Chapter 711： pour cold water on

In the past year, the most important department that Dunn paid attention to was the Interactive Entertainment Department.

Not only Netflix, but also Blizzard, Dolby Laboratories, imax, and Rotten Tomatoes are all concerned by Dunn. And that's not counting the new company he helped create, Facebook.

However, at the end of the year, the performance of the Interactive Entertainment Department...is a bit appalling.

The other three departments have exceeded their expected goals and completed their tasks with high returns.

The film and television entertainment department, with a revenue of US$12.35 billion, exceeded the target by 30%, and a pre-tax profit of US$3.08 billion;

Television and Media Division, with revenue of US$5.63 billion, exceeding the target by 12.6%, and profit before tax of US$1.43 billion;

Travel, Vacation and Consumer Goods Division, with revenue of $2.92 billion, exceeding the target by 16.8%, with a pre-tax profit of $630 million;

What about Interactive Entertainment?

At the beginning of the year, Interactive Entertainment's revenue target was $4 billion...

The results, combined at the end of the year, were 12.2% lower than expected at $3.51 billion.

Mainly, Houghton Mifflin Press was sold, missing nearly $1 billion in revenue.

But profit...well, a net loss of $260 million.

Most of the technology companies under the Interactive Entertainment Department, including Blizzard, Netflix, Dolby Laboratories, and imax, spend a lot of research and development funds.

This year, the interactive entertainment division spent as much as $1.8 billion on research and development.

After Facebook is created next year, the R&D expenses will only increase further.

The road to profitability of the Interactive Entertainment Department has a long way to go!

Dunn frowned as he looked at the slightly stiff scene in the conference room. He didn't like this "mercenary" company atmosphere.

What happened to the interactive entertainment department at a loss?

This is paying for the future!

New Universal Group wants to become the world's top big company, ranking in the top ten or even the top five. No matter how good the performance of the film and television entertainment department, the television media department, and the tourism, vacation and consumer goods department is, there is no chance.

This kind of unimaginative traditional enterprise will have steady performance growth, but it has lost the possibility of creating miracles.

Even the sta TV network with the best potential seems to have created an unrepeatable legend in the TV industry.

However, so what?

This is also just a legend in the TV industry.

Can it be compared to Netflix?

Netflix creates a new world!

In the previous life, when hbo was at its peak, the value was about 22 billion US dollars.

But what about Netflix? $100 billion, $200 billion is not a problem!

What kind of achievements will Netflix achieve in this life, backed by New Universal?

The three traditional business departments support New Global's current leading position in the industry.

However, this sphere of influence is also within the Hollywood and entertainment circles.

If New Universal Group wants to break out of the blockade and become the world's top company that keeps pace with Apple, Google, and Microsoft, the biggest reliance is the Interactive Entertainment Department!

Making money is important, making money is important.

However, the future is more important!

This is also the reason why Dunn put a lot of energy into the Interactive Entertainment Department in the past year.

Dunn clapped his hands, he did not allow everyone to look at Kevin Turner with that kind of contempt.

"Everyone has seen the report, and congratulations! In the past year, New Universal Group's revenue was 24.18 billion US dollars, and its EBIT was 4.89 billion US dollars. According to preliminary statistics, the net profit can reach 3.5 billion US dollars, which is a great achievement. !"

At the beginning of Tang En's concluding remarks, there were rounds of applause from the executives in the conference room.

It's definitely a big deal!

During the year, New Universal acquired some assets and sold some assets.

Not counting the two ongoing transactions involving the sale of Siliwood Animation and the acquisition of Discovery Communications, the New Universal Group has a deficit of US$4.28 billion in the process of asset sales and acquisitions this year.

The balance of cash flow in 2002, there are 2.8 billion US dollars, this year, an additional debt of 1 billion US dollars.

That is to say, the gross profit of $4.89 billion, after deducting debt interest and taxes, if it can really reach $3.5 billion, then by next year... the cash flow on the book of New Global will be as much as $3 billion!

All of you here are shareholders of New Universal.

$3 billion in cash flow is everyone's money!

Excited to think about it!

Tang En waved his hand, immediately poured cold water, and said, "Everyone has overfulfilled their tasks this year, but this does not mean that our cash flow pressure is gone. In the next two months, we will complete two major transactions, and everyone will also We all know that one is to sell Siliwood Animation to Disney, and the other is to acquire Discovery Media. We will have a deficit of $1 billion in these two asset transactions. In addition, this year, in order to acquire MGM, EMI, Rotten Tomatoes, etc. Assets, we are responsible for an additional US $ 1 billion. The debt of US $ 9 billion may not be a big deal for the size of New Global, but we must guard against small growth!"

Bill McNick suddenly said: "The debt of 9 billion US dollars is only. If there is no delay in the interactive entertainment department, it will be completely paid off in less than three years."

The expressions of everyone in the conference room changed slightly.

