The Best Entertainment Era
Chapter 702 Strategic acquisition
After receiving the information handed over by Mark Randolph, Ronan quickly browsed through it. He knew nothing about the professional programming terminology, but in professional cases, Relativity Entertainment would also have professionals responsible for reviewing it, so he, the boss, didn't need to worry too much.
This company has just been established for one year. Mark Randolph said again: The team leader is called Andy Rubin. He used to work as a robotics engineer at the well-known Carl Zeiss company in the optical instrument industry, mainly engaged in digital communication networks. Later He was introduced to join Apple as a desktop system development engineer. He joined Microsoft in 1997 as a robot communication engineer. He founded Android last year, aiming to design a mobile platform open to all software developers.”
When he heard this, Ronan also saw the name of the company on the information - Android!
He may remember others wrongly, but this name, this English word is definitely not wrong.
I have switched on and off my mobile phone countless times. Except for the Apple mobile phone that I have used for a short time, this name will be displayed when the system is started at other times.
Translated into Chinese, it is called Android.
Ronan asked curiously, How did you find this company?
Mark Randolph said: I instructed the Technology Department and the Business Investigation Department to collect information on relevant companies. After Andy Rubin learned about it, he sent me an email and called me. We talked several times. The company We have also conducted investigations, and the projects they developed will be of great help to Netflix’s future business in mobile smart clients.”
Ronan nodded slowly, and can only say that Netflix's Internet professionals and professional team are indeed unique.
Think about it too, if there is no ability, how can Netflix get to where it is now?
Mark Randolph seemed worried that Ronan would veto Android, saying: Ronan, the number of mobile phone users in the world has reached 700 million, which is three times that of the traditional computer market. This gap continues to widen, and the mobile operating system has great potential.
The mobile phone market will completely surpass the computer market. Ronan continued: There is no doubt about it. Mark, I support Netflix's acquisition this time, but have you considered how to promote it? An excellent mobile phone operation system, not only Android companies can design and develop it.”
Mark Randolph obviously thought about it: The promotion of Netflix's mobile phone client needs to communicate with mobile phone manufacturers, so that we can establish a stable cooperative relationship with them, and then cooperate with mobile phone manufacturers...
The specifics of Ronan are not very clear, but he knows a little bit about the common goods: This is far from enough. To become bigger and stronger, you need to join hands with mobile phone manufacturers, software developers, telecom operators, and even chip manufacturers to form a powerful alliance.
Mark Randolph just thought about it for a while, and he understood.
Ronan continued: To do this, you need a very strong Netflix.
In the past, Google only really achieved this after its own development, and then Android gradually became the mainstream.
Yes, Netflix's strength is the foundation. Mark Randolph said.
Only a strong enough company can unite with other companies to form an alliance. Mark Randolph said with a smile: Ronan, Netflix is about to go public. I have full confidence in Netflix's future.
Ronan nodded slowly: Me too.
So, Mark, after the head office has finished the procedure, you can do it. Don't worry, Relativity Entertainment is Netflix's strongest backing.
Mark Randolph is very clear that even if Netflix goes public and raises funds, Relativity Entertainment still has a controlling stake.
Ronan asked, What about the preparations for listing?
The companies recommended by Goldman Sachs have very strong professional capabilities. Mark Randolph seemed very confident: Goldman Sachs has also asked many investment companies about their investment intentions, and the results are very satisfactory.
Ronan didn't ask much, and said, You and Robert Iger control the progress.
Netflix's performance is good enough that it is not difficult to attract investors.
Moreover, the listing is still placed after the streaming media business.
After nearly half a year of observation and analysis, Ronan is very clear that the biggest factor restricting the development of Netflix is the financial problem.
With the huge sales of a movie and the income from offline operations and other aspects, Relativity Entertainment has always maintained relatively abundant cash flow, but Relativity Entertainment also has a series of plans in the future, which require a large amount of funds.
Even if the Pacific Foundation's financing and bank loans can be considered to solve a large part, Relativity Entertainment still needs to maintain sufficient cash flow.
Therefore, it is impossible for Relativity Entertainment to inject large sums of money into Netflix, and listing financing is undoubtedly a more appropriate solution.
When the company grows to a certain extent, it is also a shortcut to unite with other capital groups, and it can also provide huge help for Netflix's future development.
As a representative of Netflix, after signing licensing agreements with Disney Pictures, Disney Animation Studios and Miramax, Mark Randolph ended his trip to Los Angeles and returned to the San Francisco area to concentrate on other Netflix affairs.
