Chapter 328: Time has changed!
Lin’an, Shining Technology headquarter.
It was rare for Gan Liangchen to be at his tea table in his office and make some Kungfu Tea.
The object of this hospital was a bald middle aged man that was accompanied by a professional looking woman.
“It’s said that the tea-tasting culture is better in the southwest and southeast. Although the green tea in Lin’an is good, it is not suitable for making Kung Fu tea.” Gan Liangchen said while washing and serving the tea, “President Song is someone from Caiyun, and probably knows a lot about pu’er tea, right? Let’s try my craft.”
Song Luding picked up a small cup and drank the tea.
After savoring the sweet tea, he said with a smile, “This tea is sweet and has no astringency, it also has a strong chestnut fragrance. It should have been stored for at least ten years, right?”
“I don’t understand tea, I just drink them.” Gan Liangchen said with a smile as he looked at the packaging of the pu’er tea, “It was made 12 years ago, President Song has good judgment!”
“Comparing judgment, how can I measure up to President Gan?” Song Luding let out a sigh, “I worked so hard for 30 years but only made a company worth 7 billion and a personal fortune of around 2 billion. But President Gan? It has only been a little bit more than ten years since you started your business but Shining Technology is now the tenth largest private group company in China with a market value of more than 800 billion yuan. How many times more than my own?”
“The times are different so the entrepreneurial model is obviously different too. If I started at your time, I may not reach the height you did.” Gan Liangchen said, “If we talk about admiring, I grew up by listening to the singers from your company! This kind of sentiment isn’t something that can be taken away by money!”
Song Luding laughed.
This was exactly what he was deeply proud of.
No matter how much money he earned, his name had already been recorded in the history of popularizing music in China.
The singers he cultivated had grown with a generation of young people for twenty years.
“But times are different now and our music industry has to adapt with the advancement of society.” Gan Liangchen said, “Have President Song thought about what we discussed last time?”
Song Luding’s face became a bit graver and he wanted to say something but kept his mouth close in the end.
He drank another cup of tea and took a deep breath.
Seeing that he wasn’t speaking, the nearby Wang Juan said with a smile, “President Song, you can seriously think about it, we’re very sincere.”
“I know.” Song Luding said, “For a company with 7 billion Yuan market valuation, you guys valued it at 10.5 billion and increased by 50% to buy shares, it is indeed respecting me and valuing my work, but…”
“Then why are you hesitating?” Wang Juan kept her voice soft and light, “We only need 20% in shares and everyone will have proportionate shares with you still being the largest shareholder of the company. You don’t have to worry about us seizing power or something like that, no offense but such a small dish, we have never thought of getting controlling shares.”
“If all big companies had to occupy more than 50% of the shares for their affiliate or other companies they invested into, how hard would it be for the company? How much money would it need? Wouldn’t that be tiring?”
Song Luding had a bitter smile when he heard that.
He could say nothing to refute it.
“Let me be more in depth, the market now isn’t what it was one year ago. I changed drastically.” Wang Juang said, “I have been in the music industry for more than ten years and I am considered your junior, but I’ve never seen the music industry flourish and grow as fast as now. The naked eyes can see that the market is expanding bigger and bigger with signs of big eruption, don’t you want to fight for it?”
“I want to!” Song Luding answered without hesitation this time.
Wang Juan was a well-known music producer but was later recruited by Shining Technology to become their director in their music endeavor.
Song Luding of course could see what she could see.
Since last year with Guan Yili’s single ‘Tolerance’ exceeding 5 million downloads under 200 hours, the market had expanded by leaps and bounds.
Not only had the online sales of albums and singles increased sharply, even the hard record bounced market back slightly.
Even the sales of music related products had been increasing in the past year.
For example, superstars like Su Mo had his albums and singles downloaded 50 million times in the past year, which brought a huge profit to Totem Music.
It was the same for Song Luding’s Phoenix Record. Tang Yuan bought several songs from Chen Huan and were downloaded more than 30 million times. Adding his previous singles and albums, it drove the downloads to 40 million.
Because of those dazzling results, the annual report for the three big record companies last year were very good. The dividend everyone received increased and their stock value slowly rose.
It seemed that they would develop greatly and make a lot of money as long as they followed the trend.
But how could this kind of passive style to earn money enter Song Luding’s eyes.
He wanted to be aggressive and rely on the singers under his label to take a big chunk of the market. He even wanted to take control of the rules and make even his own to obtain more benefits.
But there was a problem if he wanted to do that.
All types of publicity and activities such as making albums etc…as well as various network operations, all needed money to do.
Unless he had only an emperor/empress under him such as, Tang Yuan, Su Mo, Zhu Shengyu, Zhou Jing, Xu Ping, then the fans would naturally buy it.
Of course, it was very probable they would get more benefit if they did a large operation with an emperor/empress.
