The Entertainment Industry in Turmoil: Young Actresses All Want to Rise to the Top

"What do you mean? Is Shen Mo trying to kick someone when they're down?!"

Wang Zhonglei paced back and forth in Wang Zhongjun's office, unable to contain his emotions, and slammed his fist on the edge of the desk with a dull thud.

"What is Shen Mo trying to achieve by issuing this announcement at this time?"

"Does he still want to cooperate?!"

Wang Zhongjun didn't speak immediately, but slowly took a drag of his cigarette.

"Please sit down."

"sit down?!"

Wang Zhonglei suddenly turned around, his eyes bloodshot, and the veins on his forehead throbbing.

"Brother! The public outcry is huge! You're telling me to sit down?!"

"The stock price plummeted at the opening bell, and institutions were all selling! This move by Inkmark at this moment is practically a stab in the back! How am I supposed to sit here?!"

"Shareholders holding more than 5% of shares must disclose their reduction of holdings within three days, as required by law."

"Shen Mo delayed the announcement until the third day before it was made public, so it's not a mistake."

"And you won't sit down," Wang Zhongjun said, raising his eyes, his tone calm to the point of being almost indifferent.

"If we criticize all afternoon, will the stock price recover?"

Wang Zhonglei was taken aback by those words. He slumped back onto the sofa, feeling both dejected and indignant. He roughly ripped off his tightly tied tie and threw it aside.

"He's getting revenge," Wang Zhonglei said through gritted teeth, his eyes sinister.

"He must be holding a grudge about what happened before, and now he's retaliating."

"I even suspect that he was the one who downgraded the rating."

Wang Zhongjun slowly took a drag of his cigarette, the gray smoke blurring his sharp eyes.

"It's not revenge."

"The downgrade may not necessarily be his doing."

Wang Zhonglei was taken aback. "Why do you say that?"

"Besides him, who else would want to kick us while we're down at this time?"

Wang Zhongjun stubbed out his cigarette in the ashtray, his tone finally becoming sharp.

"You're underestimating those vultures in the capital markets; they're not stupid."

"Does Shen Mo really need to remind me about the content already published in the research report?"

"They probably prepared all this material a long time ago, just waiting for us to give them the chance!"

"And!" He paused, his gaze sweeping across his brother's anxious face like a knife.

"What good will it do him to fall out with us?"

"Should we continue our collaboration with Running Man?"

"Who's sitting on our shareholder list? It's Alibaba, it's Tencent! Does he think he can challenge them?"

The rage on Wang Zhonglei's face was gradually replaced by solemnity. It wasn't that he couldn't understand, but he refused to think when he was overwhelmed by emotions.

"If it weren't for him, wouldn't we be in even bigger trouble?"

"That's right." Wang Zhongjun affirmed his judgment.

"Since it's clear he was the one who did it, it's actually easier to deal with him."

"But if the entire market is targeting us, then we're in trouble."

Wang Zhongjun nodded and glanced sideways out the window.

"When a wall falls, everyone pushes it down; when a drum breaks, everyone beats it."

"Right now, Stephen Chow is the one who's taking the lead, and who knows how many more are waiting to wield their hammers."

A cold glint flashed in Wang Zhonglei's eyes.

"You, Stephen Chow, I thought you could stay quiet for a year or two, but I didn't expect you to cause trouble now."

"Brother! We have to teach him a lesson!"

Wang Zhongjun reprimanded Wang Zhonglei with a stern expression.

"Don't you dare make any rash moves now. Isn't the public opinion situation complicated enough already?"

"Do you know how many people are waiting to see us fail?"

Wang Zhongjun's eyes held helplessness and weariness, but more so, calmness and realism.

"Moreover, if the news of our recent share reduction were to leak, it would be compounded by the current public opinion."

"Huayi's stock price may fall even lower than the price during the collapse of '1942' last year."

"At that time, how many people will take advantage of the situation and kick us when we're down?"

"Will the banks come knocking on our door to collect payments for the movie-themed town? Will other movie releases contact us to collect payments? Will the artists choose to switch agencies?"

"These are the issues we need to consider now, not going to cause trouble for Stephen Chow again!"

