Entertainment mogul: Starting his business with the internet

Chapter 337 Peak Entertainment
On the afternoon of April 6th, the first working day after the Qingming Festival holiday.

Outside the lobby on the first floor of the Zhongao Building, all the middle and senior management personnel of Tengda Culture stood in neat rows.

Yang Zi, a newcomer to Tengda Culture, stood in the crowd, puzzled. She gently tugged at Zhao Liying's sleeve and whispered, "Sister Ying, who's here today?"

Zhao Liying tilted her head slightly and hummed a few words through her nose: "The big boss is here to inspect the work today."

Yang Zi was taken aback, thinking what a coincidence. She had just finished her onboarding procedures in the morning, and then the richest man came to visit her in the afternoon.

About fifteen minutes later, a convoy of cars approached from afar, with the Maybach at the head of the convoy coming to a steady stop in front of the Xiamen Grand Hotel.

Zhang Zhao took the lead, respectfully opening the back door of the car, followed closely by Zhuang Liqi and Zeng Jia.

"Hello, Chairman Song!" "Chairman, welcome to visit and provide guidance."

Song Ci got out of the car, nodded to the crowd, looked up at the Zhongao Building that gleamed in the sunlight, and sighed softly, "It's been a long time since I've been here!"

Zhang Zhao stood to one side and smiled, "Chairman Song is very busy, it is our honor that he could take the time to come."

Song Ci shook his head and smiled bitterly: "Sometimes I really can't find the time. I originally planned to spend the morning, but yesterday I went back to my hometown to pay respects to my ancestors for Qingming Festival, and the leaders of Suzhou City asked me to stay for another day. I came here directly after arriving in Beiping at noon."

"The news that you and your wife attended the welcome banquet hosted by the leaders of Suzhou City yesterday has become a trending topic."

"I couldn't refuse their hospitality! Later, leaders from Jiangsu Province and Nanjing also came over, so I had no choice but to give them face."

Zhang Zhao complimented, "It's because of your enormous influence that local leaders have no choice but to pay attention."

"The leaders went to great lengths to attract investment from Jiangsu Province."

As Song Ci spoke, she walked into the building. Suddenly, out of the corner of her eye, she noticed a woman in the crowd who looked familiar. "Who is the girl next to Zhao Liying?"

Zhang Zhao followed his boss's gaze but didn't recognize him at first. He had been busy with important matters lately and hadn't paid much attention to the company's artist management affairs.

Zeng Jia quickly stepped forward and reported, "Chairman Song, President Zhang, that's Yang Zi, the company's newly signed artist."

"Oh, it's Xia Xue from 'Home with Kids'! No wonder she looked familiar." Song Ci suddenly realized that the most popular actress among the post-90s generation, known for her high ratings, had joined Tengda Culture.

Standing quietly beside Zhao Liying, he blended in seamlessly into the crowd. "He's a promising talent; we should nurture him."

After a slight pause, he continued, "What has Zhao Liying been up to lately? Why hasn't she joined the film crew?"

Knowing that the chairman favored Zhao Liying, Zhang Zhao immediately explained: "The company has collaborated with Yu Zheng Studio on a new drama called 'Legend of Lu Zhen,' starring Liying and Chen Xiao. She has been undergoing acting training at the company for the past two days and will be joining the crew soon."

Song Ci nodded slightly and said no more.

Zhang Zhao slowed his pace and whispered to Zeng Jia, "Arrange for Zhao Liying and Yang Zi to attend the welcome banquet tonight. Also, inform the other artists in the company that everyone who can make it back should come back to participate."

"Understood, Mr. Zhang."

After everyone went upstairs back to Tengda Culture, Song Ci warmly greeted the ordinary employees and was then invited into the conference room by Zhang Zhao to listen to a work report.

Over there, Yang Zi was sharing what she had seen and heard in the Beijing Film Academy's acting class WeChat group.

"I can't believe I met the big boss, Song Ci, on my first day at the company."

After saying that, he also attached a photo of Song Ci's back view.

Zhang Yishan: "Did you get to speak with Song Ci?"

Yang Zi: "You're overthinking it. I'm just a nobody, I can only stand in the back row. Song Ci didn't even glance at me."

The group chat immediately erupted with chatter:
Is the richest man handsome in real life?

"How did Song Ci suddenly end up at Tengda Culture?"

Yang Zi quickly replied: "He said he was here for an inspection, but he's even more handsome in person than in photos."

"Yang Zi, you and Li Ying, come here for a moment."

Just as they were having a lively chat, Yang Zi heard Yang Tianzhen calling her and quickly replied in the group chat, "Let's chat later, my agent is looking for me."

In the director's office, Yang Tianzhen went straight to the point: "The chairman's welcome banquet is tonight. You should all attend. Change into something nice and dress up properly."

Zhao Liying was used to this and simply replied, "Okay, Mr. Yang."

Yang Zi was stunned. Why was she being asked to attend a banquet and drink alcohol on her very first day of work? She hesitated for a moment: "President Yang, can I not attend?"

