How can you become a star without money?

Chapter 208 I don't understand movies, but I understand the audience.

They stampede to escape.

Essentially, it's a liquidity squeeze triggered by panic.

But at least there's still a chance to escape.

With Wang Yao holding nearly 90% of the shares, the escape route door was now in his hands.

Wu Kebo and Morita Ryu tried to escape, but found the door locked.

All they can do is continue to resist by relying on poison pills to increase their supply.

But by this time, the total value of entertainment had already become unbalanced.

If the two continue to increase their holdings, even if they manage to defend against Wang Yao, all the money they invest will become debt, because they know better than anyone how much potential the company has.

In the end, the two had no choice but to cut their losses and sell the shares to Tan Hui at an extremely low price, leaving the scene in disgrace.

When Chengtian Entertainment announced its trading suspension on Monday, many industry peers were surprised to find that while everyone was focused on Alibaba's developments, Chengtian had quietly changed hands.

Although the story of the Queen's revenge and the White Knight did not have a plot twist, the ending unexpectedly fell on Meishe.

Some have calculated that, based on the poison pill and the final stock price, the shares originally worth over a billion yuan held by Wu Kebo (on behalf of others) may have only sold for less than two hundred million yuan, resulting in a complete loss.

Many people didn't understand the purpose of Meishe's decision to convert debt into equity and continue to increase its holdings.

Because it's obvious that when Chengtian got involved with Xingmei, it was already a high-premium bubble. Meishe's continued increase in holdings only inflated the bubble, which will burst sooner or later. It would be better to just liquidate the debt and get the funds. Spending over a billion yuan to buy a shell company is too puzzling.

However, another announcement about Tianhuo Media's reverse acquisition of its parent company, Meishe Group, soon attracted attention again.

Cases of subsidiaries acquiring their parent companies are extremely rare, and the news of Meishe's sudden takeover bid immediately brought these connections to the topic.

Is Tianhuo also planning a backdoor listing?
While the outside world was buzzing with discussion, Wang Yao went to see a stand-up comedy performance.

"The Three Sovereigns and Five Emperors were virtuous, the Xia, Shang and Zhou dynasties were famous, the Seven Hegemons and Five Tyrants fought in the Spring and Autumn period, their rise and fall were fleeting, their names are recorded in history, and countless desolate mounds remain in Beiman. The fields of the predecessors are reaped by the successors, so what is there to say about the struggle between dragons and tigers?"

Wang Yao and Tan Hui sat in a private room on the second floor, listening to the chubby little man on the stage talking eloquently.

"I didn't expect that a young man like President Wang would actually like this old-fashioned thing like storytelling?" Tan Hui was somewhat surprised that Wang Yao had arranged to meet here.

“Things aren’t new or old, they’re just good or bad. I grew up listening to crosstalk when I was little, but by junior high, there was no more crosstalk on TV. In recent years, however, Deyun Society has made a comeback.” Wang Yao smiled.

"Old Guo is quite capable." Tan Hui nodded: "I acquired the shares of Wu Kebo and Morita Ryu, which saved President Wang a lot of money."

Because Tan Hui intervened in the negotiations, the proportion of shares issued by Meishe was significantly reduced. Only 400 million yuan of debt and 160 million yuan of cash were used to issue 160 million shares. With other shareholders agreeing to hold the shares on their behalf, the tender offer was finally completed. The company submitted a one-month suspension of trading for restructuring to the China Securities Regulatory Commission. If the company does not resume trading within one month and release 25% of the publicly held shares, it will be forced to privatize and delist.

Tan Hui did indeed help Wang Yao save a lot of cash costs.

"President Tan isn't saving me money, he's getting a huge bargain. You'll see how much he's making after the market reopens. It'll be worth at least as much as your Feiteng Film City." Wang Yao shook his head and smiled, unappreciative.

"Oh? Mr. Wang is so confident? It seems you really intend to acquire Kanpianer.com?" Tan Hui said with a smile.

Given the current situation, once trading resumes, the stock price is likely to fall below 2 yuan, with a market capitalization of less than 10 billion yuan. Unless there is a major positive development such as a merger with a high-quality asset like Kanpianer.com, it will be difficult to raise the stock price in a short period of time.

"President Tan, you can wait and see." Wang Yao shook his head: "What has President Tan thought about the matter we discussed last time?"

