Start by trimming cow hooves

Companies like Netflix, with a market value of more than one billion US dollars, have mature internal management systems.

It’s not like no one has considered splitting the optical disc rental business and the online TV project before, but the actual operation is relatively difficult, so they have temporarily given up.

on the one hand.

Internet TV projects require a lot of money, and there is no hope of achieving breakeven in the early stages. They can only rely on Netflix's traditional business to make money to support it.

on the other hand.

If the two projects are split and operated separately, Netflix's traditional leasing business will lose the gimmick that can be sold to the outside world, and the company's stock price will inevitably plummet.

So after Mr. Reed Hastings heard what Su Rui said, he immediately shook his head and said:

"Other shareholders will not allow me to do this. Because of the streaming business, Netflix's stock price will rise. If I risk the stock price falling by 10% or even 20%, those investors will go crazy."

Su Rui found someone to investigate Netflix's information and carefully studied the company's data. He immediately said:

"Just by letting it exist as a subsidiary, investors still indirectly hold shares and enjoy its development dividends, right?" If we cooperate, I can provide US$200 million, or even more, to let It grows like a real internet business. "

"This will not only be beneficial to future financing, but also bring new profit growth points through the membership subscription business, preventing customers from using it for free like now and wasting the income from your DVD rental business. Split them, On the contrary, it protects the interests of investors and can stimulate the rise of stock prices..."

Greg Peters, chief operating officer of Netflix, listened carefully to what Suri said.

After thinking for a moment, the interface asked:

"I would like to ask first clearly, in your opinion, what is the valuation of our company's online TV business?"

Although doing business requires careful consideration, Suri does not want to sacrifice longer-term interests for the sake of immediate petty profits.

So he reported a fairly good number and replied:

"This requires further understanding of the situation before it can be finalized. I think its valuation is around US$250 million. There should not be a higher offer on the market than this. Your online TV business is definitely not worth so much money. What I am optimistic about are other resources on the Netflix platform..."

Netflix just launched its online TV business last year.

A total of more than 40 million US dollars were spent on this project one after another. It only contained some old resources and the number of users was not high.

Both Reed Hastings and Greg Peters were obviously quite surprised to hear that Suri quoted a valuation of US$250 million.

To be fair.

Although they are optimistic about the prospects of online TV projects, for now, it is really not worth so much.

Even though Netflix has millions of active subscribers, members who are only willing to spend money to rent optical discs have nothing to do with the online TV business.

Whether it can successfully attract traffic and attract users to use the streaming media business is another matter.

Therefore, Netflix's board of directors actually has some differences on whether additional investment should be made.

The main reason is that I want to develop it, but it is too expensive.

Any Hollywood film and television company with a little bit of strength is unwilling to release online broadcast authorizations.

They would rather spend more money to build their own video playback website, or continue to rely on CD rentals and enjoy the benefits brought by the film and television library, rather than sell the network playback rights of stock film sources.

Therefore, Netflix spent about 30 million US dollars to buy only a bunch of ordinary film and television resources.

Among them, the only decent "Friends" is not a direct buyout. It has to pay NBC and Time Warner every year according to the number of broadcasts, which is equivalent to losing money and making money.

Hollywood is very hostile to online video companies like them.

Netflix founder Reed Hastings only holds about 8% of the company's shares.

Thanks to the Nasdaq stock exchange's policy of allowing different rights for the same shares, also known as AB shares, we can use the right to speak with one share to be worth ten shares and firmly control the company's final decision-making.

After listening to Su Rui's words, his attitude was no longer as firm as before. He seemed to have seen the big benefactor, and asked in confusion:

"Why? Are you very sure that you will develop it after the split? If we cooperate and you provide us US$200 million, can we really hold the corresponding shares based on the valuation of US$250 million?"

"Of course, I can even try not to get involved in specific management work, but I need to have the final say on what kind of TV series to produce."

The other party felt that Suri was spreading wealth.

Suri also knew that from the current point of view, he was at a bit of a disadvantage.

The main reason is that if the price is lowered, the other party may not be willing to take the risk of stock price fluctuations to spin off the network TV project.

The reason why I offered a high price was to have a final say and to convince Reed Hastings, the talker, as soon as possible.

Compared with the hesitation of others, at least Suri did not need to consider that the project might fail, and the risk seemed to him minimal.

He snapped his fingers and signaled the waiter to come over and take orders.

Suri added again:

"If the business is spun off and you continue to hold the majority of the shares, it will still be regarded as a subsidiary of Netflix. This will help the parent company's stock price rise. I can provide $250 million in financing, but I only ask Obtain 49% of the equity and part of the say in the new company to prove our sincerity. As long as we cooperate smoothly, as people often say, one plus one may be greater than two, right?"

The two parties invested in different ways. This does not mean the valuation at that time, which must be US$500 million.

If the transaction is completed.

The new company has both external hype gimmicks and Suri's actual US$250 million in funding. Coupled with the help that Netflix can provide, perhaps the market valuation can surge to US$7.8 billion.

Even if nothing is done, there is a chance that your paper wealth will increase.

Countless capitals are obsessed with Silicon Valley because compared with traditional companies, this place is full of opportunities to get rich.

Greg Peters, chief operating officer of Netflix, has been working in Silicon Valley for more than ten years and certainly knows the charm.

He was worried that his boss would be stupid, so he couldn't help but remind him:

"I thought about it, but I really can't find a reason to refuse. Maybe some details need to be discussed, but they are worthy of serious consideration..."

Reed Hastings reached out to interrupt him and asked Suri again: "You only plan to manage the film and television production department? That will cost a lot of money, right? How can I trust you to handle it?"

Su Rui spread her hands and said with a smile:

"I won't joke with my money. Let me try to produce two dramas first. If it doesn't succeed, you don't need to drive me away. I will pack up and leave."

Just then the waiter came.

Reed Hastings smiled broadly and replied: "I need to discuss it with the board of directors. If no one offers a higher offer, I think there should be the possibility of cooperation."

Suri is basically sure that no one will be willing to offer a higher price than himself, and he is not worried about someone intercepting him halfway.

It really doesn't work.

He went to the YouTube video website with a similar offer. Maybe he could reach a similar partnership at a lower price.

Netflix was his best choice, not his only choice, so there was no pressure.

Miss Daddario sat next to Suri.

She finally realized that it wasn't that she was too bad, but that Su Rui's circle was too high-end. It was less than five minutes before she was seated, and it seemed that she had already reached a tacit understanding. This was a business worth hundreds of millions of dollars.

Finally understood what Suri's so-called acquisition was.

Although it was different from what he imagined, Daddario was shocked and became acutely aware that there seemed to be some new opportunities for fame outside of Hollywood...