Wang Zhonglei fell completely silent; the scene described by Wang Zhongjun sent chills down his spine.

He understood the implications, but it was precisely because he understood that he felt even worse.

"So what should we do?"

Wang Zhongjun rubbed his temples, trying to cheer himself up.

"Enough, there's no point in talking about this now."

"The most urgent task is to stabilize the stock price immediately and prevent it from forming a vicious cycle of continuous sharp declines."

He looked at Wang Zhonglei, his eyes regaining the sharpness of a decision-maker.

"Go and do a few things for me."

"First, immediately have the public relations department issue a formal announcement, with a strong and confident tone."

"Two key points: First, we emphasize that the dispute between the company and director Stephen Chow is an individual commercial contract issue, which is being actively communicated and resolved. We absolutely do not agree with the false accusations of 'breach of trust'."

"Secondly, it is clearly stated that all the shares of Mohen that were repurchased have been transferred, and the list of all the artists holding shares has been published, indicating that the fundamentals of Huayi remain solid."

Wang Zhonglei quickly jotted down the key points, but his brow remained furrowed: "Is this enough? Will the market accept it?"

"At least stop the bleeding and make our stance clear; we can't let panic spread indefinitely."

Wang Zhongjun looked at him and said, "Then, contact all the influential old friends we can reach, the media, and securities firms, and ask them to speak up for us as much as possible."

"Also, talk to Alibaba and Tencent to explore their potential opportunities."

"You can also talk to Shen Mo about Mohen."

Wang Zhongjun let out a long sigh and leaned back in his chair.

Wang Zhongjun let out a long sigh and leaned back in his chair.

Wang Zhonglei sighed deeply.

"I told you from the beginning not to reduce your holdings."

Wang Zhongjun glanced at him sideways.

"There's nothing to regret. All you need to know is that even if Huayi goes bankrupt, we still have 18 billion in cash in our pockets. That's enough!"

-----------------

Before this whole turmoil even began, Shen Mo's plan had already quietly unfolded.

At that time, Huayi's price was approaching the target of 100 yuan, and Shen Mo arranged for Zhao Feng to enter the market at a high price of over 90 yuan.

Of course, it wasn't buying long, but rather shorting.

This time, in order to avoid drawing attention, they established sufficient securities lending quotas through multiple compliant offshore and domestic channels.

Use the method of "ants moving house" to disperse and sell securities in small batches.

After all, the goal isn't to immediately suppress the stock price, but rather to stockpile enough ammunition to wait for Stephen Chow to flip the table...

On the other hand, Shen Mo also arranged for Chen Jun to communicate with Alibaba and Tencent in advance, since Shen Mo's departure would inevitably affect their interests.

Moreover, he had an additional plan that required the cooperation of both parties.

A few days later, Stephen Chow's interview was released as scheduled.

Huayi's stock price plummeted. Just as the Wang Zhongjun brothers were in a state of panic, Shen Mo dialed Sun Zhonghuai's number.

The next day, Shen Mo met him at the Penguin Building.

After exchanging a few pleasantries, Sun Zhonghuai looked at Shen Mo with a mocking expression.

"No one visits a temple without a reason. Mr. Shen, what can I do for you?"

Shen Mo put down his teacup and looked calmly at Sun Zhonghuai.

"Mr. Sun, Mohen and Tencent Pictures are strategic partners."

He also looked back at Sun Zhonghuai with a smile.

"There is a golden opportunity right now, an opportunity that holds immense potential."

"I wonder if Tencent Pictures intends to take things to the next level?"

Sun Zhonghuai is a typical internet elite, quick-witted and well-versed in the art of strategy.

He calmly took a sip of tea: "What does Mr. Shen mean?"

"Huayi," Shen Mo uttered calmly.

Sun Zhonghuai's eyebrows twitched slightly, but he remained silent.

Shen Mo stopped beating around the bush and analyzed the current predicaments facing Huayi one by one.

The contract dispute involving Stephen Chow triggered a credit crisis, the bursting of the bubble in the hype surrounding high-flying concept stocks, the reduction of holdings by the Wang brothers, and other financial risks brought about by the chain reaction.

