Start with hooves

Chapter 42 Netflix Network Television
Singing is just a personal hobby, and I don't want the good songs from my previous life to be buried.

Standing in the spotlight himself, just having some fun, Su Rui never thought of making a living out of it.

Since his health problems were resolved, he has been thinking about how to plan his new life next.

Compared with blindly chasing profit and indulging in cold numbers in the early years, how to make life interesting and make money happily is what Su Rui really wants.

Consider it from this perspective, combined with the memory in your mind.

Soon he was asked to select an investment object that was the most satisfying and most suitable for his needs.

It is neither the well-known Apple nor the emerging Tesla, but the streaming media giant in the Internet age-Netflix (Netflix).

Just got off the boat back to the hotel.

After Miss Lily left, Secretary Amanda took out a bunch of freshly printed documents from Prada's handbag.

She told:

"There is a time difference between Hawaii and New York, so I bought some information through a consulting company. You should read it as soon as possible, and then find out what else you want to know, so as not to receive it tomorrow after the consultant is off work."

From a thick pile of information, Su Rui first found out the recent market value trend chart of Netflix.

He opened his mouth and said:
"The market has been stunned by the stock market crash. It will be difficult for investors to regain confidence for a while, and most of them choose to wait and see. Don't worry about it for a day or two. Has the office investigated it? Can you find a mobile phone opportunity recently?"

Let's first look at the recent changes in Netflix's total market value.

This company used to be in the Internet video disc rental business, that is, according to membership fees, the video discs were delivered to customers' homes by courier.

It is no different from the audio-visual stores all over the streets and alleys, it is nothing more than moving the business online.

When it went public in 2002, its total market capitalization was only about US$[-] million.

After several years of development, it has increased its investment in the Internet, especially thanks to the development of communication technology. Last year, after launching the Internet TV business that can be watched online with a buffer of about 30 seconds, the market value of Netflix, Clearly there has been a surge.

This year, that is, August 2008.

Its total market capitalization once approached the US$20 billion mark, but unfortunately, it encountered the financial tsunami triggered by the subprime mortgage crisis in September, and the lowest fell to about US$12 billion.

As of today, its market capitalization has just recovered to around $13 billion.

With Su Rui's strength.

If you plan to swallow the elephant with a snake and eat Netflix completely, it must be a bit troublesome.

Fortunately, he started out as a venture capitalist in Silicon Valley, and has always liked to be an investor who doesn't care about things, rather than a dictator like Apple's Steve Jobs who completely dominates all decision-making.

So in the early stage, as long as he has enough voice and does not affect his decision-making in business aspects such as film and television creation, Su Rui can accept being a second shareholder or even a third shareholder.

Of course.

If Netflix's board of directors is willing to accept the invitation for the overall acquisition.

Su Rui didn't mind either, and went to take Netflix and Facebook shares as collateral in advance to buy all the shares of Netflix backhand.This type of M&A loan practice is very common among American investment banks, and it does not require him to actually spend more than one billion dollars.

With Su Rui's high net worth and the confidence to know the future, he certainly knows that only by using the bank's money to make money for himself can he maximize his income.

It was nothing more than an accident in the past two years that made him restrain his hands and dare not make any fuss.

If there is no disease, no disaster.

According to his character of getting into the eyes of money in the early years, it is basically impossible for him to invest a full three to four billion US dollars on a Lanai island with a very ordinary appreciation space.

Just find Amazon, Google, etc., and you will have a chance to double it by [-] or [-] times in ten years.

In the lost two years, a lot has changed after all. Fortunately, it is not too late to start again, and there is still a chance to become bigger and stronger, and create another glories.
Secretary Amanda sat in the hotel cafe, crossed her legs, called the waiter to order a cup of coffee, and replied leisurely:
"There is no news for the time being. Let's make preparations first and investigate the detailed information before we can contact Netflix's major shareholders and decide whether to buy from the major shareholders or directly finance the company. By the way, why don't you Investing directly in a video company like YouTube? Netflix is ​​too expensive, and banks are starting to cut interest rates, but the interest rates are still higher than the average level, and the premium may be relatively large.”

As the first step to return to the investment circle, there are many reasons why Su Rui fell in love with Netflix, and he gave the answer without even thinking about it:

"For example, it already has more than 700 million paying users, such as intangible brand value, ready-made various resources, and a mature management team, etc., are all the reasons why I like it."

"In the Internet industry, winners take all. Since there are ready-made industry giants and the price is more suitable, why should I make an extra move? As long as it develops, the rate of return will not be lower than investing in a start-up company. Since it is difficult to completely break the To win, it’s better to save some time from the beginning and join their camp directly, which can save a lot of trouble.”

"Besides, I have no interest in being a CEO. I'm just a rancher who wants to make movies and TV series, and pursue self-worth satisfaction. At that time, people will say that I am a talented screenwriter and producer, not Just the guy who can sing"

Amanda's secretary's Harvard Business School diploma was not picked up from the street.

After hearing what Su Rui said, she immediately agreed:

"You are a very good investor, but not a qualified CEO. It is hard to imagine that you will have patience, dealing with investors, politicians, and employees. You are too free to adapt to being restrained life. Netflix is ​​really good. In the future, the mobile network will be faster and people will be able to watch TV on their mobile phones. By then, it will definitely make a lot of money with its online TV business.”

Suri smiled.

Looking through Netflix's public financial statements, I found that its network TV business suffered serious losses.

It seems that there are more than 700 million paying users, but excluding the copyright fees to the film studios, plus operations, publicity, management, taxes, etc., in fact, it is still the traditional Internet video rental business that really supports Netflix's financial report.

The company is using the money it makes from video rentals to subsidize the hole in its streaming business.

Moreover, most of the broadcasted content belongs to the old movies and old programs obtained by Netflix through the purchase of copyrights, which is not attractive enough for users.

Users only need to pay seven dollars and 99 cents, and the Internet TV service is equal to free gift.

One year of development is still in the promotion stage, and few people are willing to pay the monthly rent alone for the online movie viewing business.

look at.

With a flash of inspiration, Su Rui raised his eyebrows and asked:
"What I want is network TV, and I have no interest in these video rental businesses that will be eliminated. Do you think if I propose that Netflix spin off the two businesses and finance its network TV project separately, will it be possible to get The support of Netflix’s board of directors? This can save a lot of money, and it will also allow me to gain more voice, and use a small amount of funds to obtain a large amount of equity.”

Secretary Amanda shook her head and said:

"I don't know about it, but I think if the business cannot be negotiated, the price must be inappropriate. Maybe you can ask its chairman to talk about this interesting idea in person."

"Good idea, let's make a detailed plan first, so that when the other party asks me, I can't say anything with my mouth open."

(End of this chapter)