My rebirth is different.

Chapter 571 Private Transactions
Facebook company, in Yu Wenfei's office, he and Cai Congxin were sitting there talking about things.

Now even Xue Chunhe is gone, and the rest are his own people, who can speak freely. In fact, Cai Congxin has concerns about whether Facebook can make money through advertising.

In fact, there is still a backhand behind the Facebook video, that is, membership payment!
Yu Wenfei didn't talk about this one today, because during the period when the Facebook video is online, there will be no membership payment.

Only when the right time comes, will the membership system be officially launched. When is the right time?
It is Facebook Video that dominates the online video industry!No company wants to try to compete with it so far!

At that time, it will be the best time to launch a membership system. Yu Wenfei will use the huge traffic and huge amount of funds of the Facebook company to make all competitors feel desperate, so that all Internet companies will not dare to step into the online video industry. Industry to compete with him!
In the final analysis, it is still the crazy burning of money in the early stage, investing in hardware, buying copyrights, and completely forming a market monopoly, and then the issue of charging is considered.

In the early stage, relying on online video advertising revenue, we should be able to roughly maintain a balance of payments, which is enough.

Yu Wenfei also likes to tell stories to investors, but he is quite conscientious. Basically, the stories he tells will become reality in the near future, including this time the Facebook traffic monetization model!
The reason why he dared to spin off the game business, which is the "big killer" for traffic monetization, and set up a separate company is also because of this, and that is his confidence in the income of the video business.

In 2003, there were no serious video sites on the domestic Internet, and the earliest LeTV would not go online until the end of next year. As for Ku0506, Youku, Tudou, etc., it would not be until . As for the top two video sites of later generations The famous iQiyi and Tencent Video will be even later.

Even in later generations, in 2019, when the three major video sites were in full swing, iQiyi's annual revenue still reached 290 billion yuan, ranking first among the three major video sites.

Among them, membership fees are as high as more than 140 billion, and advertising revenue is nearly 90 billion. These two are still the largest revenue.The rest of the income comes from content distribution, ecological business, etc.

Of course, while the income is high, its expenses are even higher!

Throughout the year, the cost of content alone is as high as more than 220 billion, which includes the purchase of film and television copyrights and independent content development.

Compared with the cost of content, when the company reaches a certain scale, the proportion of investment in hardware is much smaller. iQiyi’s annual expenditure on bandwidth is only more than 20 billion yuan, which is far less than the outrageous cost of content. .

But there is no way around it, because behind it, Tencent Video and Youku are eyeing each other, both wanting to become the No.1 video website. The entire market is still in a stage of fierce competition, and no one has come to the fore.

Such a situation is very flattering for content providers.

If you want to get the exclusive rights to broadcast a popular drama series with big traffic stars, the fee can even be as high as 500 million RMB or more, and it’s only for one episode, so don’t think it’s too expensive!

If there are as many as or episodes of a series, the cost of this drama alone will be as high as to million!
For "Ruyi's Royal Love in the Palace" in 2016, Tencent Video bought the exclusive network broadcasting rights, and the price was as high as 900 million per episode, and you must know that "Ruyi's Royal Love in the Palace" lasted for 87 episodes...

In other words, Tencent Video spent nearly million just to buy this show!

With prices so high, can video sites not lose money?
Everyone is gritting their teeth and pouring money into it. They only hope that they can make it through and beat their opponents to death first. After they monopolize the market, it will not be easy to make money.

But at the same time, there is also a strange phenomenon that many people have not noticed, that is, the cost of online broadcasting rights for the same series is skyrocketing, but the cost of broadcasting rights purchased by TV stations has not increased much!
The same "Ruyi's Royal Love in the Palace" was sold to TV stations for only 300 million per episode, but sold to Tencent Video for as high as 900 million per episode!

It stands to reason that competition among dozens of TV stations across the country should be more incentivized than in the online video industry, and the prices should be higher.

But don't forget that although the TV stations have competition, they are the same "big head", and each TV station is a brother unit. After all, everything can be discussed, and there is no vicious competition.If there is any conflict, there will naturally be parents to mediate.

Online video is different, because at the end of this industry, the one that can survive the most, if you want to live well, you can only "kill your opponents"!
By 2019, there will be only three video giants left, but each is still losing money, and this is the reason.

…………

"After getting the money from this round of financing, we will set up a content department and contact major music and film companies as soon as possible to purchase copyrights." Yu Wenfei said calmly, looking at Cai Congxin deeply.

In the current environment, perhaps Facebook's behavior of spending money to buy copyrights will be ridiculed by many colleagues.

Because everyone is using it for free, you can foolishly give money to people, isn't it stupid?

