Entertainment mogul: Starting his business with the internet

Chapter 153 New Era

Wang Zhongjun nodded slightly. Although his brother was arrogant and domineering, he was reliable when it came to doing serious business.

He tossed the materials in his hand onto the desk, looked directly at the two people in front of him, and began to give instructions:

"Then let's follow the example of 'So Young' and have someone write a script to test the waters. It's only an investment of a few million. If it becomes a box office hit, that would be even better."

"Don't worry, brother, I'll take care of it."

Wang Zhongjun's face was calm, his eyes revealing an undeniable decisiveness. He tapped the table lightly, his tone firm and solemn:
"Zhong Lei, Xiao Gang, every step Huayi has taken to get to where it is today is the result of our hard work and dedication."

The film and television industry is currently experiencing unprecedented prosperity, and the market situation is extremely favorable for us. I have decided that the company will officially launch its IPO plan this year.

"Brother, you've finally made up your mind!" Wang Zhonglei exclaimed with delight. Once Huayi successfully goes public, wealth and fame will be within easy reach.

Wang Zhongjun nodded slightly, revealing some of his plans: "In the past, the timing wasn't right, which is why I hesitated. Now we have completely shaken off the negative impact of Wang Jinghua's departure."

Furthermore, I've reached an agreement with Jack Ma; he will personally subscribe to approximately 10% of Huayi's shares. His company, Alibaba, is one of the four internet giants, and his investment will benefit company morale and resource integration.

"That's really a bargain for the guy surnamed Ma!" Feng Xiaogang frowned, indignantly.

He is the core of Huayi Brothers' business, and after so many years of hard work, he has only obtained 3% of the shares. Ma Jieke, an outsider who has made no contribution to the company, was able to purchase 10% of the shares at an internal price and become the second largest shareholder after the Wang brothers. Naturally, this made him unhappy.

Sensing Feng Xiaogang's dissatisfaction, Wang Zhongjun quickly offered words of comfort and reassurance, as Feng Xiaogang was the fundamental guarantee for Huayi Company's listing.

"There's nothing we can do about it. That's just how the world is now. Anything related to the internet is favored by investors. Jack Ma's investment will help raise the company's stock price later."

Don't worry, Xiao Gang, you're one of us. The company's IPO will depend on your efforts, and you'll definitely get a share of the benefits later.

"Yes, it's strange. So many internet companies have no assets or profits, and the companies are losing money hand over fist, yet their stock prices keep rising. It's really incomprehensible."

Wang Zhonglei echoed this sentiment, implying that Feng Xiaogang's company was only courting Ma Jieke for the sake of future stock prices.

"This is also why I tried every means to get Jack Ma to invest in Huayi! The reason why Tengda Culture was able to rise so quickly and almost surpass us in just two or three years is because it has the support of an internet group behind it."

Sometimes I even think about whether we could get Tengda Group involved. After all, they own Toutiao, the largest portal website in China, which would be a huge advantage for film and television distribution and celebrity promotion.

Although we and Tengda have always kept to ourselves and had little contact, we haven't offended each other either.

"We're all in Beijing's entertainment circle, we'll run into each other all the time, we could totally try collaborating on a few projects. Tengda did a film project with Enlight Media last year, if Wang Changtian can do it, why can't Huayi Brothers?"

"Shall we arrange to meet with Zhang Zhao and have a talk?" Wang Zhonglei suggested.

Wang Zhongjun waved his hand dismissively, saying, "Zhang Zhao is just a laborer, what's the point of talking to him? The key is to get to the Song Dynasty poetry behind him."

Wang Zhonglei gave a wry smile: "It's a bit difficult. We're not good enough for someone with the surname Song." Don't let his usual arrogance fool you; he's actually very shrewd. People like the top ten richest people are on a completely different level from them.

Wang Zhongjun pondered for a moment and said, "We can find someone influential to mediate. Whether things work out or not, we should at least show goodwill by being courteous. Even if we don't cooperate, as long as Tengda doesn't oppose us for the next two years, that will be fine."

"That makes sense. Damn, Tengda has developed too fast in the past few years! Southern Cinema Line is doing very well in several coastal provinces, and now it is still acquiring cinema lines."

"If this continues, it'll surpass Huaying to become the largest cinema chain in China." Wang Zhonglei grumbled, somewhat resentful of Tengda Culture's rapid development.

Wang Zhongjun was also at a loss with Tengda, and said helplessly, "This is why I want to cooperate with Tengda. For us in the film industry, the cinema chain is always an unavoidable link."

