Hollywood, I became a legend with special effects.

Chapter 85 Acquisition of Kuaibo (2nd Update)

Autumn in Shenzhen is not as distinct as in Beijing; the air still retains the humid heat of late summer.

In the Nanshan High-tech Park, glass curtain wall buildings reflect dazzling light under the sun, and young programmers carrying backpacks and product managers wearing polo shirts walk along the streets.

In the conference room of Kuaibo Technology Co., Ltd., on the 22nd floor of Building 3, Zhongke R&D Park, China Science and Technology Development Institute, the air conditioning was on full blast, but the atmosphere was somewhat awkward.

Yang Siwei sat on one side of the conference table, followed by two legal and financial personnel she had brought from Beijing.

Today she wore a light gray business suit, her hair was neatly pulled back, and her makeup was exquisite but not overdone.

This is her third day in Shenzhen, and she hasn't fully adjusted to the environment yet.

Sitting across the table were Wang Xin, the founder of Kuaibo, and his core team.

Wang Xin is 32 years old, tall and thin, and wears black-rimmed glasses.

The people around him were also from technical backgrounds, some even wearing slippers, typical of programmers.

"Mr. Wang, this is our revised acquisition plan." Yang Siwei pushed a document over. "We will acquire 70% of Kuaibo's shares. After the acquisition, Kuaibo will operate as an independent subsidiary, with the core team retained and their salaries increased by 30%."

Wang Xin opened the document and quickly browsed through the terms.

The meeting room was quiet, with only the slight whirring of the air conditioning vents.

"Mr. Yang," Wang Xin looked up, adjusted her glasses, and said, "May I ask you a question?"

"Speaking."

"Light Chaser Pictures is a film and television content company, so why would they choose a technology company that makes media players?" Wang Xin asked directly. "This valuation is higher than our last round of financing. Why?"

Yang Si smiled: "Mr. Wang, let me answer the second question first. The high valuation is because we value not only Kuaibo's existing business, but also your team's technical capabilities and potential. In particular, your P2P transmission technology and video editing functions are leading in the industry."

She paused, then continued, "As for the first question—Mr. Wang, what do you think the future of the video industry is?"

Wang Xin paused for a moment, then asked, "The future?"

"Yes, the future." Yang Siwei took out another document from the folder. "This is data from Netflix in the United States. They transitioned from DVD rental to streaming media, and in two years, their user base grew from 2 million to 5 million. Their model is very simple: legitimate content + paid memberships + multi-terminal coverage."

She distributed the materials to the Kuaibo team: "In China, no one has succeeded in this path yet. Why? Because three things are lacking: first, enough legitimate content; second, a smooth, high-definition playback experience; and third, a reasonable payment model."

Wang Xin looked at the data in the document, her eyes gradually becoming focused.

"We have the content," Yang Siwei continued. "We hold popular online novel IPs, have just acquired Zhouyi Films' production capabilities, and also have Hollywood film resources. This content is enough to support the early operation of a platform."

"We have the technology," she said, looking at Wang Xin. "Your P2P technology can effectively reduce bandwidth costs, and video editing functionality is the foundation for future user-generated content. What we're building isn't just a simple video website, but a comprehensive platform that integrates professional content and user creation."

"As for the payment model—" Yang Si smiled slightly, "Chinese netizens' habits are changing. Three years ago, no one was willing to pay for e-books, but now Qidian.com's VIP system is mature. Videos are next."

Wang Xin remained silent for a few minutes, then exchanged a glance with his CT0.

CT0 is a young man with thick glasses named Li Xiang, who is the technical head of Kuaibo.

He began by asking, "Mr. Yang, you just said that video editing functionality is the foundation for future user-generated content—"

Could you elaborate?

"Of course." Yang Siwei gestured to his assistant to turn on the projector. "Currently, the video websites in China, such as Youku, Tudou, and Ku6, mainly offer three types of content: pirated movies and TV dramas, user-uploaded low-quality videos, and a small number of self-produced programs. However, the quality of this content varies greatly, resulting in a poor user experience."

A chart appeared on the projection screen.

"The platform we want to build will operate on two legs," Yang Siwei said, pointing to a chart with a laser pointer. "One leg is professional content, which is the movies, TV series, and variety shows produced by Light Chaser Pictures. These are the core elements that attract users to pay."

"The other leg is user-generated content," she said, switching to the next page, "but not the rough videos you see now, just casually shot with a phone and uploaded. It's more like professionally edited, music-added, and color-graded content. This requires the platform to provide easy-to-use video editing tools, and that's precisely where Kuaibo's strength lies."

Li Xiang's eyes lit up.

The reason why Kuaibo's media player is so popular is not only because of its smooth playback, but also because of a hidden feature: a built-in video editing tool.

Although it is still very rudimentary and can only perform simple cutting and merging, this is the first media player in China to integrate editing functions.