With the support of Relativity Entertainment, during this trip to Los Angeles, Netflix got enough film sources.
More importantly, Netflix's new acquisition plan was approved after being reviewed by Relativity Entertainment.
Mark Randolph convened high-level Netflix executives to hold consecutive meetings to discuss the acquisition plan, and he contacted Andy Rubin, the founder and CEO of Android.
Both parties are Internet practitioners and are no strangers to each other's business, so the communication and conversation went very smoothly.
After talking about technical and business matters, the two of them focused on the most critical price.
Andy Rubin is not a newcomer to the workplace, and wants to add more chips to himself: I sent emails to many big companies, and Mr. Larry Page from Google replied to me. He has been paying attention to Android. And A venture capital firm willing to invest in Android...
Mark Randolph has a faint smile on his face: They may be interested in investing in Android, but they will wait until the Android product is completed or is about to be completed. He said directly: Netflix Network acquired Android for $20 million. An additional $8 million will be injected into Android after the acquisition.”
Andy Rubin wanted to add that Mark Randolph didn't give him a chance at all: Andy, think about it carefully. There are many companies in Silicon Valley doing this. Netflix is not the only choice for Android.
Hearing these accounts, Andy Rubin understood that this is Netflix's condition, either accept it, or break it up.
Netflix is already one of the largest companies in Silicon Valley, while Android is an unknown person who has just started a business. If Android wants to continue to develop, it needs funds and the support of large companies.
Android needs Netflix, and Netflix doesn't necessarily need Android.
This asking price is not a special project, and of course it is not low.
Andy Rubin said: I need two days to think about it, and I'll give you an answer by the end of the week.
Okay, said Mark Randolph.
The two shook hands and left.
After the new weekend passed, Ronan watched Shark Gang win three consecutive championships in North America and reached a cumulative box office of 151.2 million US dollars. He was notified by Mark Randolph that Netflix had reached a preliminary agreement with the Android company. According to the agreement, Android will be acquired for US$20 million.
This is good news, but it will not make Ronan too excited, because part of the reason why Android has become what it used to be is Android’s own strength in development and technology, as well as its open strategy. Behind it is the strong promotion of Google. The real key.
What if Google had chosen another company? Android or Android?
Therefore, since Mark Randolph mentioned the Android company, just like he did so much work when he just acquired Netflix, Ronan never took it for granted that Android would succeed in the future.
Android still has a long way to go. The advantage of Netflix’s acquisition of Android is that it can be one step faster than other companies.
Luo An specifically communicated with Mark Randolph again, allowing Netflix to start with client cooperation and establish contact with many software developers, mobile phone manufacturers, and chip manufacturers such as Qualcomm.
Apple is no need to think about it, and Steve Jobs would not allow Apple to use an operating system other than its own.
With the cooperation of the Pacific Investment Foundation, a team of Netflix has contacted Korean investors and asked them to act as intermediaries to contact the Samsung Group in South Korea.
Mark Randolph also put forward an idea to develop a professional software that can provide entertainment services for future smart terminal users based on the increasingly powerful platform of Netflix and Android.
The source of this idea is of course reference, and the object of reference is itunes, the supporting software of Apple MP3 player IPOD.
Ronan approved the R\u0026D design for this project, which is to be done by Android.
After Netflix signed an acquisition agreement with Android, Ronan made a special trip to San Francisco and had a full chat with Mark Randolph and Andy Rubin, who is already the deputy director of Netflix's development department and CEO of Android, in Silicon Valley. one day.
In terms of technology, Ronan knows nothing, but he has used too many apps and various Android operating systems.
In the past, the frequency of his replacement of smartphones was basically maintained at a rate of one a year.
Android also has a negative impact. Anyone who has a little knowledge of the smartphone industry knows that Android has triggered numerous patent lawsuits.
Ronan is not afraid of this, because the appearance of a popular movie in Hollywood will also trigger countless copyright lawsuits.
For example, after Pirates of the Caribbean became a hit, at least 20 individuals or companies sued Ronan and Shahai Entertainment for copyright infringement.
But how much has Android gained for Google?
How much money did Google make from Android? It's hard to estimate, because Google didn't use Android to make money directly, but Android has significantly increased the usage rate of Google search and services, and it is search and services that have promoted the development of Google's mobile business.
If you let Ronan say, Android's success for Google is not so much financial as it is strategic.
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