The richest person in Chinese entertainment

Chapter 563 Liu Dong and Liu Yifei, "La La Land" Tops the Box Office

"That's it?"

As soon as Liu Yifei landed on Zhang Chen's private jet, she felt that this trip to South Korea was a bit surreal.

"Otherwise what?" Zhang Chen chuckled. "Are you expecting to eat pickled vegetables in that small town for a year and a half?"

Although a private chef was brought along on this trip, the supply of ingredients in South Korea was still unsatisfactory.

Liu Yifei shook her head vigorously, thinking about how she had been having a kimchi "feast" every now and then for the past month.

"No!" The refusal was decisive, without the slightest hesitation.

"However," Liu Yifei glanced down at the folder in her hand, "this time I also gained quite a lot."

"So how do you plan to thank me?" Zhang Chen got into the car and looked at Liu Yifei with a smile.

"Thank you?" Liu Yifei's eyes darted around, and she said with a straight face, "I haven't settled accounts with you yet!"

"Huh?" Zhang Chen was taken aback.

"If I hadn't arrived in time," Liu Yifei laughed dangerously, "would you only have those dozen or so girls under your command?"

Upon hearing this, Zhang Chen wiped away non-existent cold sweat from his forehead.

"Fine, I doubt you'd have the guts." Liu Yifei clenched her fist fiercely in front of Zhang Chen and snorted. "I'll let it go since you're being so sensible."

That's what it says.

But Liu Yifei was filled with emotion.

Is this Zhang Chen's daily routine?

Thinking back to her confrontation with Lee Soo-man and his two companions, Liu Yifei felt like a fool.

Around the same issue, each side makes its own moves, and in the back and forth, both offense and defense must be watertight.

If one side fails to perform well, the other side will immediately seize the opportunity to exploit their weaknesses and put them at a disadvantage.

She herself only provided an assist to Zhang Chen in the early stages of the confrontation between the two sides, and then she could not help at all.

This assist came from seeing Zhang Chen's "young girl enthusiast" title circulating online, and from hearing reports from her subordinates that Lee Soo-man and his two companions had brought many little girls to their lodgings, which alerted Liu Yifei.

So rather than saying she was helping someone, it's more accurate to say it was a form of self-defense.

And all the other negotiations were brought under Zhang Chen's control because of her unintentional "assistance," allowing him to firmly grasp the direction of the situation.

And the consequences
Liu Yifei glanced at the folder in her hand again.

This is the result of negotiations between the two parties.

This was also the first contract in which Liu Yifei truly had a say in the matter.

This contract was signed by her wholly-owned company in the United States and three entertainment companies owned by Lee Soo-man.

She originally started this company simply to facilitate the flow of funds in her stock account.

But now, he has successfully taken control of several influential companies.

This is different from when she held NetEase stock.

Because Zhang Chen helped her negotiate the terms.
She has a feeling that this is not real.

Crystal Cultural Co-prosperity Framework Agreement – ​​SM/JYP/YG Strategic Investment and Two-Way Content Cooperation Master Contract:
1. Equity ratio and board participation

Crystal (Party A) invested US$3000 million, US$1800 million, and US$200 million in cash respectively to acquire SM Entertainment, JYP Entertainment, and YG Entertainment (Party B), and obtained 25% equity in each of the three companies.

They also have the right to nominate one director to Party B in proportion to their shareholding.

The director has a veto right over business decisions, artist contracts, and content production plans involving the Chinese market (including Hong Kong, Macao, and Taiwan).

2. Performance-based clauses

If Party B fails to achieve any of the following objectives within 36 months from the date of capital injection:

① The proportion of revenue from the Chinese market to Party B's global receivables is ≥25%;

② The number of content (film, music) co-produced with local Chinese companies is ≥ 5 per year;
Then Party A has the right to require Party B to repurchase the shares held by Party A at a price of 300% of the capital injection amount, and to obtain an additional 3% equity free of charge.

3. Exclusive cooperation in the Chinese market

The following businesses of Party B in mainland China must be operated exclusively through Party A's wholly-owned subsidiary or a joint venture entity designated by Party A (holding ≥51% of shares):
① Artist management and agency;
② Distribution of film/music copyrights;

③ Commercial endorsements and brand collaborations.

Party B shall not conduct similar business in China, either directly or through a third party.

