How can you become a star without money?

Chapter 248 "Oh? I'd like to hear more."

In fact, when Qin Lan received Gan Wei's call to visit, she was not really keen on helping to make the connection.

After all, Huo Siyan's betrayal had a great impact on her. Because of this incident, there had been no activity in the Teddy group for more than a month. The few close friends had been contacting each other privately. The group of nine people had split into countless smaller groups.

However, Gan Wei is quite different from Huo Siyan. Although she has now stepped down to the second line to be a wife and mother, she still has a certain say in the business of Le's. Moreover, Qin Lan is now doing management work. As a domestic film and television industry and platform, Le's will definitely have many collaborations in the future.

So he had no choice but to bite the bullet and arrange a time with Wang Yao for Gan Wei.

"It's a good thing Lan Jie is here, otherwise President Jia wouldn't be able to play with Tianhuo anymore. What would we drink then?" Wang Yao said with a light laugh.

"I ordered Mixue for them, so they can try something good," Qin Lan said with a smile, automatically adopting her secretary role.

"Mr. Wang, this Comic Con is making quite a splash. Is it a publicity stunt for Bilibili's entry into the video industry?" Accountant Jia asked after a few pleasantries before getting to the point.

He appears rough on the outside but is actually meticulous on the inside. His persona in the business world is also straightforward and frank, so he was very popular in the early stages. He has a certain unique personal charm, otherwise he wouldn't have been able to fool so many people into taking over his business.

"I just heard this question from Mr. Gong of iQiyi and Mr. Zhang of Sohu. You've all misunderstood. Bilibili is just providing a promotional channel for the Comic Con. We really have no intention of getting involved in the video platform business. The losses of hundreds of millions of yuan every year are not something a small company like mine can handle," Wang Yao said with a wave of his hand and a smile.

“If Mr. Wang is just a nobody, then we are nothing. Not to mention anything else, just the combined valuation of Tianhuo Entertainment, Xingyou, and Xingdian alone will probably be over 10 billion in the future,” Accountant Jia probed.

As a newcomer to the business world, Wang Yao was most remembered for his e-commerce valuation a few months ago. Now, with the emergence of a gaming sector and the recent recovery of Tianhuo's stock price to 3 billion, the industry's assessment of him has reached the level of a CEO of a large-scale entertainment and cultural enterprise worth tens of billions.

Le's is currently in the final stage of its roadshow, and the most optimistic valuation given by major securities firms is less than 50 billion.

"It's not that exaggerated. Valuation is not a reliable indicator. Meishe's valuation was over 20 billion before, but it collapsed to zero overnight. Only when it goes public can you see its true value. As for Tianhuo's stock price, it's just being propped up. Mr. Jia, please don't make fun of me." Wang Yao smiled.

"Weiwei, let me take you to get your milk tea." Seeing that they were starting to talk about serious matters, Qin Lan knew that Gan Wei was a big mouth, so she took the initiative to lead Gan Wei out of the office.

After the two women left, Accountant Jia seemed to relax a bit: "President Wang is quite young, yet he's not bound by convention in recruiting talent. But isn't it a good thing that arranging such an important position for Qin Lan might cause trouble?"

This clearly veered the conversation from career to men.

"President Jia, you've misunderstood. I did choose Lan Jie because her personality is a good match. Besides, what trouble could possibly arise in an artist department?" Wang Yao said dismissively.

"Tsk, young people are so carefree. For an entrepreneur like me, if I didn't have a family to support, investors wouldn't feel at ease," Accountant Jia laughed.

"Mr. Jia, you don't need to worry too much about these things. So what if you have a family? You can still get a divorce if you want to, and you can still move if you want to. In the end, investors only care about the results," Wang Yao said with a smile.

"Mr. Wang, you're so young and you're so open-minded? It seems like the female celebrities in the entertainment industry are going to suffer." Accountant Jia joked.

"Mr. Jia is joking," Wang Yao said, not responding.

Accountant Jia observed Wang Yao's expression. This attempt to probe had not yielded the desired result. If two men cannot have a conversation about women and sex, it is highly likely that either they are genuinely uninterested in the topic or they are not interested in the person they are talking to.

Hopefully, Wang Yao really isn't interested in women.

Accountant Jia prayed inwardly. He had taken time out of his busy schedule of roadshows to personally fly back to Shanghai to see Wang Yao because Le's fundraising had not gone smoothly. This was because some scoundrel had stolen a large number of his copyrights this year, causing the company's core assets to shrink after its listing.

