hollywood billionaire

Chapter 387 Take everything as ordered (Part )

"You mean, you want to..."

After carefully listening to Han Yi's brief introduction to the concept of music copyright fund without saying a word, Mick Jagger restrained himself from what he had been talking about since arriving at Mad City. A lazy, enthusiastic smile.

He drank the Tequila Sunrise in the glass until it was all the way down, then sat there in silence, with his hands on his knees, thinking for a long time before he spoke.

"Create a fund focused on music intellectual property investment and song copyright management to acquire master tape copyrights and music copyrights from original musicians and other copyright management companies, because these hit songs have... What word did you just use? "

“The predictable long-term value makes them stable assets that do not fluctuate with the economic cycle.”

"No, that's not what I meant..."

"Oh." Han Yi reacted, "Melody Gold."

"Yes, music gold." Mick Jagger stroked his cheek thoughtfully, his eyes moving back and forth between Han Yi and Turki Al-Sheikh, "And your short-term goal is to Raise one billion dollars by the end of next year…”

"One billion pounds."

Mohammed bin Salman, who is in charge of the Public Investment Fund as the crown prince and also serves as the Minister of Defense and has a strong grasp on the military, internal affairs and finance, regards the PIF with an asset management scale of nearly US$1 trillion as helping him realize the economic development of Saudi Arabia. A powerful tool for transformation. In order to better control this sovereign wealth fund and maximize its effectiveness in the shortest time, Crown Prince Salman did not even bother to act. Instead of carrying out management reforms within the institution, he directly dissolved the original organizational structure. , establishing a new public investment fund entirely under his control.

According to Saudi Aramco's overall valuation of two trillion US dollars, a 5% stake is worth a full billion.

"Sorry, a billion pounds to acquire music rights."

"That's right." Han Yi nodded, and then added, "All this needs to be finalized by our legal team to confirm the terms and revise the text, but according to the preliminary agreement we reached yesterday, Han Music and The Saudi Entertainment General Authority will lead the first round of investment in this music copyright fund... Of course, in addition to these two investors, there will also be some capital management groups with which we have close relationships to join in. , Parkway Capital, Carlyle Group, and even JPMorgan Chase have expressed investment intentions.”

You heard it right. In January 2016, Crown Prince Salman publicly stated that he was prepared to acquire 1% of the shares of Saudi Aramco, the world’s largest oil producer and the world’s most valuable state-owned enterprise, from the Saudi government. Transfer it to the Public Investment Fund and resell it to fund the latter's expansion and achieve its overall goal of diversifying its investments.

“As for Saudi Arabia, we maintain close cooperation with Blackstone, SoftBank, Accor, and other French private equity companies... Basically, in every round of fundraising by these institutions, PIF can be seen active behind the scenes. Turki Al-Sheikh added, "But I have to correct one thing. The person who will invest in the music copyright management fund mentioned by Mr. Han in the future will most likely not be the Saudi Entertainment General Authority, or at least It will not be an investment in the form of a government agency. We are currently planning to establish an investment company focusing on the entertainment industry, and you will be able to read about its establishment in the media as soon as next year, Mr. Jagger.”

Saudi Arabia's Public Investment Fund, or PIF, has been one of the most important and generous clients of Wall Street and Europe's top private equity firms since it was established in 1971 by Royal Decree M/24. In July 2014, five months before King Abdullah's death, the Saudi Council of Ministers granted PIF the power to invest in foreign companies independently without the approval of the Board of Directors, greatly increasing the resources that PIF can freely deploy and actually control.

In March 2015, after the current king came to the throne, the supervision responsibility for PIF was transferred from the Kingdom's Ministry of Finance to one of the two newly established sub-cabinets - the Saudi Council for Economic and Development Affairs, CEDA. This body was created by King Salman bin Abdulaziz to replace the Supreme Economic Council of King Abdullah's era. Anyone with a little knowledge of Saudi affairs should have no difficulty in guessing who leads this new agency.

That’s right, it’s the king’s son, Saudi Arabia’s first father-son crown prince, Turki Al-Sheikh’s loyal master, and CEO of Vision 2030, Mohammed bin Salman.

