How did I become a god

Chapter 994 Inspection

iQiyi has three headquarters in China, located in Beijing, Shanghai, and Rongcheng.Among them, the headquarters building in Beijing is in Zhongguancun, which was converted from a 17-story building bought by iQiyi.

Name: iQIYI Innovation Building.

Jing Gao drove to the downstairs of the iQiyi Innovation Building today. The bodyguard Chen Aiyang and the assistant Guan Yujia were already waiting downstairs.There are also a group of senior executives from Gong Yu on iQiyi.

An executive stepped forward to take the car keys from Jing Gao knowingly, "Boss Jing, I'll help you park the car."

Jing Gao nodded to him with a smile, and then greeted Guan Yujia and Chen Aiyang, "Guan Guan, Ai Yang."

"Mr. Jing."

"Boss Jing." Guan Yujia smiled, with the feeling of being moistened after the rain.A few days ago, I returned to the capital after my vacation.Jing Gao was at her villa last night.This time, Guan Guan was wearing a white suit, high-heeled shoes, and a bun, and he was wearing a charming and beautiful young woman.

Jing Gao nodded and shook hands with Gong Yu, "Old Gong, I have caused you trouble."

Gong Yu, wearing glasses and 51 years old this year, said with a smile, "Mr. Jing, you are the controlling shareholder of iQiyi. It is our honor to come to inspect the work. Mr. Jing, this way please!"

The work in the iQiyi headquarters building is orderly.Gong Yu also didn't engage in red carpet paving, and the employees lined up to welcome this kind of routine. After all, he is not a figure in the system, so it seems neither fish nor fowl.

Instead, they just gathered a group of senior executives to accompany them to visit the various office areas, and the senior executives in charge gave a general introduction to Jing Gao.

Jing Gao didn't speak, nor did he burst into applause, he just looked at the situation.

Compared with the executives of iQiyi's content production department that Jing Gao met at Phoenix Film and Television a few months ago, all of them are new faces.

Surrounded by more than a dozen executives, Jing Gao asked Gong Yu, "Are these new executives promoted from within or recruited from outside?"

Gong Yu smiled and said, "Half and half."

Jing Gao just laughed, "I personally like to promote executives from within. But every company has its own corporate culture, and every industry has its own organizational structure. In terms of personnel, start from the perspective of work that is beneficial to you. I only look at work result."

Gong Yu breathed a sigh of relief, relieved, and said, "Mr. Jing, thank you."

After looking at the building for more than an hour, I walked all the departments of iQiyi, and the group went to the luxurious conference room on the 7th floor for a meeting.

Jing Gao sat comfortably at the head of the long oval table in the conference room, listening to Gong Yu's introduction of iQIYI's "reforms" in the past few months.

The first thing to mention is iQiyi's board of directors, management personnel, and corporate structure.Although Gong Yu only holds 1.8% of the shares, as the founder, he is still the chairman of iQiyi.

In fact, from Jing Gao's point of view, the first thing to do is to understand iQiyi's equity and market value.This is the perspective from which he sees problems as capital and as a big boss.

时间走到2018年的11月12日, 爱奇艺在3月份上市美股后, 股权分布为：控股股东凤凰集团占有63.2%的股份，百度占10%, 高瓴资本占7.7%，小米占6.4%，红彬资本占5%, 创始团队中龚宇占1.8%，其余一些创始元老加起来占1.6%。

Phoenix Group invested in iQiyi at the beginning and got 10% of the shares. Jing Gao and Li Yanhong have a good personal relationship and have been talking with him about the acquisition of iQiyi.In the first half of the year, iQiyi was about to go public, and it was impossible for Baidu to sell it to him at a low price.Finally, the two parties reached an agreement in July, more than three months after iQiyi went public.

7月份，爱奇艺在美股的市值最高时是70亿美元。百度以这个价格出售40%的股份给凤凰集团，作价28亿美元。凤凰集团以6亿美元的现金+优步的股权进行支付。

At the same time, the two parties also signed an agreement at that time. Within two years, as long as the market value of iQiyi reaches 140 billion US dollars, Baidu will still need to sell 20% of its shares to Phoenix Group at this price.

In fact, by September, the highest market value of iQiyi had reached a market value of US$9 billion.The agreement for the acquisition of shares was executed.

Baidu, which is making every effort to transform into "smart driving", also needs a large amount of cash to supplement its assets.

