Entertainment mogul: Starting his business with the internet

Chapter 315 I, Liu Shishi, have surrendered.
In mid-December, as autumn faded and winter's chill arrived, Beijing welcomed its first snowfall of 2010.

Inside a quiet and elegant private café room, the warm yellow lighting creates a striking contrast with the snowy landscape outside.

Two men sat together by the window, watching the snowflakes fall through the glass.

Of the two, the younger man glanced at his watch, looking slightly anxious: "Teacher, it's almost 4 o'clock. Is the investor that Teacher Xuejian introduced reliable? Will he stand us up?"

Another older man, referred to as "the teacher," sighed softly: "Who knows? But we need his help now, so we have to be more patient. Besides, there are still more than ten minutes left before the appointment time."

Upon hearing this, the young man could only calm down and continue waiting.

About ten minutes later, a coffee shop employee suddenly opened the door to the private room and led the two women inside.

The two men looked in the direction of the voice and saw a girl who was plump and had a cheerful face.

The other person was wearing a snow-white down jacket, a hat and a mask, revealing only a pair of bright eyes and delicate eyebrows, exuding a unique charm.

The girl, dressed in pure white, went straight to the dining table, gracefully removed her hat and mask, revealing a gentle and charming face.

A smile appeared on the young woman's face, and her voice was clear and crisp: "Director Kong, Producer Hou, I'm sorry to have kept you waiting. I'm Liu Shishi, and this is my work assistant, Jiang Yuanyuan."

It turns out that the two men were none other than Hou Hongliang, the producer of the hugely popular TV series "Crossing the Guandong," and director Kong Sheng.

The two were surprised to find that the investor they had been waiting for was none other than the popular young actress Liu Shishi. After a slight pause, they quickly stood up and said, "Ms. Liu, you're too kind. It's not the agreed time yet; we've arrived early. Please have a seat."

Liu Shishi smiled and nodded in response, then sat down opposite the two with her assistant.

"Miss Liu, Miss Jiang, what would you like to drink?"

The waiter wore a professional smile and spoke with a familiar tone, clearly used to the arrival of big stars.

"Two lattes, thank you."

"Please wait a moment." The waiter gently closed the door, leaving the guest alone.

Liu Shishi was elegant and poised: "Producer Hou and Director Kong, I have long admired your names. My whole family are loyal viewers of 'Crossing the Guandong,' that drama was so well made."

Hou Hongliang humbly replied, "You flatter me; I am only slightly well-known."

As the group exchanged pleasantries, a waiter brought over two cups of coffee.

The eldest sister picked up a small spoon, gently stirred the fragrant coffee, and got straight to the point: "Producer Hou, Director Kong, my mentor Li Xuejian told me that you two are seeking investment. Is there a new drama you want to film?"

The master and apprentice exchanged a glance, their surprise lingering in their eyes. They never expected that the popular actress Liu Shishi would be Li Xuejian's disciple; it was truly unexpected.

"Hongliang, you talk to Teacher Liu." Kong Sheng handed the floor to Hou Hongliang, who was an artist and not good with words.

Hou Hongliang nodded: "That's right, Teacher Liu. It's not that we need funds to film a new drama, but that you and I are planning to start a film and television company and are currently looking for a suitable investor."

"Starting a film and television company!" The top female executive raised an eyebrow, slightly surprised. "As far as I know, Producer Hou, you and Director Kong are both from Shandong Film and Television, right? Are you planning to leave Shandong Film and Television and go solo?"

"Yes!" Hou Hongliang's response was firm and resolute. He, Kong Sheng, Li Xue, and others were all core members of Shandong Film Studio.

However, in recent years, the film and television market has undergone tremendous changes, gradually shifting from the traditional "director-centric system" to a more market-oriented operating model.

As a state-owned enterprise, Shandong Film & Television Group (Shandong Film) faces institutional constraints, making it difficult to fully adapt to market competition. Some innovative projects are difficult to implement due to cumbersome approval processes and conservative decision-making mechanisms.

He and his teacher Kong Sheng discussed many times that only by establishing their own company could they shoot works more flexibly and boldly explore the path of commercialization in film and television.

Another point is that the entertainment industry is booming like never before, and countless practitioners are making a fortune. He, Kong Sheng, Li Xue and others are naturally envious, feeling that they have the ability and connections to break free from the constraints and earn more profits.

The group quickly reached an agreement and decided to leave Shandong Film and Television Group to establish their own film and television company.

But starting a company isn't just talk; purchasing equipment, renting office space, and paying employee salaries all require real money.

Although Hou Hongliang and Kong Sheng are quite well-known in the industry, they did not accumulate much wealth while working at Shandong Film and Television.

The idea of ​​asking several people to empty their savings to invest in the new company was naturally met with resistance. After all, film and television production is risky; while many people make money, many more lose everything and go bankrupt.

