In the afternoon, Yan Zi came to Tianfeng Entertainment alone and called Wen Feifei, but the call was hung up. She just replied with a text message: "I'm in a meeting. Sorry, I'll ask my agent to pick you up first."
Yan Zi waited at the front desk of Tianfeng Entertainment for less than five minutes before a middle-aged woman with a strong aura came out.
"Yan Zi, right? Feifei is in an important meeting. Please wait in the reception room for a moment."
"Okay, it's okay." Yan Zi was fine anyway, and even though Wen Feifei was in a meeting, she even asked her agent to pick her up, so it wasn't considered as neglect.
At this time, Wen Feifei really had no way to come out, as all the senior executives of Tianfeng Entertainment were holding a meeting in the large conference room on the top floor.
"Everyone has seen the letter of intent to acquire, right? What are your opinions?" The speaker was Xu Tianfeng, the boss of Tianfeng Entertainment.
Tianfeng Entertainment was founded by Xu Tianfeng more than ten years ago. It focuses on the record market and has experienced a golden age in the record industry. It has grown bigger and bigger and has reached its current scale.
"Mr. Xu, although we have occasional dealings with Jiangdu Entertainment, why did they suddenly propose to acquire our Tianfeng Entertainment?" asked a manager.
You ask me, who should I ask? Xu Tianfeng was also puzzled. This morning, he suddenly received a letter of intent from Jiangdu Entertainment to acquire the company. At the time, he thought it was a mistake made by his secretary. He didn't believe it until the president of the company called him personally.
"Jiangdu Entertainment's market has always been in film and television dramas and variety shows. Do they have plans to fully enter the record market?" guessed the marketing manager.
"It's very likely that Jiangdu Entertainment, backed by the mighty Feng Group, has unfathomable financial strength. Its movie box office, TV drama ratings, and variety show ratings are almost all among the highest in the country. Their only weakness is the record business."
"But is it really necessary?" the Planning Director objected. "Everyone knows what the record market is like now. We used to sell records for over 50 to 70 yuan each, and the company would only make a little over 20 yuan in profit. What about now? Although digital records are selling well, they only sell for over 10 or 20 yuan each, and a single song only 2-3 yuan. The various channels and platforms take a large portion of the profits, and the company finally gets it back. After deducting the share from the artists and the copyright purchases for the lyrics and music, the profit is almost negligible. We are all looking for markets other than records, so why are they specifically pursuing the record market?"
"That's not the case," the marketing manager said. "Our profits are low because we don't have our own music platform. But Jiangdu Entertainment does. Aren't our digital albums sold on their Yunsheng music app? And Feng Group has already formed an entire industry chain, from television media to online short videos, social media, and other areas where music could be used. To put it bluntly, what's only one percent of our music market is ten times, or even more, in theirs."
Xu Tianfeng knocked on the table in annoyance. The marketing manager was right. He'd always worried about Jiangdu Entertainment entering the record market. Tianfeng only had a large number of contracted songwriters and singers, but in this world, if you had the money, there were few you couldn't find. It wasn't like they were signing a lifelong contract; once the contract expired, they could naturally choose a better deal. It was just that for so many years, Jiangdu Entertainment had been cultivating its own niche in film, television, and variety shows, with no intention of expanding. But then, they suddenly bared their fangs, specifically at Tianfeng Entertainment.
"I agree with the acquisition in principle." The first person to stand up and express support was Wen Feifei.
As the top star of Tianfeng Entertainment, she naturally has some shares. Although not much, she is still qualified to sit in this conference room. She also has her own ambitions. She has won many titles as a singing queen, but she wants to be a queen of pop.
However, she hasn't had any notable film or television productions over the years. If Tianfeng Entertainment were to inject capital into Jiangdu Entertainment, she would naturally have an advantage in getting roles in TV series produced by Jiangdu Entertainment.
Besides, her stake in Tianfeng Entertainment wasn't large to begin with, and Jiangdu Entertainment was acquiring it at a premium, so she wouldn't lose anything. Furthermore, she had just read that the letter of intent also mentioned a share swap, which made it even less of a concern. No matter how she calculated it, agreeing to the acquisition would benefit her as a small shareholder.
"Actually, I also agree with the acquisition." The marketing manager is also a small shareholder, but his analysis is more rational.
"We don't have our own music platform or streaming channel. Even the ticketing websites and platforms used to sell tickets for our artists' concerts are owned by the Feng Group. If they wanted to, they could simply change the algorithms used by music apps and short video apps to list our artists and songs, significantly reducing the chances of them being discovered by casual users."
"You have to know that for a digital album to sell well now, besides a few top singers, it needs more traffic. Without traffic, there will be no sales. And all the traffic may actually be blocked by Jiangdu Entertainment. So we actually have no other choice."
Xu Tianfeng took a sip of tea. For some reason, today's black tea was particularly bitter.
He looked at the shareholders, big and small, sitting below. Most of them would lower their heads and pretend to read the letter of intent when Xu Tianfeng looked over, or pretend to turn their heads to talk to the people around them. He naturally understood what everyone was thinking.
The record market is indeed shrinking significantly, and Tianfeng Entertainment has been slow to develop other entertainment markets. The company's profits have been declining in recent years, and the directors have long been dissatisfied.
My dear, there is more to this chapter. Please click on the next page to continue reading. It will be even more exciting later!
Continue read on readnovelmtl.com
