Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Chapter 331 Acquisition Acquired

Flix, those who have watched the online drama House of Cards should have an impression of this company. It also has a Chinese name: Netflix.

I have to say that whether it is a person or a company, it is crucial to choose a good name. Netflix, those who don’t know will think that this is a copycat sports brand!

Of course, most people who can match its Chinese and English names don't know that this company, which has won many successes at Emmy Awards with its own drama, is the most successful paid streaming platform in the United States, and even poses a huge threat to the old HBO. It turned out to be a company that sells DVDs - of course, it is still selling later.

Feng Yiping has an impression of this company, mainly because of the House of Cards. Although the heroine is not good-looking, has a very average figure, and her acting skills are just that. In short, it is not attractive at all, but the hero, Kevin Sbesey, this guy who has won the Oscars for Best Actor and Best Supporting Actor, his performance is really impeccable, especially his lines, that's really no one!

When he tried to search for this company, he was immediately interested. What made him interested at that time was naturally because of money.

This company is planning to learn from Apple and start stock splits.

The reason for the stock split is the same as Apple. The stock price is too high, which is not conducive to market circulation. At that time, Netflix's stock price had soared to a high of US$700. If you buy 100 shares, you will have to invest 70,000 US dollars, which is higher than the annual income of most middle-class families in the United States, and it is relatively risky. At that time, it was planned to split seven shares in one share.

If you look closely, this company is really not an ordinary bullish one. In 2013, its stock price soared 240% throughout the year!

Haha, I didn’t expect to have a group purchase. I actually reminded me of this incident again. "Dear," he called Huang Jingping immediately. Such incidents would not be found on the website now, and it would be difficult to call the company’s securities department. Or Buchanan and Mike, "I am still exercising? Go home and help me check the situation of this company,"

"Okay," Huang Jingping is good. Feng Yiping's request, she never asked why, but her voice is a little low now, "Do you still have to stay in the capital? Do you know? I can't even sleep when I see the news,"

"Follower, there are so many people around me who serve me and work for me. What's there to worry about?" Feng Yiping smiled heartily, "It's okay to have one hundred and twenty hearts. Besides, you haven't seen it. Are the new cases decreasing every day? The situation is getting better."

"Brave again, I know that there are many people working for you and serving you. Are there any people? Did you hire new people without hiding them?"

Feng Yiping didn't understand whether to find or trick.

"Haha, there are no, those people. However, they are of course very concerned about the personal safety of me who belongs to the core and soul of the group. There will be no trouble, don't worry,"

"Anyway, you have to be careful. Now you have not only parents, but me, but also our daughter."

"Then you go home quickly and videotape with my daughter in your arms. I miss her very much, too."

…………

In the evening, Feng Yiping carefully browsed the emails sent by Huang Jingping, which was much more detailed than what he saw in China.

First of all, the stock price is still hovering around US$20 at this time, and its market value is less than US$2 billion. If it is used as an investment and is used for long-term holding, it is a good choice.

However, the more I look at it, the more I feel that it seems like a pity to invest just by investing.

Netflix was founded in 1997 and its founder is Reed Hastings. Speaking of which, he is also considered an alumnus of Feng Yiping. He graduated from the Department of Computer Science at Stanford University and was naturally also influenced by Silicon Valley culture.

Like most alumni, after graduation, he founded a software company himself. His most distinctive feature is that he continues to expand through mergers and acquisitions. Because the pace of mergers and acquisitions is too fast or too sharp, he and his company are not very likable in the industry. His colleagues even gave him a bad nickname, "Beast".

But his operation, undoubtedly, was successful, and his software company, eventually sold for $750 million.

This is a guy who likes to watch movies. When he was still running a software company, he kept thinking about how to deliver movie video tapes to the audience in a convenient and fast way. Using mailing seems to be a good choice. Then, the remaining question is how to attract customers and provide rental services.

As a movie enthusiast, he had long noticed that the videotape rental market was promising, but at that time, Pepsika, from the UK, had nearly 7,000 videotape rental stores across the United States. Hastings did not have a good idea to compete with such a company with an absolute advantage.

Just at this moment, a videotape he rented on Pepsika, Apollo 13, was forced to pay a fine of up to $40 due to the delay in return. This stimulated him and allowed him to see the opportunities contained therein.

There should be many consumers who are not satisfied with the overbearing terms set by traditional videotape rental companies such as PepsiCo. So, how should you take advantage of this?

He naturally thought of the Internet, and he immediately established a website that recommended DVDs and could accept online orders. Filx, which means renting through the Internet and then delivering it by mail - at that time he used a very distinctive red envelope.

However, the initial operation can be said to be bleak, and of course, it is not without benefiting from it. After Netflix was established, the postal company in the Greater San Francisco Bay Area had particularly good benefits.

After two years of persistence, Hastings took the initiative to find the partner he had originally planned to subvert. PepsiCo hoped that the other party would acquire the company he founded for $50 million, but was flatly rejected by PepsiCo's then CEO John Antioke. The reason was very simple. At that time, Netflix was a small company that was still losing money.

Such a blow inspired Hastings' fighting spirit. He planned to let the world see his abilities. After that, he made many adjustments. Finally, the membership attempt made him a great success.

Like a certain domestic website later, the paid membership system brought about a rapidly expanding consumer group. By 2002, it had developed to establish large distribution centers across the United States to meet the strong needs of consumers.

However, judging from the existing achievements, although Netflix is ​​a successful company, it is not a very outstanding company. Only Feng Yiping knows how brilliant this company will be in the future. It will become a world-renowned streaming platform. Whether in terms of its market value or influence, it will surpass that of an old media company like CBS.

Of course, what Feng Yiping values ​​most is not Netflix's future potential. For him, there are many similar choices. Moreover, he believes that relying on the advantages of rebirth, his video website will definitely develop better than Netflix.

What he values ​​is Netflix's team. Facing opponents who are never at the same level of weight, they can always find ways to survive and always choose the most suitable path at the most appropriate time. This is very valuable.

It just so happens that my youtube is being prepared. If I can dig up this team, wouldn’t I save a lot of trouble?

There are not many choices to poach the entire team. Overall acquisition is a feasible way. Moreover, it is not better to acquire a company with a future market value of US$40 billion for more than US$2 billion, than to hold stocks sporadically.

So, can I acquire it? Do I have the strength to acquire it? He looked at the information sent by Huang Jingping again.

The emergence of Netflix and the success of the trial membership system have indeed subverted the traditional film rental market. At least PepsiCo, which once humiliated him, is now under great pressure due to its high rent and employee costs and is preparing for its own online rental business.

However, its most important competitor is Walmart, a retail giant, which has launched its own online rental services. Relying on the complete network and fast and developed logistics across the United States, it has put a lot of pressure on Netflix. In other words, Netflix is ​​not having a good life now, and I believe its shareholders will definitely be happy to take action.

If it can be acquired, then funds are a big problem, and the premium is certain. Netflix is ​​now worth nearly $2 billion. To ensure success, it is necessary to prepare at least $2.5 billion - because it also needs to consider the bids of other possible competitors.

Raising $1 billion is not a matter of money. It’s not much different. That is, you have to find a way to raise $1.5 billion. You can only find a bank. He is planning to issue this task to the group’s finance department tomorrow morning and ask them to propose possible solutions.

But before he could implement his plan, he tried to acquire other people's companies. At two o'clock in the morning, Buchanan informed him urgently that Amazon had just appointed a lawyer to the company and officially proposed to acquire nextdoor in the overall price of $1 billion! (To be continued.)

:
Chapter completed!
Prev Index    Favorite Next