Of course, from the current point of view, Baidu is doing a loss-making business.After all, when the market value of 140 billion US dollars was sold, it was far from the peak of iQiyi.However, in November, iQiyi's market value fell back to US$11 billion.

There are three reasons for this.

First, in March, when iQiyi was listed during the window period, the story Gong Yu told the US capital market was "the Chinese version of Netflix".Come to think of it, what is Netflix's market capitalization? $3 billion market cap.

However, no matter how well the story is told, without the support of fundamentals, it will be empty after all.Therefore, after iQiyi's market value soared to 315 billion US dollars, it fell rapidly.

Second, Phoenix Group has spent a lot of cash to increase its stake in iQiyi, and Uber’s expansion has reached its peak in China.The cash flow brought by shared travel is not enough to support the continued expansion of Phoenix Group.

In fact, Phoenix Group's shareholding in Uber, a core member company, is gradually declining. As of today, Phoenix Group's shareholding has dropped to 17.8%.Uber's market value in Hong Kong stocks also fell to US$380 billion at a high point.

The reduced shares were all cashed out in Hong Kong stocks to support other businesses of the Phoenix Group.

Jing Gao was in the capital during this time. In September, An Xiaoxi left her assistant Fei Jiayi, a top student who graduated from the University of Pennsylvania and a 1.8-meter-tall beauty, to stay in the capital. Assets, Fei Jiayi has completed this work, and the report is submitted to him.

He saw the change in Uber's equity when he read the report.At present, Fei Jiayi has left the capital and returned to Shencheng to work with Xiaoqian.

Therefore, Phoenix Group sold part of its stocks in the secondary market, that is, the open market of US stocks.That has taken a toll on iQiyi's stock price.

Third, iQiyi is drastically reducing its business, and is packaging the original content production department, as well as the e-commerce and game departments that can bring cash flow, and selling them to the original shareholders at an appropriate price. Formed a new company: Qiyi Chaomei.

This new company will operate the original iQiyi-related variety shows, online dramas and other content, and the online website and software will be called "iQiyi TV".At present, the network video license has been obtained through mergers and acquisitions.

However, the U.S. capital market does not accept iQiyi’s comprehensive transformation and comprehensive learning of Netflix’s strategy.Market caps have been falling.

...

The market value of iQiyi is falling. During this period, Phoenix Group also sold part of its equity to obtain funds. This part of the funds will be provided to iQiyi in the form of debt to ensure that iQiyi has cash to transform and make dramas.

Phoenix Group sold 280% of its shares to Hongbin Capital at a price of US$12.5 billion when iQiyi’s market value was US$5 billion.Shen Nanpeng and Jing Gao had a relationship, and he led the business.

Phoenix Group also sold 220% of shares in the open market when the market value of iQiyi dropped to US$1.8 billion, and returned US$3.96 million in funds.

At the same time, the changes among shareholders also include that Xiaomi, an early financial investor, is reducing its holdings, but Zhang Lei of Hillhouse Capital chose to increase its holdings in iQiyi.Therefore, the equity of both parties has changed.

As for other small share transfers and purchases in the stock market, it does not affect the membership structure of iQiyi's board of directors.

Jing Gao clicked on the iQiyi software with his mobile phone, looked at the projector in the meeting room, and listened to Gong Yu introduce iQiyi's board of directors and management personnel structure through PPT.

iQIYI's board of directors consists of six permanent directors + 3 non-independent directors.Among them, the six permanent directors are Chairman Gong Yu, and representatives from Phoenix Group, Baidu, Hillhouse, Xiaomi, and Hongbin Capital.

The structure of the management is still the same, adopting the model of the operation management committee.It is led by the CEO, plus COO, CTO, CFO and other members, and then down is the president of each business segment.

There are senior vice presidents and vice presidents under the president.Each department consists of directors, senior deputy directors, deputy directors, senior managers, managers and staff.

The corresponding positions have their respective grades, which are linked to benefits, salaries, and bonuses.

After introducing the personnel issues, Gong Yu said: "Mr. Jing, according to your instructions, we have two major issues for iQiyi. First, we are preparing to delist from the US stock market and return to the Hong Kong stock market. We have already submitted an application to the US Securities Regulatory Commission. .

The second thing is that we have changed our mode of buying dramas and learned from Netflix in an all-round way. At present, the production orders we placed have been approved by a batch of scripts, and the pilot episodes have also been filmed.is online.At present, we are focusing on a large-scale costume suspense drama called "The Nine-story Strange Case". "

(End of this chapter)