Chapter 308： Wholly-owned acquisition

With previous experience in the acquisition of Embassy Pictures, Ronan quickly convened an acquisition evaluation team of nearly 30 people composed of professional lawyers, accountants and third-party agency companies to assist Relativity Entertainment to complete its relationship with Reed- Negotiations and transactions between Hastings on Netflix.

In the Burbank Business Club, the two parties also started the first round of negotiations.

"Relativity Entertainment cooperates with Netflix by injecting capital, which is most appropriate."

On one side of the long conference table, Reed Hastings tried his best to gain favorable conditions for himself: "This will ensure the stability of Netflix and allow the Netflix management team to assist you in a smooth transition."

He glanced at Ronan who was opposite: "Mr. Anderson, Netflix's management team is the one who really understands this company!"

Ronan nodded, apparently agreeing with Reed Hastings' words: "No matter which way we cooperate, Relativity Entertainment will do everything possible to ensure the stability of the Netflix management team."

Reed Hastings calmly asked, "So, do you agree to cooperate through capital injection?"

Ronan said calmly: “It’s okay to cooperate by injecting capital.” He smiled: “I also think that Mr. Hastings will continue to serve as CEO of Netflix, and Mr. Randolph will continue to serve as chief operating officer. The team remains stable."

"We have a completely unanimous view on this." Reed Hastings took the opportunity to say: "Relativity Entertainment's investment in Netflix will be a win-win result."

Ronan also wants to continue trying to keep Reed Hastings. Although Mark Randolph was the most important operator in the early stage of Netflix, the importance of Reed Hastings to Netflix is ​​not stated in the previous life. Yu.

If Reed Hastings is willing to work for Relativity Entertainment, it would be great.

"If Relativity Entertainment injects capital, how many shares can you give up?" Ronan asked the key.

Reed Hastings said directly: "Forty percent." He emphasized: "For the stability of the company and the decision-making power of the management team, the management team needs a controlling stake."

Garcia glanced at Ronan and interjected: "Mr. Hastings is trying to swallow all the benefits, and put all the risks to Relativity Entertainment!"

Ronan has conducted long-term investigations on Netflix. Of course, he knows that, except for Mark Randolph's very small share, the rest is almost entirely concentrated in the hands of Reed Hastings.

The remarks just now can be said that Reed Hastings wants to ensure the stability of Netflix's management team, or it can be said that Reed Hastings wants to continue to have absolute control of Netflix.

For Ronan, investing in Netflix is ​​completely different from investing in Apple. The latter is purely for asset preservation and appreciation, while the former is an extremely important part of the company's future development. He cannot let Relativity Entertainment follow Reed Haas Tins hit soy sauce behind his ass.

Although there is no other way, he does not want to complicate this acquisition infinitely.

It is very important to maintain the right to speak in relativity entertainment.

Ronan just thought about it, and said: "Mr. Hastings, I said before that if Relativity Entertainment cooperates with you by way of capital injection, then absolute controlling rights are necessary."

He emphasized: "This is a prerequisite!"

Without controlling rights, there is no need to talk about capital injection.

Reed Hastings looked gloomy, and returned to normal in an instant: "In this case, the stability of the management team will be impossible to talk about."

Ronan knows very well that with Netflix’s current situation, after losing control, Reed Hastings will leave Netflix ninety-nine times, but it is difficult for the rest of the management team to say.

Ronan knew more about the internal situation of Netflix than Reed Hastings thought.

Reed Hastings had no idea, he had been preparing for Netflix for several years.

In fact, more people within Netflix recognized Mark Randolph, who was in charge of the company's operations, rather than Reed Hastings, who later intervened strongly in the company's business.

According to Netflix's internal statement, the founding of Netflix was originally the idea of ​​Mark Randolph. In the early days of Netflix's establishment, Mark Randolph had been the CEO. It was he who planned the future of Netflix and promoted the company's growth.

And Reed Hastings first played the role of investor and investment.

If you develop according to the rhythm of the past life, within a few years, the friendship and cooperation between Reed Hastings and Mark Randolph will come to an end. Just when Mark Randolph is working hard for the future of Netflix, Reed -In order to completely control Netflix, Hastings relieved Mark Randolph from his position and drove him out of the company.

Later, the name Mark Randolph became taboo in Netflix, and Reed Hastings forbids anyone to mention it.

The effect of this long-term de-Marc Randolphization is obvious, even more than Mark Zuckerberg’s on Facebook. After 2010, everyone mentions the founder of Netflix and only knows Reed Hastings. .