Feng Xiaogang had been listening the whole time, and suddenly suggested, "Why don't we ask Chairman Han to step in?"

Wang Zhongjun weighed the pros and cons in his mind and couldn't seem to find a better candidate. "We can ask Third Master to step in. But let's find out what Song Ci's interests and hobbies are first. Catering to his interests will help us build a better relationship."

"I'll handle this. I'll have someone investigate. But young people, they just like fancy cars and beautiful women. Speaking of which, that kid is really handsome, a top-tier pretty boy. I bet a lot of women would be willing to throw themselves at him."

Wang Zhonglei said with a hint of envy, "When I date female celebrities, I rely on my power and resources in the entertainment industry to coerce and entice them, but they can do it just by their looks. It's infuriating to compare yourself to others."

"Alright, Zhonglei, you can find out more details first, but be careful not to cause any misunderstandings."

After making the decision, Wang Zhongjun continued, "These two years will be a critical period for the company."

Film and television companies are not like internet companies, where you can talk about the future and dreams with shareholders. They must deliver impressive results to successfully go public. Xiao Gang, you absolutely must take "Assembly" to heart.

Feng Xiaogang nodded solemnly. "Assembly" was his masterpiece: "Don't worry, I can handle important matters. I'll return to the set the day after tomorrow, and filming for 'Assembly' should wrap up before the end of February."

The tacit understanding built up over many years needs no further explanation; a brief mention suffices.

Wang Zhongjun then opened a financial statement and analyzed it in detail, saying, "Judging from the current data, our film and television works have a stable box office performance, and our artist management business is also expanding."

However, if we want to take the next step before going public, we must make greater efforts in content innovation, market expansion, and cost control.

Wang Zhonglei continued, "Besides movies, we will also increase investment in the TV series sector this year. I have been negotiating with several film and television studios and will acquire them as soon as possible."

"Speaking of Tangren Media, how are things going now? Before the new year, we heard that Hu Ge had a car accident, 'Young Warriors of the Yang Clan' was taken off the air, and they were on the verge of collapse. They're also in a lawsuit with Tengda Culture. Is it possible for us to acquire Tangren?"

When the topic of TV dramas came up, Wang Zhongjun suddenly recalled the project he collaborated on with Tangren Media last year. He was very envious of Tangren's excellent production team, and it would be best if he could acquire Tangren if given the opportunity.

Wang Zhonglei curled his lip, his heart filled with disdain: "That stupid woman Cai Yinong actually expects us to pull strings to get 'Young Warriors of the Yang Clan' broadcast on satellite TV!"
I later looked into it. That stupid woman had organized an employee stock ownership plan, raised some money, and Tengda Culture isn't pressuring them for now. They should be able to hold on for a while longer.” Wang Zhongjun had a sudden inspiration: “Employee stock ownership! Zhong Lei, Xiao Gang, do you think Huayi could do the same? This way, we can tie celebrities to the company, and celebrity stock ownership will definitely increase shareholders' confidence in the company.”

Huayi has always implemented a superstar strategy. If influential celebrities such as Huang Xiaoming, Li Bingbing, and Zhou Xun subscribe to company shares and become shareholders of Huayi, it will inevitably boost investor confidence when the company goes public.

“I think it’s perfectly fine. In particular, the company’s top artists should all subscribe to some shares. Otherwise, when the company goes public, what will shareholders think? If their own stars don’t buy Huayi shares, does that mean the company is no good? Then why should we buy them?”

Wang Zhongjun slammed his hand on his desk, immediately making a firm decision: "Then it's settled. Once I've finalized the shareholding plan, we'll talk to them one by one. Those who aren't willing aren't on our side and won't receive company resources in the future!"

With the Lunar New Year approaching after New Year's Day, companies are busy summarizing the year and planning for the next year. Tengda Group is no exception and is scheduled to hold its 2006 annual summary and commendation conference at the end of January.

However, before the year-end meeting, Song Ci, despite his busy schedule, gathered the group's senior management together to watch a video.

On Saturday, January 13th, the spacious conference room was dimly lit, and the top executives of Tengda Group were gathered together.

Only Song Ci knew that the giant screen was about to broadcast the Apple iPhone launch event hosted by Apple CEO Steve Jobs.

Today, Song Ci was unusually dressed in formal attire, his suit jacket looking sharp, showing how much he valued the meeting. His expression was focused and serious, and he was full of anticipation.

