I'm just trying to ride the wave of popularity!

Chapter 348 Threat
3 month 2 day.

Light rain is expected in parts of Yanjing.

Spring rain is as precious as oil.

In the conference room at the headquarters of Hongsheng Capital, Chen Lei stood in front of the floor-to-ceiling window, looking out into the distance, the smoke from the cigar between his fingers swirling.

Three equity acquisition agreements were spread out on the conference table behind him, targeting the core shareholders of [Huashang Brothers], [Shengshi Entertainment], and [Xingmei Films].

Since October of last year, Hollywood movies have been rampant in the Chinese market, and resource monopolies have led to dramatic changes in the industry landscape.

Tianyu Media, which was on the verge of bankruptcy, turned the tide and made a fortune, but other film and television companies such as Huasheng Brothers, Shengshi Entertainment, and Xingmei Film and Television were in dire straits.

Despite struggling to stay afloat until February of this year, dismal revenue figures gradually dampened investors' enthusiasm, and the company's valuation continued to decline...

In fact...

Since the Hong Kong film market was destroyed by Hollywood capital, the Chinese film and television industry has gradually fallen into a strange predicament.

Before the millennium, Chinese filmmakers once rivaled Hollywood, creating many excellent works.

Unfortunately, Hollywood's mature film industry system has an overwhelming advantage. Apart from a very few directors like Li Zhengtao who can still maintain the ability to make original films profitable, most domestic blockbusters have gradually lost their competitiveness.

As Hollywood further opened up the mainland market through preferential policies, after 2002, this confrontation gradually evolved into a passive situation of seeking subsidies from relevant departments.

After 02, as Hollywood movies became increasingly profitable, the five major Chinese film companies, relying on distribution rights, successively crushed original film companies, gradually sowing the seeds of a fatal flaw in the entire mainland film and television industry: a long-term dependence on the distribution revenue of Hollywood movies!

For them, they only need to represent two or three Hollywood movies a year to meet their revenue targets. If they are lucky enough to represent a blockbuster film, they can make a fortune.

Once the company's valuation increases, it can then go public and rake in a fortune in the capital market, easily achieving capital appreciation.

The IPOs of Tianyu Media and Huasheng Brothers were entirely due to their association with Hollywood movies!
This "earning money while lying down" model is far easier than painstakingly investing in and producing domestic blockbusters...

Then, it was in this atmosphere that the five major film and television companies gradually lost their sense of crisis...

Their long-standing reliance on revenue sharing from imported films has made them like frogs in slowly boiling water, oblivious to the impending dramatic changes in the industry. Their comfortable lives have left them with neither the strategic vision to build a local film industry system nor the courage to cope with market changes.

It wasn't until Zhou Yang, like a catfish stirring up the market, frantically seized resources that these companies were awakened by his insane and devastating attacks. But belatedly, they realized they were already in a business crisis.

Last year, Zhou Yang and his affiliated capital took control, and the financial situation of these companies gradually stabilized, allowing them to begin a difficult transformation.
During the transformation process, these companies followed Zhou Yang's model and launched dozens of film projects before last year's "Domestic Film Protection Month", attempting to regain their momentum by riding the wave of the success of "Chrysanthemum Terrace" and "The Last Supper".

Besides, they blindly followed trends and produced a large number of poorly made youth romance films, hoping to replicate Zhou Yang's box office success.

However, the disastrous failure of "The Last Supper" and the setback of "Chrysanthemum Terrace" in overseas markets severely damaged investors' confidence in domestic blockbusters, leading to the shelving of many projects.

Worse still, Zhou Yang has already reaped the market benefits, and audiences are gradually becoming aesthetically fatigued with mindless romance films that are highly homogenized.

These copycat works not only suffered a collapse in reputation, but were also completely wiped out by the impact of Hollywood blockbusters in October.

Within just five months, the three major film and television companies suffered heavy losses and were severely weakened.

"Everyone, although Zhou Yang has nominally invested in your company, data from the past five months shows that he has never provided you with any substantial support."

"His core resources have always been concentrated within the [XuanShi Entertainment] system, and the works he represents have always been those of [XuanShi Entertainment]."

"Haven't you realized yet? His takeover of you was just to clear away competitive obstacles, and then gradually erode your market share after you naturally disappear."

"When Hollywood blockbusters were flooding the market, did Zhou Yang ever do any promotion for your films?"

"Last year, thanks to the explosion of Hollywood movies and collaborations, Tianyu's revenue approached 5 million RMB, and its market valuation experienced another surge. If we make a move, you too could become the next Tianyu..."

"Zhou Yang controls about half of the cinema resources in the market, but, gentlemen, Zhou Yang's business model is essentially a short-sighted solution! The cinemas that the coal bosses are frantically expanding are like bubbles. Once we take over the truly prime locations, they will be completely finished!"