Seeing the girl's nervous and uneasy look, Yang Tianzhen gently comforted her, "Don't overthink it, it's just a regular internal reception banquet, just go and prepare well."

Yang Zi was skeptical, but as soon as she left the office, she couldn't wait to ask, "Sister Ying, is this really a normal cocktail party?"

"Otherwise what?" Zhao Liying glanced at her junior colleague who had just joined the company, and seeing her anxious expression, she patiently explained:

"Tengda Culture's leadership style is relatively upright. No one will force you to do anything unless you are willing. Of course, this does not apply to situations where both parties are willing."

"That's good." Yang Zi breathed a sigh of relief. She had inquired beforehand and found that among the companies in the Beijing entertainment circle, Tengda Culture and Enlight Media had relatively upright reputations and were less likely to engage in underhanded dealings.

Seeing Yang Zi's relieved expression, Zhao Liying chuckled meaningfully, thinking to herself that she was still just a little girl after all.

"Tonight is a welcome banquet for the big boss. Do you know how many female celebrities in the industry would kill for an opportunity like this?"
If that person took a liking to her, she'd be on a meteoric rise! Unfortunately, the chairman never flirts with female celebrities.

"Ah!" Yang Zi stared with her big, bright eyes, looked around to make sure no one was watching, and then whispered to Zhao Liying, "Sister Ying, does the chairman really not engage in any underhanded practices?"

“I’ve never heard of that since I joined the company,” Zhao Liying said seriously. “In this company, you have to rely on your real skills. Tengda Culture offers good benefits, but the company is not a charity. If you take resources but can’t create value for the company, you will be eliminated.”

Yang Zi seemed to be deep in thought, recalling the artist evaluation mechanism that Yang Tianzhen had introduced when signing the contract that morning.

The company provides resource support for three years. Once the training period is over, those who cannot demonstrate their value will be ruthlessly abandoned.

This is the business model of film and television companies dominated by internet groups: data is king, and profit is paramount.

Zhao Liying patted Yang Zi on the shoulder: "In Tengda, the right thing to do is to work hard and become famous as soon as possible."

"Any other unspoken rules or insider deals, our company doesn't practice those. Anyone who can't make money is useless."

Inside the meeting room, after Zhang Zhao briefly reported on the dozen or so projects that Tengda Culture had produced and invested in in 2011, he began the main event of the day: the proposal to invest in Summit Entertainment in the United States.

On the electronic screen, a brand-new business plan appeared. "Chairman Song, colleagues, Summit Entertainment is a Universal Pictures studio specializing in the development, financing, production, and distribution of films, having produced blockbuster movies such as *The Hurt Locker* and *Twilight*..."

Song Ci leaned back slightly, intently studying the information about Peak Entertainment. Several senior executives from the strategic investment department accompanying him were also taking notes diligently, occasionally exchanging whispered conversations.

Zeng Jia sat to Zhuang Liqi's left, secretly alarmed. She only knew that Zhang Zhao was busy with a big project recently, but she did not expect that the company was planning to enter Hollywood.

After Zhang Zhao finished introducing the basic situation of Summit Entertainment, Liu Hong, senior manager of the strategic investment department, took the lead in asking: "Mr. Zhang, as far as we know, Summit Entertainment currently has a debt of up to 3 million US dollars."

With such a high level of debt, coupled with the unique nature of the film industry, this investment is unlikely to generate economic benefits for the group for several years.

Zhang Zhao smiled confidently and said, "President Liu, if it weren't for the fact that Peak Entertainment is heavily indebted, under normal circumstances, why would we be the ones to invest in such a high-quality Hollywood film company?"

Liu Hong shook his head: "That's the logic, but even if the group injects capital to give Peak Entertainment a breather, there is still a risk of bankruptcy."

From a financial perspective, the risk-reward ratio of this investment is extremely unfavorable, and I personally do not approve of it.

The atmosphere in the meeting room became slightly tense. Zhang Zhao turned his gaze to the chairman, waiting for him to make a statement.

"Let's talk about the positive aspects." Song Ci flipped through the materials in her hand, also considering whether or not to invest in Peak Entertainment.

Internet companies are never afraid of losing money in the short term, but they must lose money to gain market share and users in order to win in the future.

Zhang Zhao's spirits lifted. The group's investment department had made it clear that they could only place their hopes on the chairman, and he had to seize the opportunity.

"First of all, Summit Entertainment has produced many films that have achieved both box office and award success. After the group's investment, it can share the content library and development capabilities, enriching TT Video Network's global content reserves."

Seeing Song Ci nod slightly, Zhang Zhao was delighted and continued to explain: "American film and television companies have advantages in scriptwriting, special effects technology and industrialization processes. After investing, Tengda Culture can learn from advanced experience and improve its production level."

In addition, Summit Entertainment has a mature distribution network in North America. After the company invests, it can use its channels to promote Chinese films, serving as an important springboard for going global.

Through capital ties, the group can participate in international film projects, enhancing its global brand influence.