"So," Sun Zhonghuai smiled slightly, "what does this have to do with Tencent Pictures?"

"As the old saying goes," Shen Mo changed the subject, "when a wall falls, everyone pushes it down."

"However, even a starved camel is bigger than a horse. The industry resources and production teams that Huayi has accumulated over the years are still extremely valuable assets."

"Isn't this exactly the area that Tencent Pictures needs to fill right now?"

"Once we have these, Tencent Pictures will no longer be an empty shell, and we won't need Mohen to nurture and guide it step by step anymore."

"Isn't that wonderful?"

Sun Zhonghuai picked up his teacup, stirred the steam with the lid for a long time, and then looked up at Shen Mo.

"Tencent is not Alibaba, and we don't want to ruin our reputation."

"Our investment is to complement our business portfolio and facilitate strategic partnerships."

"If it really starts with investment and ends with acquisition like Alibaba, then I'm afraid no one in the entertainment industry will dare to cooperate with Tencent in the future."

"Furthermore, Mr. Shen seems to have forgotten that Alibaba is also a shareholder of Huayi. Do you think they'll just sit idly by and watch us make a move?"

Shen Mo's gaze gradually sharpened, and his body leaned forward slightly.

"Then why don't we drag Alibaba into this too?"

"In ancient times, there were three families that divided Jin; now, we three families are dividing Huayi."

"We don't acquire, we only take the profits, so there's no issue of acquisitions damaging our reputation."

"What does Mr. Sun think?"

Shen Mo finally piqued Sun Zhonghuai's interest, and he continued to ask questions with great interest.

"How does Mr. Shen want to divide it?"

"Mohen's target is Huayi's offline cinema assets," Shen Mo stated bluntly.

"We at InkSign have content production capabilities, but offline distribution and terminals have always been our weaknesses."

"By acquiring Huayi's cinema chain, we can establish a complete closed loop from production to distribution to screening, which will greatly enhance our bargaining power with distribution channels and our ability to resist risks."

"As for Huayi's other sectors, such as film production teams, TV series production teams, artist management teams, and game fan merchandise operation teams, they are also valuable."

"Other mobile game teams and movie-themed towns are not very valuable and carry certain financial risks."

"And Penguin Pictures," he continued.

"While possessing unparalleled online traffic and platform advantages, we still need to strengthen our traditional film and television production capabilities, especially in terms of experienced frontline production teams and project development capabilities."

"Huayi's production team, including its core directors, producers, screenwriters, and its library of mature or semi-mature IP projects, are exactly the resources that Penguin Pictures needs most."

"Receiving these resources will greatly shorten the time it takes for Tencent Pictures to climb up the ladder in the traditional content production field and quickly form a core competitive advantage that combines online and offline channels."

Sun Zhonghuai fell into deep thought once again.

Shen Mo's proposal was extremely tempting, but he also knew that it would be no easy task.

Moreover, if Alibaba were to join in, his ambitions would likely be enormous.

Sun Zhonghuai spoke slowly, his tone cautious.

"But it's quite difficult to do, and Huayi won't sit idly by."

"And how do you plan to persuade Ali?"

Shen Mo's lips curled into a confident smile. "Hua Yi has been at the top of the entertainment industry for too long. There are plenty of people who want him to step down."

"Plus, we have to connect the dots in the middle, which is challenging but not too difficult."

"Moreover, we at Mohen have some experience in capital operations within the entertainment industry."

"Most importantly, we are not engaging in hostile takeovers, but rather conducting a rational restructuring of distressed, high-quality assets within the framework of market rules."

"This makes business sense."

"As for Alibaba, you can let me give it a try."

Shen Mo smiled slightly and shook hands with Sun Zhonghuai to say goodbye.

Both sides are assessing each other's resolve, capabilities, and the significant benefits and potential risks that cooperation could bring.

Shen Mo knew that Sun Zhonghuai was a smart man who knew how to weigh the pros and cons.

And how could a wise person refuse a delicious meal that's been delivered right to their lips?

A few days later, at Alibaba's campus.

