Reborn multinational giant

Limited by the special policy environment of the Chinese market, overseas Internet companies such as Shengtian and Netflix have difficulty entering China.

It was not until the last two years that Huizhong and other Chinese Internet companies, represented by WeChat, Momo, and Kuaan, entered the Western market. In order to balance the international outlook, the domestic policy environment has been loosened, and this has also given Huizhong. The crowd, the opportunity to invest in Western Internet companies backed by these top multinational companies.

If Chinese companies are going out, what is the biggest bargaining chip in the world market, then there is no doubt that it is the huge Chinese market.

Whether it is exporting technology or capital, it may be blocked by foreign governments at the policy level. Only equitable and open market power and the huge Chinese market are the biggest bargaining chips for Chinese companies in overseas games.

Over the past 30 years, the entire great historical process of reform and opening up can be seen as the government using this game power to promote the rapid development of the entire Chinese economy!

Huizhong's successive investments in Shengtian and Netflix are also largely due to this gaming power and the worldwide penetration and influence of WeChat.

In his previous life, Shengtian was listed on the New York Stock Exchange at the end of 2014. Before Fang Zhe’s rebirth in 2018, its valuation was nearly 30 billion U.S. dollars. Such a high valuation also benefits from its good revenue performance. In 2012, its revenue reached 500 million U.S. dollars, and in 2017, its revenue exceeded 5 billion U.S. dollars.

However, although Shengtian's revenue seems to be a lot, it is still a long way from the road to profit due to huge copyright expenditures.

Fang Zhe and Huizhong are willing to invest in Shengtian, one is that they are optimistic about the long-term performance of Shengtian, and the other is that they hope to strengthen the domestic investment of Kugou, Kuwo through cooperation with Shengtian and the major record companies behind it. The competitiveness of the two major music platforms in the domestic music industry.

In actual business operations, Shengtian will not directly enter the Chinese market, but will present the most authentic European and American music and other overseas popular music to Chinese audiences through the Kugou and Kuwo platforms.

In addition, the versions of WeChat overseas in many countries will also be connected to Shengtian. From then on, WeChat users can directly share and listen to music from the Shengtian platform on WeChat. It is no longer necessary to jump to the outside as in the past. Only the webpage or APP can be listened to.

As for Netflix, this company is an established foreign online movie rental company. It was established in 1997 and went public in 2002, which is older than most domestic Internet companies.

Huizhong spent nearly 500 million U.S. dollars to invest in it, also to strengthen the layout of overseas online entertainment, but also to introduce more excellent foreign film and television dramas on Netflix into China, and enhance Youku Tudou's competition in the domestic video website industry force.

In addition, for Netflix’s investment, there is another important reason that only Fang Zhe knows, that is, Netflix’s stock price will grow rapidly in the next few years.

At the beginning of 2013, Netflix’s stock price is only more than US$20, and its total market value is just over US$10 billion. At its peak in five years, Netflix’s stock price will be as high as US$400 and its total market value will exceed US$150 billion.

Netflix’s stock price will increase nearly 20 times in the next 5 years. Even if Fang Zhe does not consider Huizhong’s overall pan-entertainment layout strategy, he will secretly set aside a certain amount of money to invest in the largest US stock market in the next few years. .

The investment of nearly 500 million US dollars will become 10 billion US dollars in 5 years, with a net profit of 9.5 billion US dollars. This kind of profit in vain can only be encountered by Fang Zhe.

Huizhong's continuous deployment in the fields of music and online film and television has aroused the speculation of many peers and competitors at home and abroad.

Overseas, because Shengtian is Warner Music, several top global record companies such as Universal are backing it, and Netflix is ​​also an established top online film company in the United States, so most media and public opinion agree that this is a strong alliance. Huizhong, a Chinese Internet company, takes advantage of its WeChat global popularity and user advantages to further gain a firm foothold globally.

Of course, there are also many Western media and netizens who hate China and have always vilified China, believing that this is a conspiracy by Chinese Internet companies to control the West.

It used to be mobile social software such as WeChat, and now it is in the Internet entertainment consumer fields such as music and film and television. These malicious speculations have been extinguished by Huizhong's powerful public relations capabilities as early as when they first broke out.

Also in China, the public opinions of peers and Internet users and the media are also mixed.

"Huizhong invested in Kugou and Kuwo, and introduced Shengtian and Netflix. This is to push QQ Music and Tencent Video to a dead end!"

"I don't think it can be considered as compelling, but the general trend. Haven't you seen this time, Alibaba has also begun to acquire many companies, from music to film and television, there are also companies, I think these two companies are going public? Make preparations to make the market larger!"

"Even if you want to go public, you don’t bring such a game. You can invest in various kinds of purchases. Look at the companies that Huizhong invested during this period. Which companies make money? I checked on the Internet. They are all constantly losing money. the company!"

"Oh, what do you know, do you think the boss's vision is not as high as you? Do you know what is meant by online entertainment? Do you know what is meant by entertainment integration?

"I can still understand Huizhong's investment in Kugou and Kui, but what is it doing in foreign countries and Netflix? Is it giving money to foreign companies for nothing?"

"Upstairs, you can't go abroad with this vision in your life. Huizhong is now a world-class multinational company, and its layout must be global. How much money you invest now, you will be able to double your income in the future! "

"Although I don't understand what Huizhong is doing now, I still have to say, Huizhong is mighty and domineering, Fang boss is mighty and domineering!"

In Shenzhen, the senior management of Tencent's QQ Music Division, Mr. Ma, and QQ Music are in a gloomy mood. In the past few years, Huizhong has been working step by step and bit by bit eroding the country Tencent has laid down over the past years.

From the core social section, to games, news, film and television, and now to QQ Music, Tencent’s vision of one-stop online entertainment seems to be the ideal that Huizhong is about to realize.

In the era of mobile Internet, like a big mountain, it is weighed on Tencent. Tencent missed this opportunity, and it is doomed to become more and more difficult to move forward.

"When WeChat was not up, I couldn't sleep well every night, because I felt that Tencent might die at any time. It was not about a software problem, but a problem with the mobile Internet.

If you miss this ferry ticket, you may miss the entire mobile Internet, or the entire Tencent will lose ten or twenty years, and there will be no day to turn it over again!"In his previous life, Tencent President Ma's heart-pounding memory in an interview is now becoming a reality.