Entering the Chinese entertainment industry is like entering a deep sea

Chapter 782 Cutting the Horse
TechWeb reports
"On June 1, Ruitong Group, an investment company listed in Hong Kong, announced details of its share placement plan on May 8."

"Details show that the entity that acquired 56% of Ruidong's shares was a fund controlled by Jack Ma and Yu Feng, and the fund's partners."

“以每股23.5港币计算，杰克马、虞锋间接控制的Jade Passion以每股2港币价格斥资2685952000买入1，342976000股，单单在今天就获得289亿港币的账面收入。”

As the saying goes, "When Heaven wants someone to die, it first makes them go mad."

Money can be made so quickly in the financial world.
On Children's Day, Ma Yun was not happy.

The reason was that Ma Yun received a phone call from Li Chen in South Korea.

Although their conversation consisted of only a few sentences, it was highly charged and unfriendly.

"Why do you insist on getting so close?"

"Li Chen, aren't you being a bit too nosy?" Ma Yun's tone was still polite, but there was already displeasure in it.

"I was meddling in other people's business. Since that's the case, we can't work together if we have different paths."

Ma Yun's heart skipped a beat: "What do you mean?"

"It means exactly what it says, you'll understand soon enough."

After hanging up the phone, Ma Yun frowned, a rare occurrence for her.

This was the first time he and Li Chen had a disagreement.

"Could it be that they're jealous of what they're making?" The most unlikely reason flashed through Ma Yun's mind.

In South Korea, Li Meijing specially prepared a villa for Li Chen to use.

Now that Li Chen has reached his current status and position, he can do whatever he wants.

There aren't many people in the entertainment industry who dislike Li Chen.
Looking at this person's smug and annoying face, Li Chen felt he couldn't remain indifferent.

Since we can't stop Jack Ma from going his own way, we should at least distance ourselves from him.

The only connection between the two now is the Han Tang Foundation and three companies that have invested in the name of the Han Tang Foundation: Youku, Read After Burning, and Zhizhen Painting.

Li Chen hung up on Jack Ma, then called Boss Wang. He didn't hold back when talking to Boss Wang.

Around 10 p.m., Boss Wang received a call from Li Chen, who immediately asked, "You're calling me so late, is something wrong?"

"I have something to ask of you," Li Chen readily admitted.

The big boss was even more curious: "Do you have something to ask of me? Tell me."

The big boss had a strange smile on his face. Li Chen was begging him. Had the sun risen in the west?

Li Chen went straight to the point: "I want to kick Ali out of Han Tang!"

One sentence was enough to energize the big boss, Wang.

The establishment of Alibaba Pictures is clearly contrary to Wanda Pictures. The two are enemies, not friends. However, there is Hantang Fund as a buffer, and Rongchen Pictures mediates between them.

Most importantly, although Alibaba Pictures is just starting out, it has a huge financial backing and should not be underestimated.

Big Boss Wang had long wanted to warn Li Chen not to let Feng Qingyang get away with it.

Big Boss Wang didn't waste any words; he needed to confirm whether Li Chen had made up his mind.

"Aren't you afraid that Ma Yun will turn around and bite you? Alibaba's cash flow is no joke."

Li Chen smiled faintly: "He needs me more, not the other way around! Without Rong Chen's intellectual property, his 'Greater Entertainment' is just an empty shell. Besides..."

Li Chen paused, then gave a soft snort, his gaze sharp: "He's busy fighting the payment war with Tencent right now, how can he have the energy to fight us to the death?"

Big Boss Wang laughed loudly, "Good! I like your boldness. What BAT? They sound impressive, but they're just three internet addicts!"

Li Chen chuckled softly. Boss Wang's aura is always number one!

However, Li Chen's decision was not made on a whim.

The short video platform Zijie, which is about to begin trial operation, will be his trump card in the battle against BAT (Baidu, Alibaba, Tencent).

Li Chen smiled and flattered the big boss Wang, saying, "With Wanda's cinema chain and Rong Chen as producer, you and I are the rule-makers."

Big Boss Wang nodded, seemingly satisfied with this "we," and said meaningfully, "What are your plans next? Tell me."

Li Chen replied crisply, "Two things."

"First, I want to privatize Youku."

"Second, make Alibaba withdraw from this game completely."

