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Chapter 42 Netflix Internet TV

Singing is just a personal interest, and I don’t want the good songs from my previous life to be buried.

Just standing in the spotlight and having some fun, Suri never thought of relying on it to earn a living.

Since the health problem was resolved, he has been thinking about how to plan a new life next.

Compared with blindly chasing profits and being obsessed with cold numbers in the early years, now how to make life interesting and make money happily is what Suri really wants.

Think about it from this perspective and combine it with the memory in your mind.

He quickly selected an investment target that was most satisfactory and best suited to his needs.

It is neither the famous Apple nor the newly emerging Tesla, but Netflix, the streaming media giant in the Internet era.

Just got off the boat and returned to the hotel.

After Miss Lily left, Secretary Amanda took out a pile of freshly printed documents this morning from her Prada handbag.

She told:

"There is a time difference between Hawaii and New York, so I bought some information through a consulting company. Read it as soon as possible and then look for anything else you want to know, so as not to receive it tomorrow after the consultant gets off work."

From the thick pile of information, Su Rui first found Netflix's recent market value trend chart.

He opened his mouth and said:

"The market has been frightened by the stock market crash. It is difficult for investors to regain their confidence for a while, and most of them choose to wait and see. Don't worry, has the office investigated it in a day or two? Can you find any opportunities to make moves recently?"

Let’s first look at the recent changes in Netflix’s total market value.

This company used to be an Internet video rental business, which meant that the DVDs were delivered to customers' homes via express delivery based on membership fees.

It is no different from the video stores all over the streets, except that it moves its business online.

When it went public in 2002, its total market value was only about US$300 million.

After its development in recent years, it has increased its investment in the Internet. Especially thanks to the development of communication technology, last year it launched an online TV business that allows you to watch movies online after buffering for about 30 seconds. The market value of Netflix , there is obviously a round of surge.

By this year, it was August 2008.

Its total market value was once close to the US$2 billion mark. Unfortunately, in September, it suffered a financial tsunami triggered by the subprime mortgage crisis and dropped to a minimum of around US$1.2 billion.

As of today, its total market value has just risen to around US$1.35 billion.

With Suri's strength.

If you plan to swallow Netflix completely, it will definitely be a bit troublesome.

Fortunately, he started out as a venture capital investor in Silicon Valley and has always liked to be an investor who doesn't do anything, rather than a dictator like Steve Jobs at Apple who completely dominates all decisions.

Therefore, as long as he has enough say in the early stage and does not affect his decision-making in film and television creation and other business aspects, Suri can accept being a second or even third shareholder.

Of course.

If Netflix’s board of directors is willing to accept the overall acquisition invitation.

Suri didn't mind, so he used Netflix and Facebook shares as collateral in advance to acquire all the shares of Netflix. This type of M\u0026A loan is very common among American investment banks and does not require him to actually spend more than one billion US dollars.

With a net worth as high as Suri's and the confidence to predict the future, he certainly knows that only by using the bank's money to make money for himself can he maximize his returns.

It was only because of the accident two years ago that he was restrained and did not dare to mess around.

As long as there is no illness or disaster.

According to his character who had an eye for money in his early years, it is basically impossible for him to invest a full three to four billion US dollars on a Lanai island with very limited room for appreciation.

If you look for Amazon, Google, etc., you will have the opportunity to double your business twenty or thirty times in ten years.

In the more than two years lost, a lot has changed after all. Fortunately, it is not too late to start over. There is still a chance to become bigger and stronger and create greater glory.

Secretary Amanda sat in the hotel cafe, crossed her legs, asked the waiter to order a cup of coffee, and replied leisurely:

"There is no news for the moment. Let's make preparations first and investigate the detailed information before we can contact Netflix's major shareholders to decide whether to acquire the company from the major shareholders or directly finance the company. By the way, why don't you Direct investment in a video company like YouTube? Netflix is ​​too expensive, and banks are starting to cut interest rates, but the interest rates are still higher than the average, and the premium may be larger."

As the first step to return to the investment circle, Suri has many reasons for falling in love with Netflix, and he gave the answer without thinking:

"For example, it already has more than 7 million paying users, its intangible brand value, various ready-made resources, and mature management team are all the reasons why I like it."

"In the Internet industry, the winner takes all. Since there are ready-made industry giants and the price is relatively suitable, why should I bother? As long as it develops, the rate of return will not be lower than investing in a start-up company. Since it is difficult to completely defeat If you want to win, it’s better to save your worries from the beginning and join their camp directly, which can save you a lot of trouble.”

"Besides, I have no interest in being a CEO. I am just a rancher who wants to make movies and TV series to pursue my own self-worth. At that time, people will say that I am a talented screenwriter and producer, not Just the guy who can sing.”

Secretary Amanda’s Harvard Business School diploma was not picked up on the street.

After hearing what Su Rui said, she immediately agreed:

"You are a very good investor, but you are not a qualified CEO. It is hard to imagine that you would have the patience to deal with investors, politicians, and employees. You are too free and will not adapt to being restricted. life. Netflix is ​​really good. In the future, the mobile network will be faster and people can watch TV on their mobile phones. By then, it will be able to make a lot of money with its online TV business."

Suri smiled.

Looking through Netflix's public financial statements, I found that its online TV business suffered serious losses.

It seems that there are more than 7 million paying users, but after excluding the copyright fees to the film producers, plus operations, publicity, management, taxes, etc., in fact, what really supports Netflix's financial report is still the traditional Internet video rental business.

The company is using the money earned from video rentals to subsidize the holes in its streaming media business.

Moreover, most of the content played is old movies and programs that Netflix acquired through purchasing copyrights, which is not attractive enough to users.

Users only need to pay seven dollars and ninety-nine cents, and the Internet TV service is free.

It is still in the promotion stage after one year of development, and few people are willing to pay monthly rent alone for online movie viewing business.

Watch and watch.

Su Rui had a flash of inspiration and was a little inspired. He raised his eyebrows and asked:

"What I want is online TV, and I have no interest in the video rental business that will be eliminated. Do you think if I propose that Netflix divest itself of two businesses and then separately finance its online TV project, will it be possible? The support of Netflix’s board of directors? This can save a lot of money, and it also allows me to gain more say and use a small amount of capital to acquire a large amount of equity.”

Secretary Amanda shook her head and said:

"I don't know about this, but I think if the business cannot be negotiated, the price offered must be inappropriate. Maybe you can make an appointment with its chairman to discuss this interesting idea in person."

"Good idea. Let's make a detailed plan first, so that when the other party asks me, I will be unable to say anything with my mouth open."

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