"Mr. Wang is offering me a film studio in exchange for a business model. What's there to consider? Even with a 5 million investment, a 20-fold return on a 100 million box office is still a huge loss," Tan Hui scoffed.

"What if it's 40 times, or even 60 times?" Wang Yao countered.

Tan Hui fell silent, calmly gazing at Wang Yao.

Tan Hui had seen too many braggarts, but he had never seen a braggart like Wang Yao who was so baseless and illogical.

Boasting is an act of exaggeration, and exaggeration must be based on facts in order to have a chance of successfully deceiving someone.

Exaggeration without factual basis can be called nonsense or childish ramblings.

If it were someone else making this kind of boast, Tan Hui would probably slap them twice, but if it were Wang Yao, he would have to think carefully about the implications.

Box office revenue is a very mysterious thing; it's not the goal, but rather a process.

Tan Hui is well aware that many objectives can be achieved through this process.

Everything requires a process of cleverly creating a pretext. For a low-budget film to achieve a return of several times its investment, it must have a convincing story.

But what kind of story could possibly cover up such a colossal lie?

Tan Hui was puzzled.

"Is Mr. Wang serious?" Tan Hui asked.

"Mr. Tan, how many times would be acceptable?" Wang Yao asked with a smile.

A revenue of 20 times can be used to value a film and television company at a price-to-earnings ratio of 20. A good model operating under Tan Hui is worth at least several billion yuan.

It would be a lie to say I wasn't tempted.

But the cost is too high.

"How about this, let's make a bet. I'll hand this film over to President Tan. If the box office doesn't reach 20 times the revenue after its release, consider it my gift to President Tan. If it reaches more than 20 times the revenue, the film studio will be transferred to me," Wang Yao said, seeing that Tan Hui had been silent.

"Where does Mr. Wang get such confidence?" Tan Hui became increasingly curious.

This bet, though absurd, was somehow alluring.

Feiteng Film City has a guaranteed value of 3 to 5 million yuan, but compared to a return model of more than 20 times, it does seem less valuable.

Because heavy assets are everywhere, but models that can create bubbles are extremely rare.

That kid from the Le family was able to inflate the company's market value to 15 billion yuan with just a copyright distribution model and the support of Shanxi coal bosses. If Tan Hui really gets his hands on such a model, he'll naturally be no worse off than him.

"Don't worry about that, Mr. Tan. I'll try to get the film to you in early August so you can submit it for review. We need to expedite the verification process, but it must be released before September 6th," Wang Yao said with a smile.

"So soon?" Tan Hui raised an eyebrow slightly.

Normally, it takes at least 2 to 3 months for a film to be submitted for review. Of course, given Tan Hui's relationship with Han Sanye, this time can be compressed to within a week.

"Because this is the only time period that is most suitable for boosting box office revenue," Wang Yao said meaningfully.

Tan Hui understood that September is a transitional season for the box office. The summer season's popularity has declined, and the National Day holiday season will follow. This period can provide a reasonable reason for the box office to rebound.

"Okay, it's a deal then." Tan Hui thought for a moment. Anyway, he had nothing to lose; it was just a matter of having a couple more meals with Han San'er.

"I heard that Fiber Optics is also preparing to film a movie about the Chu-Han Contention, called 'The Legend of the Feast at Hongmen,' is it to compete with President Tan?" Wang Yao said with a smile.

"Just riding the wave of popularity." Tan Hui scoffed. "The sheer scale of 'The Banquet' has brought attention to the previously niche subject of Chu-Han Contention. Fiber Optics, wanting to go public, naturally needs a big-budget production to bolster its image."

He can't compete with Huayi Brothers in comedy, he can't match Bernard's in special effects blockbusters, and he can't rival Royal Entertainment in action and crime films. His options are limited, but the historical epic genre still offers opportunities. Besides Fiber Optics, there are also films like *The Warring States*, *Guan Yu*, and *The Assassins*, all in similar genres.

"Chinese filmmakers are quite united; they like to stick together in everything they do. With big-budget productions all crowding into the market, low-budget, high-return films have higher revenue value, which is a good thing," Wang Yao chuckled. "Speaking of which, Mr. Wang doesn't seem to be from the film industry. Why do you seem so confident about the box office?" Tan Hui asked curiously.

"I don't understand movies, but I understand the audience," Wang Yao said with a smile.

Tan Hui was stunned for a moment.

