Chapter 339： 2 benefits

"Hello, Mr. Anderson."

In the meeting room of the Burbank Business Club, Marquez Perlman and Ronan shook hands gently: "I have heard of Hollywood's youngest billionaire. I didn't expect it to be younger than I thought."

Ronan responded politely: "It's nice to meet you." He invited: "Sit down."

From the perspective of the acquisition of Ruiou, the two are competitors, but neither of them showed emotions that they should not have, and it is impossible to say what kind of development will happen in business matters.

Moreover, the previous tentative contact between the two parties also helps to understand each other.

With a few words of greeting, Ronan went directly to the topic: "Hollywood Video intends to acquire Ruiou?"

This time I came here to try to solve the problem. Marquez would naturally not deny: "In fact, we started talking in November. If it weren't for the sudden appearance of Relativity Entertainment, we had reached an agreement with REO."

Ronan could hear that it was Marquez's suggestion that Relativity Entertainment was not too particular about it, and he suddenly intervened in the acquisition of Hollywood Video.

According to his analysis, there is a possibility of cooperation between the two parties, and there is no need to confront each other. Ronan asked: "You and Stuart Coleman are in secret contact in private, right?"

Marquez just thought about it for a moment and understood Ronan's meaning, and said: "Yes, of course this kind of thing must be kept secret."

Ronan slightly stretched his hands: "So, when Relativity Entertainment contacted Stewart Coleman, he didn't know that Hollywood Video was acquiring REO, otherwise there would be no such troubles."

He immediately brought the topic to the common opponent: "This also led to Stelt-Pellman to use our willingness to buy as capital to raise the price."

Marquez said faintly: "Stert Perlman, who seems to be a refreshing person, is actually very clever."

"I feel the same way." Ronan has only experienced this once in contact: "Therefore, we don't have to be competitors and let Stuart Coleman profit from it."

Marquez took a look at Ronan and said first: "The acquisition of Ruiou is related to the development plan of Hollywood Video. We cannot give up."

Ronan said calmly: "Rio is also the key to the next development of my newly acquired company Netflix."

After saying this, the atmosphere in the reception room suddenly became a little nervous.

Both parties refused to give up and could only evolve into competitors.

Ronan took the lead in breaking this atmosphere and said: "Mr. Perlman, can you ask a question?" He said so, but before Marquez agreed, he asked directly: "I have been from your company. Some analysis of operation adjustments and financing have led to a guess about REO. The purpose of your acquisition of REO is that they have chain stores in Southern California, right?"

Marquez didn't answer right away. After considering it for a while, he nodded slowly: "You can say so."

Hearing this, Ronan said immediately: "I have no interest in Ruiou's chain stores."

"What?" Marquez was quite surprised.

In the eyes of Hollywood Video, this is REO’s most valuable asset.

The heavy assets have no meaning for Netflix. Ronan cannot let Netflix run offline video rental business.

Isn't that putting the cart before the horse?

Marquez then asked: "Why do you want to buy Ruiou?"

Ronan didn't go around the circle, and said with temptation: "Rio has 18,500 film and television works, including Hollywood, for rent and sale rights."

Hearing this answer, Marquez's heart relaxed a little.

Ronan glanced at him and said, "Mr. Coleman, in my opinion, we have no conflict or competition in acquiring Ruiou."

Marquez had already thought about it based on Ronan's answer just now.

Ronan continued: "The scale of Hollywood video far exceeds Ruiou, and the film library is only a lot more than Ruiou."

Marquez already fully understood Ronan's meaning at this time: "Do you want to split out the film library of Ruiou in the acquisition?"

"That's right." Ronan added a slight tone: "Your company's wholly-owned acquisition of REO, Stuart Perlman will not separate the film library? This is a completely unnecessary expense. If you split it out, Hollywood video can be saved."

Marquez lightly tapped his finger and said: "What you said makes sense." The two sides have found a consensus, and he simply said: "The acquisition of all assets of REO at one time is the premise of this transaction."

Ronan smiled and said: "This can save Hollywood video tens of millions of dollars. First, without competitors, Stuart Coleman can't charge high prices. Second, the copyright fees for 18,500 film and television works are paid by Netflix. To pay."

Netflix can also save a lot of money, because store assets are of no use to Netflix.

"Are you really not interested in Riou's chain stores?" Marquez confirmed again.

Ronan vowed to say: "I can guarantee this. Netflix is ​​doing Internet leasing business and has never planned to enter offline chain stores."