After some deliberation, Hou Hongliang and Kong Sheng decided to seek an external investor to inject capital.

Unfortunately, because their period dramas and realistic themes, which they excel at, have weak commercial appeal, they are not favored by mainstream investment institutions, and their financing path is more difficult than expected.

Even when a few investors were willing to invest, they demanded exorbitant amounts, asking for more than 50% of the shares upfront, which was unacceptable to the fledgling startup team.

By sheer coincidence, when everyone was running into obstacles, Hou Hongliang and Kong Sheng met Li Xuejian at a meeting.

Li Xuejian is from Shandong Province. His father was also a leader in the propaganda system and had dealings with Shandong Film and Television. He was also an old acquaintance of Hou Hongliang and Kong Sheng.

Upon learning of their plight, and unwilling to let their talents go to waste, he thought of his wealthy apprentice and acted as a go-between, introducing the two to Liu Shishi, which led to today's meeting.

Inside the coffee shop, it was warm and cozy. Liu Shishi leaned against the window, her gaze sweeping across the bustling street to the towering building across the road.

I picked up my coffee cup, took a sip of my latte, and let the bitter taste fill my taste buds.

Although her teacher, Li Xuejian, strongly recommended her, she would invest a little in this film and television company.

However, deeply influenced by her husband's investment philosophy, she understands that investment is something that cannot be rushed and that one must take the initiative.

Hou Hongliang and Kong Sheng saw that Liu Shishi had nothing more to say and was just staring intently out the window. They followed her gaze and looked out. What came into view was the shining logo "Tenda" on the top of the building across the street.

"Producer Hou, Director Kong, isn't that building across the street magnificent?" Sister Yi asked, beaming. Sometimes, when she had nothing to do and was waiting for her husband to get off work, she would sit in this spot and drink coffee. The angle here was excellent, and she could see the office of the chairman of Tengda Group.

"So this is the headquarters of Tengda Culture! As expected of a super giant in the internet industry, it is indeed magnificent." Hou Hongliang replied softly.

December days are short and dark. Before long, the neon lights on the walls of the Tengda Technology Building had quietly lit up, dazzling in the gradually darkening sky. Liu Shishi smiled and casually raised her hand, revealing her wedding ring on her ring finger: "My husband works right across the street, so I especially like sitting here and looking at his company."

Hou Hongliang was both surprised and puzzled. He hadn't expected that the most popular young actress in the entertainment industry would be secretly married, but now that they were discussing investment, he couldn't understand what the other party meant by bringing up marriage.

While the two were still confused, Liu Shishi continued, "My husband is a learned and cultured person. He also appreciates your work, finding it profound and innovative. With your mentor's help, I will invest in your company."

Kong Sheng and Hou Hongliang felt somewhat relieved. Liu Shishi hadn't directly refused, which was a good thing, but since she had gone through such a roundabout way, there must be more to come. So they waited quietly for her to state her terms.

"My husband is a famous investor who has invested in countless excellent companies. He once told me that starting a business requires tremendous courage and determination."

You also need the ability to envision a bright future and effectively organize a group of people to help you realize your dreams and ambitions.

"Producer Hou, Director Kong, tell me, what kind of film and television company do you want to start?"

Hou Hongliang's expression hardened, and he sat up straight, knowing that his next speech would be crucial to securing funding.

Moreover, Liu Shishi's unique opening remarks and distinctive way of thinking gave him a glimmer of hope—a hope that he could both secure funding and maintain control of the company to prevent interference with his creative work.

"My teacher and I believe that an excellent film and television company should prioritize the script and focus on its literary quality and depth."

In terms of subject matter, we will leverage our strengths, focusing on society and history, and reflecting the changes of the times through realistic themes.

Hou Hongliang's eyes shone brightly as he spoke eloquently to Liu Shishi, even gesturing wildly when he got excited:
"In short, our business and creative philosophy can be summarized as: content as the core, authenticity as the foundation, technology as the support, and responsibility as the guiding principle."

Kong Sheng sat to the side, his brows slightly furrowed. He was well aware of the disadvantages of their strength in realistic themes.

Compared to light-hearted urban dramas and idol dramas that generate a lot of buzz, realistic dramas tend to have weaker commercial appeal and lower economic returns.

He quickly added, "Of course, the marketization of film and television works is a trend, and we will also follow the trend of the times, combining popularity and quality to meet the needs of young people."

Liu Shishi rested her chin on her hand, lost in thought. Now, having been in the industry for several years, and with her husband being a visionary entertainment tycoon, she was no longer the naive girl she once was.

"Producer Hou's emphasis on quality and content sounds grand, but it also carries considerable risk."

With today's fast-paced lifestyle, audiences prefer quick, casual entertainment. How do you balance artistry and commercial viability to create works that are both critically acclaimed and commercially successful?