Seated on both sides were the group's senior managers, department presidents, and core technical personnel. Although no one knew why the chairman had gathered everyone together to watch a video during this busy time before the New Year.

They all sat upright, their eyes fixed on the screen, afraid that if they didn't look carefully enough, they might not be able to answer the chairman's questions on the spot and lose face in front of the other senior executives of the group.

As the lights in the venue gradually dimmed, the large screen lit up, and Steve Jobs' iconic image in a black shirt and jeans appeared before everyone's eyes.

In the video, Steve Jobs takes a sip of water, and the new product launch officially begins. The sound is clearly transmitted to everyone in the venue through the sound system.

"An iPod, a cell phone, an internet communicator... These aren't three separate devices, they're one device!" This startling statement immediately sparked endless imagination among the crowd.

"President Song, this is Apple's new product launch event from a few days ago!" With the opening scene, Zhang Yong already knew what the chairman had arranged for everyone to watch.

Song Ci nodded: "Old Zhang, have you seen it?"

Zhang Yong leaned closer: "No, but I saw it on the news."

As the CEO of a large internet company, he has always kept up with the latest developments in the tech industry. He had seen the new iPhone released by Apple, which was indeed an amazing product, but he didn't understand the meaning behind the Song Dynasty poem.

"If you haven't seen it, then let's take a good look together and appreciate this groundbreaking product."

Apart from Jobs' presentation, there was not a sound in the meeting room, and everyone, including Song Ci, was watching attentively.

As the presentation progressed, every frame on the big screen seemed to possess a magical quality, captivating everyone present.

When Steve Jobs swiped lightly on the screen of an Apple phone, the broadcast of the product launch event and the conference room of Tenda Group reached a climax simultaneously, with everyone unable to help but exclaim in admiration.

From the smoothness of touchscreen operation to the unprecedented user experience and the revolutionary app store concept, every detail is breathtaking.

Song Ci couldn't help but sigh that, even after so many years, watching this press conference again was still incredibly moving.

His gaze was solemn and profound; he knew that this was not just the launch of a product, but the beginning of a new era. From this moment on, Huli.com would enter the 2.0 era, and the curtain of the mobile internet era would soon be raised.

After the press conference ended, the large screen dimmed, and the lights in the venue were turned on again, restoring brightness.

Song Ci sat at the head of the conference table, his gaze sweeping steadily over the group's senior executives.

"Ladies and gentlemen, we have just watched this groundbreaking launch event together. Now I would like to hear your thoughts on what impact this Apple phone launch will have on the development of internet companies. Please feel free to share your opinions."

As Song Ci finished speaking, a brief silence fell over the conference room.

Without keeping the chairman waiting long, the group's chief marketing officer, Yu Shengming, was the first to speak. He had a keen market insight: "President Song, I think smartphones may change users' online habits."

Previously, people primarily accessed the internet via computers, but now smartphones are becoming a more convenient and private tool for accessing the internet. This means a new segment of mobile internet users will emerge, and our future products will need to cater to mobile users as well.

Upon hearing this, Song Ci gave Yu Shengming an approving look, even though the other party was unaware that mobile users would become the mainstream in the future, far surpassing PC users.

But to be able to discern the emergence of the mobile user market from just one press conference demonstrates an impressive ability to judge market dynamics.

A vice president in charge of product development, however, was cautious: "Mr. Song, I think what Mr. Yu just said about developing a dedicated mobile product is too aggressive. We should wait and see."

After all, we don't yet know if Apple can defeat mobile phone giants like Nokia and BlackBerry. Whether smartphones will become widespread is still uncertain; if a product is developed but only a few people use it, the R&D costs would be a complete waste.

Song Ci neither agreed nor disagreed with the previous viewpoint, which may be the opinion of most people, but he knew that the remnants of the old era, such as Nokia and Blackberry, would inevitably be swept into the dust.

After the release of the iPhone, the stock prices of major mobile phone manufacturers around the world began to fall one after another. He had already asked brokers to short Nokia and BlackBerry in advance, and he could make a fortune.

A technical director stated: "From a technical perspective, smartphones place higher demands on the internet, requiring our products to be faster and more stable."

Moreover, mobile devices have extremely high signal requirements. For example, in places with weak signals, such as underground or subway stations, you can't access the internet, so no matter how good the product is, it's useless.

The corresponding national communication infrastructure also needs to keep pace; this cannot be accomplished overnight.

(End of this chapter)