Most of them think that Reed Hastings created Netflix alone and led Netflix to overcome the difficulties and obstacles of the early and mid-term entrepreneurial development stages. It is not clear that there is another person.

Ronan completely gave up the idea of ​​injecting capital, and in his heart also gave up the possibility of retaining Reed Hastings in the future, and said directly: "There is no need to talk about capital injection. Mr. Hastings, Relativity Entertainment's wholly-owned acquisition of Chennai Flying company."

Hearing this, Reed Hastings flashed a trace of disappointment and helplessness in his heart. If Relativity Entertainment is only registered and he can still hold the holding, there will always be a way to marginalize Relativity Entertainment and continue to control Netflix, even luck. If it is good, not only can we use the funds of Relativity Entertainment and the film platform to develop Netflix, we can also kick Relativity Entertainment out of the game in the future.

But Ronan Anderson, the young man, was very decisive, and he didn't seem to give him a chance at all.

Reed Hastings is still fighting for it as much as possible: "This type of cooperation may lead to instability of Netflix's management and a period of chaos, which neither you nor I want to see."

Ronan replied faintly: "With the development of relativity entertainment in the film industry, it is not difficult to manage a peripheral channel."

Reed Hastings felt a throb in his heart when he heard this. He thought of the situation in the last interview. In the eyes of Relativity Entertainment, Netflix was just a substitute for the original plan.

The treasures in your own hands are not irreplaceable in the eyes of others.

Reed Hastings understood this when he was rejected by Blockbuster and met with ridicule on the spot.

Mark Randolph looked at Reed Hastings, trying to get Reed Hastings to fight again.

But Reed Hastings has seen the other party's determination, and Relativity Entertainment's future plans for Netflix have no need for their own existence.

And he didn't want to change from a top manager of the company to a managed one.

Netflix can sell a large sum of money, and after paying off the loan, it is enough to ensure that he still has money to continue his business.

There is a saying that I would rather be the head of a rooster than the tail of a phoenix.

Almost every manager who has been at the top of the company will have similar ideas.

Reed Hastings is no exception. He never considered working for Relativity Entertainment.

It is impossible to work, and it is impossible to work for someone in this life.

In Mark Randolph's slightly surprised gaze, Reed Hastings said: "I can accept your wholly-owned acquisition of Netflix."

He has tried his best to provide blood transfusion for Netflix for many years.

A good life needs to be maintained, loans need to be repaid, and the next venture fund has not yet arrived...

In front of money, everything else is imaginary.

Ronan was still calm and said, "Very well, we now have a basis for continuing to talk."

At the beginning of the negotiation, he was able to reach a consensus on the acquisition method, which has made Ronan quite satisfied.

Ronan was most worried about the fact that Reed Hastings did not let go.

But Reed Hastings is a businessman after all, and his first consideration is gains and losses.

Like all company mergers and acquisitions negotiations, the speed of the negotiations is not fast. In the first negotiation, the two parties only reached a consensus on the acquisition method.

It is never easy for one company to acquire another company.

For some large-scale acquisitions, it is common to talk about a year or two or even longer.

For example, in the previous life, Walt Disney acquired Twentieth Century Fox.

Fortunately, Netflix's business is relatively monotonous, and the company structure is not complicated. The evaluation team of Relativity Entertainment is very fast. In addition, Ronan has already made sufficient preparations. By mid-November, the evaluation team submitted to Ronan. Netflix's assessment report.

This also means that the negotiation between Relativity Entertainment and Netflix can enter the actual operation stage.

After all, after Reed Hastings agreed to a wholly-owned acquisition of Netflix by Relativity Entertainment, there was only one key factor that really affected the discussion.

That is the price.

Of course Reed Hastings wants to sell Netflix for a good price Ronan has also done enough preparations. Reed Hastings previously wanted to sell Netflix for $50 million. Fei was sold to Blockbuster. This incident has gradually spread. According to his estimation, Reed Hastings's asking price cannot be higher than 50 million US dollars.

From the perspective of future development, the $50 million transaction price is very cost-effective.

Even from the start of the business to today, Netflix has spent far more than US$50 million in funds. To evaluate the team’s estimate, Netflix actually invested at least US$80 million in addition to its own income.

But Ronan is still ready to lower the price, because the current Netflix is ​​not worth the price.

As a businessman, of course, you have to buy the most ideal goods at the lowest price. Netflix's future has not happened yet, and it is generally not recognized now. Ronan certainly will not pay for the so-called unlimited future development.

Since it is possible to win Netflix at a lower price, it is a problem if the price is not lowered.