Although the two sentences were simple, they carried a different, bloody undertone in the ears of Boss Wang.

After a moment of silence, the bigwig Wang suddenly said, "Li Chen, I haven't encountered an opponent like you in a long time. Wanda won't follow in Alibaba's footsteps, will it?"

Li Chen smiled and corrected the big boss, Wang Dao, "We are not rivals, but partners."

Big Boss Wang laughed heartily: "It's a pleasure to cooperate with you."

"Happy cooperation!"

After hanging up the phone, Boss Wang was still wondering why Li Chen had suddenly fallen out with Alibaba.

Unconsciously, Boss Wang recalled the sensational financial news that had shaken the country today, and seemed to understand something.

When Boss Wang saw this news today, his first instinct was to frown.

It wasn't that he envied Jack Ma and Huang Long and Zhao Yan, a married couple, for making 289 billion yuan, but rather that as an industrialist, he had an instinctive awe for such transactions.

Having spoken with Boss Wang, Li Chen felt even more confident.

In mid-June, filming for "Parasite" wrapped up quietly, and "Wolf Warrior" passed censorship. During this time, Han Sanping only made one phone call to Wu Jing, which finally put Wu Jing's mind at ease.

Upon returning to the capital, Li Chen summoned Gu Yongkeng.

Currently, the main shareholders of Youku are Gu Yongkeng and Li Chen.

Gu Yongkeng holds 41.34%, Li Chen holds 35%, and the remaining shares are held by Hantang Fund, which holds approximately 12%.

Li Chen holds approximately 39% of the shares directly and indirectly, making him the de facto second-largest shareholder of Youku.

Li Chen was even more direct in his conversation with Gu Yongkeng.

At this point, Youku could be said to have developed a severe dependence on Rongchen Pictures.

It's not just about funding, but more about content.

What if Rongchen Pictures suddenly turns around and supports iQiyi?

It's likely that Youku will be left far behind by Penguin and SK-II, with no chance of ever making a comeback.

Li Chen's strategy was simple: to gain decision-making power over Youku and become its largest shareholder.

Gu Yongkeng can either be content to be a tool-like CEO, or take the money and leave.

What Jack Ma could give him back then, he can give him now.

"You want to issue 10% through a private placement, limited to your Rongchen subscription only? No way!" Gu Yongkeng said urgently.

If 10% of the shares are issued to Rongchen through a private placement, then Youku will truly be under the Li family's control.

But in reality, Youku has now been labeled as belonging to the Li family.

“Mr. Gu, I have already reached an agreement with Chairman Wang of Wanda. If you are not willing, I will become the largest shareholder of Youku as long as I get 4% of Wanda’s shares.”

Gu Yongkeng was stunned; the thing he feared had finally happened.

Li Chen had woven a large net for him, and before he knew it, his Youku was inseparable from Rongchen Film Industry's content production, and even more so from Li Chen's financial support.

Even with this support, Youku may not be profitable every year, which is the current situation of the three major video platforms.

One or two hit dramas and variety shows can only temporarily quench thirst.

Gu Yongkeng seemed to lose his spirit in an instant.

Li Chen then proposed that all of his shares be acquired at market price, so that Youku would be completely under Li's control.

As for Han Tang, Li Chen's plan is to take advantage of Alibaba's current focus on burning money in the payment war with Tencent, and also to integrate UC and Gaode.

He invested $5 million in Hantang Fund in the name of Rongchen Films, on the condition that the non-investing shareholders be diluted proportionally.

Given Ma Yun's current situation, winning the payment war with Tencent is the top priority; otherwise, she wouldn't have resorted to such an unseemly scheme to make 289 billion yuan in a single day.

To put it bluntly, they're short of money.

What, I have no concept of money? That depends on how much money it is.

Currently, Alipay and WeChat Pay are engaged in a "nationwide subsidy war," with Alibaba subsidizing Alipay with over 50 billion RMB in Q1 alone. Jack Ma has no say in Youku and is unlikely to divert cash flow to Youku, Zhizhen Painting Art, and the small stake in ephemeral reading apps.

Even if he earns HK$289 billion a day, he would probably have to prioritize investing that money in the defense of finance and e-commerce.

Moreover, of the HK$289 billion in profits, Jack Ma personally profited about HK$50 billion, while the remainder went to co-investing institutions, and the funds were locked up for at least 6 months.