"This!" Hou Hongliang was speechless for a moment. Nowadays, the film and television market is highly competitive, and young people have little interest in period dramas. No producer or director dares to guarantee that the film or television drama they make will definitely make money. There are also many works in the industry that have high reputations but low viewership.

As the saying goes, experience matters. At a crucial moment, Kong Sheng stepped forward and said, "Teacher Liu, our work will strive for excellence in costumes, props, set design, and sound effects, combining artistry and entertainment value. Even with serious themes, it can still attract young audiences."

The teacher's interruption gave Hou Hongliang time to process and think: "Teacher Liu, our company will focus on film and television production and does not intend to get involved in artist management business."

In the future, we can collaborate with Tangren Media, transferring some of our roles to them.

Hou Hongliang believes that as Tangren Media's top female star, Liu Shishi must attach great importance to Tangren Media's development. Her proposed cooperation would certainly increase her willingness to invest.

Liu Shishi nodded slightly, looking at the two people in front of her who were extremely dedicated to art, and silently compared them to Cai Yinong in her heart.

After some thought, I suddenly realized that such a comparison was underestimating them. K-sister seemed to be far behind the two of them in terms of both vision and philosophy.

“Producer Hou and Director Kong, I have the utmost respect for your ‘craftsmanship.’ I, Liu Shishi, have invested in your film and television company. Let’s discuss the specific amount of financing and equity distribution.”

Upon hearing this, Hou Hongliang was overjoyed and quickly took out a document from his briefcase and handed it to his sister:
"Teacher Liu, this is our detailed business plan, including financial planning, team structure, equity details, etc. Please take a look."

Liu Shishi took the proposal and flipped through it page by page. Dongyang Noon Sunshine Film and Television Co., Ltd., the major shareholder, Hou Hongliang holds 31% of the shares and is the largest shareholder of the company.

Next are Kong Sheng (25%), Li Xue (18%), and Sun Molong (15%). These four are the company's main shareholders, while the rest of the team owns the remaining 11% of the shares.

While Liu Shishi was reviewing the materials, Hou Hongliang hesitated for a moment, then decided he should lay out the unpleasant truth upfront:
“Teacher Liu, no matter how much financing we receive or how many shares we give up, creative freedom is our bottom line. We have the right to make creative decisions, and this must be written into the financing terms.”

The woman didn't care at all: "That's no problem. My husband said that investment is not just about money, but also about trust."

Seeing Liu Shishi's open-mindedness, Hou Hongliang and Kong Sheng exchanged a knowing glance, their unspoken understanding conveyed to each other that they would do their best to retain this investor, even if it meant giving up a little more equity.

"Looking at the report, excluding project investment, it says we need 500 million in start-up capital?"

"Yes, in its early stages, Daylight Entertainment aimed to compete with medium-sized film and television companies. The equipment, venues, operations, and human resources salaries, among other things, would cost at least 500 million!"

Liu Shishi considered it for a moment and nodded in approval: "That makes sense. So, if I put up this 500 million, how many shares will I get?"

Hou Hongliang gazed at the beautiful face of Tangren's top female star, his mind racing as he weighed the options. After a moment, he cautiously probed, "500 million for 30% of the shares. You can participate in daily operations, but you won't interfere with creative work."

Liu Shishi did not answer immediately, but continued to look down at the proposal. The private room fell silent for a moment, and the atmosphere became strangely heavy.

Just as Hou Hongliang was about to lose his temper and prepare to make some concessions on the shares, Liu Shishi spoke first: "I still have my own business, so I'll leave the company management to President Hou."

The eldest sister had been observing Hou Hongliang discreetly. Seeing his conflicted expression, she knew that if she kept him waiting, there was still a possibility of making concessions on the shares.

However, there's no need for that. Investing is also about investing in people. Excessive exploitation will inevitably lead to unpleasantness with the founding team, which is counterproductive.

Hou Hongliang and Kong Sheng were overjoyed. Noon Sunshine's hard work had finally paid off, and they had met an angel investor.

Liu Shishi closed the proposal: "Producer Hou, 500 million won't last long. I have another suggestion: I'll put up 800 million and get 40% of the shares."

This secured the initial funding for the company's first project, but with one condition: I have the right of first refusal for projects funded by Noon Sunshine.

After investing in "iPartment" and "Lost in Thailand", she became extremely interested in investing in film and television projects.

Hou Hongliang agreed without hesitation to Liu Shishi's proposal to invest 800 million yuan in exchange for 40% of the shares. In his view, as long as the investor did not interfere with the operation and creation, it did not matter whether the share was a few percentage points more or less.

Outside, the first snow in Beiping quietly stopped; inside, Liu Shishi signed her name on an investment intention agreement, investing 800 million yuan in the name of her studio to become the largest shareholder of Daylight Entertainment.

(End of this chapter)