Marquez said: "Relativity Entertainment and Hollywood Video have a multi-party business cooperation. There is really no need for a small company like Ruiou to evolve into a competitor, so that others can be effective."

Ronan once again said: "That's what I mean." He further said: "We can join forces, sign an agreement in advance, and then complete the acquisition in the name of a company, and then split according to each other's needs after the acquisition Take what you need."

Marquez thought about it carefully and said: "This is a way, but Mr. Anderson, I need to report the relevant situation to the company's board of directors, and I can't give you an answer immediately."

Ronan basically achieved his goal and said with a smile: "I hope your company can make a decision quickly so as not to change again."

"I will be staring at this." After Marquez finished this, he suddenly asked curiously: "What Netflix does is the Internet video rental business, right?"

This is no secret, Ronan replied: "This is Netflix's only business."

Marquez is even more curious: "The rental and sale of copyrights for 18,500 films and TV works is really a big deal. With such a large amount of money to expand the business, there is a future for Internet video rental?"

In fact, he had heard that the founder of Netflix had found companies such as Hollywood Video and Blockbuster to seek investment and be acquired, but they were all rejected.

Ronan certainly wouldn't tell the truth, and responded: "In every industry, there are always pioneers and pioneers. What the prospects are, you have to try to know."

Marquez shook his head secretly. Now that the video rental industry is very mature, the new road is destined to be very difficult.

Most of the so-called pioneers and pioneers have died under the difficulties and obstacles of the new road, and very few can travel a path.

Even if they can take a path out, they are often more powerful latecomers.

In the film and television rental industry, Hollywood Video has a successful operating model, stable sources of profit, and familiar operating methods. There is no need to take such huge risks.

The almost stagnant development of Netflix in recent years has actually heralded the future of this industry.

Marquez knew very well that after Hollywood Video acquired Ruiou, Ruiou's online video tape rental business could not exist and would only be shut down.

"I hope we can work together again." Marquez shook hands with Ronan before leaving.

Ronan also said, "I hope so."

Marquez took the lead to leave the reception room. Before going out, he glanced at Ronan, and wondered in his heart: How much will Relativity Entertainment lose on Netflix?

Judging from the situation of Ruiou, maybe even the head office will be dragged down to death.

Ronan returned to the company and immediately contacted Robert Lee, asking him to keep in touch with Hollywood Video while staring at Rui.

Only two days later, there was good news from Hollywood Video, and it was willing to cooperate with Relativity Entertainment to acquire Ruiou.

Immediately, Ronan sent Robert Lee to secretly negotiate with the Hollywood Video Company to discuss specific operations.

The two parties must find a mutually recognized cooperation model, such as the proportion of the rental and sale rights of film and television works in Ruiou's total assets.

Hollywood Video is eager to expand its chain store business in order to catch up with the industry leader, Blockbuster; Netflix in Relativity Entertainment urgently needs to expand its film source to support the upcoming expansion of the sky screen plan.

With their respective needs, the two sides quickly found a balance point and signed a legally binding agreement.

Netflix will withdraw from the competition for the acquisition of Ruiou on the bright side and use Hollywood Video as the main body of acquisition.

The most important thing in the agreement is undoubtedly the division of assets.

The rental and sale copyrights of the film and television works required by Netflix account for 30% of Ruiou's total assets, but after the completion of the acquisition, all physical video tapes in Ruiou's inventory will be owned by Hollywood Video, except for the copyright.

In addition, all company assets, such as storefronts, employees, websites, equipment, and software, all belong to the share of Hollywood Video.

But Hollywood Video is also responsible for Ruiou's debt.

This kind of operation is not complicated After Hollywood Video has completed its acquisition of Ruiou, it will separate the rental and sale rights of 18,500 film and television works, and then sell them to Netflix.

Ronan has conducted professional legal consultation in advance, just like the copyright of comics is resold by different companies, and the copyright of movies is converted back and forth, which fully complies with the provisions of the copyright law.

Moreover, after obtaining the rent and sale copyright, according to the 1998 "Millennium Digital Copyright Supplementary Clause" of the Copyright Law, even if Netflix transforms into streaming media in the future, as long as the relevant licensing fees are paid on time, these works can be sold on Netflix’s Broadcast on the website.

This acquisition is not only for the present, but also for the future.

No one knows better than Ronan that after less than ten years of prosperous movie DVDs, they will gradually decline. The previous generation Netflix shut down most of the DVD rental business and completely transformed into streaming media.

As Relativity Entertainment and Hollywood Video quietly signed an agreement, Ronan officially notified Stuart Coleman to withdraw from the competition for REO.

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