Replay 07: Opening the Temple of Learning

Chapter 367 Acquisition on the Agenda
"Yes!" Xiao Chen continued, "and the copyrights of these independent musicians will have room for appreciation in the future."

"As these musicians gain more fame, the value of their copyrights is likely to grow further."

Ma Lijuan nodded and began to slowly outline a blueprint for cooperation in her mind.

"The third point is more interesting," Xiao Chen lowered his voice, with a hint of caution in his tone.

"Qiantian Music is currently in poor operating condition. The boss has been wanting to sell the company and is even looking for a buyer to take over."

Ma Lijuan's eyes flashed with surprise, and she quickly turned to the relevant part of the document: "Boss wants to sell the company?"

"Yes, Qiantian Music has some good copyright resources."

"But their positioning in the market was not clear enough, and coupled with poor management, their capital chain had problems."

"From what I understand, they have been losing money for two consecutive years, and existing shareholders want to cash out."

Ma Lijuan tapped her fingers lightly on the table, thought for a moment, and then said softly: "This is an opportunity for us."

"That's right!" Xiao Chen agreed immediately, "They want to sell, and the company's market value is not high, so it's a perfect target for us to acquire."

"As long as we acquire Qiantian Music, we will not only be able to obtain their unique copyright resources."

“It can also integrate a part of the niche and independent music market into the Zemeng operating system.”

Ma Lijuan closed the file and crossed her hands on the table.

There was a trace of deep thought in his eyes: "Although Qiantian Music's resources are not as good as those of large platforms, it is unique and its market value is not high. The acquisition cost is within our budget."

"Acquiring Qiantian will at least allow Zemeng's music app to be used first."

She paused and added, "More importantly, Qiantian Music's business difficulties have given us more room for negotiation."

"Yes, Vice President Ma." Xiao Chen nodded. "They are now eager to find a buyer. If we take action, there is a great chance that we can get it at a relatively low price."

Ma Lijuan pondered for a moment.

Then he made a decision: "Okay, arrange a meeting with the owner of Qiantian Music as soon as possible to confirm their intention to sell."

After Ma Lijuan got the information about Qiantian Music, she already had a clear plan in mind.

Although Qiantian Music is not as famous as Penguin Music, Kuwo, and Baidu, its unique copyright resources are exactly what Zemeng Operating System urgently needs.

Moreover, Qiantian Music was eager to sell, which gave her an opportunity.

She knew that the most important thing now was to act quickly.

Ensure that after Zemeng’s music app goes online, there is enough content to attract users.

After returning to the company, Ma Lijuan immediately arranged a meeting with Lu Shan.

She knew that this opportunity was hard-won and that she had to get Lu Shan's approval before she could further promote the acquisition plan.

That afternoon, Ma Lijuan knocked on Lu Shan's office door.

Lu Shan was working on some documents with his head down. When he saw her come in, he looked up and smiled: "Senior, come in. What's the news?"

"Mr. Lu." Ma Lijuan walked forward.

Handing the document to Lu Shan, "After the team's screening, we found that Qiantian Music is a very suitable acquisition target."

Lu Shan frowned slightly, took the document and quickly browsed through it.

Ma Lijuan stood aside and reported briefly: "Qiantian Music's market value is only a few hundred million yuan, and their business performance is not good. The boss wants to sell the company."

"Although their copyright resources are not as good as those of the big platforms, they have a large number of copyright resources of classic old songs and independent musicians."

"Although these resources are niche, they have high market loyalty and are particularly suitable for music applications in our Zemeng operating system."

Lu Shan flipped through the documents and nodded slightly: "Classic old songs and independent music are indeed very unique resources."

“Although the number of users is small, their loyalty and stickiness are high, which is exactly what we need.”

Ma Lijuan continued: "If we acquire Qiantian Music, at least we can ensure that there will be a sufficient song library when the Zemeng Music app is launched."

"As for future cooperation with major platforms, we can discuss it slowly, but we must first ensure that users have songs to listen to."

Lu Shan closed the file, with a hint of approval in his eyes: "Your idea is good. After Ze Meng's music app goes online, it must have content. Although this batch of classic old songs and independent music resources is not large, they can fill the gap in the early stage."

Ma Lijuan felt relieved when she saw Lu Shan nodded in agreement.

But Lu Shan's next words made her more alert.

"However, Senior Sister, you can make a purchase, but you have to remember two principles."

