The first to speak was Mr. Shao.
As the top executive in charge of investments at Black Swan Capital, it was most appropriate for him to speak first.
"President Long, I feel that there are some areas in the verbal agreement between President Gu and yourself that need to be carefully clarified, especially since this involves an acquisition worth billions."
Although Long Dan Ni is a woman, she initially showed some respect, but once she sat at the negotiation table, her aura became sharp. She nodded immediately: "Director Shao, please go ahead."
Mr. Shao then accepted the document handed to him by the lawyer beside him, turned to the page he wanted, and said, "Regarding the acquisition valuation of 400 million, I think we need to renegotiate. According to the report from our evaluation department, I don’t believe the current Wajijiwa Entertainment is worth 400 million."
Without unnecessary embellishment, Mr. Shao directly started to launch an attack.
Business negotiations are similar to buying vegetables at the market, the only difference is the scale of funds. The rest is essentially a back-and-forth over the price.
Upon hearing this, Long Dan Ni looked directly at Gu Bai. However, Gu Bai was currently looking down, seemingly deep in thought, with his eyes fixed on his nose. The negotiation authority given to Mr. Shao was granted by Gu Bai, so he naturally supported it unconditionally, not to mention that everything Mr. Shao said was for the benefit of the company.
Seeing that Gu Bai did not express any objection, Long Dan Ni understood that Mr. Shao’s intentions represented Gu Bai’s thoughts. She then responded, "What valuation does Director Shao think is appropriate?"
With just two words, Wajijiwa Entertainment’s valuation was cut by 100 million.
Before Long Dan Ni could speak, Huang Wei, the CFO of Wajijiwa, immediately refuted, "Director Shao, you’re driving down the price unreasonably. I cannot accept this. Here is our company’s financial report."
With that, he handed each person in front of Gu Bai a document and continued speaking.
"This is the revenue detail of our first half of the year. In the two quarters of 2017, just with the project ’Future Son’, we achieved a revenue of 42 million, with net profit reaching tens of millions. Moreover, the second season of ’Future Son’ is also in preparation. Such a company with an already healthy financial status, I can only say a valuation of 400 million is not high at all."
Mr. Shao nodded first, acknowledging Huang Wei’s words, and then spoke again, "You understand that the valuation of a new company is not just determined by revenue but also by its potential.
Remember Liren Entertainment two years ago?"
Liren Entertainment was also a rising star in the entertainment industry a few years ago. Since the company had a keen eye for projects that became sensational hits, there was even a year where every major movie production had Liren Entertainment in its credits. This led many to predict that Liren Entertainment could be the next entertainment giant. However, due to competition for projects, they offended the current giant, Huayi Entertainment. Under the joint consumption of several capitals, a company with a promising future was acquired at a low price.
Such cases are common in the entertainment industry. Mr. Shao’s words subtly hinted to Long Dan Ni that Wajijiwa Entertainment is currently in a similar situation.
This statement indeed touched their sore spot.
If it weren’t for the continuous suppression from Tianyu’s resources, they wouldn’t even consider letting go of the company’s absolute control. However, as it stands, Black Swan is the only capital willing to take this risk.
With that, a glance exchanged among them, Long Dan Ni, as the representative, said, "Although we believe Wajijiwa Entertainment has absolute potential, to show sincerity, we are willing to lower the valuation to 380 million. As for Director Shao’s 300 million, we simply cannot accept it."
Mr. Shao spoke again.
"Director Shao, 380 million is already the most sincere concession we can make, and it’s our bottom line."
Before Mr. Shao could speak, Gu Bai, who had been silent, sat up straight, looking at Long Dan Ni, and said directly, "350 million. After all, in this acquisition, Black Swan Capital is the one taking on the risk. If you all can accept it, we have a basis to continue negotiating. If not, then let this negotiation end here, and we’ll reimburse your travel expenses from Jinmen to Shanghai."
Typically speaking, since Black Swan Capital initiated the acquisition of Wajijiwa Entertainment, Gu Bai and his team should have gone to Jinmen. The reality, however, was different; it was Wajijiwa Entertainment seeking Black Swan for the acquisition, naturally reversing their positions.
Gu Bai’s words cornered the negotiation starkly.
Long Dan Ni and the others exchanged looks again and then said, "President Gu, we need to discuss this privately for a moment."
After speaking, Long Dan Ni and the others got up and went to the resting area of the VIP meeting room.
After they left, Mr. Shao curiously asked, "President Gu, there was no need for you to speak. I think we could push the valuation below 350 million."
Gu Bai gently shook his head.
"If it were a full stock acquisition, pushing is fine, but since the company’s future operations are still under their hands, there’s no need to be ruthless."
Though a price squeeze is possible now, being backstabbed later could cost much more. Gu Bai was not interested in challenging human nature.
Although Mr. Shao thought Gu Bai was overthinking, as absolute control would mean the company places people in regulatory roles, making such mishaps unlikely, he would not contradict him since Gu Bai had already spoken.
Ten minutes later, Long Dan Ni and the others returned to the meeting room after discussions.
As soon as they sat down, Long Dan Ni straightforwardly said, "President Gu, we can accept the 350 million offer, but we have one condition."
"President Long, please go ahead."
"I require that after the acquisition, Black Swan Capital does not interfere with our company’s operations, and I must retain 100% control over management."
That was something Gu Bai had promised her before; this was just reiterating it.
With the most crucial part decided, the rest of the details were easier to resolve. ʀᴇᴀᴅ ʟᴀᴛᴇsᴛ ᴄʜᴀᴘᴛᴇʀs ᴀᴛ 𝗻𝗼𝘃𝗲𝗹✶𝗳𝗶𝗿𝗲✶𝗻𝗲𝘁
An hour later, all details were negotiated thoroughly.
Black Swan Capital acquired 67% of Wajijiwa Entertainment’s shares for 235 million, achieving absolute control, and officially renamed Wajijiwa Entertainment (Jinmen) Co., Ltd to Black Swan Entertainment Co., Ltd, making it a subsidiary of Black Swan Capital.
If previous investments in ’I Am Not a God of Medicine’ and ’Fuyao’ simply allowed Gu Bai to tap on the doors of the entertainment industry, the completion of this acquisition marks the formal entrance of a new capital giant into the entertainment world!