Start with hooves

Chapter 70

During the meal, we chatted a lot.

Because of the need for research and discussion, I didn't go further and talk about the topic of trading.

After dinner, I planned to go for a walk at Stanford University, but thinking that all the familiar classmates and friends had left, Su Rui was a little bit less interested, so I went to find a craft beer bar that I used to go to.

I didn't see any acquaintances when I entered the door. After asking the bartender, I learned that the boss had sold the place last year and moved to Houston with his girlfriend.

After ordering two glasses of draft beer and some snacks to go with the wine, Daddario was silent tonight, and asked curiously at this moment:

"I heard you mentioned several times that the price is higher, don't you care at all? I mean, it's obviously a lot of money, even I can see that Reed Hastings and the others, Surprised and pleasantly surprised by your offer."

With a calm face, Su Rui replied with a smile:
"We have a formula for calculating value. Netflix has nearly 800 million active paying users who can attract traffic to online TV projects. Even if only one-third of them come, each user can calculate the value at 3000 dollars. Software and hardware facilities , plus their film and television copyright, even if it is 2000 million U.S. dollars, Netflix’s influence and fame, and another [-] million U.S. dollars, add up to [-] million U.S. dollars.”

Internet companies burn money in the early days, and they can only burn money crazily in order to attract customers.

For active paying users like this, the cost of acquiring a customer is only [-] dollars, which is already relatively cheap. If it is to attract wild pure passers-by, the average cost will probably be higher.

Daddario, like many Americans, has poor arithmetic skills, and then laughed: "It's only 5000 million US dollars, you quoted [-] million US dollars more?"

Suri shook her head and explained:
"How is it possible? It's true that I make money more easily, but it's not money blown by the wind."

"You may not know that Netflix has an online video library. Apart from 800 million paying members, there are more than 3000 million monthly active users. These people are used to Netflix's movie library, looking for My favorite film and television series. This is a very good drainage platform, even if I say a little bit, the average monthly active user is three dollars, and there is a potential value of about 9000 million dollars.”

"As long as the self-produced dramas are good enough, it's easy to convert them into paid members, and I won't suffer a loss after taking into account the cost of time and some other resources. If I start from scratch, I'm afraid it will cost hundreds of millions of dollars more, and at the same time To face Netflix as a competitor, cooperating with them will reduce a lot of unnecessary troubles..."

Secretary Amanda happened to overhear the conversation.

As she put down her handbag, she helped explain to Mademoiselle Daddario:

"Silicon Valley has a tradition of pinching-style mergers and acquisitions, that is, spending money in advance to eliminate all potential opponents. We originally offered Netflix a valuation of 5000 million U.S. dollars, and the extra [-] million U.S. dollars can be said to be paid in advance to settle the opponent. The reconciliation fee, which greatly increases the possibility of project success, is a very cost-effective transaction.”

Su Rui asked Secretary Amanda to order beer by herself, and then said:

"The Internet speed is not fast enough, and they haven't seen the potential value of the Internet TV project for the time being. If the new company has 1000 million paying members in two years, and the monthly rent per person is seven dollars, or eight dollars, do you think such a company will be valued? How much?"

Miss Daddario resolutely gave up struggling.

She silently took out the calculator and pressed it, then said in surprise:

"The annual membership income is [-] million, [-] million US dollars? A company worth tens of billions of dollars...My God..."

For the sake of saving trouble, Su Rui really didn't care too much this time.

If you want to take money at once and stun the members of Netflix's board of directors, if it is delayed for two or three months, the situation may change again.

When the election in Washington is over, the financial crisis caused by subprime mortgages will most likely improve.

With the recovery of market confidence, capital once again pays attention to Silicon Valley. At that time, if there is any disturbance in the market, it is easy to have unexpected situations. It is better to make a quick decision and finalize this transaction as soon as possible.

Compared with some multinational giants, his current strength is incomparable.

There is also potential competition.

You don't need to guess, as long as Su Rui jumps out to do it alone and makes some achievements in network TV, countless donors will definitely hold the money and give it to competitors such as Netflix, quickly muddy the water, and jump in to seize the market.

Instead of allowing a strong competitor like Netflix to grow, it is better to cooperate in advance.

It just so happens that Netflix has some connections in Hollywood, and there are many big financial backers behind it, which can reduce certain risks.

When it comes to big business worth hundreds of billions of dollars, Su Rui knows how important it is to win over allies.

When the financing funds are spent, even if you don't lack money yourself, you may have to raise money from the outside world and bring other powerful institutions to make a fortune together.

Such is the rule of the game in Silicon Valley.

Entrepreneurs who are reluctant to release their equity will almost always fail in the end.

Some talented founders were poached from the entrepreneurial team, betrayed by relatives, and some were supported by financial backers to competitors.

Compared with other key issues that need to be considered, such as spending more money, Su Rui didn't take it seriously at all. At this moment, he had already started to think about how to face the pressure from Hollywood and media giants.

The film and television market has already been divided up, and there are only so many user needs. It is difficult for the market to continue to grow, and everyone can only compete with each other.

This will inevitably lead to fierce competition between the Internet TV project and the traditional film and television industry. If he doesn't find some allies to back him up, Su Rui always feels that even if he is himself, he may not be able to resist the opponent's offensive.

He's not Mark Zuckerberg.

As the other party is a Jew and owns a rapidly becoming popular online social platform, he is naturally easy to become an ally of some oligarchs.

Even if it really succeeds this time, the cooperation is negotiated with an agreement of 49% of the shares, and there will be 25% left when it goes public, Su Rui feels that he can be thankful.

In his earliest days, Facebook accounted for more than [-]% of the shares.

Now there are only single digits left, if follow-up financing is not involved, even if he has money, it is useless, and no one else intends to make him rich.

If he hadn't accumulated some fame through singing and could barely be considered a public figure, he might not even be able to keep such a small share of shares.

Being a person of color comes naturally under pressure in America.

For example, there are so many blacks in the United States, but it was not until 2001 that the first billionaire worth more than one billion U.S. dollars was born. Being Chinese is even more troublesome.

In the early years, Wang An, the founder of Wang An Computer, the richest man of Chinese descent, already had a net worth of hundreds of millions of dollars in the 80s, ranking fifth richest man in the United States.

Later, he was besieged by his peers, coupled with a decision-making error, and within a few years it was completely cold, and it ended in bankruptcy, which was short-lived.

The first two years before getting sick.

Su Rui actually discovered the problem, and has already made a plan to transfer the family assets to the other side of the ocean.

It's a pity that accidents happened later, and I didn't want to pay attention to these anymore. Many ideas were put on hold, and many opportunities were missed during the period.

Check it out again recently.

The good companies in China have basically been divided up by multinational organizations. If the money is kept in the rising Facebook company, it will have the opportunity to maximize the value, so I don’t bother to toss.

Su Rui offered to only be in charge of the film and television production department. The main reason was that he looked away and didn't want to personally participate in the intrigue in the business world and face a lot of mess every day.

Daddario didn't understand how deep the water was here, and he didn't understand the saying that he couldn't bear to let a child catch a wolf.

At this moment, I just feel that Su Rui's charm is stronger.

Although I knew he was rich before, it was not as intuitive as tonight.

She doubts whether she can catch such a man, and has no confidence in it...

(End of this chapter)