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Chapter 766 The final preparation period

Shahai Entertainment has truly made the big difference with low-cost horror films, which can also be said to be the key player of Relativity Entertainment. The success of "Human Skin Inn" has also added a hot-selling horror film series to Relativity Entertainment.

Compared to large commercial productions that are far from being able to achieve the best results in small screens, horror films have always been a hot topic in the rental market.

This type of film has extremely low requirements for playback hardware.

Today, DVD has become the mainstream of the offline market. Although many people still have not given up on watching video tapes due to the number of video tapes, the total revenue of video tapes in the North American market is not even one-third of DVDs.

Compared to DVD players, the price of video recorders is a bit scary.

As early as 2002, the average price of video recorders in North America dropped below $200.

Video recorders imported from the other side of the Pacific Ocean are more competitive, which directly brings the widespread popularity of North American DVD players.

These also provide strong support for Netflix's online leasing business.

Since 2005, Netflix's business has grown amazingly, and several Internet celebrity businesses have taken a multi-pronged approach to attracting a large number of new users.

One thing cannot be ignored. As time goes by, computers and the Internet are highly popular in North America, and even the smartphone market is expanding.

Especially the Internet speed, since the second half of 2004, the Internet speed in North America has been significantly faster.

Although it is not many levels worse than the infrastructure maniacs on the other side of the Pacific, the bright prospects of the Internet have stimulated communication companies to actively invest.

While further improving the wired network, many communications providers have set their eyes on the mobile terminal.

There are already millions of smartphone users across the United States.

This industry is also promising.

Someone once said that this is one of the best eras of the Internet, and there are too many giant Internet companies that have developed after the Nasdaq stock market crash in 2000.

The industry disaster brought about by the stock market seemed to have driven a major reshuffle in the industry, allowing many companies to eliminate bad luck and retain good luck. Later, many superstar companies emerged.

Google, Amazon, and Netflix.

Due to the continuous optimization of the overall environment, overseas business has been successfully launched, and the stimulation of Netflix streaming media business and Netflix sharing services that meet the needs of social development, especially Netflix streaming media business, has transformed a considerable number of ordinary users into Netflix's monthly payment users.

In the first quarter of 2005, Netflix exploded, achieving operating income of US$787.99 million.

As Netflix released its first-quarter financial report in April, more people began to pay attention to the Internet company.

After Netflix signed a contract with several large mobile phone manufacturers, it had negotiated a new partner. Netflix officially signed an agreement with BlackBerry in mid-April, and the related apps will also become pre-installed software for BlackBerry phones.

In addition, Netflix's performance in DVD sales is also extremely amazing.

After the success of "Prison Break" and "Survival in the Wild", in order to meet the needs of users who lack sufficient Internet on-demand hardware conditions, Netflix launched two series rental and sales services on the rental and sales platform.

Thanks to the explosive reputation and the spread of the Internet, the DVD sales of these two series are amazing, and more than 30 million US dollars were sold in North America alone.

DVD, nowadays, is the most important income for movies and TVs, and the profits of a considerable number of movies have exceeded the box office.

Many people even joke that a movie theater screening is just a super ad for DVDs.

When Hollywood and surrounding related companies were still immersed in the rich returns brought by the DVD business, Netflix had actively expanded its new business and prepared for the DVD to decline in advance.

Since 2005, with the popularity of home broadband and the significant increase in network speed, Netflix has actively begun to transform into streaming media.

Netflix has gradually provided users with online movie viewing services, fully supporting various devices such as computers and mobile phones to watch.

Rich content and good user experience have enabled Netflix's streaming media business to develop rapidly.

The listing plan has also entered its last stage. After a long period of hard work, Netflix has reached an agreement with the company under Goldman Sachs, which is responsible for operating listing, on the key rate issues of IPO.

Last year, Google's listing also gave reference to the IPO rate Netflix needs to pay.

Netflix is ​​now also one of the most attractive Internet star companies in Silicon Valley.

Due to the high enough estimates from the outside world, Netflix has been bargaining with Goldman Sachs on rates, and the final rate reached is basically the same as when Google went public.

This time the IPO rate is 2.8%, rather than the more conventional IPO transactions that raise hundreds of millions of dollars - 4%.

Most of the iPo companies, and almost all of those that raise $50 million to $200 million, pay underwriters a percentage of their iPo’s proceeds.

This is also inseparable from Goldman Sachs' extremely optimistic about the amount of funds raised this time.

