be limited, and we will have to issue another round of financing."

Li Xiaofeng smiled and said confidently, "It's okay, I had already considered this. At the end of last year, I used all the company's profits for dividends, just for this year's acquisition and financing plans."

After completing the acquisitions of these companies, I will distribute this year's net profit, and the company's stock price will rise even further. At that time, we can reduce our stock holdings.

"By harvesting some of America's resources, we can consider it bringing glory to our country!" Miao Peipei's smile was radiant.