Everything was inseparable from money but Phoenix Record didn’t have that much money to spare. They had so many people to take care of and equipment to maintain, where could they take out the money?
In the darkest time of the music industry, Phoenix Record suffered loss every year and it wasn’t for Tang Yuan and Zhou Jing two emperor and empress desperately holding concerts, it would have been unsustainable for them.
The situation was little better now but it would be difficult for them to spend 100 or 200 hundred, let alone do it like a big dog Shanhai Streaming who spent 200 million for a single movie.
It would be untrue to say that Song Luding never thought about it when he saw those web companies didn’t know how to spend their money while he didn’t have any money to spend.
Some time ago, Gan Liangchen entrusted Wang Juan to pay Song Luding a visit in Huhai to discuss Shining Technology investing in Phoenix Record.
With an estimated value of 10.5 billion Yuan for Phoenix Record, Shining Technology wanted to invest 2.1 billion Yuan for 20% of the shareholders’ shares instead of buying the circulating shares in the market, which was equivalent to directly giving them money.
Because the market value of the Phoenix Record was 7 billion.
After Shining Technology became a shareholder, they would also lend them a 2 billion interest-free loan for five years so they could expand their business.
On the surface, the shareholders would make a lot of money, not mentioning the high cashing out, and the company would also receive a huge amount of cash.
But what Song Luding was worried about was diluting his 30% shares and if it was diluted again, Shining Technology’s shares wouldn’t be much lower than his.
After they worked for a few years, it wouldn’t be something hard for them to kick him out of the company.
That was why Song Luding resolutely refused while the other shareholders agreed.
That was also why Gan Liangcheng also invited Song Luding to Lin’an.
“If you want to, why don’t you cooperate with us?” Wang Juan said, “In addition to our 2 billion interest-free loan for the next five years, Phoenix Record would also have access to our Shining Technology publicity resource. We give many advantageous treatments to our affiliate companies! Think about it, Youyi is even bigger than Shanhai Streaming!”
Song Luding’s lips quivered.
Wang Juan was right. As far as online video streaming resources were concerned, Youyi was the number one in Asia and Phoenix Record base operation was in Asia so their resource would be helpful to them to boost their singers reputation and a good influence for their online and hard copies sales of their songs.
But like that, Shining Technology would have even greater influence in Phoenix Record!
“President Song, did you see Meteor Girls’ success?” Gan Liangchen leisurely said amid the silence, “How much impact do you think they would have in the music scene?”
“Their model, if successful, would be game changer.” Song Luding said without hesitation, “Teacher Lu is really a genius! He unexpectedly made such a big band that nobody was optimistic about so popular! Now we have to see if they can stabilize their position and if they stabilized their foundation, they would become Shanhai Streaming’s cash cow within a few years.”
“So you think they can make it through in the end?” Gan Liangchen asked.
“It’s hard to tell.” Song Luding said in hesitation.
“If I told you that Shanhai Streaming is already preparing another variety show, which is specially tailor made by Teacher Lu for them, would you still say that?” Gan Liangchen asked again.
Song Luding was stunned and couldn’t help but blurt out, “What is the relationship between them to so easily obtain ideas from Teacher Lu!?”
“There is no other reason than spending money!” Gan Liangchen said, “Do you know how much Zheng Rongrong paid Chen Huan to hire him to come in the TV series?”
“The rumors said it was the sky high price of 20 million.” Song Luding said with uncertainty.
Gan Liangchen shook his head and only raised his hand and spread all five of his fingers.
Song Luding’s eyes were about to pop out, “Impossible! How much does the Heavenly Kings get? If they weren’t an investor or shareholder, 30 million was the limit!”
“But she still gave it, and Chen Huan didn’t charge her any money for the idea of selecting the members of Meteor Girls but she still gave him 10 million.” Gan Liangchen had a slight smile, “If it was me and someone treated me like that, I also would give them another variety show!”
Song Luding’s mind was in a mess.
He knew that Gan Liangchen wouldn’t lie to him about this kind of thing.
But that tycoon Zheng Rongrong was really too hateful!
It was totally using money to get achievements!
And she was already close to success!
Look at Meteor Girls momentum, it crushed almost all the other singers!
Had it not been for Su Mo’s recent concerts, maybe even Su Mo would be pressed down momentarily.
His own house Tang Yuan was also quietly polishing his own album but his momentum was too weak.
“President Song, think about it!” Gan Liangchen calmly said, “Do you want to develop further with us or hold onto your Phoenix Record and watch the other surpass you step by step! Time to make a decision!”
“I get it!”
Song Luding took a deep breath, “My mind is too muddled, I will go back and think about it…hmm, three days! I will give you a definitive answer in three days!”
Gan Liangchen went for a handshake, “I hope we can work together!”
Song Luding shook his head and felt that Gan Liangchen was very determined.