Shen Mo sat in the conference room of the head of Alibaba's Digital Media and Entertainment Group, opposite the core decision-making team of Alibaba Pictures, which was newly established after being spurred by Shen Mo's actions.

Yu Yongfu, president of Alibaba Digital Media and Entertainment Group, and Zhang Qiang, CEO of the newly established Alibaba Pictures.

The atmosphere was slightly different from the tentative maneuvering on the other side of Tencent; the Alibaba executives were more direct and incisive.

"President Shen," Yu Yongfu said, getting straight to the point.

"We have received the message that Chen Jun previously sent."

"We see clearly what's going on with Huayi."

"But Alibaba Pictures is just starting out. Our primary task is to gain a foothold and build content capabilities that fit the Alibaba ecosystem."

"Even if we succeed in participating in this hunt against Huayi, it may make us, a newborn company, make enemies too early and put us under unnecessary public pressure."

Shen Mo had anticipated this.

"President Yu, President Zhang."

"I understand Alibaba Pictures' caution."

"But precisely because they are newborns, they need a solid foundation to achieve rapid growth, don't they?"

"Huayi's predicament is a once-in-a-lifetime opportunity, an opportunity for Alibaba to grow rapidly."

Seeing that they did not refute him, he continued.

"Alibaba Digital Media and Entertainment Group is backed by Alibaba, so it naturally doesn't have to worry about funding. In addition, with the traffic from Pants and UC, it already has a very good foundation."

"What we lack now is a systematic and continuous supply of high-quality content."

"Only in this way can the value of the content produced be maximized within Alibaba's vast ecosystem."

Zhang Qiang nodded slightly, neither agreeing nor disagreeing.

"Among Huayi's assets," Shen Mo continued to analyze, "there are two things whose value to Alibaba Pictures and even the entire Alibaba Digital Media & Entertainment Group far exceeds that of others."

"On one hand, there is Huayi's film and television copyright library accumulated over decades."

"It's not just a few popular movies, but their massive content package that includes thousands of movies and tens of thousands of episodes of TV series."

"In Huayi's hands, this content has little potential for development and its value release is limited."

"But it's in Ali's hands!" Shen Mo raised his voice slightly.

"How much traffic and new members will this bring to Kudos and UC?"

"More importantly, the images, characters, props, and music of classic IPs can be used to develop endless derivative products, online experiences, and theme licensing."

"This is what true content as a product really means, and it's also the path that Alibaba excels at using to transform traffic and IP into commercial value, isn't it?"

Yu Yongfu's eyes lit up noticeably. The picture Shen Mo painted directly addressed Alibaba's ultimate goal for its digital entertainment division: to build a closed loop across the entire content production and consumption chain.

"And what's the second thing?" Yu Yongfu continued to ask.

"Secondly, it's Huayi's shell company."

Shen Mo spoke at a steady pace, yet each word was clear.

"Huayi's shell company is also a very important asset."

"Alibaba Pictures is newly established. If it follows the usual steps, it will take at least several years to successfully go public. However, if it directly acquires Huayi's shell..."

At this point, Shen Mo smiled slightly and continued speaking.

"More importantly, as the former first listed film and television company, Huayi's brand recognition and industry network can also provide considerable convenience for Alibaba Pictures to quickly enter the traditional film and television industry."

Zhang Qiang pondered for a moment, "President Shen's analysis is very compelling."

"What do those penguins, and you ink stains, want?"

"Huayi's shareholders aren't just the Wang brothers; there are also numerous celebrities and organizations. How do we get them to comply?"

"This is precisely the essence of the 'Partition of Jin'."

Shen Mo calmly replied, "If the three of us each get what we need and complement each other's strengths, the difficulty of success will be reduced."

"If a single company makes a takeover bid, not to mention Huayi, even artists might refuse."

"After all, on the one hand, they might offend the Wang brothers, and on the other hand, if they refuse Alibaba, they can still cooperate with Tencent, and if they refuse Tencent, they can still cooperate with Alibaba. If they refuse Mohen, they can simply not film my movies or buy my funds."

"However, they cannot afford the consequences of offending all three."

Shen Mo picked up his teacup, took a small sip, and then continued speaking.

"As for our needs, they are actually very simple."

