America: My Time

Chapter 1162 The Vigilance of Oily Capital

Chapter 1152 The Vigilance of Oil Capital
This statement quickly reached the higher-ups, but it didn't attract much attention. Many people felt that if the Chinese film market had declined to this extent, Phoenix Group had no reason to make such a large investment, as such a large investment couldn't be recouped in a short time. However, no one expected that John was looking for long-term benefits, not just short-term gains. Short-term investment to cultivate the market was acceptable.

Just when everyone was taking it lightly, the DVD offensive began. When the entire industry chain erupted with a powerful impact, Hong Kong's piracy market was severely damaged. Faced with the overwhelming influx of legitimate DVDs, their market was rapidly shrinking. The entire market was flooded with a large number of legitimate films, and they were all low-priced films, with European and American films appearing one after another.

In the Asian market, which Hollywood and Europeans didn't have high hopes for, these low-priced discs saw unimaginable sales, and the VCD player market across Asia also experienced a boom. The European and American markets were completely different; the rental market was developing rapidly, and Phoenix Media's profits were about to explode.

Where do the massive amounts of films come from? Naturally, from China's DVD factories. To meet the entire market demand, the machines are running non-stop, printing at a frenzy. It is precisely because of this advance planning that the entire market is quickly occupied by legitimate films, leaving no opportunity for pirates. The cheap legitimate films are incomparable to pirated ones.

If anyone was still worried that John's lack of funds would affect his investments in China, the explosive growth of Phoenix Group's DVD factory in China and the huge export profits dispelled that concern. Meanwhile, the Japanese were stunned. Previously, Japanese VCRs had a small market share, but now that market was collapsing. The Japanese DVD market was now flooded with massive amounts of European and American films, along with a vast array of television dramas.

In contrast, China went even further, not only with movies and TV series, but also with VCDs. Phoenix Media, possessing vast copyright holdings, swept the market with its full force. This storm completely wiped out the VCR market, and Phoenix Media quickly recouped its previous investments.

By this time, John had almost sold off most of his assets in Southeast Asia. After all, they were all high-quality assets and in high demand. It was already October, and the guys in Japan were getting increasingly worried. They were facing the impact of cheap DVDs, changes in the North American market, and the impact of home appliances from China, which affected Japan's market share in the home appliance market. And this was just in North America; there were changes in Europe as well. At this time, the guys in Japan became even more nervous, and they were all feeling extremely anxious. They were cursing Sony's stupidity for causing them to suffer such a blow.

In fact, even without Sony's involvement, John wouldn't have let go of the home appliance market share. Unlike other Chinese home appliance companies, John's subsidiaries primarily focused on exports, aiming to seize market share in Europe and America. After all, John controlled retail capabilities in those markets, so he didn't have to worry about being held hostage. As long as the quality was high and the price was low, there would be a market. Moreover, at that time, Samsung hadn't yet entered the North American market, and John was also targeting Samsung's development.

"Foolish neon, foolish Sony, they really thought they had so much ability. Now it seems they're nothing special. I thought they were so arrogant, that they could snipe John, that little fox. Now, not only have they failed to snipe him, but John is taking away the market that should have been theirs. I have to say, John's retail strategy couldn't be more correct. Best Buy and Costco have brought him so much convenience."

"The failure of these guys in Japan will expose us to John, that little fox. Knowing them as I do, they will definitely betray us. We need to prepare in advance."

“There’s no need for that. We were already exposed when those guys in Japan targeted John. You don’t think that little fox John didn’t notice anything, do you? Do you really think Jaguar Security is just for show? Do you really think John’s security investment has gone down the drain? Since he didn’t target us immediately, there won’t be any major problems. He’s not targeting us now, but those guys in Japan. As long as we don’t make any more small moves and don’t disrupt John’s plans against Japan, there won’t be any issues.”

