Chapter 308 Whole-Owned Acquisition

With previous experience in acquiring Embassy Films, Ronan quickly assembled an acquisition evaluation team of nearly thirty people composed of professional lawyers, accountants, and third-party agency companies to assist Relativity Entertainment in completing the deal with Reed- Negotiations and deals between Hastings regarding Netflix.

In the Burbank Business Club, the two sides also started the first round of negotiations.

"Relativity Entertainment cooperates with Netflix in the form of capital injection, which is the most appropriate."

On one side of the long conference table, Reed Hastings tried his best to fight for favorable conditions for himself: "This will ensure the stability of Netflix and allow the Netflix management team to assist you in a smooth transition."

He glanced at Ronan on the opposite side: "Mr. Anderson, Netflix's management team is the one who really understands this company!"

Ronan nodded, obviously agreeing with Reed Hastings' words: "No matter which way we cooperate, Relativity Entertainment will do everything possible to ensure the stability of Netflix's management team."

Reed-Hastings remained calm, and then asked: "So, you agree to cooperate in the form of capital injection?"

Ronan said calmly: "It's okay to cooperate with capital injection." He smiled: "I also want Mr. Hastings to continue to serve as the CEO of Netflix, and Mr. Randolph to continue to serve as the chief operating officer. The team remains stable."

"We have a completely consistent view on this aspect." Reed-Hastings took the opportunity to say: "Relativity Entertainment's investment in Netflix will be a win-win result."

Ronan also wants to keep trying to keep Reed Hastings. Although Mark Randolph is the most important operator of Netflix in the early stage, the importance of Reed Hastings to Netflix in his previous life cannot be overstated. And metaphor.

It would be great if Reed Hastings was willing to work for Relativity Entertainment.

"If Relativity Entertainment injects capital, how many shares can you give up?" Ronan asked the key point.

Reed-Hastings said directly: "Forty percent." He emphasized: "For the stability of the company and the decision-making power of the management team, the management team needs a controlling interest."

Garcia glanced at Ronan, and interjected, "Mr. Hastings wants to swallow up all the benefits, and push all the risks to the theory of relativity for entertainment!"

Ronan has done a long-term investigation on Netflix, and of course knows that except for Mark Randolph who holds a very small part of Netflix, the rest are almost all concentrated in the hands of Reed Hastings.

What you said just now can be said that Reed Hastings wants to ensure the stability of Netflix's management team, or it can be said that Reed Hastings wants to continue to have absolute control over Netflix.

For Ronan, investing in Netflix is ​​completely different from investing in Apple. The latter is purely for asset preservation and appreciation, while the former is an extremely important part of the company's future development. It is impossible for him to let Relativity Entertainment follow Reed Haas Soy sauce on the back of Tins' ass.

Although there are other ways to do it later, he does not want to complicate the acquisition infinitely.

It is very important to maintain the right to speak of relativity entertainment.

Ronan just thought for a while, and said: "Mr. Hastings, I said before that if Relativity Entertainment cooperates with you in the form of capital injection, then an absolute controlling stake is necessary."

He emphasized: "This is a prerequisite!"

Without a controlling stake, there is no need to talk about capital injection.

Reed-Hastings looked gloomy for a moment, and then returned to normal in an instant: "In this case, the stability of the management team will be impossible to talk about."

Ronan is very clear that with the current situation of Netflix, after losing the controlling stake, Reed Hastings will leave Netflix 99% of the time, but it is difficult for the rest of the management team to say.

Ronan knows a lot more about the inner workings of Netflix than Reed Hastings imagined.

Little did Reed Hastings know that he had been preparing for Netflix for years.

In fact, within Netflix, more people recognize Mark Randolph, who is in charge of the company's operations, than Reed Hastings, who later strongly intervened in the company's business.

According to Netflix's internal statement, it was Mark Randolph's idea to start Netflix. In the early days of Netflix's establishment, Mark Randolph has been the CEO. He planned the future of Netflix and promoted the company's growth.

And Reed Hastings first played the role of investor and investment puller.

If it develops according to the rhythm of the previous life, in a few years, the friendship and cooperation between Reed Hastings and Mark Randolph will come to an end. When Mark Randolph is working hard for the future of Netflix, Reed -Hastings In order to take full control of Netflix, the joint board members fired Mark Randolph and kicked him out of the company.

Later, the name Mark Randolph became taboo at Netflix, and Reed Hastings forbade anyone from mentioning it.

This long-term effect of de-Mark Randolph is obvious, even more so than Mark Zuckerberg on Facebook. After 2010, when everyone mentions the founder of Netflix, they only know Reed Hastings .

