Chapter 337： 3 hands ready

After Robert Lee and Stuart Coleman made several contacts, Ronan and Mark Randolph came to Los Angeles and went directly to the REO company near the University of Southern California.

Walking into the office of this company, Ronan observed secretly, just looking at the old office environment, Ruiou seemed to be worse than Netflix.

He had known for a long time that Ruiou, a company that had not acquired Netflix, would have people conduct market research specifically, and had no idea that they had set up a website similar to Netflix.

Ronan was originally engaged in film and television and peripheral industries, and the company's various market surveys have never stopped. Even people in the industry have never heard of him. It can be imagined that the business volume of the Ruiou website is too small.

Led by the secretary, Ronan entered a reception room with Robert and Mark Randolph.

"Please wait a moment." The secretary said politely: "Mr. Coleman is on the phone and will be here soon."

Ronan smiled: "It's okay."

Mark Randolph has been shopping malls, and said softly: "This company is a bit like Netflix."

Robert Lee nodded slightly, then whispered: "My initial contact with Stuart Coleman was not smooth."

Ronan said calmly, "Wait a while."

The appraisal team of Relativity Entertainment conducted a preliminary assessment of Ruiou. The operating conditions of Ruiou are quite poor, especially the huge investment into the Internet video tape rental business, which did not bring much return at all.

Netflix’s registered users are more than ten times that of REO, and they use DVD, a video medium that costs less than video tapes. It’s not difficult to guess the performance of REO by looking at Netflix’s status.

Ruiou's biggest assets are the chain stores in Southern California and the lease and sale rights of 18,500 films and TV works.

The sound of footsteps sounded, and then the door was pushed open from the outside. A middle-aged man wearing glasses walked in and saw Ronan and the three people. He quickly said apologetically: "Sorry, I have a phone call temporarily. waited."

Robert has had several dealings with Stuart Coleman and immediately introduced both sides.

Since the two sides have already contacted several times, after a simple greeting, they immediately entered the topic.

"Mr. Anderson." Stuart Coleman asked directly: "Does your company want to acquire my Ruiou?"

Since the other party asked this, Ronan did not have to deny it: "I am very interested in your company."

Stuart Coleman laughed suddenly and said casually, "Why are you all interested in my company?"

Ronan heard the meaning of the words: "Apart from us, are there other companies that want to acquire Ruiou?"

"Yeah." Stuart Coleman seemed to be a particularly straightforward person: "Hollywood Video has been in contact with me since the end of November, and wants to package and buy my company."

Mark Randolph frowned insignificantly. This sudden accident made him subconsciously feel that the acquisition might be troublesome.

Ronan looked at Robert, and Robert Lee waved his hand gently, indicating that he hadn't found this information before.

But Stuart Coleman dared to say so. Ronan believes that it is definitely not a mere lip service. It is probably the secret talks between Hollywood Video and Stuart Coleman, and the news has not spread at all.

Stewart Coleman looked like a careless, very direct kind of person, and asked without turning: "Mr. Anderson, at what price do you plan to acquire Ruiou?"

Ronan said, "Of course it will be a price that satisfies Mr. Coleman." He then asked, "Mr. Coleman is willing to sell Rio?"

"Of course." Stuart Coleman said: "I am a businessman, as long as the price is right, the company is also a commodity."

Ronan remained silent, but he was a little relieved. In fact, the most worried situation is that he would not sell anything. As long as he is willing to sell, even if there are real competitors, it is ultimately a matter of price.

Stewart Coleman reminded: "Mr. Anderson, if you are sincere in acquiring Ruiou, you'd better speed up. I may reach an agreement with Hollywood Video at any time."

Ronan is also worried that what the other party said is true. Once a situation arises on Ruiou's side, he must adopt a backup plan of negotiating with Blockbuster or directly obtaining copyright from the film company.

The price paid may be even greater.

But he will not show it, his expression is still very calm, and said: "My evaluation team is evaluating your company..."

Before Ronan finished speaking, Stewart Coleman interrupted: "In fact, I personally really want to cooperate with Relativity Entertainment and Netflix. Netflix’s business model is also my ideal and goal. I am on the Internet. One piece was unsuccessful, but I always believe that Internet leasing has broad prospects. If Ruiou merges into Relativity Entertainment and develops together with Netflix, it can also represent my goals and wishes."

These words are full of emotion, as if to say an entrepreneur's infinite love and affection for the company.