"As for our needs, they are actually very simple."

"Mohen needs Huayi's cinema chain. This is a key step in perfecting Mohen's industrial chain, and it has the lowest overlap with Alibaba and Tencent's businesses."

"Tencent Pictures wants Huayi Brothers' production team."

"Alibaba Pictures, on the other hand, acquires film and television copyright library and control of A-share listed companies."

"The core strategic demands of our three parties are almost entirely unrelated."

"As for the operation..."

Shen Mo continued to explain his plan.

"We can jointly establish a special M&A fund."

"Taking advantage of the current volatility in Huayi's stock price, we will further exert pressure and drive down the stock price."

"After that, we contacted Huayi's major shareholders to provide them with an exit strategy."

"After gaining control, we restructured and split Huayi's assets, selling the cinema chain, production team, copyright library and other assets to the three of us respectively."

"Then, sell off substandard assets and clean up Huayi's shell resources."

Ultimately, Alibaba led the acquisition of Huayi Shell Resources, injected high-quality assets, and renamed it.

Yu Yongfu and Zhang Qiang began exchanging opinions in hushed tones.

Finally, Yu Yongfu raised his head and a smile appeared on his face.

"President Shen, your idea of ​​'dividing Jin into three parts' is very imaginative and bold."

"However, there are still two key issues here."

He leaned forward, his gaze sharp.

"Since the method is so simple, why doesn't Alibaba cooperate with Tencent alone, or even take it on its own?"

Shen Mo met his gaze without flinching, a meaningful smile appearing on her face.

"If it were Alibaba behind you, or Tencent behind Tencent Pictures, I wouldn't doubt it at all if you said you could take over Huayi Brothers on your own."

"However, I have my doubts about the cost you will have to pay to acquire Alibaba Pictures and Tencent Pictures, which have just been established."

"Moreover, if we can't get the ink marks, then we'll have no choice but to continue cooperating with Huayifang to help them overcome this difficulty."

Yu Yongfu nodded, his eyes narrowing slightly, a smile as cunning as a smiling tiger. "Isn't Mohen afraid of Alibaba behind us?"

Shen Mo nodded, "Of course I'm scared!"

"However, Mr. Yu, you might want to think about it from a different perspective. In essence, Mohen is still a financial and investment company."

"Even if we disregard the film and television sector, it's not a particularly devastating blow."

"You agree, don't you?"

Yu Yongfu remained noncommittal, slowly leaning back in his chair, while Zhang Qiang opened his mouth again.

"Another question is, how can Mr. Shen guarantee that after Mohen secures the theater chain, it won't turn around and hold us hostage in terms of content acquisition and film scheduling?"

"After all, cinemas are the end consumers, and they have a lot of say."

This was an extremely pointed question, but Shen Mo turned to look at Zhang Qiang, his tone frank and firm.

"Mr. Zhang's question is actually not difficult to answer."

"In fact, Huayi Cinemas currently only has 15 locations nationwide."

"What we at Mohen need is just the threshold of a cinema chain and the management talent within it. We don't know how long it will take before we can expand."

"That's why I believe Alibaba and Tencent won't compete with Mohen. After all, by the time we expand, your own cinema chain will probably already be up and running."

"Moreover, the foundation of Mohen is content production and investment. What we pursue is the integrity of the industry chain and the ability to resist risks, rather than becoming a monopolistic channel to exploit content providers."

"We will not do anything that undermines our own foundation."

"Of course, verbal promises are meaningless, after all, Stephen Chow is a prime example."

"We can sign a long-term strategic cooperation agreement to guarantee the scheduling of Alibaba content, and use this as the cornerstone of in-depth cooperation."

"President Yu, President Zhang, what do you think?"

The meeting room fell silent again, and the two senior executives from Alibaba Entertainment lingered on Shen Mo's face for a long time.

Finally, Yu Yongfu stood up, looked at Shen Mo, and extended his hand.

"Mr. Shen, it's a pleasure doing business with you."

"Let our teams work together as soon as possible to finalize the details."

Shen Mo grasped Yu Yongfu's hand and smiled slightly: "It's a pleasure working with you."