Crown Prince Salman’s ambitions in overseas investment are evident.

The new PIF has great power in the kingdom, and every company in various departments needs to facilitate the development plan of this fund. It can borrow cash directly from the Saudi Central Bank, issue debt, and even directly benefit from the privatization of Saudi state-owned assets.

不到一年的时间里，PIF的投资额度与投资频次，甚至远远超过有挂在身的韩易。波音7.137亿美元的股份、花旗集团5.22亿美元的股份、Facebook5.22亿美元的股份、迪士尼4.958亿美元的股份、美国银行4.876亿美元的股份、英国石油公司8.277亿美元的股份……只要是能够买到的蓝筹股，PIF照单全收。

Not only that, on October 2016, 10, SoftBank Group and the Saudi Public Investment Fund issued a joint statement announcing that they would jointly establish the SoftBank Vision Fund, aiming to invest up to US$14 billion in the technology industry within five years. In addition, PIF is also negotiating with Blackstone Group to jointly establish an infrastructure investment fund totaling US$450 billion to invest in large-scale infrastructure projects in the United States in exchange for support from the White House and Capitol Hill for the Saudi Vision 400 plan.

In comparison, the LP established by Hanyi and Carlyle Group, called CEP III, with a total asset management of US$3.49 million, is like a child playing house. Water flows to lower place, man goes to higher position. Only when he truly stood on the mountain and looked back at the way he came, Han Yi realized how ridiculous his worries were. His series of so-called large-scale investments may shock some industry insiders in Hollywood, but in the field of asset management, it is difficult for a big figure like Crown Prince Salman who can really have an actual impact on the global economic situation to raise his eyebrows. .

Therefore, as long as he can make this terrifying behemoth become his partner, Han Yi can completely untie some of the shackles he has put on himself, speed up the pace, and draw the blueprint of the music empire in his heart with greater skill.

What's the harm in raising the music rights management fund to a billion pounds next year?

You know, the goal of the Saudi Public Investment Fund is to increase its asset management scale by another US$2020 billion before !
For Han Yi, this discovery and insight is one of the most valuable gains from holding the Mad City Music Festival in Las Vegas.

"Understood. I believe that no one will, ah... question you about your connections in the investment field."

Mick Jagger's right hand was buried between the tip of his nose and his upper lip, and the sound he made sounded a little unclear. Han Yi's sudden olive branch caught him off guard.

He is assessing the situation, thinking about countermeasures, and weighing the pros and cons.

Even Mick, who has gone through ups and downs for half a century and has long cultivated a heart of stone under the face of the Bodhisattva, can't help but find something rare in the music industry for decades and enough to completely change the industry ecology. In front of the extremely crazy but extremely great idea, my mouth became dry.

“I don’t doubt that you can raise a billion pounds in copyright acquisition funds within a year, and I don’t doubt that Wall Street giants including SoftBank, Blackstone and Carlyle will follow you in. My doubt is... Why did you invite me to join this project?”

"In other words, what use am I to you?"

"Mr. Al-Sheikh and I can solve the funding problem, but we will never be able to reassure the musicians."

Having long expected that Mick Jagger would ask such a question, Han Yi smiled without any surprise and responded slowly.

"After all, what we want to do is to acquire 100% of the copyrights of the artistic works they have spent their whole lives creating into our hands without reservation. This is a revolutionary means of providing economic security for artists, and it is also a An unprecedented copyright trading model.”

"Right." Mick Jagger nodded slightly.

"So, since it is an unprecedented revolution, it will inevitably be vilified and misunderstood."

Han Yi spread his hands and his voice was full of confidence.

"In this case, what we need is to find a spokesperson for this fund, this movement, and this revolution, a face that everyone will be convinced by."

"And you, Mr. Jagger..."

"This is the face we are looking for."

“We need you to turn doubt into trust and confrontation into cooperation.”

"We need you... to convince those music legends who are as great as you to let us get their precious music copyright library and take all of them without a hit."

(End of this chapter)