On the video platform side, it has also fostered a competitor called iQiyi, which is on par with Le's copyright library, further diminishing Le's uniqueness, because iQiyi now not only has a rich copyright library, but also the support of Baidu's traffic advertising business.

I've heard there's a new e-commerce live-streaming model being tested. If it succeeds, it could very well emerge as a dark horse and take the lead over all video platforms in terms of revenue model.

Therefore, Accountant Jia had to continue searching for a 'story' that could enrich the future of the Le family. E-commerce, which is currently very popular, is undoubtedly the best choice. And the only person at his level who understands e-commerce is Wang Yao.

His purpose in coming here was to gain Wang Yao's support and see if they could strengthen cooperation not only in film and television but also in the e-commerce sector.

Wang Yao's collaboration with kiwifruit was based on a confidentiality agreement, and the copyrights he owns are all controlled by overseas companies, making it very difficult for domestic authorities to trace the source.

However, the e-commerce sector can be traced back to Wang Yao by looking at the creative team behind "Campus Belle Is Here." After all, the popular self-produced programs promoted by iQiyi are all from Tianhuo's partner studios, and they all have e-commerce attributes, so it's hard not to guess.

"What does Mr. Wang think of the Le family?" Accountant Jia's attempt to get closer to them failed, so he could only continue to play his cards openly.

"As the number one paid video platform in the industry and the fourth largest in market share, Leshi is currently the only profitable video company in China. It is undoubtedly the most commercially valuable model besides Youku, and can be directly compared to Netflix, with unlimited potential."

"Furthermore, I strongly agree with the mobile video model that Mr. Jia has consistently advocated. Content tied to the device directly binds users, and for the future of video platforms, user stickiness is far more important than sheer size," Wang Yao commented earnestly.

Le's started out making 3G communication equipment. Although it now uses copyright sales as its core competitiveness, it has always claimed to be making film and television terminal equipment. However, perhaps seeing the failure of TV boxes like Shengda, it has never really made a real bet. Instead, it has taken a step back and started from the perspective of building a mobile 3G streaming media platform.

They unexpectedly caught the wave of the mobile video boom, which can be considered a happy accident.

"Great minds think alike. I also believe that the users are already there, and any competition for them will likely just turn into a money-burning marketing war. Instead, it would be better to change our approach and bind our users to the platform, increasing their sunk costs and making them dependent on the platform."
"To be honest, given the cautionary tale of Shengda, I don't dare to try anything in the terminal market. Should we make TV boxes, or just make TVs directly?" Accountant Jia said candidly.

"What stage is the development of Le's mobile app at?" Wang Yao asked.

"It was released last month, and the Android version has already been downloaded over 100,000 times. The iOS version is still in the testing phase and will be announced after the official launch," Accountant Jia said with a smile.

Wang Yao raised an eyebrow slightly, guessing that the download volume of the Android version was not satisfactory, and they were afraid it would affect the listing and financing. Therefore, the iOS version was released after the listing, and then the data was manipulated to create a positive news to boost the stock price.

After all, Android is not yet the only mainstream operating system for smartphones and is still in competition with WS. Meanwhile, the scale of iOS has already been established. Anyone with a brain would definitely develop the iOS system first and then use Android and WS to build up the market.

"Mr. Jia, do you really want to get into the terminal business?" Wang Yao asked with a smile.

“Of course, Youku’s estimated valuation is already close to 200 billion. Le’s is under great competitive pressure in the PC market, so it must have the ability to produce and sell its own products. The terminal market is the only option,” Accountant Jia said in a deep voice.

"Mr. Jia, how much longer do you think televisions will last in a household setting?" Wang Yao asked.

"Huh?" Accountant Jia was taken aback.

What kind of question is this? Can people not watch TV?
Then, realizing what he meant, he laughed and said, "Mr. Wang also thinks that in the future, platforms or laptops will replace home televisions?"

Since the huge success of Apple's iPad, there has been a saying in the industry that tablets will replace televisions in the future.

"It's not a possibility, but rather that with the development and increased functionality of mobile devices, the practical attributes of television will gradually disappear. In the next ten years, it's estimated that only middle-aged and elderly people will still be watching television," Wang Yao shook his head.

"That's possible. Apple's current video playback quality and smoothness are truly amazing." Accountant Jia frowned, beginning to ponder Wang Yao's meaning.