4. Content localization requirements
Party B promises:

①In the debuting group, the proportion of Chinese nationals should not be less than 40%, and the training period should include at least 6 months of Chinese language and culture courses each year;

② Produce ≥3 Chinese songs annually, with Chinese teams participating in the songwriting process;
③ Films and television works featuring Chinese scenes or cultural elements account for ≥30% of their runtime.
5. Cultural export countermeasures

During global promotional activities (including social media, concerts, and interviews), the artists under Party B must mention or display Chinese cultural elements (such as Hanfu, expression, and traditional festivals) at a frequency of no less than 30%, and must not make any remarks that may be interpreted as denigrating Chinese history or territorial integrity.

6. ZZ Risk Exit Right
If relations with the UK deteriorate in any way, trade restrictions are imposed, or the economic policy changes cause Party B's business in China to be unable to operate normally for six consecutive months, Party A has the right to:
① Sell all equity to Party B at a price 100% higher than the market price;

② Require Party B to replace Party A's capital injection with non-Chinese regional business assets of equivalent value (such as equity in the Sakura Country branch).

7. Non-compete Agreement

Within 15 years from the effective date of this agreement, Party B and its affiliates shall not directly or indirectly engage in exclusive cooperation with the following companies:

1. Huayi Brothers Media Group

2. Hunan TV Tianyu Media

3. Zhejiang Satellite TV

4. Tomato TV

5. Orange Sky Entertainment

6. Enlight Media

If Party B breaches the contract, Party B shall pay Party A 300% of its previous year's revenue in the China region as liquidated damages.

8. Content Review Committee
A standing content review committee shall be established, consisting of 5 members appointed by Party A and 2 members appointed by Party B.

Responsible for conducting pre-screening of all content (including lyrics, scripts, interview outlines, etc.) that Party B exports to the Chinese market.

Committee resolutions require at least five votes to pass, and Party A's representative has the power to veto any resolutions involving historical, ethnic, or territorial issues.

9. Reverse cultural export

Party B shall utilize its global distribution network (including but not limited to Morning Light Music, Facebook, Weibo, Spotify playlists, and overseas TV stations) to promote at least 10 pieces of content (film, music, and variety shows) produced by Chinese companies each year, and the promotional resources shall not be less than 30% of Party B's own content.
10. Cultural Balance Fund

10% of the net profit from Party B's annual business with China will be extracted and injected into the "China-Korea Cultural Balance Fund" managed by Party A, for the following purposes:

①Invest in Chinese domestic idol groups (single investment amount ≤ 500 million);

② Produce Sino-Korean co-produced documentary films (≥1 per year);

③Sponsor overseas touring exhibitions of traditional Chinese culture.

The fund usage plan needs to be approved by Party A's board of directors.

Supplementary Provisions:

1. Applicable Law: Disputes arising from or in connection with this Agreement shall be governed by the laws of Lion Country and the place of arbitration shall be the Hong Kong Island International Arbitration Centre.

2. Language version: In case of conflict between Chinese and Korean versions, the Chinese version shall prevail.

The above terms need to be adjusted according to the specific compliance requirements of the jurisdiction. It is recommended to engage Morning Light Entertainment's legal counsel for review.

Extended Protocol:

Crystal-SM Entertainment Exclusive Operation and Content Review Implementation Agreement in China

Crystal-JYP Entertainment Member Localization and Culture Fund Management Measures

Appendix to Crystal-YG Entertainment's Global Reverse Export Cooperation

A series of "agreements" that left Liu Yifei speechless formed a thick box of contracts and copies. The extent of this "control" over the three companies in South Korea is something Liu Yifei still finds hard to believe.

Have Lee Soo-man and his two companions lost their minds?
How could they possibly agree to such a clause that "betrays" the company's core interests?

Every single one of these signed agreements put Liu Yifei's company at a significant advantage.

This also turned the three South Korean entertainment giants, SM Entertainment, JYP Entertainment, and YG Entertainment, into Liu Yifei's "employees."

Because the above terms only restrict the three South Korean companies.

However, there were no mandatory clauses imposed on Liu Yifei's company.

Therefore, although there was no actual "acquisition" of the three companies.

However, Liu Yifei firmly held the power to make decisions regarding the three companies.

It's no exaggeration to say that whatever Liu Yifei wants the three companies to do, those three companies have to do it.

Furthermore, due to restrictions, the business these three companies conduct in China must be carried out through collaborations with Liu Yifei's wholly-owned subsidiaries or companies in which she holds more than 51% of the shares.

Other well-known Chinese entertainment companies and television stations were also blacklisted from the contracts.

If the three companies want to outwardly comply but inwardly defy the agreement, they must repurchase the shares at 300% of the current investment amount.

These measures completely blocked any way out for the three entertainment companies in China.

All that's left for them is a "broad road"—listen to Liu Yifei's advice.

Their escape route is also blocked, otherwise they would face huge breach of contract penalties.

Even political factors could force the three companies to take sides.