Who doesn't know that the Interactive Entertainment Department is the big baby in Dunn's heart?

Sure enough, Dunn's face sank.

Bill McNick is the entrepreneurial old man of Dunn Films. This year, he led the film and television entertainment department to create a revenue miracle. It is inevitable that he is a little floating, and he said what he has always thought in his heart——

"Tang En, as long as New Universal is based in the film and television entertainment industry, that's enough! We have movies, TV, TV stations and music records, as well as the increasingly important theme parks and consumer goods businesses. In just a few years, we have We have established a firm foothold in Hollywood, and we have even achieved the largest volume in the industry! We have found the right direction, there is really no need to close our eyes and fumble, we can draw a clear sphere of influence."

As soon as these words came out, the meeting room became surprisingly quiet.

The silence is a little disconcerting.

I have to say that Bill McNick's remarks have spoken the hearts of many people.

New Universal has found the right direction to move forward, which is to focus on the content of film and television entertainment and develop derivative industries with stable income, such as TV stations, consumer goods, theme parks...

Is it necessary to continue to explore new directions despite the risk of losing money?

All of them are smart people. They all know that the reason why Tang En attaches great importance to the interactive entertainment department is to find more development paths, so that New Universal's position in the industry can stand firm and be as stable as Mount Tai.

But is this necessary?

New Universal’s films have already occupied one third of the North American box office market; New Universal’s TV programs have occupied mainstream TV stations such as nbc, abc, and fox; New Universal’s theme parks have become more and more famous and more profitable. Gao, chasing Disney in a straight line; New Universal's TV station, headed by starz, has created a myth...

It's already very stable!

"Who agrees with Bill's statement?"

Dunn remained calm and looked around at everyone.

Everyone is honest.

Bill McNick is an entrepreneurial veteran who dares to question Dunn in person, but do they dare?

In front of Dunn, even Barry Diller should be careful.

Tang En smiled and waved his hand, "Let's put it another way, who supports the interactive entertainment department? Or... Who thinks that even if it keeps losing money and money, it will promote the development of the interactive entertainment department?"

Kevin Turner looked solemn and was the first to raise his hand.

Immediately afterwards, several directors of the interactive entertainment department also raised their hands.

Tosca Musk, the assistant to the chairman, also raised her hand. As the most beautiful woman in the conference room, her raised hand attracted the attention of many people.

Immediately, John Rust, CEO of Pixar, raised his hand, Bob Chapek, President of Travel, Vacation and Consumer Products, raised his hand, and Roy Price, President of Sta TV Network, raised his hand, Universal International Distribution Company. The CEO of West Cotton raised his hand, and Ted Sarandos, the president of Universal Television, raised his hand...

Finally, the third-in-command and president of New Universal, Robert Iger, also slowly raised his hand.

Dunn gave secretary Ella Fisher a look.

She understood and immediately lowered her head, taking note of the people who raised their hands.

Executives who can recognize the importance of the interactive entertainment department are undoubtedly ambitious, ambitious, and ambitious. Even if some people have speculative ideas to exploit loopholes, it doesn't matter.

These people will definitely be reused in the future.

Speculation is also an ability!

"Bill, for you, what is the most important thing about a business?" Dunn made a downward gesture and asked with a smile.

Bill McNick blurted out without thinking: "Profit!"

"Is it profit?"

"Only when an enterprise creates profits can it create wealth for the society and be recognized."

Bill McNick's remarks were recognized by most of the people in the conference room.

Even Kevin Turner is nodding.

Dunn was speechless.

It's 2003, traditional economic thinking still occupies the commanding heights, and Internet thinking...isn't popular enough.

But then again, it is precisely because the Internet thinking is not popular enough that I am afraid that companies such as Yahoo, Google, Amazon, and Facebook have the opportunity to be born.

Tang En cleared his throat and said: "The traditional economic model believes that companies must be profitable before they can be recognized. This is not wrong. However, this is just the traditional economy. Have you not seen the competition between Blockbuster and Netflix? Emerging The collision of the Internet thinking and the traditional economic model is a one-sided slaughter!"

"That's because Netflix has the support of New Universal!"

"Wrong! Even if there is no New Universal, Bestda will definitely not be Netflix's opponent! However, with the backing of New World, Netflix will solve Bestda earlier!"

Bill McNick shook his head immediately: "Netflix is ​​just an example."

"An example?" The corners of Dunn's mouth twitched, with a deep and complicated expression, "Now, the outside world says that our starz TV station is a monster and has created a miracle in the cable TV industry. Then I have a question, if one day, the network speed is really high. The breakthrough of Netflix, the rise of online video, the competition between Netflix and starz, who will win?"

All the smart people in the room immediately thought of something and were stunned! I want to chat with more like-minded people about "Hollywood", WeChat pays attention to "Youdu Literature", chats about life, and finds confidants~

(Sanqi Chinese)