But only Yu Wenfei knows, or only he is willing to spend this money!

In the era when everyone is "whoring for nothing", if you talk about buying online broadcast copyrights, the price will really be so cheap that it will make people "cry".

No matter how you comment on Lao Jia about LeTV, there is one thing that no one can deny, that is, Lao Jia is really a person with a big structure. In terms of structure and vision, few domestic entrepreneurs can compare he.

When LeTV was first established, Lao Jia invested his limited funds in the acquisition of film and television copyrights. Many classic movies and TV shows were purchased at the price of LeTV, which was extremely cheap!

A movie can cost several thousand or tens of thousands of yuan, and an episode of a TV series can cost hundreds or even dozens of yuan!
This may seem like a fantasy after more than ten years, but it was indeed the case in a few years.

Because those film and television companies don’t pay much attention to online broadcasting. Anyway, there are pirated copies everywhere on the Internet. Suddenly someone came to tell you that I want to broadcast your company’s movies and TV series. How much should I give you?

This... It's too late to be moved, how can I have the nerve to charge more money!
In addition, Facebook has maintained a good relationship with many celebrities, and now Facebook's publicity capabilities are becoming more and more prominent. Many celebrities have long begun to pay attention to their Facebook, and interact with fans more and more.

Then the business department under Facebook went to their company to discuss copyright matters, and the treatment they enjoyed would definitely be different.

According to Yu Wenfei’s estimate, with a copyright budget of a few hundred million yuan, you can buy all the film and television and song copyrights you want. As for the copyright use period, of course it is long, starting from 20 years, and 50 years is not too much !In addition, it is best for this network broadcast right to be exclusive, so as to kill competitors in the "cradle" in advance!
…………

Within a few days after meeting with the investment banks, Facebook also received bidding documents from various investment banks one after another. Modu International Trust and Investment Company did not participate in the bidding because Mr. Liu met with Yu Wenfei in private.

This time, the International Trust and Investment Corporation is going to exchange the shares of Shanghai Pudong Development Bank with Yu Wenfei. That is to say, through the "back door".

Of course, Yu Wenfei would not put these shares of Shanghai Pudong Development Bank under the name of Facebook, because Facebook is not controlled by him alone after all, so putting it there would not benefit other shareholders in vain.

Some benefits can be shared, but some things can only be controlled by one person. The shares of Shanghai Pudong Development Bank belong to this kind of things that cannot be shared.

"Mr. Fei, let's not openly negotiate anything. For Facebook, we have also made an assessment and recognized that this company can reach a valuation of 60 billion US dollars now. So, our share replacement is directly based on this Let’s start with the valuation.” Mr. Liu said enthusiastically.

Of course Yu Wenfei has no objection, he understands Mr. Liu's meaning, because using Shanghai Pudong Development Bank to replace Facebook's shares, which already includes the city's "reward" for him!
If we really want to follow the process, the valuation of Pudong Development cannot be so low, and the valuation of Facebook may not be so high, all with additional conditions.

"Just do what Mr. Liu said! How about this, how much of the Shanghai Pudong Development Bank's shares can you take out?" Yu Wenfei asked straightforwardly.

Mr. Liu said without thinking: "% of the shares, this is the upper limit!"

As for commercial banks, although there have been policies in recent years to liberalize foreign capital and private capital, this is a sensitive area after all, so it can only be done cautiously, and the steps should not be taken too far.

Like foreign capital, that is another unwritten rule. No matter how much money Citi spends, it is impossible to get more than 20.00% of the shares, and it is impossible to control Shanghai Pudong Development Bank.

For private companies, the upper limit is a little higher, after all, they are their own people, so this time, Yu Wenfei will be given % of the shares!

The Shanghai Pudong Development Bank government's own valuation is 90 billion yuan, and 11% of the shares are billion yuan, which is about billion US dollars.

The current valuation of Facebook is 60 billion U.S. dollars, with a total share capital of million shares, so each share is worth U.S. dollars.

Therefore, Yu Wenfei will take out 900 million shares from his own shares to the International Trust and Investment Company.

Currently, Yuwenfei owns a total of 900 million Class B shares of Facebook.

After the transaction with the International Trust Company, there are still 6000 million shares left in his hand, accounting for % temporarily, and due to the dual-level shareholding structure, Yu Wenfei still firmly controls the right to speak on Facebook.

　In fact, I didn’t intend to write such detailed content in the first part of this chapter, but I found that if I didn’t write it in detail, it would really cause confusion for many readers.Seriously speaking, everything in my book that involves reality has been consulted with a large amount of information, so there is really no need to question it.

　　
　
(End of this chapter)