Ronan listened carefully to these bullshits and didn't believe a word.

Stuart Coleman added: "From my personal point of view, since I sell the company, of course I will find a suitable next home. You are the most ideal target."

Ronan seemed to be very serious and replied: "Relativity Entertainment is very sincere and the most suitable company for Ruiou."

Stewart Coleman was still straightforward, he sighed a long sigh, patted the sofa lightly, and said with countless helplessness, "But I have to be responsible for the shareholders of the company and also for The employees are responsible, and the price is a factor I must consider."

Ronan knew that the topic was coming, looked at Stewart Coleman, and waited patiently.

Stuart Coleman said: "Hollywood Video has talked to me for a long time and has already bid $80 million, but I didn't agree."

Ronan didn't care about anything else, but his previous attitude: "Mr. Coleman can rest assured that Relativity Entertainment will definitely sell you a price that is satisfactory."

Stuart Coleman said with a smile: "I believe in your sincerity. Relativity Entertainment and Netflix have unlimited prospects, and they will definitely bring a better future to Ruiou."

This is as if the two sides have reached an agreement.

Ronan is very clear that there is no need to talk about it today, and said: "Mr. Coleman, Relativity Entertainment must go through the evaluation process. When the evaluation is over, we will officially start negotiations." He specifically said: "Please also ask for a little while Wait a few days."

Stuart Coleman stood up and shook hands with Ronan: "I hope the time is not too long."

Ronan replied, "It won't be very long."

Stuart Coleman said: "Then I am waiting for your good news."

Hollywood Video’s contact with him, even including the $80 million bid, was all true. If Robert Lee had not contacted him on behalf of Relativity Entertainment before, as long as Hollywood Video added some chips, it would sell Ruiou.

but now……

The competition between the two companies may bring him more benefits.

Go back and talk to Hollywood Video about relativity entertainment. The negotiations with Hollywood Video can also reveal more information.

Regardless of which party the company is sold to, Stewart Coleman must first ensure the interests of himself and the shareholders.

Ronan, Robert and Mark Randolph left REO and went to Bentley Yazhi together.

"It's an oversight in my work." Robert Lee sat in the co-pilot and said, "I didn't notice the contact between Ruiou and Hollywood Video."

Ronan shook his head: "It has nothing to do with you. If they are in private contact, it is normal for us not to notice."

Mark Randolph asked: "Is what Stuart Coleman said true?"

"This kind of thing shouldn't be fake." Ronan said to Robert Lee: "Check it out. Now that Stuart Coleman told us about this, he will contact Hollywood Video later. Relevant news will definitely be released to the outside world."

Mark Randolph nodded, and said, "He wants the two companies to compete."

Ronan thought for a while and said, "First explore some specific situations, and then adjust the plan according to the situation." He is very clear about one thing: "We may pay a higher price than expected."

If Hollywood Video’s intention to acquire is extremely strong, it may even lead to bidding for the two parties.

In this way, Relativity Entertainment is very likely to pay 20% to 30% higher than the actual value of Ruiou, or even more funds.

Robert Lee reminded: "If the funds exceed the budget too much, it may affect the cash flow operation of Relativity Entertainment."

Mark Randolph did not answer the conversation. As a latecomer, he should not speak for the time being on the issue of the head office.

This matter is more complicated than expected, but Ronan has also made alternative plans before, and with the increase in capital in his hands, it is not too difficult.

"We are now preparing three-handedly Ronan said directly: "Robert, you will investigate the contact between Hollywood Video and Ruiou as soon as possible, and keep in touch with Ruiou. I will mobilize funds and do the worst. Intended to bid for acquisition with Hollywood Video. "

Both Robert and Mark Randolph knew that this was the least ideal situation.

Ronan continued: "In addition, be prepared to talk directly with Hollywood studios about DVD purchase and copyright authorization."

"Embassy Pictures has the ability to print and distribute DVDs." Robert reminded: "If we buy directly from other film companies, we may pay even more."

Ronan sighed: "Without copyright, there is no way to print DVDs." He added: "Embassy Pictures has a business relationship with Hollywood Video. Ask them to contact Hollywood Video to see what Hollywood Video's appeal is for acquiring Ruiou. "

"Okay." Robert Lee finished speaking and reminded again: "There is still money."

Ronan said: "If there is a bid, I will find a bank loan."