Huayu started as a substitute director

Chapter 627: Wife Eating
Seeing that Huayi’s stock price continued to fall from nearly 400 billion to more than billion, Mr. Wang and his wife wanted to eat the principal’s flesh and drink his blood. This was simply too much.

The market value has been brought to the same level as Guangguang.

At present, Guangguang cannot compare with Huayi. The company with the highest market value now is Wanda Film, which has reached 100 billion yuan.

Just think about how big the bubble is in the entire film and television market.

This is a favorable policy, coupled with the skyrocketing overall movie box office market. Last year, it was less than 300 billion yuan, and this year the movie box office market is likely to exceed 400 billion yuan.

With such a large market, capital is very optimistic about the future of the film and television industry, which has pushed up the market value of major film and television companies.

Huayi is one of the film and television companies with the fastest rising market value. After all, this company has the leading position in film and television stocks, and Yutu is not listed.

But no matter how optimistic we are, it also depends on personal management. The film and television market is not prosperous, and the external environment is very bad. There are Yutu, Guangguang, Bona, and Wanda blocking us from all sides, as well as the impact of iQiyi, Youku and Tencent online platforms.

The trend of “restricting foreign investment” has led those platforms to invest funds in the production of domestic film and television content.

Moreover, it is a large-scale investment, which will definitely impact traditional film and television companies. Anyway, Fang Hong is not panicking at all. Let them impact. Survival of the fittest has been the case since ancient times.

People like Wang Da and Wang Xiao should have been eliminated, they just had good luck and took advantage of the favorable conditions of the times. They have no ability, no talent, no means, they only know how to ban and are extremely lazy.

You say you can be more diligent, go to work at 11 o'clock, take a look around and then go back to take a nap. Yes, I'm talking about Mr. Wang.

If people like this and companies like this don't go bankrupt, it would be so unfair to those who work 996.

Therefore, Huayi is very disappointing. It has not focused on its main business and has invested in a lot of irrelevant things, such as real-life entertainment, theme parks, games, e-sports, social networking, finance and other industries.

And a lot of this is still in the storytelling stage.

For example, the theme park tells the story of Disney, and it aims to create an ecological system of "film and television + real-life entertainment + Internet entertainment".

The problem is that you haven’t even made a good movie, but you want to do real-life entertainment and Internet entertainment without any IP.

Disney has a lot of IPs.

Moreover, real-life entertainment is asset-intensive, and theme parks require investment in construction and maintenance.

As for e-sports, what Huayi wants to do is not much different from Tencent and Chang'e. It is developing competitive games such as "Crossfire" and "Top Warship".

It also organizes mobile e-sports events, covering games such as "Crossfire" and "Shadow Blade", and develops e-sports hardware, launching the "Hero e-sports phone".

Just say that these things are what Huayi should do, and Xiao Wang is only involved in live broadcasts and e-sports clubs.

Of course, Huayi learned the fusion of film and games from Fang Hong. They did not fuse them, but did a linkage, because Huayi did not have the technology to do the fusion.

It's about embedding the movie into the game.

Moreover, Huayi is involved in the entire industry chain. Fang Hong only deals with games and e-sports, controls the upstream, and is not deeply involved in live streaming, let alone hardware. I don't know where Huayi gets its confidence from.

E-sports not only includes game content, which is the source, but also includes live broadcasts, clubs, hardware manufacturers, etc.

Moreover, the competition in the e-sports field is also very fierce. Not only have people like Xiao Wang, Chang'e, and Tencent entered the market, but even Alibaba is also involved.

Xiao Wang is involved in live streaming and the club. His Panda Live and iG are currently very popular.

Alibaba is betting on "StarCraft 2", intending to use this game to promote the integration of e-sports and e-commerce, and integrate everything with e-commerce.

It is impossible for him to develop "Heroes of Glory" and "Honor of Kings" because these two games are controlled by Chang'e and he is under the control of others.

