Three Hundred and Thirtieth IX: Two Benefits

"Hello, Mr. Anderson."

In the reception room of the Burbank Business Club, Marquez Perlman shook hands with Ronan lightly: "I've heard about the youngest billionaire in Hollywood, but I didn't expect him to be younger than I thought."

Ronan responded politely: "Nice to meet you." He invited: "Sit down as you please."

From the perspective of the acquisition of Ruiou Company, the two are competitors, but neither of them showed any emotions that they should not have. It is uncertain what kind of development will happen in terms of business matters.

Moreover, the previous tentative contact between the two parties also helped to understand each other.

After a few pleasantries, Ronan went straight to the topic: "Hollywood Video intends to acquire Ruiou?"

This time, I came here to try to solve the problem, and Marquez naturally would not deny it: "Actually, we have been talking since November. If Relativity Entertainment hadn't suddenly appeared, we had already reached an agreement with REO."

Ronan could hear that this was Marquez implying that Relativity Entertainment was not too particular, and suddenly intervened in the acquisition of Hollywood Video.

According to his analysis, there is a possibility of cooperation between the two parties, and there is no need for confrontation. Ronan asked: "You and Stuart Coleman are in secret contact in private, right?"

Marquez understood Ronan's meaning after thinking for a while, and said, "Yes, of course this kind of thing should be kept secret."

Ronan spread his hands slightly: "So, when Relativity Entertainment contacted Stuart Coleman, they didn't even know that Hollywood Video was acquiring REO, otherwise there wouldn't be so much trouble now."

He immediately brought the topic to the common opponent: "This also led Sturt Perlman to use our willingness to acquire as capital to raise the price."

Marquez said lightly: "Stelt Perlman seems to be a straightforward person, but he is actually very clever."

"I have the same feeling." Ronan realized this after only contacting him once: "Therefore, there is no need for us to become competitors and let Stuart Coleman benefit from it."

Marquez glanced at Ronan, and said first: "The acquisition of Ruiou is related to the development plan of Hollywood Video, and it is impossible for us to give up."

Ronan said calmly: "Rio is also the key to the next step of the development of my newly acquired company Netflix.

"

After saying this, the atmosphere in the reception room suddenly became tense.

Neither side is willing to give up, and they can only evolve into competitors.

Ronan took the lead to break the atmosphere and said: "Mr. Perlman, can I ask a question?" That's what he said, but before Marquez agreed, he asked directly: "I got the latest from your company. Some operational adjustments and financing analysis have led to a guess about Ruiou Company, the purpose of your acquisition of Ruiou is their chain stores in Southern California, right?"

Marquez didn't answer immediately, but after deliberating for a while, he nodded slowly: "It can be said so."

Hearing this, Ronan immediately said, "I'm not interested in Ruiou's chain stores."

"What?" Marquez was quite surprised.

In the eyes of Hollywood Video Company, this is the most valuable asset of Ruiou Company.

Heavy assets mean nothing to Netflix, and it is impossible for Ronan to let Netflix continue to operate the offline videotape rental business.

Isn't that putting the cart before the horse?

Marquez then asked: "Why did you buy Ruiou?"

Ronan didn't go around in circles, and said tentatively: "The 18,500 film and television works in Ruiou's hands, including Hollywood, rent and sell copyrights."

Hearing this answer, Marquez felt a little relieved.

Ronan glanced at him and said, "Mr. Coleman, in fact, in my opinion, there is no conflict or competition between us in the acquisition of Ruiou."

Marquez has already thought about it based on Ronan's answer just now.

Ronan continued: "The scale of Hollywood video far exceeds that of Rio, and the film library is only a lot more than Rio."

At this time, Marquez had fully understood what Ronan meant: "You want to split Riou's film library in the acquisition?"

"That's right." Ronan emphasized his tone slightly: "Your company wholly acquired REO, Stuart Perlman wouldn't remove the film library separately, right? This is a completely unnecessary expense. If it is split, Hollywood video can be saved."

Marquez lightly nodded his fingers and said, "You're making sense." The two parties had reached a consensus, and he said simply, "A one-time acquisition of all assets of Ruiou is the premise of this transaction."

Ronan smiled and said: "This can save tens of millions of dollars for Hollywood videos. First, without competitors, Stewart Coleman can't ask for prices. Second, the copyright fees for 18,500 film and television works are paid by Netflix. to pay."

Netflix also saves a lot of money because the storefront assets are of no use to Netflix.

"Are you really not interested in Ruiou's chain stores?" Marquez confirmed again.

Ronan said confidently: "I can guarantee this. Netflix is ​​in the Internet rental business and has never planned to enter the offline chain store."

