Actor: Thank you.

Teacher Guo remained silent for a long time.

He never expected that Zhang Yuan's statement would contradict his own thoughts.

He and his wife are both "smart people," especially language workers, who are quick-witted and articulate.

They had already secretly prepared more than a dozen sets of stories.

They had already planned out Zhang Yuan's reaction and how they would respond.

On the surface, only Teacher Guo was talking to him, but Wang Hui was eavesdropping nearby the whole time.

She would appear if things got awkward or confrontational.

If all else fails, kneeling down and pleading is a backup plan.

If the sister-in-law kneels before the brother-in-law, and Teacher Guo gets angry and cries again, you can't very well continue to be aggressive, can you?

All the carefully prepared contingency plans were rendered useless.

So much so that Wang Hui, who was behind the curtain, was stunned.

Sell?
There's such a good thing... wait, no!
He's not going to ask for an exorbitant amount, is he?

Oh, I get it.

Teacher Guo and his wife, who were standing next to Zhang Yuan, reacted around the same time, and asked in a tentative tone.

"You want to sell?"

“Yes, I’m selling my shares in Deyuan Society,” Zhang Yuan replied confidently.

"Who will we sell it to?" Teacher Guo asked cautiously.

He feared that Zhang Yuan had acted first and informed him later, and had already sold the shares to someone else.

If they do this without consulting me, that would be disastrous.

Selling to powerful capital, or to one's own enemies or competitors, is even worse!
“I can sell it to anyone, but we are brothers and sisters, and you are the founder of the troupe.”

"We shouldn't let the good stuff go to outsiders; of course, we'll consider you first," Zhang Yuan replied sincerely.

Who can I sell it to?
Now that Deyuan Society has closed down, it is at its lowest valuation point. If I were to sell, there is no guarantee that anyone would buy.

Many people thought that Teacher Guo was doomed this time.

Even if someone does buy it, they'll definitely try to drive the price down drastically.

Many investors, especially those in venture capital, follow this pattern.

They'll make all sorts of promises to you, keep getting to know you, pat their chest and assure you they have high hopes for you, and promise you how much money they're going to invest.

But none of it has been put into practice.

When you're down on your luck and facing financial difficulties, this person, taking advantage of their proximity, will change their previous friendly demeanor and demand exorbitant sums, seizing most of your shares for very little money.

The reason I tried to get close to you before was entirely to understand your specific movements and financial situation, and to prevent other investors from investing in advance.

Some investors might even deliberately inflate your investment to put you in a difficult situation before stepping in.

These methods are not considered unethical; they are simply normal practices.

If I were to publicly sell my shares in Deyuan Society at this time, wouldn't I be slaughtered like a pig by a pack of wolves?
So his plan from the very beginning was to sell the shares to Mr. Guo.

This is called returning something to its rightful owner.

“If you’re willing, I can sell you a portion of the shares; you can consider it a buyback,” Zhang Yuan said calmly, crossing his legs.

Right?
Teacher Guo immediately showed a happy expression, but frowned less than a second later.

Is there such a good thing?
He brought up something I could never have asked for, something that makes me anxious just thinking about it.
There must be a demon in the abnormal situation!
What does he want to do?
Teacher Guo became increasingly cautious, and another possibility came to mind.

Are you kidding me?

"Of course I'm willing to buy it back, but I don't know what price you plan to sell it to me for?" Teacher Guo shifted her focus to money.

They want to make money off me as payment for handling this matter.

still is……

This person went on to think about it from a deeper level.

Knowing that Zhang Yuan was capable and intelligent enough not to do anything foolish, he felt that the other party was trying to bluff him.

Could it be that selling shares is a ruse, and they're just trying to scare me with an exorbitant price?

At the very least, it will force me to not mention the issue of repurchasing shares for a long time afterward, which is a prediction of my own.

Or he might ask for an exorbitant price, and if I disagree, he might use that exorbitant price as leverage to force me to sell my shares to him.
Zhang Yuan only saw Teacher Guo's eyes darting around.

He seemed to be thinking, so I didn't dare to disturb him.

What are you thinking about?
Zhang Yuan had no idea what the other person was struggling with.

Would you like to?

"what?"

"I said, would you be willing to buy shares?" Zhang Yuan asked again.

"Of course I am happy to do so."

"Alright, let's take into account Deyuan Society's current annual income and its future potential."

"I think a valuation of 100 million is reasonable."