After listening to Zhang Zhao explain the significance of some strategic plans, Liu Hong's expression softened slightly: "According to what Mr. Zhang said, if the company invests, it can participate in the investment and development of the Twilight series?"

“Of course!” Zhang Zhao said decisively. “Mr. Wassberg, co-chairman of Summit Entertainment, has expressed his willingness to accept our joint investment in the development of Twilight 4.”

China is expected to add 3300 film screens this year, theoretically raising the box office potential to $1.5 million. The Americans have also been paying increasing attention to the Chinese market in recent years.

"What about the Twilight game adaptation rights?" Song Ci is more concerned with the in-depth development of the IP than with simply investing in the film.

Twilight is very popular in the European and American markets. If it can be developed into a game, he is confident that he can earn back ten times the investment.

Zhang Zhao hesitated slightly: "This point wasn't discussed in detail beforehand, Chairman Song, but I think there's room for negotiation. Currently, Peak Entertainment has $8000 million in debt that is about to mature."

"With significant pressure from banks demanding repayment and limited financing channels in North America, Summit Entertainment urgently needs funds, which gives them considerable room for negotiation regarding the game copyrights."

Liu Hong adjusted his gold-rimmed glasses and cautiously pressed on, "Mr. Zhang, there's a crucial question!"

"What if the group just injected capital here, and then Peak Entertainment is declared bankrupt? We have to assess this risk."

"Mr. Liu, you can rest assured about this. We have conducted a detailed due diligence report. As long as we repay the $80 million in debt that is due, and hold on until the global release of 'Twilight 3' in June this year, Summit Entertainment will be able to overcome the crisis by relying on box office revenue."

Liu Hong nodded slightly: "Chairman Song, from a financial perspective, investing in Peak Entertainment does not offer a very high rate of return."

However, if we consider factors such as global market expansion and enhancing the group's brand value, the situation is different. We leave the decision to you.

Song Ci hesitated for a moment: "In principle, I agree to invest in Peak, but time is of the essence. Let's postpone it a bit longer. Those people in Hollywood are the kind of people who dare to swindle even Wall Street."

"We need to manage the negotiation pace well. Let them wait a few days, then focus on IP development and overseas distribution channels. Liu Hong! You need to calculate the return on investment period."

"Okay, Mr. Song, we will submit a proposal to you for review as soon as possible, focusing on evaluating the IP derivative value and channel synergy."

Zhang Zhao secretly breathed a sigh of relief. With the chairman not objecting, the matter was more than half settled. As for the other details, Peak Entertainment should be able to make concessions.

Thinking of the cunning and shrewdness of those people in Hollywood, Song Ci still gave a worried warning: "Be extremely cautious with overseas investments!"

We need to hire a legal team familiar with Chinese law firms to thoroughly review Summit Entertainment's IP ownership and contractual disputes to avoid potential risks.

Liu Hong noted down the boss's tips one by one: "Don't worry, Chairman Song, we are very careful in these aspects and will definitely conduct thorough due diligence before investing to avoid getting into unnecessary disputes."

The meeting ended at 5 p.m.

Zhang Zhao then invited, "Chairman Song, I've booked a few tables at the restaurant next door. Would you do me the honor of joining us?"

Song Ci did not refuse; attending the dinner to express her appreciation to the frontline staff was something that had been discussed in advance.

At nine o'clock in the evening, in the girls' dormitory of Beijing Film Academy, Yang Zi lay on the bed resting with a faint blush on her cheeks, while her roommates chattered incessantly around her.

"Zi Mei, have some honey water." He Miao sat on the edge of the bed with a glass in hand and gently helped Yang Zi sit up.

Yang Zi gulped down several mouthfuls of water to catch her breath, then let out a long sigh: "Red wine really has a strong aftereffect; I'm dizzy!"

Xia Qing asked with concern, "Were the people from Tengda making you drink?"

Yang Zi waved her hand: "No, it's just that I can't hold my liquor. Oh, Mr. Zhang arranged for Zhao Liying and me to sit at the head table."

Before he could finish speaking, the girls exclaimed, "Oh, the main table! Does that mean you're sitting at the same table as Song Ci? Tell us, what's the real richest man like?"

Yang Zi tilted her head and recalled, "It was quite unexpected. It turns out that Song Ci was a quiet person. He didn't say much throughout the entire banquet, which made the atmosphere at the table particularly dull."

"Didn't you offer Song Ci a toast or talk to him?"

Yang Zi lay on the headboard, rubbing her temples: "Of course I have to offer a toast. I understand these social niceties. But Song Ci barely spoke to me."

He seemed to admire Zhao Liying quite a bit; throughout the entire dinner table, aside from exchanging a few words with the three CEOs, he spoke the most with Zhao Liying.

"Zi Mei, you've really struck it lucky. You signed with Tengda Culture and met Asia's richest man on your very first day. Don't forget us when you become successful."

"No problem, we're all sisters! But I have a tricky problem that I need your help with!"

"what is the problem?"

"Make a travel guide for a seven-person trip to Europe." Yang Zi's expression turned serious. "I've taken on a variety show, and my task is to be the tour guide."

(End of this chapter)