Marquez said: "The cooperation between Relativity Entertainment and Hollywood Video has multiple business contacts. There is really no need for a small company like Ruiou to evolve into a competitor, so that others can be empowered."

Ronan said again: "That's exactly what I mean." He further said: "We can join forces, sign an agreement in advance, and then complete the acquisition in the name of one company, and then split it according to each other's needs after the acquisition. Get what you need."

Marquez thought about it carefully, and said, "This is a solution, but Mr. Anderson, I need to report the situation to the company's board of directors, and I can't give you an answer immediately."

Ronan basically achieved his goal, and said with a smile: "I hope your company can make a decision quickly to avoid further changes."

"I'll keep an eye on this." After Marquez finished speaking, he suddenly asked curiously: "Isn't Netflix doing Internet video rental business?"

It's no secret, Ronan replied: "This is Netflix's only business."

Marquez became even more curious: "The rental and sale of copyrights for 18,500 film and television works is really a big deal. With such a large amount of money to expand the business, Internet video rental has a future?"

In fact, he has heard that the founder of Netflix once approached companies such as Hollywood Video and Blockbuster to seek investment and be acquired, but all of them were rejected.

Of course, Ronan would not tell the truth, and responded: "In every industry, there are always pioneers and pioneers. You have to try to know what the prospects are like."

Marquez shook his head secretly. Now that the video rental industry is very mature, the new road is doomed to be very difficult.

Most of the so-called pioneers and pioneers died under the difficulties and obstacles of the new road, and very few were able to make it out.

Even if one can find a way out, it is often the more powerful latecomers who make profits.

Hollywood Video Company has a successful operating model, a stable source of profit, and familiar operating methods in the film and television rental industry, so there is no need to take such a huge risk.

The almost stagnant development of Netflix in the past few years has actually heralded the future of this industry.

Marquez knew very well that after Hollywood Video acquired REO, REO's online video rental business would not survive and would only be shut down.

"I hope we can work together again." Marquez shook hands with Ronan before leaving.

Ronan also said: "I hope so."

Marquez left the reception room first, and before going out, he glanced at Ronan and secretly guessed in his heart: How much will Relativity Entertainment lose on Netflix?

Judging from Ruiou's situation, maybe even the head office will be dragged down to the end.

Ronan returned to the company and immediately contacted Robert Lee, asking him to keep in touch with Hollywood Video while keeping an eye on Rio.

Only two days later, good news came from Hollywood Video Company, willing to cooperate with Relativity Entertainment to acquire REO.

Immediately, Ronan sent Robert Lee to secretly negotiate with Hollywood Video Company to discuss the specific operation.

The two parties must find a mutually acceptable cooperation model, such as the proportion of the rental and sales copyright of film and television works in Ruiou's total assets.

Hollywood Video is eager to expand its chain store business in order to catch up with the industry leader Blockbuster; Relativity Entertainment's Netflix urgently needs to expand its film sources to support the upcoming expansion of the sky project.

Under the needs of each, the two sides quickly found a balance and signed a legally binding agreement.

Netflix will withdraw from the competition for the acquisition of Ruiou on the bright side, and take Hollywood Video Company as the main body of the acquisition.

The most important part of the agreement is undoubtedly the division of assets.

The rental and sales copyrights of film and television works required by Netflix account for 30% of Ruiou's total assets, but after the acquisition, except for copyrights, all physical video tapes in Ruiou's inventory are owned by Hollywood Video.

In addition, all company assets such as storefronts, employees, websites, equipment and software, etc., all belong to Hollywood Video's share.

But Ruiou's debt problem is also responsible for Hollywood Video.

This kind of operation is not complicated. After Hollywood Video Company completed the acquisition of Ruiou, it separately stripped off the rental and sales copyrights of 18,500 film and television works, and then sold them to Netflix.

Ronan has conducted professional legal consultation in advance, just like the copyright of comics is resold by different companies, and the copyright of movies is transferred back and forth, which fully complies with the provisions of the copyright law.

Moreover, after obtaining the copyright for rental and sales, according to the provisions of the "Millennium Digital Copyright Supplement" stipulated in the Copyright Law in 1998, even if Netflix transforms into a streaming media in the future, as long as the relevant licensing fees are paid on schedule, these works can be used on Netflix's broadcast on the website.

This acquisition is not only for the present, but also for the future.

No one knows better than Ronan that movie DVDs will gradually decline after less than ten years of prosperity. In the previous life, Netflix shut down most of the DVD rental business and completely transformed into streaming media.

As Relativity Entertainment and Hollywood Video quietly signed an agreement, Ronan officially notified Stewart Coleman to withdraw from the competition for REO.

. m.