All three companies will repurchase shares at 100% above the market price.

It's hard to say whether the three companies would have done something in their home countries before the incident occurred to prevent it from happening.

Therefore, the three entertainment companies have no other way out but to follow Liu Yifei down this path to the bitter end.

Liu Yifei racked her brains but couldn't figure out why.

What made Lee Soo-man and the other two "willingly" sign such harsh terms?

However, just because she can't figure it out herself doesn't mean she won't seek answers from those in the know.

"Brother, do you have some kind of leverage over those three?"

Liu Yifei was genuinely curious.

Zhang Chen was silent for a moment after hearing this, then chuckled and said, "I don't think so."

Hearing this answer, Liu Yifei was even more confused.

If there is, there is, if there is not, there is not.

What does "have it or not" mean?
Seeing the confusion in Liu Yifei's eyes, Zhang Chen could only explain:

"Because this handle isn't really in my hands."

Seeing that Liu Yifei still didn't understand, Zhang Chen could only continue to explain.

"You know what happened in the US recently, right?"

After a moment's thought, Liu Yifei's eyes lit up: "Financial crisis?"

“Yes.” Zhang Chen nodded. “It started from there and spread all over the world.”

"So South Korea was also affected?"

"It doesn't count."

"Huh?" Liu Yifei was even more confused. "Then..."

"Because South Korea has the support of the Chinese and Japanese markets, its cultural and entertainment industry has not experienced significant fluctuations on paper."

Liu Yifei carefully considered Zhang Chen's words.

A moment later, she suddenly realized.

"In other words, if they lose the Chinese market, they will definitely suffer huge losses in the face of the escalating systemic financial risks?"

"Yes."

"Secondly, Chenguang Group holds absolute sway in China's current cultural and entertainment industry?"

Before Zhang Chen could answer, Liu Yifei clicked her tongue in amazement and said, "It's not that they don't want to, it's that they have no way to."

This "no choice" refers to surviving by bypassing the Chinese market.

This also refers to bypassing the Chenguang Group to conduct business in China.

"Chairman Liu, I'm entrusting the business in the South Korean region to you from now on?"

Zhang Chen looked at Liu Yifei with a teasing expression.

Liu Yifei blushed when Zhang Chen addressed her that way.

But then he remembered that his status was different now, so he immediately straightened his face and coughed lightly: "Ahem, no problem, no problem."

However, this "majestic" image didn't last three seconds before Liu Yifei burst out laughing.

"Hey hey hey"

The thought that she was now a person with power made Liu Yifei feel that she was one step closer to the people around her.

Although it is still far from being large enough.

But in any case, at least they now have their own "team".

Surely this helped Zhang Chen to some extent?
"What are you thinking about?" Zhang Chen waved his hand in front of Liu Yifei, who was lost in thought.

"It's nothing," Liu Yifei said with a faint smile.

Seeing that Zhang Chen was about to press for more information, she countered with, "Where are we going?"

It wasn't exactly to change the subject; it was mainly because the scenery outside the car window didn't look like the road to their house.

"Oh, I forgot to tell you," Zhang Chen said with a smile, looking out the window. "Want to go see a movie?"

"A movie? Now?!" Liu Yifei looked at her disguised appearance and her expression changed. "Is this Xiao Zhou's movie premiere?"

As one of the few singers that Liu Yifei should pay attention to.

Jay Chou's directorial debut naturally caught Liu Yifei's attention.

There have been rumors that Jay Chou followed in Zhang Chen's footsteps.

He also wants to transition from singer to director.

Zhang Chen achieved remarkable success shortly after his debut.

Jay Chou debuted shortly after Jay Chou and became famous throughout Asia.

After Zhang Chen finished filming the movie, Jay Chou quickly announced his participation in the film's production.

Now, following in Zhang Chen's footsteps, he has written, directed, and starred in a movie.

Compared to Zhang Chen, Jay Chou has an additional "self-acting" element.

Many people speculate that Jay Chou wanted to surpass Zhang Chen's achievements in film after he couldn't beat Zhang Chen in the music industry.

It's Zhang Chen's current performance in "La La Land"
Liu Yifei glanced at the calm and composed Zhang Chen, and had a feeling that this guy was going to take down Jay Chou.

It's no wonder Liu Yifei thinks that way.

Because right after they finished their negotiations with Lee Soo-man and others, the world was thrown into a frenzy by a single piece of news.

[July 30th news: The film "La La Land," written and directed by superstar Zhang Chen, has surpassed $18.5 billion in global box office revenue after four months of release, surpassing "Titanic" to become the highest-grossing film of all time!]

(End of this chapter)