Tencent has laid out its layout across the entire industry chain, investing in Douyu, Huya, and VSPN, and plans to launch another MOBA game to compete with Chang'e.

Not only does e-sports have capital entering the market, but Jay Chou, JJ Lin, Shawn Yue and others have all set up their own e-sports clubs. These celebrities do have money.

In addition, the world's top clubs, SoftBank, and NBA stars have all invested.

The global prosperity of e-sports is due to Fang Hong's unremitting efforts to promote the development of the e-sports industry at the time. He did not charge any licensing fees in China and supported platform live broadcasts.

Basically, e-sports is in an era of wild development.

In fact, the reason why e-sports can prosper is that professional e-sports players can make money!
When they make money, they can attract more people to enter this industry and promote it.

Even Shanghai plans to build an e-sports capital.

Games are the source of e-sports. Whichever game is popular is the source. How to play it is still up to Fang Hong. At first, he just wanted to make this industry develop.

Huayi Film is not doing well now, and the others are just rootless duckweed. If the film fails, the market value will also collapse.

Because they are just like Alibaba, they always want to implant movies into various fields. Alibaba always wants to implant e-commerce into various fields. That’s their nature.

So now Huayi is a company that wants everything and wants to do everything, but has done nothing well.

Fang Hong has been very busy recently. In addition to actively promoting the "foreigner restriction" bill, he is also busy finishing up Huayi's affairs.

His goal is to completely defeat Huayi within the year and turn it into a second-tier or even third-tier film and television company until it becomes inconspicuous.

He learned that although Huayi is profitable now, it is generally in debt, with debts of about 58 billion yuan and an asset-liability ratio of about 41.5%, and its financial structure is relatively stable.

Financial problems only arise when the debt reaches 50%.

What Fang Hong wants to do is to increase their debt ratio and slow down their profit growth until they burst into bankruptcy.

At this time in the previous life, Huayi had a debt of about 46 billion. In this life, it has increased by 12 billion. This was because Fang Hong’s continuous attacks for several years caused its profits to decrease, and also because Warner took nearly 5 million in funds.

It is to cooperate with Warner to invest in movies. It is not known how Warner will deal with the money. It is estimated that Warner will want to swallow it. In fact, Fang Hong does not want Warner to swallow it. He just wants to delay it until Huayi goes bankrupt, and then let Huayi use the money to repay debts.

At that time, it was useless for Huayi to have money, as it was not enough to fill the hole.

Huayi is still a profitable company now. Its specific profit comes from online games. It is not much, only a few hundred million or so. It depends on Huayi's next moves.

In the Oval Office, Fang Hong, Liu Tianxian, and Chen Zhixi were discussing something.

"Huayi has made some new moves recently. Feng Kuzi has just established a company called Dongyang Mela. Huayi plans to acquire 10.5% of the shares of Feng Kuzi for 70 billion yuan. This is a shell company.

It's all for Feng Kuzi's future director contract, so as to stabilize the stock market." Chen Zhixi just found out.

With the market value dropping so drastically, Huayi cannot possibly not make new moves. As other sectors are not performing well, they can only be stabilized by financial means.

Liu Tianxian was secretly amazed when she heard this. 10.5 billion just for a shell company and a director contract, if it was really valuable, then she must be valuable too.

"It's not that simple. Spending 10 billion just for a contract." Fang Hong said.

"It's really not that simple. Feng Kuzi promised that the net profit of the movies he makes in the next five years will not be less than 1 million, 1.15 million, 1.32 million, 1.52 million, and 1.75 million respectively. If it is lower than this number, he will make up the difference out of his own pocket." Chen Zhixi said.

This makes sense. It is a bet agreement that Feng Kuazi will work for Huayi for the next five years.

Feng Kuazi is still very valuable now. At least Huayi can get up and this person has made an indispensable contribution. Those two brothers would not be able to make any movies.

"He can't stabilize the Huayi ship by himself." Fang Hong said.