Given Jack Ma's current status and position, Alibaba would prefer a full acquisition rather than remaining a minority shareholder.

Whether it's the ultimate painting skills or Youku, Jack Ma is someone who wants to be the boss; how can he stay in someone else's subordinate position for long?

Li Chen, however, took a simple and direct approach: using "content hegemony" to counter capital.

Exclusive ownership of super IPs such as "Ghost Blows Out the Light" and "Wanxiang Island", and variety show contracts with top artists under Yixin Media, including Lu Han, Dilraba Dilmurat, and Zhang Hanyun.

Once Li Chen returned to China, he disappeared from the public eye.

Yang Siwei was summoned to Li Chen's home for a private talk.

Upon hearing the big boss's words that she should concurrently serve as CEO of Youku, Yang Siwei immediately froze like a toad in the rainforest, her face filled with fear.

"Boss, what happened? Where...where is Mr. Gu?!"

“He will be leaving next month,” Li Chen said calmly.

But to Yang Siwei, it sounded like a muffled thunderclap.

"I'm telling you this now so you can be mentally prepared. I personally will acquire all of Gu Yongkeng's shares for US$18 billion."

A thought suddenly flashed through Yang Siwei's mind: there was a clause in the agreement that the boss and Gu Zong had signed that Gu Zong could not sell Youku's shares without the boss's consent.

Unexpectedly, it was the boss who came to make the acquisition today.

Yang Siwei felt a chill in her heart. At this moment, her thoughts were similar to Gu Yongkeng's, both wondering if her boss had foreseen this day back then.

"I understand, boss." Yang Siwei didn't dare to ask any more questions. At this moment, she felt both respect and fear for her boss.

"Congratulations, boss!" Yang Siwei said sweetly.

Now that Youku has become Rong Chen's private property, Yang Siwei thinks that iQiyi and Tencent would probably tremble with fear if they knew this news.

Because Rong Chen's IP strength is far ahead of these two companies, especially in terms of self-produced dramas and variety shows, he is unmatched.

"There's nothing to congratulate. Just keep a close eye on public opinion and don't let it affect your plans to go public."

"I understand, boss!" Yang Siwei quietly left Li Chen's study.

After going downstairs, Yang Siwei saw the proprietress sitting leisurely on the sofa with her legs bent. He walked over and sat down next to her with a smile.

"You know about this and you're not excited at all?"

Liu Yifei handed the fruit plate to Yang Siwei and said with a smile, "Why are you so excited? I don't care about these things. I'm an actress!"

Yang Siwei was defeated by this angelic landlady: "Fine, you win. We're all just ordinary people!"

Liu Yifei covered her mouth and chuckled, "Keep a normal mindset and don't take money too seriously. For me, money is just something to spend."

Yang Siwei was even more speechless: "I have nothing to say to you, I'm leaving!"

"What's the rush? Sit down a bit more!"

"If I sit here any longer, I'm afraid I'll feel ashamed of myself!"

Liu Yifei watched with amusement as Yang Siwei's imposing figure left the house.

"Why can't I lose weight even though I'm working so hard?"

-

Ma Yun finally understood the meaning behind Li Chen's words that night: Youku also had his people.

He had already learned of the acquisition agreement reached between Li Chen and Gu Yongkeng.

I also received a notification from Li Chen regarding the Hantang Foundation.

This is to completely kick him out of the game.

Ma Yun sighed deeply. Li Chen's move had completely shattered his hopes for Youku.

Once Li Chen takes over, even if Youku permanently changes its surname, there's no possibility of it ever being surnamed Ma again.

As for the $5 million capital increase from Han Tang Fund, Ma Yun was willing but unable to do so. If he followed with $5 million, and Li Chen followed with another $5 million, would he continue to follow?

How can we compete with penguins then? We might as well just surrender.

"Little Swallow, Little Swallow, was it right or wrong for me to cooperate with you?" Ma Yun sighed deeply.

He couldn't figure out whether Li Chen's actions were due to the little swallow or some other deeper reason.

Is it worth going to such lengths for an artist?
At the end of June, the change in Youku's shareholding structure came like a bolt from the blue, leaving everyone thinking it was an illusion.