"In that case, Mr. Jia, why don't you just bet on mobile devices? Whether it's tablets or phones, they seem to have a bigger future than televisions, and basically each household only needs one television, so the replacement rate isn't high."

But mobile phones are different. With the development of hardware technology, the future update frequency of mobile phones is likely to reach once every 2 to 3 years, and everyone needs them. This is a market several times larger than that of home appliances. "Wang Yao said seriously.

"I've heard that argument before, but the mobile phone market is quite competitive. TVs with a copyright bundle from LeTV still have a certain competitive advantage, but mobile phones are not like that," said Accountant Jia.

The TV can directly integrate the Leshi copyright library, allowing paid members to watch any content. This convenience changes the previous limitations and cumbersome nature of cable TV. However, with mobile phones, which can access the internet and download other apps, Leshi's competitiveness is greatly reduced. Although the market is large, its user stickiness and competitiveness are not as good as those of the TV.

"This Mr. Jia is putting the cart before the horse. Isn't the core competitiveness of Le's copyright? Audiences will pay for copyright. As long as the copyrighted content is strong, there's no need to fear competition." Wang Yao shook his head.

"That's true, but it will take at least a few years to make it legitimate in China, what if..." Accountant Jia hesitated.

The route for the television terminal has already been set, and it's impossible to change it just because of Wang Yao's few words.

"I'm just offering my limited suggestions for Mr. Jia's reference. Last week, I attended the Game 100 Forum hosted by Mr. Lei and learned that he's preparing to spearhead the development of the mobile game market and is also developing a mobile operating system, having already begun laying the groundwork for mobile phone manufacturing," Wang Yao said with a smile.

"Coarse grains? He wants to make cell phones?" Accountant Jia was surprised to hear this.

It's public knowledge that Lei Jun is starting a business developing a mobile operating system, but I've never heard of him actually making mobile phones.

"I only found out by chance. He calculated it by integrating the upstream and downstream industry chains. I have some friends in Korea, and CEO Lei has placed a lot of orders for Samsung mobile phone parts," Wang Yao said with a smile.

"An assembled machine?" Accountant Jia raised an eyebrow slightly.

If it's OEM assembly, then it makes sense. After all, developing your own mobile phone supply chain requires at least a ten-figure investment in factory construction and R&D costs. Although the profit margin for assembled phones is thin, the cost of trial and error is not high.

“In the smartphone industry, the performance of assembled phones depends entirely on system compatibility. Mr. Lei has a long-term vision; developing the phone's operating system first might actually turn it into a branded phone,” Wang Yao chuckled.

"Mr. Wang is an expert in the film and television and gaming industries. Do you think it will work?" Accountant Jia was somewhat tempted.

"The trend of mobile terminals is unstoppable, and smartphones are a disruptive revolution that will increase people's demand for entertainment several times over. They will not only replace traditional entertainment terminals such as TVs and MP3 players, but may even replace part of the PC market," Wang Yao said seriously.

"Does Mr. Wang have any relevant plans?" Accountant Jia asked in a deep voice.

“I have this idea, but I’m short on funds and connections. I come from an e-commerce and marketing background, and I know nothing about manufacturing and technology industries. However, I heard that Mr. Jia comes from a communications technology background. I remember that Xia Wei started his business in the same way. Their mobile phone terminals have a certain market share in the global market,” Wang Yao said with a smile.

"I guess I was one of Xia Wei's colleagues back then, so I could be considered a fellow professional," Accountant Jia said modestly.

The peers will have the illusion that "I can do it too," and Wang Yao's guidance did increase Jia's interest in mobile terminals.

"Did President Qi say before that President Jia also wanted to get involved in the cinema industry?" Wang Yao suddenly changed the subject.

Accountant Jia snapped out of his reverie and smiled, "That's right. Le's is a three-in-one company encompassing film and television, software, and terminals—a platform + content + terminal + application strategic concept. Content is currently our main core and also our profit center."
However, with established giants like Huayi Brothers and Bona Film Group ahead of them, Le's, as a newcomer to the film and television industry, didn't have much confidence in its content. While cinema chains were capital-intensive, they were relatively stable. However, Mr. Wang's Tianhuo + Kanpianer.com was another formidable obstacle. Therefore, they shamelessly sought opportunities for cooperation.

"The film and television industry is indeed doing well right now, but to be honest, the growth of cinemas in China this year has somewhat peaked. With Xingmei, Wanda, and our Tianhuo, the number of screens in China will reach more than 7000 by the end of the year, representing a growth rate of nearly 70% compared to last year."