“Filmmakers understand film, but they don’t make movies for the audience to watch, so they can’t guarantee box office success. Although I don’t understand film, I know what kind of movies the audience will like.” Wang Yao said indifferently.

“That makes sense.” Tan Hui fell silent, seemingly beginning to reflect.

In fact, the quality and box office of the films he invested in in previous years were all quite good, but there were no particularly high returns or profits. The main profits came from the theatrical releases.

Chinese filmmakers have consistently attributed box office problems to a poor market, believing that if China had a consumer market like that of developed Western countries, its box office revenue would be at least several hundred billion yuan.

But after Wang Yao said that, Tan Hui suddenly realized that the root cause of the underdeveloped market might not necessarily be the audience's lack of money.

The film "Lost in Thailand" had a small investment, yet it still managed to achieve a pretty good box office performance.

"If Mr. Tan wants to establish himself in the cultural and entertainment industry, then it's best not to put all his eggs in one basket, or at least not in the domestic market. In the future, if there are opportunities, we can go to other neighboring countries, or even the West."

"Chengtian Cinemas has a considerable presence in East Asia, and I'd like to expand further by considering acquiring AMC Theatres," Wang Yao said with a smile.

“Chinese-language films have no market overseas, otherwise Zhang Yimou wouldn’t have been hiding in China all this time.” Tan Hui shook his head.

"Who said we were going to make Chinese-language films? We make movies to make money, not to promote Chinese-language films." Wang Yao chuckled.

Tan Hui was stunned, then suddenly realized something.

Yes, why must we limit ourselves to Chinese-language films?
“But we can’t really make foreign films either,” Tan Hui said, frowning.

“Just cast a wide net. If we can catch one or two films like ‘Lost in Thailand’ each year that achieve big returns with small investments, we can stabilize our profits. And once it’s successful overseas, we can bring it back to China and remake it, making a profit from exporting and then selling it domestically. It’s like getting multiple benefits from one fish. Anyway, the cost is low, so isn’t that great?” Wang Yao laughed.

“We can look into it.” Tan Hui’s mind started to wander. “However, AMC Theatres might not be so easy to acquire, after all, it’s the second largest theatre chain in the United States.”

“They operate with debt, amounting to nearly $2 billion, while their actual assets are less than $20 million. Even without expansion, they still incur losses of over $7 million annually. Their only advantage is being a global IMAX screen operator. I estimate that if they were prepared with $10 billion, they might be able to negotiate an acquisition, but they would have to take on a huge amount of debt,” Wang Yao explained.

"Uh, this doesn't sound like a good business deal." Tan Hui's lips twitched.

The acquisition cost alone is nearly $10 billion, and it will also incur $2 billion in debt and $200 million in annual losses, which means it needs to prepare at least $20 billion in cash reserves.

Even if you bundle Xingmei, Chengtian, and Tianhuo together, they might not be able to come up with this price.

"Business depends on how it's done. Any business with a future has value. Mr. Tan, have you ever heard of asset securitization?" Wang Yao smiled slightly.

"Huh? Isn't that something only real estate companies do?" Tan Hui was taken aback.

“Nobody said it can only be done in real estate.” Wang Yao smirked. “But that’s still early. I’m just talking to President Tan about the future plans for the cinema chain. After all, we’re now one of the largest cinema chains in China.”

Tan Hui nodded and began to think about it, preparing to consult a few experts later to ask about the feasibility.

Guo Degang's stand-up comedy routine was very short, ending in less than an hour. Amidst the enthusiastic banter from the audience, Guo Degang left the stage and soon returned to the private room with Yu Qian to say hello.

Guo Degang's movie "The Three Smiles," which was released last month, was invested and arranged by Tan Hui. Naturally, he had to come and greet the investor.

In the past two years, he has been riding high, enjoying all the glory of his early years. He has developed a serious nouveau riche mentality and is retaliating by getting involved in every project that can be publicized. Whether it's TV series, movies, or variety shows, he will pay for his own appearances to make up for the regrets of his early years of decline.

It can be considered a form of 'revenge mentality', not only taking revenge on those who tripped him up back then, but also on the 'blind' public.

At this point, Guo Degang was indeed a bit too arrogant, but he was undeniably popular. Deyun Club's revenue last year was nearly 100 million yuan, higher than Kaixin Mahua, with 60% of that coming from Guo Degang's personal income. The theater's net profit was close to 10 million yuan, higher than Kaixin Mahua, because its operating costs were extremely low.