No matter how powerful Feng Kuazi is, he cannot stabilize Huayi. Huayi is now too big and is no longer a small company.

"Indeed, Huayi has decided to spend a huge price to acquire the agency contracts of stars such as Li Chen, Dabaobei, Feng Shaofeng, Zheng Kai, Du Chun, and Chen He. The specific amount is not yet known, but what we know is that it is still a bet." Chen Zhixi said.

Fang Hong was silent, thinking about how Hua Yi and those celebrities operated in his previous life.

Huayi spent 7.56 million yuan to acquire 70% of the shares of Dongyang Haohan Film and Television Entertainment Co., Ltd. The company was acquired by Huayi one day after its establishment, obviously just to have a main body to do this.

It is still a shell company. Those celebrities promised that the company's net profit would not be less than 2015 million starting from 15, and the annual net profit growth rate would not be less than 19% until .

It is already August, and Fang Hong remembered that this was done in October, which means that group of celebrities earned 10 million yuan for Huayi in just three months.

Next year, Huayi will earn 1.35 million yuan, which will be shared by several stars.

Through this bet, we can see that celebrities really make money, more than any listed company, with a net profit of 90 million in three months.

Net profit is the profit after deducting many expenses such as team and taxes.

As for whether taxes were stolen, I don’t know!
This is about the same profit that Feng Kuzi needs to create, and it will be even higher in the future, but Feng Kuzi is a content creator for making movies.

These stars need Huayi to provide resources because they rely on their own fame, which is quite different!
"Is there any purpose for them doing this? Is it any benefit to Huayi?" Liu Tianxian couldn't help but ask.

She just silently calculated that Huayi spent 10 billion to acquire Feng Kuzi's company, but Feng Kuzi only needs to achieve a net profit of 6.74 million in five years.

Isn't this still a loss of several hundred million?

“Of course there are benefits. Using capital to increase the company’s market value and attract capital attention, spending 1 billion to acquire the company proves that the company is worth 1 billion. Then, can the valuation of the parent company be further increased?

The most important point is to bind the celebrity resources. The bet transfers the risk to the celebrity or director, which guarantees the company's performance report. Not all listed companies look at the report.

They must make money. If they don't, they have to make up the difference out of their own pockets. The 1 million profit just mentioned is only the minimum profit standard." Chen Zhixi explained to her.

"This is the so-called bubble. Today's stars and movies have begun to be financialized. They no longer rely on traditional ways to make money," Fang Hong added.

Liu Tianxian nodded, as if he understood something. It was said that the net profit was 1 million, but maybe the profit was several hundred million. That was just the minimum standard.

Moreover, a net profit of 100 million can push up the market value by several hundred million, so both ends can make money, because if there is a loss, the star will have to make up the difference out of his own pocket.

"Hey!" Fang Hong touched her fair arm. She was wearing a short-sleeved shirt, exposing her arms.

Liu Tianxian turned her head and looked at him puzzledly with her almond-shaped eyes.

"Look at any celebrity. If they set up a company, they can have the capital to acquire it with hundreds of millions. Just think about how valuable you are." Fang Hong said with a smile.

"You want to sell me for money, right?" Liu Tianxian glared.

She can also earn hundreds of millions a year. If she signs a bet based on that standard, she can probably make 10 to 20 billion just by herself.

"How could that be? I just feel inexplicably relieved when I see you." Fang Hong patted his chest, looking relieved.

"What do you mean?" Liu Tianxian didn't understand.

"If one day I fail in my business and am heavily in debt, I can just rely on my wife for support," Fang Hong said with a smile.

"You are really promising. Others rely on their parents, but you rely on your wife!" said Liu Tianxian.

"If I don't have anyone to rely on, then I can only rely on my wife." Fang Hong laughed.

Liu Tianxian raised her little fist and punched him on the arm twice in a mischievous manner.

The intimate behavior of the two made Chen Zhixi smile inexplicably.

(End of this chapter)