Upon hearing the figure of 100 million, Mr. Guo gasped.

There are quite a few!
Hearing that the team's valuation was high should have made him happy, but instead he was worried.

“I hold a total of 50% of the shares, and this time I plan to sell 20% of them.”

That is, a valuation of 2000 million.

What do you think of this price?

Teacher Guo did the math and realized that she had just bought the house not long ago and was still paying off the loan.

A few years ago, he also bought his mentor Hou Yaowen's house.

In addition, we've been closed recently, so we're short on cash.

It's almost impossible to come up with 20 million in one go, unless all the properties are mortgaged.

Could it be, as I suspect, that they're trying to bluff me with this price?

There's a saying that sincerity is the ultimate weapon.

Regardless of what the other party was thinking, Zhang Yuan remained unmoved.

Because he didn't set any language or thought traps; he just told the truth.

He intends to sell his shares; it's a deal.

Because of the psychological gap between the two, the other person felt that something was wrong no matter what.

Especially after Zhang Yuan said his next sentence.

"I know you've been under a lot of financial pressure lately."

“If you can’t come up with the money right away, we can sign an installment payment agreement.”

"You can pay in five or even ten years, it's fine. Given our relationship, I won't charge you interest."

Guo Degang: ...

This guy's brain is about to explode!

He usually prides himself on being smart; he can tell what his apprentices are going to do just by looking at them.

But he looked completely bewildered in front of Zhang Yuan.

At this moment, Teacher Guo felt just like Chiang Kai-shek when he witnessed the Four Crossings of the Chishui River.

What is he doing?
Installment payments, interest-free. Considering the annual growth rate of the crosstalk troupe, isn't that practically free?
Some people will do this kind of "losing money business".

Zhang Yuan's attitude completely overturned all his conjectures, leaving not a trace.

He could no longer keep up with Zhang Yuan's train of thought, and even felt a deep sense of fear.

Because the unknown is the source of fear.

"Really?"

"Of course, a gentleman's word is as good as his bond, and I do not lie."

Seeing Zhang Yuan's unwavering expression, Teacher Guo considered it carefully before asking that question.

"So, what exactly is the price?"

……

After talking with Teacher Guo, Zhang Yuan did not go home, but instead went to the TZ district of Beijing.

The offices and rehearsal space of Happy Twist are located beside a small road here.

The current Happy Twist is similar to the crosstalk clubs around 06; it has emerged and gained some fame in the industry.

However, they are only minor celebrities. They can sell tickets, and the venues are usually full on weekends and 8-9% full on weekdays.

They can hold dozens of events a year, and the total number of employees in the unit, from management to service to performers, is also in the dozens.

It's no longer the pathetic state it once was, where it could only hide in the school theater with no one to watch it.

A few years ago, Zhang Yuan spent over a million yuan to buy 7% of the shares.

At that time, the team's boss, Zhang Chen, and Yu Kai were starving, and the partner, Tian Youliang, was about to run away, which gave him this opportunity.

When you're weak, joining in is the only way to gain more leverage, just like Zhang Yuan and other investors.

"Distinguished guest, it's been a long time." Zhang Chen, the nominal general manager, came to greet him.

"Yes, it's been a long time." Over the years, Zhang Yuan has adopted a hands-off approach to this team.

Aside from having Shu Chang come to collect debts each year, he basically doesn't care and rarely shows up.

This team is still in the "nurturing" stage. During the growth phase, you don't need to pay too much attention to them. Giving them extra encouragement can make them grow faster, but it can also be counterproductive.

We need to consider the overall environment. At this time, the stage play market is not doing well, and audiences prefer to watch movies.

It's like a crosstalk theater.

It's not crosstalk that's become popular, it's Guo Degang.

Apart from Deyuan Society, there are very few performing arts troupes that can make a profit, let alone sell out. Most of them rely on government subsidies to survive.

In Zhang Yuan's eyes, these teams were all "cheating" for subsidies.

But we can't just leave them unsupported; if the government doesn't provide funding, a whole host of cultural heritages will immediately be lost.

At least Happy Twist is profitable now, and quite profitable at that.

Changchang had mentioned to herself a long time ago that she should take better control of the team.

There's a problem with the accounts!
Logically, since I own 7% of the shares, I should receive 7% of the profits, but the team's annual dividends are very small.

The information does not match the performance schedule and ticket availability.

There are plenty of ways to do accounting.

Zhang Yuan told Shu Chang not to worry about it, that she knew what she was doing.