"Mr. Yang, what do you mean—" Li Xiang asked, somewhat agitated.

"What I mean is that we want to separate the video editing function from the player and make it an online, user-friendly video editing tool."

Yang Siwei said, "After users upload videos, they can edit them online, add subtitles, music, and even simple special effects. In this way, ordinary people can also create decent video content."

She looked at Wang Xin: "Mr. Wang, do you know what this means?"

Wang Xin took a deep breath: "It means that we are not building a video website, but creating a content ecosystem."

"That's right." Yang Si nodded slightly. "Professional content attracts users to pay, and user-generated content increases platform activity. The two promote each other, forming a virtuous cycle. The foundation of all this is technology: a smooth playback experience, simple editing tools, and intelligent recommendation algorithms."

The meeting room fell silent again.

The people at Kuaibo were quickly processing this information.

They originally thought that Light Chaser Pictures just wanted to acquire a technology team and create an ordinary video website.

It now appears that the other side has much greater ambitions.

"Mr. Yang," Wang Xin finally spoke, "we are confident in our technical skills. But we don't understand content operations, user growth, or business models."

"So we need to cooperate." Yang Si smiled. "Light Chaser Pictures will be responsible for content, operations, and business, while the Kuaibo team will be responsible for technology research and development. We will leverage each other's strengths to create a better future together."

October 25, 9:10 AM, Shenzhen Bao'an International Airport.

As Chen Jingming stepped out of the terminal, the humid air of Shenzhen hit him.

He loosened his tie, thinking that he would definitely dress more casually next time he came to the South.

Two assistants followed behind, carrying briefcases and suitcases, and the group quickly found the car that had come to pick them up.

"Mr. Chen, shall we go directly to the company?" the driver asked.

"Let's go to the hotel first." Chen Jingming glanced at his watch. "We have a meeting with the Kuaibo team at 10:30. We'll make it in time."

The car drove onto the Guangzhou-Shenzhen Expressway, and outside the window was a typical view of Shenzhen.

High-rise buildings under construction, industrial parks stretching as far as the eye can see, and a constant flow of traffic on the overpasses.

Chen Jingming leaned back in his chair, closed his eyes to rest, and reviewed the details of the acquisition in his mind.

A month ago, Jiang Yu called him from Los Angeles, his tone very clear: "Jingming, we must acquire the Kuaibo team. 2 million yuan, 70% of the shares, that's the bottom line. You handle the details."

At the time, Chen Jingming still had some doubts: "President Jiang, Kuaibo's revenue this year was only 20 million, and its net profit was 1.5 million."

Isn't a valuation of 100 million too high?

Jiang Yu's answer impressed him: "Jingming, you can't just look at a company's financial statements. Kuaibo's core value lies in three points: First, their data and habits of 800 million users; second, their top-notch P2P video transmission technology in China; and third, and most importantly, the creativity and execution of Wang Xin's team."

He paused for a moment, then added, "Moreover, we're not buying Kuaibo's present, we're buying its future. If this team is placed in the right track, the value they can create far exceeds 2 million."

This is the second time he has flown over in half a month. The last time was for initial contact, and this time it was after Yang Siwei finished talking and finalized the terms.

The conference room was already full of people.

On Kuaibo's side were Wang Xin and his five core executives, while on Zhuiguang's side were Chen Jingming, Yang Siwei and their team, as well as two lawyers who flew in from Beijing.

"Mr. Wang, it's nice to see you again." Chen Jingming smiled and shook hands with Wang Xin. "This time I've brought good news."

Wang Xin adjusted his glasses: "Please go ahead, Mr. Chen."

Chen Jingming gestured to his assistant to turn on the projector, and a beautifully designed PPT appeared on the screen with the title on the cover: "Strategic Cooperation Plan between Chasing Light Holdings and Kuaibo Technology".

"Mr. Wang, colleagues from Kuaibo," Chen Jingming said, picking up a laser pointer, "After two weeks of research and negotiations, Zhuiguang Holdings has formally proposed an acquisition plan: to invest 2 million RMB to acquire 70% of Kuaibo Technology Co., Ltd."

"Equity."

A soft gasp was heard in the conference room.

Although there had been preliminary discussions beforehand, the figure of "2 million" was still quite shocking when it was officially presented on the table.

Chen Jingming switched to the next page: "Following the acquisition, Kuaibo will operate as an independent subsidiary of Light Chaser Pictures Group. Mr. Wang Xin will continue to serve as CEO, Yang Siwei as COO, and the core team will be retained. In addition, Light Chaser Holdings has committed to investing an additional 5 million yuan over three years for the research and development and operation of the video platform project."

He paused, then looked around the room: "In other words, over the next three years, Kuaibo will have 5 million yuan in funding. How will this money be spent? Mr. Wang, all the plans you mentioned earlier—technology upgrades, team expansion, server construction—can be accelerated."