"We, [Hongsheng Capital], together with leading real estate giants such as [Wanda Real Estate] and [Hengteng Group], announce an investment of 300 billion yuan to build 'international film and entertainment complexes' in 42 core cities including Beijing, Shanghai, Guangzhou, and Shenzhen. Within a year, or even six months, we will regain control of the cinema market..."

"Gentlemen, take a look at the agreement on the table. We will take over your film and television company at a very generous price, as long as you squeeze out the Zhou Yang Group's capital. In fact, all we need to do is squeeze out the coal mine owners' capital..."

He suddenly stubbed out his cigar on the logo of [Xuan Shi Entertainment] and squinted at everyone.

The secretary laid out a series of tempting agreements in front of everyone. They glanced down at them silently, and almost everyone felt a little shocked and looked at Chen Lei in disbelief.

This investment agreement is very generous, with all the terms clearly written down, from the initial investment to the commitment to support and assist the company until the stock split is distributed six months after its IPO!
Moreover, the promised capital includes not only Hongsheng Capital, but also renowned international capital firms such as EK Capital and Bosch Capital…

This capital has supported the listing of many Chinese companies and made huge profits!

It's no exaggeration to say that once they sign this agreement, they can rest easy until the company goes public and make a fortune in the stock market!
Chen Lei smiled, looking down at the shocked gazes of everyone.

In order to completely suppress Zhou Yang, this cancerous tumor, Chen Lei offered an astonishing price!
The investors behind him clearly understood that Zhou Yang's rise not only represented a change in the market landscape, but also that he had ignited the spark of the Chinese film industry.

Hollywood capital may allow Chinese films to become huge hits, but it will not allow the rise of the Chinese film industry to become a second "Hong Kong" film industry...

Everyone knows that the mainland film market has an incredibly large future. If this fire really gets going, it will never be extinguished as easily as the Hong Kong market!

"Mr. Chen, do you mean we have to completely give up our autonomy in the company? We even have to hand over our voting rights and become just a nominal shareholder?" Someone in the meeting room couldn't help but raise a question.

Chen Lei nodded slightly: "That's a fair understanding. Because we will be coordinating the import of films from major Hollywood studios, you won't have to compete for distribution rights anymore. All resources will be allocated and distributed by us."

"Isn't that asking us to sell our souls? Turning our company into a dumping ground for Hollywood?"

"Do you have a choice? Zhou Yang is a beast; he'll devour you until there's nothing left. But we, at least, can guarantee your listing..."

"..."

Chen Lei looked at everyone.

The meeting room fell silent once again.

Chen Lei surveyed the crowd, his eyes sharp as knives: "You only have two paths before you—either sign to join, or be completely out. There is no neutral zone in this war. Those who don't sign today are our enemies!" He suddenly narrowed his eyes, adding meaningfully, "Don't think that Zhou Yang can rest easy just because he's currently cooperating well with Hollywood. In reality, all Hollywood film studios..."

The conversation ended abruptly there, leaving an unsettling silence in the conference room.

"..."

…………

In the conference room, Zhang Zhonglei silently looked at the agreement.

Then I looked at Chen Lei.

A vague, indescribable feeling of oppression welled up in my heart.

He clearly realized that Zhou Yang's showdown with Hollywood capital was not only about the competition for the film market, but also symbolized a life-or-death struggle between two industry models.

Since China joined the WTO, its economy has taken off, but countless overseas capital has entered the market under the guise of investment, with the real purpose of reaping profits. From daily chemical products to home appliances, from retail channels to the film and television industry, many national brands have been quietly eroded in the wave of "market for technology".

This war without gunfire is now being fiercely waged on the battlefield of the cultural industry...

But what do all these things have to do with him?

He's just a businessman!
What does the so-called Chinese film industry, the so-called ideological struggle, have to do with him?

After thinking for a long time, he stood up and looked at Chen Lei.

"I sign!"

His statement caused the atmosphere in the meeting room to become subtly tense.

Immediately afterwards, the heads of the investors, including Shengshi Entertainment and Xingmei Film & Television, began whispering among themselves, discussing the matter in hushed tones…

But in the end...

The two glanced down at the data on their phones.

Those were premiere feedback for "Dark Knight" and "Fast & Furious".

After a long while, the two stood up almost simultaneously.

"Sorry, we won't sign, and we can't sign. We need to go back and discuss it with everyone!"

"Sorry, we'll be going now!"

The two pushed the agreement back onto the table, their eyes filled with complex emotions. Then, they lowered their heads, as if gambling, and turned to leave the meeting room.

……

Chen Lei watched the two figures silently leave, his brows furrowed.

Did they really think Zhou Yang could win this battle?
Just as the two were about to step out of the conference room, Chen Lei suddenly raised his voice: "I'll say it again! Hollywood's attitude towards the Chinese film market is about to change completely! If you walk out this door today, you will lose this opportunity forever!"

The two paused slightly in their steps.

But in the end, he left without looking back.

Chen Lei's eyes were gloomy!

Just then, his phone rang.

He answered the phone.

Then, his face grew even more gloomy!

The opening weekend box office forecast is out!
(End of this chapter)