Li Ruchao, author of the Tencent “deep network”
Yesterday, the music video industry officially changed its name to “Yue Chuang entertainment”.
In the view of Lok Chuang entertainment chairman and CEO Zhang Zhao, this is the end of the film industry to the darkest moment. Over the past year or so, the music and video industry has been in an unprecedented difficulty due to the music crisis.
And the valuation of music video industry, also from 2016 planning into the beginning of the music network 9 billion 800 million, slipped to 7 billion when the beginning of last year, when the latest round of financing this year, this number became 3 billion.
Zhang Zhao did not taboo the number. “At that time, what valuation was not important,” there was a view of the 1 billion 700 million unrecoverable accounts, “I said you set it, I would accept it.”
Living, is the first important thing in the music video industry.
Fortunately, in a series of positive self rescue, the music video industry did not repeat the mistakes of some music companies. After the completion of a new round of capital injection, thawing China instead of music holdings became the largest shareholder in music video industry, and the financial and strategic support made Zhang Zhao finally get out of the mud.
However, the historical legacy related to music is still the focus of attention. In particular, the former largest shareholder of music as a controlling stake of up to 1 billion 700 million of arrears, once let music video industry planning several years of music network injection plan into a bubble.
“This is going to continue,” Zhang Zhao said. Not only that, in the next few months, Zhang Zhao also planned to dispose of the shares of the holding company, “because the music holding holding has no ability, and the attitude of music holding holding is so, this is very clear.”
In fact, the renamed “music entertainment” is also to be separated from the past: not only the new and old music, but also to be separated from the listed companies of the music network. Although this road is full of hardships, it is the only way for music as nirvana of the movie industry.
The following is the dialogues of the Tencent deep network:
Talk about the reason of renaming: to be separated from the music company
Zhang Zhao: Frankly speaking, we should all be curious about it. The last time we talked about Xinle’s entertainment, why should we change it now? In fact, it is premeditated, right? The last time was to divide the new and old points, of course, the diaphragm was not enough, but the interval. The septum was separated from the old music vision area. After the end of the injection, there was a partition between the listed company system and the music vision system, so it was two times, a new and old septum, and a partition with the listed company.
This is the logic. This time, the two things are together, separated from the music vision network, because the music network has not been renamed, we always have a name, can not be called music, to have a new name. What’s that name? The gene of movie industry has been innovative, and the young people of the Internet have come to the Internet Co to innovate, and this innovative gene will always be in.
For us, it is still a creation and innovation. This time it involves the upgrading of business models, so we must stick to this creation.
Valuations are drastically shrinking: a show of broken arm determination
Q: this year, it has reached one billion. It is a very difficult time to melt.
Zhang Zhao: This is a shareholder’s round, not a external financing, is internal financing, 90% of the shareholders expressed support, it is more difficult, everyone is willing to support. When we are in the most difficult time, we support this moment.
Q: is this increase in the value of 3 billion?
Zhang Zhao: Yes, we are determined to show a broken arm. What valuation is not important at that time. This is because there is no way, because there are up to 17, 1 billion 800 million of such a money that can not be recovered there, I mean, you decide, what I will accept. So it’s good. It’s also an account of our shareholders. It gives everyone a chance to get out again.
Q: in the course of financing, the old shareholders made a great concession?
Zhang Zhao: Yes. This support is very strong, let us suddenly have the power to stand up again. It’s a confidence that you feel confident, and feel that you can do that value. This is very important. You have no confidence in it. You can’t do it.
Q: what is the state of financing?
Zhang Zhao: at that time I thought it was a dark moment. The first big shareholder was still happy to hold the holding. In that public opinion environment, it was basically dark. I can’t see anything. I can only feel it and I can’t see it.
Q: what are the 1 billion plans to use this year?
Zhang Zhao: this amount is far from enough. It is only the funds that enable us to get up normally. Let us be normal, the company through this is normal, now everyone is slow. Now we all know that we have no excuse, or the core of this, last year’s financing I think the solution is the normal operation of the company, of course, it will also give us the next round of financing to create some premise. For example, we have started the development of so many projects. When you face new financing, you need more specific content. Let the new shareholders see what specific things you can face in the future. This is not a start. The business model is based on a new round of financing.
Talk about the relationship with music system: in a few months, we will dispose of music as holding shares.
Q: do you have a job in the music Vision Network?
Zhang Zhao: I am the director of the Xinle Steering Committee. I am still a shareholder of music. As chairman of the Xinle Steering Committee, it is mainly responsible for the strategy and the new strategy as well as the landing of the strategy.
Question: will this position be retained?
Zhang Zhao: as long as they need me, I will still do the work. I always feel that if I can contribute, I am most delighted.
Q: some of the homemade plays are also responsible for you. Now you are not responsible?
Zhang Zhao: I am only at the strategic level and the business level is irresponsible. They should be doing all the business, and they’re all going on. But I don’t know exactly. I am only on the strategic level, as the chairman of the CMC, and then as a director, this is still there.
Q: at present, the second largest shareholder is the music holding company. Is there any company that has the following standards?
Zhang Zhao: it can not be announced yet. It is already in progress. There are many ways to dispose of it, the way to deal with the dish, the auction, so it’s on the road, and soon, I think in a few months, I can do this in a few months, but it’s a little clear, because the music holding holding is already incapable. So all of them will be disposed of. So is the attitude of the music holding company. This is very clear.
Q: Music holdings have 1 billion 700 million of the arrears?
Zhang Zhao general: This is going to continue. Catching up and not coming back does not affect the value of the company. I think this is a cash problem and a repayment problem. So we did the last round of financing, this round of financing to solve this problem, that is, we can not let this thing become a constraint on us. There is no money to pay, but it can not become a constraint on the development of the company. So it is resolute, what valuation should be taken off, the valuation down, to deal with the legacy of history, do not entanglements.
Q: is there any difficulty in the process of Jia Yueting’s divestiture?
Zhang Zhao: This is very normal. He is still a shareholder, or our shareholders. How can we not communicate? He is actually the two shareholder. As the shareholder of the film industry, the shareholders of LETV are now stripped. From the legal point of view, he is still a shareholder, but he is still being stripped. But he is the largest shareholder in the music network. I don’t think anything.