Rebirth 2006, creating a super consortium
Chapter 276 Cinemas and Collection Funds!
After hearing An Xin's dissatisfaction, Zhao Rui quickly explained: "Boss, although Golden Harvest Cinema Line is indeed not as good as industry giants such as China Film, Stellar Media, and Dadi, its scale is not small. All of its 25 cinemas are located in first-tier cities such as Beijing, Shanghai, Guangdong, and Shenzhen. It is already a very high-quality cinema line!"
"Besides, there are many opportunities for cinema companies to expand in the future. We can first finalize the acquisition of Golden Harvest Cinemas, and then use the platform of Golden Harvest Cinemas to train our own industry talents. After the financial crisis breaks out, can't we take the opportunity to acquire other cinema chains?"
Having said that, An Xin did not comment on it.
According to normal logic, what Zhao Rui said is indeed correct.
However, the actual impact of the financial crisis on China's various industries is not as great as imagined!
It can even be said that only the foreign trade industry suffered a brief catastrophe due to the downgrade in consumption in Europe and the United States, while the impact on other industries was almost non-existent!
Even a key industry like real estate, which should have been deeply affected, has not only quickly emerged from the industry's gloom under the influence of the super-large money printing, but has even ushered in the prelude to a golden age!
Under this special background, Zhao Rui's plan to take advantage of the opportunity to make a profit will inevitably fail.
But could Anxin have informed of this situation in advance?
No, it’s not possible, I can’t explain it clearly!
What Zhao Rui said before also makes sense, premium acquisition is feasible, but high premium acquisition is really not possible!
There is no other reason, the cost is just too high, it is better to build it up slowly by myself!
Besides, the real estate group will be taking off soon, and the cinema chain company can just catch this express train of development!
After sorting out the gains and losses, An Xin completely abandoned the idea of being a sucker, looked up at Zhao Rui, and said in a deep voice: "Okay, we'll handle the theater chain-related matters as you say!"
After hearing this, Zhao Rui couldn't help but breathe a sigh of relief.
To be honest, he was really afraid that An Xin would get carried away and insist on acquiring other large cinema chains at a high premium regardless of the consequences.
If this is really done, Fanxing Media will be no different from those coal bosses and will definitely be treated as a sucker and ripped off!
Before Zhao Ruishang could finish his breath, An Xin seemed to have thought of something and immediately added: "Although the large cinema chains really can't do anything for the time being, can we lower our acquisition target?"
"For example, it would be a good idea to set up some small and medium-sized cinema chains. What do you think, Zhao Rui?"
Zhao Rui shook his head without even thinking, and explained with a smile: "Boss, you may have some misunderstandings about the cinema industry. Small and medium-sized cinemas are almost all regional cinemas. Although they are unable to expand outward due to geographical restrictions and financial constraints, they are actually more difficult to negotiate with than large cinemas. The premium is often one or two times, which is outrageous!"
"Oh? Is that so?" An Xin smiled awkwardly and said, "Okay, then the affairs of Fanxing Media Cinema should be handled according to the opinions of you professionals!"
Zhao Rui smiled modestly and said, "Boss, you are too kind. We have only been in this industry for a few more years. We are not professionals..."
"Alright, alright, stop being so modest!" An Xin interrupted Zhao Rui and after thinking for a while, she asked, "By the way, how is the acquisition of music copyrights and adaptation rights of various literary works going?"
Zhao Rui replied with a smile: "Boss, the acquisition in this regard is going smoothly!"
“Although the music copyright is still under negotiation, the current disagreement between the two parties is no longer about whether they want to sell it, but about the price!”
"But we are very optimistic about this. We feel that as long as we continue to negotiate and pressure, we will be able to close the deal soon!"
"Speaking of which, we have to thank the Internet for its vast pirated music resources. Because the pirated resources on the Internet are too rampant, and some Internet giants are also involved, those music groups are completely helpless in this situation. They would rather sell Internet copyrights at low prices than waste their efforts to continue to fight piracy!"
"As for the acquisition of the adaptation rights of various literary works, it may be because our offer price is far higher than the current market price, so the progress is much smoother than the acquisition of music copyrights!"
“Most authors or copyright holders agree to sell with little resistance after we offer a price!”
"Of course, we also encountered some difficult authors or copyright holders who were indifferent to our high-priced acquisitions for various reasons. We also knew that we couldn't rush these people, so we could only be patient and slowly work with them!"
"Very good!" An Xin nodded with satisfaction, and then instructed in a serious tone: "Zhao Rui, I need to emphasize that whether it is the copyright of film and television dramas, music copyright, or the adaptation rights of literary works, they will all be our core strength in competing with our peers in the future, so you should spend more time on this aspect, stock up as much as you can, and never stop acquiring!"
Zhao Rui's face turned serious when he heard this, and he assured, "Boss, don't worry, the management of Fanxing Media knows the importance of copyright and will definitely not stop the acquisition!"
"That's good!" An Xin smiled and said, "I see the funding gap listed in the plan is around 15 billion Hong Kong dollars. Are you sure it's enough?"
Talking about funds, Zhao Rui instantly perked up and nodded quickly, saying, "Boss, 2 billion Hong Kong dollars is more than enough!"
"In fact, the funding gap for Fanxing Media to maintain the operation of its film, television, variety, television, and distribution subsidiaries is about HK$3 million!"
"Of the remaining 12 billion Hong Kong dollars, 5 million Hong Kong dollars will be used to acquire Golden Harvest Cinemas, 1 million Hong Kong dollars will be used to update cinema equipment and basic salary expenses, and 5 million Hong Kong dollars will be transferred to the copyright operation company to continue to acquire various copyrights!"
"We plan to use the last HK$1 million to set up a compilation fund, and then use the compilation model to solve the funding gap of Fanxing Media in film and television production, variety show production, and music production!"
"Platter mode?"
An Xin frowned slightly after hearing this.
He is so familiar with this thing!
The coal boss knows, right?
Let me put it this way, many coal bosses stay away from all film and television investments because they have fallen into the patchwork model!
It’s not that the coal bosses can’t afford it, but the compilation model created by the Chinese entertainment industry is really too cruel!
After 5000 million yuan of funds entered a certain company's patchwork fund through the patchwork fund, in the end it could only be used to put its name in a bad movie that was only released in scattered theaters and the matter was over!
Actually this is still good, at least I made a bad movie to appease you!
What's even more outrageous is that after you invest the money, they will complain to you during filming that there is not enough funds, and you are asked to either make additional investments or stop filming directly. Then they will use similar gap problems to keep you hanging until you completely give up on the project.
This shows how deep the water of patchwork funds is!
Hollywood is even more outrageous, and has completely taken the patchwork model to its extreme!
Indian funds, Middle Eastern funds, Japanese funds, Korean funds, and Chinese funds have all been cheated!
Even if the film completion insurance is useless, they can still trick you into leaving you speechless through the financial statements!
Even if big Wall Street financial groups enter the market, they will have to leave crying in the end!
Don't believe it!
In her previous life, Anxin had heard that JPMorgan Chase was badly cheated in a certain Warner project, and finally left with a loss of 2 million US dollars...
What about the Morgan family?
It’s the right pit!
...
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