So, he came to take charge himself today!

I took a quick look around and observed the rehearsal venue.

It was full of faces I didn't recognize.

Meanwhile, these unfamiliar faces kept turning to look at him. Many people bumped into others.

I'd heard that one of the shareholders in my company was a big star, but I'd never met him.

Well, you've met me today!
"Brother Teng." Zhang Yuan walked straight into the rehearsal room.

"Why are you calling me 'brother'? It makes me feel really embarrassed," Shen Teng said with a squinty smile.

At this time, he was still fair-skinned and not far from being known as the "Hunk of the Military Arts Academy".

Not only is he fair-skinned.

"Come on, let me introduce you to our team's newest member."

"This is Ma Li."

"Hello." Zhang Yuan shook hands with the other person.

Ma Li, courtesy name Dongmei.

I think Teacher Ma is quite pretty and has delicate features.

Teacher Ma is a graduate of the Central Academy of Drama and a master of stage performance.

In 07, he collaborated with Yan Fei and Peng Damo, two top producers who joined Happy Twist, and afterwards he often acted with Shen Teng.

It wasn't until this year that she officially joined the team for her new drama, "Earl of Mount Wulong".

Then she and Teng became the "golden duo" in the comedy world.

No one can do it; the tacit understanding these two have honed over the years on stage is comparable to that of Guo and Yu.

Both of them were quite good-looking when they were young, definitely much better than the average person.

However, since they are both pursuing a comedic path, their good looks have become a weakness, so their appearances have gradually become more comedic.

The two were very polite and had a pleasant conversation. Zhang Yuan invited them to his home for dinner sometime so they could get to know each other better.

However, manager Zhang Chen is rather cunning.

When I saw him arrive, my heart skipped a beat.

After thinking it through, I started to plan ahead.

"We rented the Geological Auditorium Theater in Xisi Yangrou Hutong."

"We plan to use that area as our headquarters."

"I will be performing there every day from now on."

"As you know, Yangrou Hutong is a good location."

"We have a long-term lease, so the rent and deposit are quite substantial."

"They also renovated and advertised, which cost a lot of money."

"This will cultivate more talent. Although it will cost a lot of money, the future is promising, so it is all worthwhile."

This means that expenses are high, so although you earn a lot, you also spend a lot.

Use these words to shut yourself up.

He thought Zhang Yuan had come to inquire about the accounts.

“Yes, that’s right.” Zhang Yuan didn’t object at all, he just nodded and said, “Spending money for long-term goals is the right thing to do, I agree with your idea.”

The man smiled and breathed a sigh of relief.

"Don't worry, I'm not here for profit." Zhang Yuan's next words hit him right where it hurt.

Don't try to play tricks on me. I know exactly what you've done and what you're thinking.

I'm just not going to argue with you, don't take me for a fool.

The man's smile became awkward.

The pressure is stronger than it was a few years ago...

"I'm here today for something else, something important."

"It's about the team's shareholding."

“I currently own 7% of the team’s shares, which is a lot, but the annual profit sharing is very small.”

"Don't panic. I'll emphasize again, I'm not here to check the accounts. If I wanted to, I would have done it already." Zhang Yuan seemed to be reassuring him, but in reality, he was constantly putting pressure on the other party.

"My idea is that I intend to sell some of my shares."

"We expect to retain 4% and sell 3%."

"I plan to let you and Yu Kailai take over most of the 3% of this sale."

"A small portion will be taken over by the other core performers in the troupe."

"As for the selling price, it will be based on a total team valuation of 5000 million."

"If you have difficulty paying, you can pay me in installments without interest."

"What do you think?"

"Huh?" Zhang Chen was just as dumbfounded as Teacher Guo.

Is there such a good thing?
What's the difference between this and giving it away for free?
"Don't get excited," Zhang Yuan interrupted his excitement.

"Of course, there are conditions for achieving these things."

"Only if my conditions are met will I sell shares on that basis."

"What are the conditions?" Zhang Chen asked, swallowing hard as he did so.

Zhang Yuan then spoke to him with utmost seriousness, word by word.

"Next, I will establish a performance company."

"Our main business is ticketing, management, design, and promotion of various offline performances."

"I demand that Happy Twist sign a long-term cooperation agreement with this company."

"All of Happy Twist's non-fixed venue performances, that is, all tours and commercial performances, are handled and managed by this company."