Because Netflix is ​​going to go public in dozens of days, Ronan also took time to meet with Mark Randolph and others, accompanied by Goldman Sachs' professional team, and successively met with potential investors.

This not only allows them to understand Netflix's business and future, but also increases investors' confidence.

In fact, since the beginning of this year, Goldman Sachs has begun its long-term "ipo roadshow" promotion plan.

When a company goes public, in order to stimulate demand, senior managers and underwriters hired to list the company usually take a very long time to promote investments to institutional investors and answer questions from one city to another.

If you want to invest, you must let people see the prospects of investment profitability.

Last year, during Google's roadshow, management refused to answer many questions asked by investors, which led to many traditional investment institutions that don't know much about the Internet, which are not willing to expect Google's future profitability in a good direction.

Although Google quickly slapped the face, Google IPO did not meet expectations, which is also recognized.

Due to Netflix's upcoming listing, Ronan has also increased his understanding of this aspect and also focused on Google's iPo process last year.

Google's iPo failed to meet expectations, which was related to the poor roadshow promotion and was also related to the underwriters.

Compared with traditional iPo, Google uses the auction model, which makes traditional underwriters feel a huge threat. It was once rumored that Credit Suisse and Morgan Stanley, as underwriters, wanted to secretly destroy the auction.

According to Ronan's understanding, the lead underwriters do not want Google's auction model to be successful, but of course they do not want to fail for the sake of income.

In the end, Google's iPo failed to meet expectations and raised only $1.9 billion.

Similarly, Google's shares on iPo make up only eight percent of the company's shares.

Compared with Google when it was launched last year, Netflix's performance and scale are not bad.

Google is the leader in the Internet search business. Netflix is ​​also a well-deserved overlord in its respective industries in terms of DVD rental and sales, social sharing and streaming services.

On the other hand, Google's performance after its launch will also have a positive impact on Netflix. After all, those who invested in Google, including Ronan, made huge profits last year.

At a recent communication meeting, Goldman Sachs conservatively estimated Netflix's total market value after its listing was US$35 billion.

The stock price setting of any company's iPo will not remain unchanged and will be affected by many factors.

Because underwriters, companies' own businesses and investors have changed, the formulation of listed stock prices may change at any time.

"Mr. Anderson, are you ready?"

In the reception room of the Relativity Building, Lloyd Blankfein, chief operating officer of Goldman Sachs Group, said to Ronan with a smile: "In a few dozen days, you will become the youngest billionaire in the United States."

Ronan's mentality was quite stable, and he deliberately spread his hands and said, "If Netflix's stock cannot be sold, it will be embarrassing."

Lloyd Blankfein laughed: "I can guarantee that Netflix's stock will be snatched by buyers at that time."

Ronan said again: "The last preparation period is here, I hope there will be no accidents."

"No." Lloyd Blankfein put away his smile and said very seriously: "Goldman Sachs does not allow accidents to appear."

He turned to Ronan, "What about your plan? How are you doing?"

Luo Nan nodded slightly: "Everything is ready. Once Netflix is ​​on the market, it will start immediately."

Pushing Netflix's stock price and increasing Netflix's market value will not only enhance investors' confidence, but also prepare for the continued expansion of Relativity Entertainment.

Lloyd Blankfein further asked: "Is the streaming business ready for work?"

Ronan said directly: "You can rest assured about the content production of Relativity Entertainment."

Lloyd Blankfein thought of the relevant information he had read. Since the new millennium, in commercial film and television production, Relativity Entertainment has been the most trustworthy content production provider in Hollywood and the whole world.

Previous "Prison Break" and "Survival in the Wild" on Netflix streaming also proved that as a traditional producer of relativity entertainment, the content produced is also applicable to the Internet.

Moreover, in Internet promotion, the tricks of relativity entertainment cannot be described simply as excellent.

In Lloyd Blankfein's eyes, Relativity Entertainment is a traditional film and television company with profound Internet genes. Ronan Anderson is also one of the few investors and decision makers in Hollywood and even the United States who have a long-term vision for the development of the Internet industry.

The final sprint stage before Netflix went public has arrived, and Robert Iger and Mark Randolph also joined the negotiations.

Ronan has been extremely busy these days. As Netflix's true boss and future development decision-maker, he cannot miss many important promotional venues.

So much so that it wasn't for Tom Cruise to come over, Ronan had forgotten another important thing.

"You are obviously unqualified as a football club owner." Tom Cruise said directly to Ronan: "The team can't feel your attention."
Chapter completed!
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