Wang Xin didn't speak, but just stared at the numbers on the screen, tapping her fingers lightly on the table.

Kuaibo's CTO, Li Xiang, couldn't help but ask, "President Chen, how did you calculate the valuation of 200 million for a 70% stake? Our valuation in the last round of financing was only 50 million."

"Good question." Chen Jingming smiled, switched to the next page, and a complex chart appeared. "Our valuation is based on three dimensions: first, the value of existing business; second, the value of technology patents; and third, and most importantly, the value of strategic synergies."

He pointed to the chart with a laser pointer: "Regarding existing business, Kuaibo's revenue last year was 1000 million, and its net profit was 150 million."

"At a PE ratio of 50, it's worth 7500 million."

"Regarding technology patents," Chen Jingming switched to the next page, "Kuaibo owns 12 patents related to video transmission, among which the P2P dynamic scheduling algorithm, video stream preprocessing technology, and distributed caching system are in a leading position in China. We value these patents at 5000 million."

He looked at Wang Xin: "President Wang, do you agree with this valuation?"

Wang Xin nodded: "Basically reasonable."

"Okay, so 7500 million plus 5000 million equals 1.25 million," Chen Jingming said. "The remaining 7500 million is the value of strategic synergy."

The meeting room fell silent, and everyone stared at Chen Jingming.

"What is strategic synergy value?" Chen Jingming asked himself and answered, "It's the value that Kuaibo's technology and team can create within the ecosystem of Light Chaser Pictures."

He switched to a PowerPoint presentation showing Light Chaser Pictures' business structure diagram: "As you can see, Light Chaser Pictures currently has three main business segments: film production and investment, television series production, and special effects technology. What we're missing is the fourth segment: a content distribution platform."

The laser pointer circled the words "content distribution platform": "Kuaibo is the cornerstone of this platform. Your technology, team, and user base will help us quickly build a streaming media platform. The value of this platform is not just in playing videos, but also in serving as a hub connecting content producers and consumers."

Chen Jingming walked to the whiteboard, picked up a marker, and said, "Let me give you a breakdown of the numbers. Light Chaser Pictures holds more than 500 popular online novel IPs. After acquiring Zhouyi Films, we can produce 5 to 10 TV series every year. Including movies and variety shows, we can add more than 1000 hours of new content each year."

He wrote "1000 hours/year" on the whiteboard.

"If this content is placed on platforms like Youku and Tudou, we'll have to share the revenue with them."

"What if we put it on our own platform?" Chen Jingming wrote down two formulas:

Self-operated platform revenue = membership fees + GG fees + other revenue Third-party platform revenue = copyright fees × revenue sharing ratio "Clearly, the self-operated platform has greater potential," he said. "Moreover, we not only have professional content, but also user-generated content. Kuaibo's video editing function will be a tool for ordinary people to create videos. Professional content + user creation—walking on two legs—is the only way for the platform to thrive."

Wang Xin finally spoke: "President Chen, we understand what you've said. In practice, it's very difficult. Technology development, content acquisition, user growth, monetization—every step is a challenge."

"That's why we need to cooperate." Chen Jingming sat back down. "Light Chaser Pictures excels in content and operations, while Kuaibo excels in technology. By combining our strengths, we can build this platform."

He paused, then said sincerely, "Mr. Wang, let me be frank. Mr. Jiang values ​​you and your team highly. Before he came, he specifically instructed me to retain Kuaibo's core talent and provide them with ample room for development. This 2 million yuan is not just about buying the company, but also about buying a team, buying time, and buying an opportunity."

The meeting room fell silent again.

Several executives of Kuaibo exchanged glances; some nodded, while others pondered.

Wang Xin looked at Chen Jingming and suddenly asked, "Mr. Chen, may I meet with General Manager Jiang?"

Chen Jingming smiled: "Of course. President Jiang will be returning to China after New Year's Day, and his first stop will be Shenzhen. He said he definitely wants to talk to you in person."

This promise seemed to have solidified Wang Xin's decision.

He took a deep breath and stood up: "Mr. Chen, we need to discuss this internally. I'll give you an answer in half an hour."

"

"Okay, I'll wait."

Most buildings in Shenzhen Science Park have spacious rooftop terraces where employees can rest, smoke, and discuss ideas.

On the rooftop of the Kuaibo company, there were several sets of leisure tables and chairs, and some green plants were planted in the corner.

Wang Xin and his five core executives stood on the edge of the rooftop, looking down at the endless stream of cars and pedestrians.

"Tell me your thoughts," Wang Xin said, lighting a cigarette and taking a deep drag.

CFO Sun Qian spoke first: "2 million yuan, 70% of the shares—to be honest, this exceeds my expectations. Based on this valuation, the value of each of our shares has increased several times over."