"That's true. Given John's personality, that's for sure. The betrayal of those guys in Japan, especially Sony's, will inevitably provoke a fierce counterattack from him. As for us, we won't face as much pressure. However, I have to admire John's vision and shrewdness. Back then, so many people ridiculed Phoenix Media's acquisition of its film library, but would anyone dare to do that now? It won't be long before he recoups all the costs he incurred back then, and it also spurred the explosion of VCD players. Before, it was just a small-scale operation and hadn't yet formed a huge trend, but now it's completely different."

"Yes, the price drop has ushered in the golden age of VCD players. This time, John, that little fox, has made a fortune. I wonder how many guys are regretting it!" "Alright, even if John, that little fox, has made a lot of money this time, it has nothing to do with us. However, have you noticed that John's assets in Southeast Asia have been almost completely cleared out? Now only mines, oil fields, and factories remain. I think this guy may have sensed something."

"Are you sure this is no joke?" At this moment, someone became vigilant. After all, this was related to their plan, and they couldn't afford to be careless. If John discovered their plan, the consequences would be severe.

"I'm not sure, after all, this guy didn't sell the factory, mine, or oil and gas field. It's just a guess. After all, this guy's reaction was a bit too extreme. No normal person would make such a decision!"

"A normal person? Do you think John is a normal person? And haven't you noticed that John made a fortune in this deal? Most importantly, he now has a considerable amount of liquid funds. If he wanted, he could reduce the debt of several major groups by more than half! How much did he invest back then? How much has he gained now? This reminds me of the Japanese bubble economy. He did the same thing in Japan, running away before it was too late."

"Alright, regardless of what John thinks or whether he's aware of anything, as long as it doesn't affect our plans, it's not a big deal. If he can cooperate with us, that would be even better, after all, this guy has extraordinary influence in Asia, and Standard Chartered Bank's influence in Asia is even more remarkable."

"Let's not even think about it. We can't afford any risks. Besides, John is a petty bastard. If he finds out about our plan, do you think he might try to ambush us?"

"You know what, this kind of situation could actually happen. Wasn't that the same thing that happened between him and Lehman Brothers back then? The same thing happened in Korea and Japan before. If this guy finds out about our plan, there's a good chance he'll target us. After all, we offended him before."

The guys at Oil Pacific Capital got a little nervous, but they were overthinking it. John had no intention of targeting them; he was waiting for them to make the first move, waiting to teach those who had schemed against him a lesson and reclaim their assets. Just as those guys had taken assets from John before, they would return them to him in the same way when the Asian economic crisis arrived. A high-sell, low-buy deal—why would John refuse such a good opportunity? Even if Oil Pacific Capital had only slightly schemed against John once, and through Sony no less, even if it were a bigger matter, John would suppress his anger.

The feast of capital will soon begin, and the election year will soon come to an end. The battle between the donkey and the elephant is about to begin, and John's shackles will be removed. John is in a good mood now. The bigger the commotion in Japan, the better. Compromise will only embolden those guys in Japan. Only by giving them appropriate pressure and a warning can they be made to behave and know who is in charge.

If John hadn't had more elaborate plans and calculations, things wouldn't be like this now. John might even have been able to sever the energy cooperation with Japan and teach them a lesson. Both South Korea and Japan have enormous needs for resources, and if John wanted to, he could even deliver a fatal blow to their silicon wafer factories, given that he controls the U.S. quartz sand mine.

While they have more partners for other minerals, the number of potential collaborators for quartz sand, whether from South Korea or Japan, is extremely limited. The Yumini quartz sand mine holds a dominant market share, and if their supply were cut off, those guys would be in serious trouble and forced to back down. However, John wouldn't do this unless absolutely necessary. Such power is only threatening when held back; taking action would have too great an impact and be extremely detrimental to himself. After all, no one wants to be held hostage, and the Japanese would inevitably find other ways to resolve this issue, affecting Yumini's interests.

(End of this chapter)