"But judging from the data, the increase in audience is not keeping up, and cinemas can only invest in new ones this year. After renovation and operation for two or three months, the year is over, so the revenue figures don't look good." Wang Yao threw out the data.

Now, almost all cinemas on the market have been taken over by him and Tan Hui. If Le's wants to enter the market now, they can only open new ones themselves, which requires heavy investment and a long preparation period, which is not conducive to Le's asset-light model.

Wang Yao's words naturally hit Accountant Jia's sore spot.

"So I was thinking, could we invest in Skyfire Cinemas?" Accountant Jia said.

“Although growth has peaked, the revenue and profits of cinema chains continue to grow. At this point, at least we at Tianhuo don’t really need the funds,” Wang Yao politely declined.

"Haha, that's true." Accountant Jia chuckled awkwardly. With the support of online ticketing, cinemas are now a cash cow, so how could they easily take a share of the pie?

“However, Tianhuo does need to expand into overseas markets. If the Le family is interested, we can participate in the acquisition of AMC Theatres. Mr. Tan and I are planning to issue a series of bonds through Tianhuo, with an estimated scale of around 30 billion yuan,” Wang Yao said.

Upon hearing this, Accountant Jia sized up Wang Yao. Tianhuo Entertainment's total market value had just stabilized at around 30 billion, and its debt ratio was still over 50%. Unless there was a major positive development or a breakthrough in revenue in the short term, it would be impossible to successfully raise funds for a debt of this size.

Moreover, acquiring a global cinema chain like AMC would cost at least 60 billion, so where would the remaining 30 billion come from?
"Even if Le's goes public, it can only raise a maximum of 6 million to 10 billion yuan in funds. After adding various investments, there probably won't be much capital left to participate." Accountant Jia was somewhat tempted, but quickly regained his senses.

First, he didn't think Wang Yao and Tan Hui could really raise 60 billion yuan. Second, although AMC is one of the world's top two cinema chains, it might not be good news for domestic film and television companies.

Because a full acquisition would face operational challenges, and if Hollywood studios collectively boycott it, it could very well become a liability.

If the Le family wants to take advantage of this opportunity, they should be cautious, lest the stock price not rise and their assets become a burden.

"This is just a plan I'm informing Mr. Jia beforehand. If you have spare funds, you can participate. The value and potential of overseas cinemas are still much higher than those in China."

Moreover, with overseas cinemas, Le's can be considered an international video platform in disguise. Wang Yao chuckled.

Accountant Jia was taken aback, then her eyes lit up.

Is this packaging even possible?!
If this theory holds true, then Le's market will expand directly from China to the world. If they boost iOS download numbers overseas, embellish paid data, and then criticize Netflix, a global behemoth with a market capitalization of tens of billions of dollars.

Hmm, it seems there are still many stories to tell.

Accountant Jia suddenly had a much clearer idea of ​​what to do. Now there were only two questions left: how much money and where would it come from?

"However, given the large amount involved, Mr. Tan and I haven't reached a consensus yet. After all, it's a huge gamble that involves the future of both companies, so there's no rush in the short term."
"If Mr. Jia is truly interested, we could consider manufacturing mobile phone/tablet terminal devices. If this is incorporated into Le's core decision-making process, then on behalf of Tianhuo Media, I can lend Le's a hand in securing financing." Wang Yao changed the subject.

What started as enticing Jia, the accountant, to invest in AMC turned into preparing to help Le's company go public and increase its value.

This change was a rather pleasant surprise for Accountant Jia.

With Tianwang's investment, it means that they have a deep cooperation with Tianhuo Cinemas in disguise. Moreover, he still has at least 3 million worth of shares that he has not yet raised. If Wang Yao can acquire them, the market value of Le's after its listing may be able to go up even further.

It seems that issuing bonds together with Skyfire to acquire AMC would be a much safer option in terms of both risk and success rate.

This is indeed a win-win cooperation model.

As for mobile terminal strategy, we can try investing a portion.

"How many chips does Mr. Wang have?" Accountant Jia squinted.

“Tianwang still has two or three hundred million in its accounts. If Tianhuo Entertainment issues bonds, it shouldn’t be a problem to raise at least one billion in the short term,” Wang Yao said with a smile.

"I have an idea. We could raise the stock prices of both companies," Accountant Jia said, a sharp glint in his eyes.

Wang Yao raised an eyebrow slightly upon hearing this.

"Oh? I'd like to hear the details."

(End of this chapter)