CT0 Li Xiang continued, "Money is one aspect, but more importantly, there are the plans that Mr. Chen mentioned. If we continue to make our own media players, the ceiling is there. But making a video platform—the possibilities are completely different."

"But the risks are also high." Operations Director Zhao Ming frowned. "The video platform market is now a red ocean. Youku, Tudou, Sina, Sohu, Tencent—they're all vying for market share. Can our team, composed mainly of tech professionals, handle platform operations?"

"It's not us doing it, it's Light Chaser Pictures doing it," Li Xiang said. "Didn't President Chen say that they're responsible for content, operations, and business, while we're only responsible for technology research and development? This is the most reasonable division of labor."

Product manager Zhang Wei remained silent, simply gazing at the scenery below.

Wang Xin looked at her: "Zhang Wei, what do you think?"

Zhang Wei turned her head, her eyes bright: "President Wang, do you still remember our original intention in creating the Kuaibo player?"

"Of course I remember," Wang Xin smiled. "To make the video play faster and smoother."

"Yes." Zhang Wei nodded. "That was the original intention a year ago. Now, we have the ability to do more; not just to make playback faster, but to make creation simpler, distribution smarter, and good content easier to discover."

She walked to the edge of the rooftop and pointed to the office buildings in the distance: "Shenzhen has tens of thousands of tech companies, each solving a problem. Our problem has evolved from 'playback buffering' to 'content discovery,' isn't that cool?"

Looking at her, Wang Xin suddenly recalled the scene a year ago when Zhang Wei first joined Kuaibo.

At that time, she was a young woman who had just graduated from Huazhong University of Science and Technology. During her interview, she said, "I want to make a software that allows everyone to easily watch videos."

A year later, the young woman became a product director, and her dream changed from "easily watching videos" to "easily creating videos."

"Moreover," Zhang Wei continued, "the conditions offered by Light Chaser Pictures are really generous. The team will be retained, salaries will be increased, and 5 million yuan will be invested over three years—this is an opportunity that many startups dream of."

Wang Xin stubbed out her cigarette in the ashtray and looked at the others: "Do you all agree?"

Li Xiang, Sun Qian, and Zhang Wei nodded.

Zhao Ming hesitated for a moment, then nodded.

Only the technical director, Chen Tao, has not yet made a statement.

"Chen Tao, what about you?" Wang Xin asked.

Chen Tao remained silent for a long time before speaking: "President Wang, my concern is whether we can maintain our technological autonomy after the acquisition? Will Light Chaser Pictures force us to make short-sighted technological decisions for commercial gain?"

This is a very pointed and necessary question.

Before Wang Xin could answer, the fire door to the rooftop was pushed open.

Chen Jingming came out, clearly having overheard the conversation.

"Director Chen, that's a good question." Chen Jingming stepped into the middle of the group. "On behalf of General Manager Jiang, I can make a promise: the technical decision-making power will be completely handed over to the Kuaibo team. Light Chaser Pictures will only provide their requirements, such as supporting tens of millions of concurrent users, achieving high-definition with low bitrate, and implementing personalized recommendations—as for how to achieve this and what technical solutions to use, that's up to you."

He looked at Chen Tao and said, "Director Chen, I know that you tech people have your own pride. General Manager Jiang also comes from a technical background, and he understands better than anyone that good technical products are not made by administrative orders, but by the passion and creativity of tech people."

After he finished speaking, Chen Tao's expression softened considerably.

Wang Xin looked at her team members and asked them one by one, "Do you all agree?"

"agree."

"agree."

"agree."

All five votes passed unanimously.

Wang Xin smiled, a relieved smile: "Okay, it's settled then. Let's go back and sign the contract."

Two thick contracts were laid out on the table: one was an equity acquisition agreement, and the other was a strategic cooperation agreement.

Wang Xin picked up the pen and paused on the signature page.

At this moment, he recalled many things: writing his first line of code in his rented room two years ago, securing his first round of funding six months ago, surpassing 5 million users in August, and moving into this office building two months later.

"President Wang?" Chen Jingming reminded him softly.

Wang Xin snapped out of her daze and signed her name on the contract.

The scratching sound of the pen tip gliding across the paper was particularly clear in the quiet meeting room.

After signing, the two people stood up and shook hands.

The applause rang out, not enthusiastic, but sincere.

"Mr. Wang, it's a pleasure to cooperate with you." Chen Jingming said with a smile, shaking hands.

"President Chen, please guide me in the future." Wang Xin smiled as well.

The signing ceremony was simple; there was no champagne, no reporters, just the two teams taking a group photo in the conference room.

In the photo, Wang Xinhe, Yang Siwei, and Chen Jingming stand in the middle, with their respective team members on either side.

After taking the photos, Chen Jingming said, "Mr. Wang, how about we have lunch together? I've made a reservation."

"OK."

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