Chapter 305： 2 ways of cooperation

On an ordinary morning, Ronan met Reed Hastings and others in the Burbank Business Club.

I haven't seen it for more than two years. The wrinkles on Reed Hastings's face have deepened, and the hair on the temples is almost completely white.

Probably Netflix made Reed Hastings work hard.

Ronan decided to free Reed Hastings from Netflix's bitter sea as soon as possible, so that he would not have to worry about Netflix in the future.

"Hello, Mr. Hastings." Ronan took the initiative to stretch out his right hand: "I am Ronan Anderson, the president of Relativity Entertainment Group. We meet again."

Reed Hastings greeted Ronan with a handshake first, and then asked with some doubts: "Mr. Anderson, have we met before?"

Ronan smiled and said, "I met at a party in Hollywood more than two years ago."

Reed Hastings searched for memories, but couldn't remember it at all.

Ronan introduced him to the person who accompanied him: "This is Garcia Rodriguez. You already know it. This is Connie Hudson, my assistant."

Connie and Garcia shook hands with Reed Hastings.

Reed Hastings couldn't remember when he met Ronan, so he simply stopped recollecting and introduced the middle-aged man next to him: "This is Mark Randolph, my friend and entrepreneurial partner."

Ronan shook hands with Mark Randolph: "I've heard of you, a well-known operating genius in Silicon Valley."

"Mr. Anderson passed the award." Mark Randolph said with a smile: "Mr. Anderson is a genius. He has achieved such impressive achievements in Hollywood at a young age."

These days, Mark Randolph has also read various materials from Embassy Pictures and Relativity Entertainment, and has discussed this possible opportunity with Reed Hastings many times.

After a brief exchange between the two sides, they quickly entered the topic.

Reed Hastings has no time to waste. Time is very important to Netflix. Confirming cooperation early or reaching consensus in other aspects can also relieve him of this heavy burden.

After previous negotiations with Blockbuster, Reed Hastings has been ridiculed and slightly lowered his expectations.

Before Reed Hastings came over this time, he was ready with both hands.

After this period of time to understand the Embassy Pictures and its parent company Relativity Entertainment, Reed Hastings roughly analyzed the cooperation that Garcia Rodriguez promoted from his personal ideas to the company's investigation and contact, nothing more than There are two ways.

One is that the other party directly invests in Netflix, and the other is to buy Netflix.

The former is the most ideal way of cooperation. Not only can he obtain funds, he can continue to lead the development of Netflix.

In any case, this is his own child, even if it is Mark Randolph and his entrepreneurial team who really raised this child.

The latter is not unacceptable. After being rejected by Blockbuster, he wanted to open it. It didn't matter if he sold it to other companies. At least he could stop the loss and get him out of the current predicament.

Reed Hastings looked at Garcia and said first: "Mr. Rodriguez, when we met last time, you said that you want to cooperate with Netflix. May I ask..."

Garcia smiled and said: "We really want to cooperate with Netflix. We have conducted a preliminary inspection of Netflix and reported to the head office. The head office believes that Netflix's channels are an effective supplement to the distribution around the Embassy Pictures. ."

Hearing this, Mark Randolph frowned slightly. The other party obviously didn't pay enough attention to Netflix, and seemed to use Netflix as a supplementary channel for film distribution.

Compared to Reed Hastings, Mark Randolph was the one who formed the Netflix entrepreneurial team, and created Netflix with one hand, and developed it. He has an extremely deep affection for Netflix.

Reed Hastings was only in charge of funds at first, and did not really intervene in Netflix's business until the end of 1999.

Garcia looked at Ronan and said: "The head office attaches great importance to my cooperation proposal, so Mr. Anderson wants to talk to you personally after learning about the situation."

Ronan certainly does not say how broad the future prospects of Netflix are. Following Garcia’s words, he said according to the plan: “My Relativity Group integrates film production and distribution. Distribution is the key to it. Netflix’s Internet leasing business can further improve my distribution channels."

Reed Hastings can hear that Relativity Entertainment is interested in Netflix, but it seems that there is a question mark about this interest.

"Mr. Anderson." Mark Randolph couldn't help but interject: "Netflix's business model represents the future with unlimited potential!"

Ronan looked at the actual founder and operator of Netflix, and said, “I'll be honest, Mr. Randolph. For Hollywood and film companies, Netflix’s rental and sales business is just a part of many channels around movies. One kind."

Mark Randolph subconsciously wanted to refute, but he didn’t know what to say, because Ronan said that there is no problem at all. Netflix’s business is indeed just one of the sales channels around many movies. Kind.