Lu Shan's tone became serious, "First, don't give too much money."

"Qiantian Music is not doing well right now. They are eager to sell it. We need to seize this bargaining chip."

"The purchase price must be kept within a reasonable range and cannot exceed our budget."

Ma Lijuan nodded quickly: “Don’t worry, Mr. Lu, I will try my best to lower the price and ensure that it will not exceed the budget.”

Lu Shan continued: "Secondly, and more importantly, we must acquire all of Qiantian Music's shares, not just part of them."

When Ma Lijuan heard Lu Shan say that he wanted to acquire Qiantian Music in full, a trace of doubt flashed through her mind.

Although she understood that the acquisition of Qiantian Music was to provide content reserves for Zemeng's music application, the requirement of "full acquisition" was somewhat unexpected.

In the music industry, partial control or strategic cooperation is often a more common practice.

It can not only share risks but also provide flexible control.

Ma Lijuan thought about it secretly in her mind, but still decided to ask.

"Mr. Lu, do we really want to acquire the company in full?" Ma Lijuan considered her wording, with a hint of confusion in her tone.

"Qiantian Music's operating conditions are not very good. Logically, a partial stake should be enough to acquire their copyright resources, which can control risks and save money."

When Lu Shan heard her question, he slowly put down the documents in his hand, his eyes were deep, but he did not answer immediately.

He was silent for a moment, as if weighing whether to speak his mind.

After a moment, Lu Shan's gaze fell on Ma Lijuan, his tone still calm.

But there was a trace of unquestionable certainty: "Lijuan, partial shareholding is indeed a common operation, but this time the situation is special."

Ma Lijuan looked at Lu Shan, waiting for him to continue explaining.

“Although Qiantian Music is in a bad situation at the moment, the copyright resources they have are very unique.”

Lu Shan spoke slowly, his voice still unhurried.

“Although classic old songs and works by independent musicians have a small market now, I believe that the value of these resources in the future will far exceed our imagination.”

Ma Lijuan's heart moved, but she still didn't quite understand why Lu Shan insisted on a full acquisition.

"But the market influence of these resources is limited at this stage, and the risk is higher if they are acquired in full."

She couldn't help but ask again.

Lu Shan smiled gently, his eyes deep: "The future music market will not be what it is now, with the development of mobile Internet."

"The influence of those less famous singers and independent musicians will expand rapidly and even subvert the entire industry."

He paused, and said with a far-sighted foresight, "By then, their copyright resources will become very popular."

Lu Shan said this with certainty, but he did not explain the specific reason for this change.

He knew that as the decision-maker of Zemeng, some of his visions were not immediately understood by everyone.

Although these independent musicians do not have much exposure on traditional platforms, their audiences are growing at an alarming rate, driven by emerging platforms such as self-media, short videos, and live broadcasts.

This is what is called a "bargain" opportunity.

Ma Lijuan sensed a hidden confidence in Lu Shan's words, but she did not continue to ask.

Lu Shan obviously had longer-term considerations, but he just didn't reveal all the details.

"Mr. Lu, I understand."

After Ma Lijuan came out of Lu Shan's office, she already had a clear direction in her mind.

Since Lu Shan has such a firm belief in the full acquisition of Qiantian Music.

She didn't hesitate any longer and started to act immediately.

She returned to the office and immediately convened the team to arrange detailed coordination for the acquisition.

"The acquisition of Qiantian Music is a key step for our Zemeng music application," she said to her team members, with a firmness in her voice that could not be ignored.

"We must reach an agreement with Qiantian Music as soon as possible, but during the negotiation process, the price must be lowered to a reasonable range."

Xiao Chen and other team members looked serious and listened carefully to Ma Lijuan's arrangements.

"I have asked the legal department to prepare a preliminary acquisition contract template, and the finance department will also begin evaluating Qiantian Music's financial situation."

Xiao Chen, you are responsible for connecting with Qiantian Music and confirming their actual situation and intention to sell." Ma Lijuan added.

Xiao Chen nodded, picked up his notebook and began to record, "I understand, Vice President Ma.

"I will contact the relevant person in charge of Qiantian Music immediately."

Ma Lijuan thought for a moment and added, "Remember, don't be too eager during the negotiation, even though we need their copyright resources."

But now they are eager to sell, and the initiative is in our hands."

With the full mobilization of the team, the work of acquiring Qiantian Music officially began.

Meanwhile——At the headquarters of Qiantian Music.