After all, crosstalk performances are purely manpower-intensive, requiring no lighting or stage design. They only consume one bottle of water per hour, and these apprentices are paid a fixed salary. As a result, Guo Degang operates at almost zero cost, except for rent, utilities, food, and other necessities.

This is also the main reason why, a few months later, the eldest disciple Cao Jin led the rebellion. In fact, it was due to the uneven distribution of benefits. Or rather, there was almost no distribution.

After all, Cao Jin left the sect with the infamy of 'betraying his master,' and two years later he bought a five-story villa. Although it was in the suburbs, it proved how profitable the crosstalk industry was at that time.

After a brief conversation with Guo Degang, Tan Hui introduced, "This is Mr. Wang Yao, my business partner. Lao Guo, you should try to curry favor with him. If you want to make movies again in the future, you'll have to rely on Mr. Wang to help you get screenings."

"But is it Mr. Wang who invested in Kaixin Mahua?" Guo Degang cupped his hands in greeting.

Although they are not in the same industry as Kaixin Mahua, they are both offline theaters in Beijing and belong to the same circle. Recently, Kaixin Mahua has been recruiting and expanding its land and renovations, which naturally did not escape his notice.

After inquiring, they learned that it had been invested in by Wang Yao, which was quite rare in their circle, that an investor was willing to invest in offline businesses.

"Teacher Guo has heard of me?" Wang Yao smiled.

"I've heard so much about you, and I've known you for a long time. Brother Qian, this is also a god of wealth. Let's pay our respects," Guo Degang said with a smile.

“Then I have to kowtow,” Yu Qian said, playing the straight man.

"You two are joking," Wang Yao waved his hand.

"I'm flattered. Ren Quan mentioned you to me before. I've been meaning to pay you a visit, but I've been too busy with performances lately. I never expected to meet you today through Tan Ye's introduction. It's fate that I couldn't escape." Guo Degang laughed heartily.

He has good relationships with first- and second-tier actors in Beijing's entertainment circle, especially Ren Quan and Fan Bingbing. Last year, he even wanted to get Ren Quan to open a restaurant together to make money.

"I am honored to have grown up listening to your crosstalk performances, but I prefer listening to storytelling," Wang Yao said with a smile.

"Then when I have time, I'll come over and talk to Mr. Wang for a day." Guo Degang chuckled.

"Leave your contact information. We have a dinner appointment later, so we'll be leaving now," Tan Hui said with a smile.

After exchanging phone numbers and seeing Tan Hui and Wang Yao off, Guo Degang muttered, "I heard that after this Mr. Wang invested in Kaima, he's already started a tour?"

"Our company has also partnered with Kanpianer.com to sell tickets. I specifically inquired about it beforehand, and I heard that Kanpianer.com has branches in more than a dozen first- and second-tier cities for Kaima."
The tour and promotion costs are very low, and most importantly, haven't you seen Weibo? Their internet operations are quite good. Yu Qian is quite fun-loving and sociable, and he has connections with many people in Kai Ma Li.

"He said he's interested in stand-up comedy, is that true or false? Is it possible that he might invest in us?" Guo Degang squinted.

“Our company isn’t short of money,” Yu Qian said, frowning.

Deyun Society is indeed quite wealthy, with eight figures in liquid assets lying in its accounts.

“That’s our money. Look, Mr. Tan is footing the bill for this movie. If we had to pay for it ourselves and lose money, wouldn’t we feel terrible? Our company is also facing some bottlenecks and needs some new projects, but there are risks involved. But if we’re spending the investors’ money, wouldn’t we feel less bad?” Guo Degang said with a smile.

Guo Degang has always wanted to promote storytelling and Peking Opera, but he is reluctant to invest his own money in it. However, if a wealthy patron were to fund it, he might give it a try.

“That makes sense, but are you willing to give up your shares?” Yu Qian chuckled.

"Don't talk nonsense. This company belongs to that woman. I don't have any shares." Guo Degang smiled. "What I mean is to start a new company."

"What are you doing?" Yu Qian rolled his eyes.

"Look at what he likes. You can go have tea with Ren Quan sometime and find out more," Guo Degang said with a smile.

"Okay." Yu Qian hesitated for a moment, then nodded.

(End of this chapter)