"At least a 15-year full cooperation agreement must be signed before I will sell the shares as I just said." Zhang Yuan raised a finger and pointed at the other party: "You can decide for yourself."

This was also the condition he offered to Teacher Guo!
The live performance and film markets are actually very similar, mainly consisting of three parts.

Production company, distributor, theater chain.

The corresponding terms are: theater troupe, organizer, and venue.

A performance company is generally responsible for organizing and ticketing, connecting venues and theater companies, and also needs to liaise with online ticketing platforms and handle publicity.

Unlike film studios, theatrical revenue accounts for the majority of film studio revenue, exceeding the total revenue from production and distribution.

For offline performances, the venue typically accounts for no more than 10%, or it's a fixed rental fee.

The remaining 90% will be shared by the rest of the team.

To use a typical concert as an analogy, the bigger the star, the higher the share the performers receive.

For top-tier artists like Jay Chou, Andy Lau, and Jacky Cheung, concerts typically generate over 40% of the box office revenue.

Top-tier foreigners can get more than 50%.

In any case, at least 40% of the revenue will be shared by the organizers, ticketing, and publicity teams.

What Zhang Yuan wanted was to block this end!

He wants to be the organizer.

Both Deyuan Society and Happy Twist, at their peak, had teams of 3 to 4 people and several, or even more than ten, permanent theaters.

Thousands of performances are held each year.

It's not possible now, but as audience consumption habits change and they increasingly prefer live performances, the market size will expand rapidly!
Both of these groups are among the best private teams in China, with market valuations of several billion each.

Deyuan Society has at least 3-40 billion yuan, while Happy Twist could exceed 50 billion yuan.

Based on the number of shares Zhang Yuan holds, it's quite a lot.

But there's a problem: it won't last.

His position is too large; as the team expands, people's attitudes will change.

You never care, you just take the lion's share of the profits every year because of early investment.

Ultimately, the team's key personnel will inevitably have objections.

Who knows, they might rebel one day by joining forces with outsiders.

If this outsider is some powerful figure whom even you can't afford to offend, then things will be even worse.

Therefore, rather than dragging it out until you are driven away or diluted, it is better to take the initiative to make concessions in advance.

While preserving our strength, we can leverage the power of these groups to achieve even greater things.

The future market value of these two companies, which is worth billions, is very tempting.

But at this time, the annual performance market in China had already exceeded 100 billion yuan!
After the pandemic, it exceeded 700 billion!
The concert market alone accounts for over 250 billion yuan annually.

The highest total box office for Chinese films was just over 600 billion yuan in 2019, and since then it has been declining year by year.

A market worth 700 billion annually, and two companies with a combined value of several billion—this is the contrast between the ocean and a whale.

Even an aircraft carrier is but a drop in the ocean.

In comparison, the performance market definitely has more potential.

Moreover, it's still a blue ocean market, making it the perfect time to enter.

There's nothing to regret about selling the shares cheaply.

If we can secure the full cooperation of these two groups and enable the company to gain momentum instantly, these losses can be recovered in the future.

Even at their peak in later years, these two teams only made tens of millions in net profit from small theaters each year. How much of that would I get?
This is also why Zhang Yuanming, knowing that Han Geng had gone against his wishes, did not formally apologize, nor did he further "tame" the other party.

His concerts are also very popular and sell out quickly.

He also needed to work for himself, especially in the early stages of supporting the newly established performance company.

The reason he contacted Yang Yuancao so early to ask her to help negotiate the copyright of "The Voice of China" was also for this reason.

When these things are combined, they can create a "resonance effect".

Therefore, Zhang Yuan gave Teacher Guo and Zhang Chen a "choice".

You can choose between the equity stake and the future performance arrangements.

For them, the shares were right in front of them, a piece of meat that was within their grasp.

As for the binding of the performance organizers... Team tours already require performance organizers, and this part of the money should be shared with others anyway.

In addition, their annual performance revenue is only a few million to tens of millions, which is insignificant compared to the huge shares!
No one could have predicted that the offline performance market would develop so rapidly.

So both sides agreed without much consideration.

They thought it was such a great deal!

As for the fact that Zhang Yuan would control all the performance channels in the future... they couldn't think that far ahead.

At the same time, given two evils, one will choose the lesser one and will definitely choose shares.

Because they focus more on team profits, while Zhang Yuan's sights have already been set on the upstream market.

Their vision is a tiny, but enormous, bigger than theirs… (End of Chapter)