The company's boss Chen Tianming was sitting in his office with a frown on his face.

The desk is piled with all kinds of documents, including the company's financial statements, contracts, and some of the latest industry reports.

Employees outside the office were coming in and out, with anxious and tired looks on their faces, and the atmosphere in the entire company seemed unusually depressing.

"Mr. Chen, I have something to report." A middle-aged man walked in with a serious expression. He was the company's financial director, Li Wei.

"Tell me, what's the matter?" Chen Tianming rubbed his temple, looking tired.

Li Wei opened the folder in his hand and said in a low voice: "The payment date for this batch of copyright fees is coming soon."

"Especially the copyright fees of several veteran singers, the estimated expenditure is tens of millions."

When Chen Tianming heard this number, his heart sank.

"Tens of millions?" He frowned, his voice filled with uneasiness. "What is the company's current cash flow situation? How long can we last?"

Li Wei shook his head and sighed: "Mr. Chen, the situation is not optimistic."

"The company has been losing money for two consecutive years, and many partners are no longer willing to give us credit."

"We don't even have enough funds to pay for this batch of copyright fees."

"It's not profitable at all, cash flow is tight, and we can barely pay our employees' salaries."

His tone became heavier and heavier. “If this continues, I’m afraid the company will really go bankrupt.”

When Chen Tianming heard this, his face became even gloomier.

Qiantian Music was founded by him, although it was initially just a company focusing on niche music.

But as time goes by, Chen Tianming has accumulated a lot of copyright resources of classic old songs and independent musicians.

The company once had its moments of glory.

However, with the rise of large platforms, Qiantian Music has gradually been marginalized and its operations have become increasingly difficult.

Although their copyright resources still have certain value, their market share has shrunk.

Qiantian Music’s revenue continued to decline, almost to the point where it was unable to make ends meet.

Chen Tianming put his hands on the table, took a deep breath, and had a lot of thoughts in his mind.

After listening to the report from the financial director Li Wei, I felt as if a mountain was pressing down on my heart.

Whenever he talked about the company's current situation, his expression became heavier.

Outside the office, the employees looked hurried, with anxiety written all over their faces, as if everyone was waiting for the ship to sink completely.

"Mr. Chen, many partners are no longer willing to give us credit, and even the credit lines of suppliers are about to be cut."

Li Wei sighed and continued, "What's worse is that the copyright fee for the old singer is about to expire, and the estimated expenditure is tens of millions. This money... we simply can't take it out."

Chen Tianming's face became even gloomier, and his eyes showed helplessness.

"The copyright fee cannot be delayed, but we really don't have the money to pay it."

Chen Tianming pressed his temple, his voice low and full of fatigue, "If the copyrights of these old singers are lost, it will be meaningless for the company to hold on."

Li Wei nodded: "And there is news that big platforms such as Penguin and Kuwo have already set their sights on these copyrights."

"They are waiting for the day when we can no longer pay the fees, so they can rush to sign new copyright contracts with these singers."

Chen Tianming's expression changed slightly, and a trace of anxiety flashed in his eyes: "Penguin and Kuwo?"

"Yes." Li Wei said in a heavy tone, "They all know Qiantian's situation, especially Penguin.

“I heard that they have contacted several veteran singers and offered quite good royalties.”

"As long as we delay, they will take advantage of the situation and directly seize the exclusive copyrights of these classic songs."

"These veteran singers are Qiantian's core resources. Once they are gone, the company will no longer have any bargaining chips."

Li Wei's tone was full of worry.

Chen Tianming clenched his fists, his inner annoyance was self-evident.

Industry giants like Penguin and Kuwo have strong financial resources and vast resources, and their core resources can be poached at any time.

However, Qiantian Music’s current situation makes it unable to cope with such competition.

Chen Tianming sat in the office with a gloomy expression.

Recently, the company's continued losses and the upcoming copyright fees have made him feel breathless.

He had long realized that Qiantian Music's business was on the verge of collapse, but at the moment he had no way to change the status quo.

The industry environment has changed, and cashing out the company as soon as possible is the best option!

"Mr. Chen." Financial Director Li Wei walked into the office again.

With a tired and helpless look on his face, he said, "We have already contacted several large companies. They are aware of our situation, but none of them are interested in acquisition."

Chen Tianming frowned, feeling even more depressed: "No one is willing to take it over? Even at such a cheap price?"

(End of this chapter)