Most people think that Reed Hastings created Netflix and led Netflix through the difficulties and obstacles in the early and mid-term entrepreneurial development stage, and it is not clear that it is someone else.

Ronan completely gave up the idea of ​​capital injection, and also gave up the possibility of retaining Reed Hastings in his heart, and said directly: "There is no need to talk about the capital injection. Mr. Hastings, Relativity Entertainment wholly acquired Nai fly company."

Hearing this, Reed-Hastings felt disappointed and helpless. If Relativity Entertainment is only registered and he can still hold the shares, there will always be a way to marginalize Relativity Entertainment and continue to control Netflix, and even luck If it is good, we can use Relativity Entertainment's funds and film platform to develop Netflix, and we can kick Relativity Entertainment out of the game in the future.

But Ronan Anderson, a young man, is very decisive, and it seems that he is not given a chance at all.

Reed Hastings is still fighting for it as much as possible: "This kind of cooperation may lead to instability in Netflix's management and a period of chaos. This is something neither you nor I want to see."

Ronan replied indifferently: "With the development of entertainment in the film industry based on the theory of relativity, it is not difficult to manage a peripheral channel."

When Reed Hastings heard this, his heart throbbed, thinking of the situation during the last interview. In the eyes of Relativity Entertainment, Netflix was just a substitute to replace the original plan.

The treasure in your own hands is not irreplaceable in the eyes of others.

Reed Hastings realized this point when he was rejected by Blockbuster and was ridiculed on the spot.

Mark Randolph looks at Reed Hastings, wanting to give Reed Hastings another shot.

But Reed-Hastings has already seen the other party's determination, and Relativity Entertainment's future plans for Netflix have no need for its own existence.

And he didn't want to change from a top manager of the company to a managed person.

Netflix can sell a large sum of money, and after paying off the loan, it is enough to ensure that he still has money in his hands to continue his business.

There is a good saying, I would rather be the head of a rooster than the tail of a phoenix.

Almost every manager who has been to the top of the company will have similar thoughts.

Reed Hastings was no exception, and he never considered working for Relativity Entertainment.

It is impossible to work part-time, and it is impossible to work part-time for others in this life.

In Mark Randolph's slightly surprised eyes, Reed Hastings said: "I can accept your full acquisition of Netflix."

He has tried his best to transfuse Netflix for many years, and he is also having a hard time!

The good life needs to be maintained, the loan needs to be repaid, and the next venture fund has not yet been settled...

In front of money, everything else is empty.

Ronan remained calm, and said, "Very good, we now have a basis to continue talking."

At the beginning of the negotiation, they were able to reach a consensus on the acquisition method, which already made Ronan quite satisfied.

What Ronan was most worried about was that Reed Hastings would not let go.

But Reed Hastings is a businessman after all, and the first consideration is the profit and loss.

Like all M&A negotiations, the speed of the negotiations was not fast. The first time the two parties only reached a consensus on the acquisition method.

It is never easy for one company to acquire another company.

It is common for some large-scale acquisitions to be discussed for a year or two or even longer.

For example, Walt Disney acquired 20th Century Fox in the previous life.

Fortunately, Netflix's business is relatively monotonous, and the company structure is not complicated. Relativity Entertainment's evaluation team moved very quickly. In addition, Ronan had already made sufficient preparations. By mid-November, the evaluation team submitted a report to Ronan. Netflix's review report.

This also means that the negotiations between Relativity Entertainment and Netflix can enter the substantive stage of operation.

After all, after Reed Hastings agreed to Relativity Entertainment's acquisition of Netflix, there was only one key factor that really affected the discussion.

That's the price.

Reed Hastings certainly wants to sell Netflix for a good price.

Ronan has also done enough preparatory work. Reed Hastings wanted to sell Netflix to Blockbuster for $50 million. This matter has gradually spread. According to his estimation, Reed Hastings There's no way Tins' asking price is higher than $50 million.

From the perspective of future development, the transaction price of 50 million US dollars is very cost-effective.

Even, Netflix has spent far more than 50 million U.S. dollars from its start-up to today. According to the estimation of the evaluation team, in addition to its own income, Netflix actually invested at least 80 million U.S. dollars.

But Ronan is still ready to lower the price, because the current Netflix is ​​not worth the price.

As a businessman, of course you have to buy the most ideal goods at the lowest price. The future of Netflix has not yet happened, and it is generally not recognized today. Of course, Ronan will not pay for the so-called unlimited future development.

Since it is possible to win Netflix at a lower price, it is a problem not to lower the price.