Entertainment: I just want to be the boss behind the scenes

Chapter 112 Financing?

In Meng Bai's mind, Li Qin looks smart, but she is actually stupid most of the time.

In particular, there is a huge contrast between her private personality and appearance. Even if she gets angry, it doesn’t matter. She will be happy again after being coaxed.

So when he saw her suddenly send him a confusing message and then disappear without a trace, Meng Bai felt strange but didn't take it to heart.

He was currently listening to Chen Jing's report on the financial and operational issues of Arclight Pictures.

The profit share of "Psychological Crime" has all been received, and Arclight Pictures now has about 800 million in liquid funds on its books.

In addition, the investment share of this drama has also been settled. Meng Bai's investment of 500 million yuan has brought him a return of more than 1200 million yuan, which is a considerable return. However, this money will not arrive until around February next year, so it is still at a stage where we can only watch from afar.

From this perspective, it seems that film and television projects are a very good asset investment option. However, if we take the time factor into account, the project of this drama started in early 2014, and it took about a year to recover the cost.

So if you take into account the time cost and risk ratio, the return can only be considered acceptable.

In comparison, capital operations are much easier.

A few days ago, Boss Jia officially announced the merger and reorganization plan of Leshi.com and Leshi Pictures, which instantly aroused a huge wave of heat in the film and television capital market.

With the significant "good news" accompanying the current bull market, the share price of Leshi.com has taken off from the spot and ushered in a "terrifying increase" like pulling up onions in dry land.

When Meng Bai and his team invested in Leshi Pictures, the share price of Leshi.com was just over 30 yuan. However, in less than three months, Leshi's share price has risen to more than 50, a profit of nearly %.

Since it is a merger and reorganization, the valuation of Leshi Films will naturally rise along with the surge in Leshi.com's stock price. In fact, because it is not listed, the increase is even more emotional.

The Qiming Venture Partners, which Meng Bai and Qin Lan founded, had 1000 million shares in Leshi Pictures when they raised funds. This money is worth at least 1700 million according to the current valuation.

And don't forget, they bought it at a discount. So in terms of actual rate of return, the investment has more than doubled.

In other words, Meng Bai worked hard and took risks to film the drama for a year, but the profit he made in just over two months was not as good as what he earned here.

No wonder so many celebrity directors stop making movies after they have the capital. Given this comparison, how many of them can resist the temptation?

Anyway, Meng Bai thought he couldn't resist.

Fortunately, he has a good understanding of himself. He knows that the current wave of "huge wealth" is due to the rare opportunity of Leshi.com and the "once-in-a-decade" bull market.

As for the former, he got the opportunity because Arclight Films could bring benefits to Leshi.com, so if he gave up this, he would become a "tree without roots" and be killed in the capital market in a matter of minutes;
As for the latter, it is said that it is "unprecedented in ten years", so no one can predict how long this wave will last. Given the nature of the A-share market, maybe tomorrow a "soul-breaking sword" will suddenly strike down and bury all speculators.

Therefore, although the capital return was frighteningly high, Meng Bai became more vigilant. He did not invest Arclight's funds in the secondary market for gambling, or to make other capital investments, but continued to use them for the development of Arclight Films itself.

However, just because Meng Bai doesn’t look for others doesn’t mean that others won’t come looking for him.

Chen Jing handed him a stack of documents. They were all people who had contacted her during this period to ask if Arc Light Films had any plans for financing.

"Funding?" Meng Bai looked at the pile of documents in front of him and shook his head. "It's not necessary. Arc Light is not short of money."

2 million yuan is waiting there, and there will be a share of the revenue from Soul Ferry . As for where Arclight needs to spend money, at most it will be the production of the next few dramas in the "Green Ivy Series" or some projects that it is optimistic about like "The Best of Us". The "Green Ivy Series" basically requires Meng Bai to lead the team personally, and he can't split himself, so there are only two projects in the same collection period.

Not to mention that these projects are all in cooperation with video websites. Even if Arc Light Films does it on its own, the funds are more than enough to cope with it. Why bother to raise funds, introduce external capital and share power with itself?

However, Chen Jing has a different opinion.

"According to ArcLight's current scale and development status, it can skip the Angel Round and go directly to the A Round if it wants to raise funds." Chen Jing said: "Compared to funds, the industry resources, cooperation channels and business model expansion brought by the A Round of financing are the most critical."

This thing is actually the same as a film and television project. For small crews and small directors, what they lack most is money, so whoever can give the money is the investor.

But after you have grown up with a few successful experiences, when you launch a new project, it is not enough to just get money if you want to invest. At least you need additional resources such as publicity, channels or copyright development to have a chance.

And if we go a step further and reach the level of companies like Penguin, Wanda, Guangxian, or Bona, then it is no longer about looking for investment, but investors have to beg for "entry".

Arclight Films is probably in the early stages of the second phase now. If it starts financing, in addition to funds, at least some other resources must be involved.

When it comes to other resources, Arclight Films does have quite a few needs.

For example, more cooperation platforms, mainstream film and television channels, resources for project promotion and marketing, and even the artist brokerage business that Meng Bai has been considering, are all needed for the future development of Arclight Films.

Of course, even if you don’t accept financing, you can still develop these things slowly on your own, but it will inevitably take a lot longer.

"So, whether or not to accept financing depends mainly on your demand for development speed, boss." Chen Jing said: "If you don't have any big plans and just want to have your own place in the industry, then it doesn't matter if you don't accept financing."

"Wow, your description is too biased." Meng Bai said, "It sounds like I don't have any ambitions if I don't accept financing."

"I am an employee of Arclight Films. Of course, I hope that the company can grow as big as possible." Chen Jingping said calmly: "In recent years, with the exit of large Internet companies, the hot money in the film and television industry has increased, and there are all kinds of financing and mergers and acquisitions everywhere. At present, Arclight is a high-level investment target in the capital market. Taking advantage of this opportunity to catch up with the trend may be the best time to leap forward."

After that, Chen Jing added: "Of course, I am just providing advice. You are the boss, so it is up to you to decide how to choose."

"Many people have been able to take off, but even more have been blown away." Meng Bai pondered for a while and said, "As for the financing, you can wait for me to think about it. Even if this kind of thing is decided, there will be a long process of negotiation later, so there is no need to rush."

Even if it is financing, not just anyone will be accepted. After all, the purpose of investment is to make money, so there will inevitably be some harsh conditions for Arc Light Films, and these conditions may not be what Meng Bai is willing to accept.

Especially conditions such as gambling, which are the most difficult to accept in Meng Bai's opinion.

It seems that a large sum of money is given, but in the following time, the party accepting the bet is like a donkey with a carrot hanging on it, and can only try every means to chase it.

If you can't catch it, you will have to vomit out everything you have eaten; if you catch it, then considering all the hard work along the way, it may not be worth it.

More importantly, the donkey needs to obey the orders of its "master".

Not wanting to be manipulated by others was the reason why Meng Bai established Arc Light Pictures in the first place.

Before I had this company, I had to listen to others. After I had this company, I still had to listen to others. Then, wouldn’t my company be running in vain?

(End of this chapter)