-

Sina Finance reports
Breaking news! Gu Yongkeng has completely withdrawn from Youku Tudou, and Li Chen has acquired it for a whopping $18 billion in cash! The landscape of China's streaming media industry has changed overnight!
"Today, China's internet industry witnessed an epic transaction: Youku Tudou founder and CEO Gu Yongkeng has transferred all of his 41.4% stake to Rongchen Pictures founder Li Chen for a total of $18 billion in pure cash consideration of $38.5 per share."

"After the transaction is completed, Li Chen's personal shareholding ratio will soar to 76.4%, making him the absolute controller of Youku Tudou, while Gu Yongkeng will completely withdraw from the company he founded."

"Gu Yongkeng's whereabouts: He has resigned from all positions, and the agreement stipulates that he shall not engage in competing businesses for 5 years. It is rumored that he will switch to the VC field."

"It is understood that Li Chen has appointed Yang Siwei, a senior executive of Rongchen Group, to take over Youku."

Reports on the changes in Youku's shareholders by major domestic and international financial media outlets and on the internet have left people bewildered.

However, netizens were more interested in watching the spectacle than in their curiosity.

"Gu Yongkeng: I want to sell for a high price! Li Chen: Credit card or bank transfer? (Image: Fire Cloud Evil God from 'Kung Fu Hustle' pulling out money emoji)"

Above BAT (Baidu, Alibaba, Tencent) is R.

"Leonardo DiCaprio is now only missing a social platform comparable to WeChat compared to Tencent, although Weibo counts as half of it!"

The artists under Rong Chen's group were all confused, and the group chat was in complete chaos.

"What's going on? The boss went into seclusion for a few days after returning from South Korea, and he's unleashing a powerful move as soon as he comes out!"

"18 billion US dollars. The boss doesn't spend money easily, but when he does, it's money that others can't afford!"

"18 billion US dollars, so much cash, I can't even imagine how much it is."

"Can anyone tell me what happened?"

Yang Siwei's guess was correct; the change in Youku's shareholders has put immense pressure on both Tencent and QQ.

In the short term, neither Tencent nor XIQUID can compete with Rongchen in terms of content production.

However, acquiring a certain point is equivalent to having an additional IP incubator, although the effects are difficult to see in the short term.

Just as Tencent, KY, and other parties were trying to uncover the inside story, a news item from Hantang Fund completely ignited public opinion.

Financial reports
Breaking news! Alibaba Entertainment suffers another blow! Li Chen joins forces with Wanda to aggressively dilute the equity of Hantang Fund, and Ma Yun loses control of Youku.

"On July 1, 2015, the 'power game' in China's capital market reached a critical turning point. Today, Hantang Fund held an emergency shareholders' meeting and passed the resolution to increase capital and expand shares with a vote rate of 87%."

According to the announcement, Rongchen Pictures and Wanda Group will jointly invest $8 million in Hantang Fund. Alibaba's shareholding ratio plummeted from 33% to 9.7% due to its failure to invest in the same proportion, thus losing its board seat.

"This means that Alibaba's indirect stake in Youku Tudou through Hantang has been diluted to less than 3%, and its strategic layout in the streaming media field has suffered a devastating blow."

Laughter filled the office of Pony in the Penguin headquarters building.

Alibaba Entertainment suffered from the impact of crowdfunding, but Tencent's stock price actually rose.

Xiao Ma took off his glasses and rubbed the bridge of his nose. Standing in front of him were Zhang Xiaolong, Liu Chiping, and James Mitchell.

On the coffee table were the announcement of Hantang Fund and the equity structure diagram of Youku, and three cups of cooled Pu'er tea were still steaming.

Liu Chiping said seriously, "The finance department just calculated that Li Chen used at least $22 billion in cash in this round? Where did he get so much cash!"

"It was given to me by Wang Jianlin."

Xiao Ma, who hadn't spoken until now, said, "James, check Li Chen and Liu Yifei's offshore funds."

James Mitchell, speaking in British-accented Chinese: "No need to investigate. They hold Bitcoin through a BVI company, but the exact amount is difficult to ascertain!"

Xiao Ma stroked his chin and asked with great interest, "So, what exactly did Ma Yun do to offend Li Chen?"

Not only was Xiao Ma curious, but the entire internet was curious about what exactly happened between Li Chen and Jack Ma.

Why did you suddenly turn on me?
Someone suddenly revealed on the internet
(End of this chapter)