Reed Hastings gave Mark Randolph a look, motioned him to stay calm, and said: "So, Mr. Anderson's interest in Netflix is ​​mainly to complement the film distribution channels."

Ronan nodded: "Yes. Relativity Entertainment started late in Hollywood and is currently improving various distribution channels." He kept lowering his expectations: "I have always looked forward to the booming Internet. I was at the party two years ago. When I met Mr. Hastings to promote Netflix, I also talked with you about the possibility of cooperation."

Reed Hastings looked at Ronan, as if a young man had talked to him about working with Netflix. Could it be Ronan Anderson?

But at that time, he didn't pay attention to it at all, completely ignored the existence of the other party, and the memory left was too weak.

Ronan continued: "Unfortunately, Mr. Hastings refused at that time. Relativity Entertainment was also in the entrepreneurial stage. I did not have the energy to take care of other things. Since the beginning of this year, the company has gradually entered the right track. I have also considered Internet channels and prepared to let Embassy Pictures The original plan to establish an Internet distribution department has fallen on paper. I did not expect Garcia to recommend Netflix to me."

He appeared to be particularly sincere: "I specifically asked Netflix to conduct a preliminary investigation. If Netflix can become an Internet distribution channel for Relativity Entertainment, I don't need to establish a separate online distribution department."

The underlying meaning of this remark is very obvious. If we can't cooperate, Relativity Entertainment will continue its original plan and establish a network distribution department.

Reed Hastings did not seem to understand: "Netflix is ​​currently the largest Internet video rental company in the United States, and it is more than enough to meet your company's requirements."

"That's good." Ronan didn't seem to care about the other party's boasting: "We naturally have the basis for cooperation."

The information held by the two parties is completely unequal. Ronan knows exactly about Netflix's internal situation, and what Reid Hastings knows is only the public information of Relativity Entertainment.

Reed Hastings had no idea about Ronan's plan that had been in his mind, a takeover meeting involving only five people.

In order to wait for the best opportunity now, Ronan has planned for more than two years and prepared for more than two years. Of course, it is not what Reed Hastings can compare to when he has just contacted Relativity Entertainment.

Reed Hastings went straight to the crux of the problem: "In what way do you want to work with Netflix?"

Mark Randolph also raised his ears. The best way to cooperate is undoubtedly to inject capital from Relativity Entertainment without interfering with Netflix's operation and management.

In other words, Netflix actually belongs to Reed Hastings and him... No, it belongs to Reed Hastings.

After Reed Hastings fully intervened in Netflix’s business in 1999, he was first demoted from chief executive officer to co-executive officer, and then to president of operations. The entrepreneurial team created by Reed Ha Stings swept up and down.

If it wasn't for the reluctance of Netflix, and the personal friendship with Reed Hastings, perhaps he had already left Netflix.

At present, he and Reed Hastings have a clear division of labor. Reed is in charge of major policies such as corporate decision-making and funding, while he is responsible for the daily operations of sales and the website. Apart from friendship, the power structure has also been temporarily balanced.

Reed Hastings asked directly, Ronan didn't go around in circles, saying: "If you want to cooperate with Relativity Entertainment, Relativity can provide two ways of cooperation."

"Please speak." Reed Hastings has always been calm.

Ronan said calmly: "The first type is that Relativity Entertainment injects capital into Netflix, obtains absolute controlling rights in Netflix, and reorganizes Netflix’s board of directors. Of course, the two can keep no more than 10% of Netflix’s shares and continue. Staying at Netflix will broaden this film distribution channel."

Reed Hastings's heart is sinking. Injecting capital is the most ideal way of cooperation, but this method of capital injection is not what he wants.

How is this different from selling Netflix? So if you order shares and reorganize the board, what right to speak of?

Ronan looked at Reed Hastings, knowing that what he just said was just the most ideal plan. It could not only take ownership of Netflix, but also let Reed Hastings work for him...

But after all, this is just the assumption that Reed Hastings, a hardline company leader, 80% will not become someone who works for him.

If Netflix’s cake is a few years later, even a single-digit share is enough to keep Reed Hastings at Netflix.

The current Netflix plate is too small.

Ronan is also testing, it's best to keep Reed Hastings, if not, forget it.

Reed Hastings is good at capital mobilization and company development decisions, not Netflix's internal operations.

From the inception of Netflix to the present, Mark Randolph has been in charge of operations.

"What about the other one?" Reed Hastings asked.

Ronan said directly: "Relativity Entertainment acquired Netflix in its entirety."

./book_

.. m.