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Chapter 245 Remedial measures

Three hundred million funds, 75% of the equity?!

After hearing this, Vice President Wang's sweat fell on his head.

Although he expected that the other party would speak loudly, the conditions like Fan Wubing spoke in an unhesitant tone really made him a little unbearable.

Yes, Jiang always gave him certain authority, but he sold his company after replacing it. This matter was probably impossible. Therefore, Vice President Wang took a tissue and wiped his forehead, and then said to Fan Wubing, "This condition is really a bit harsh, I'm afraid it won't be possible."

According to Fan Wubing's conditions, the senior executives of Wanyan Company suddenly became small shareholders, and Fan Wubing became a major shareholder. Although he would provide 300 million yuan to expand the scale of reproduction for Wanyan Company, he may have to continue to support the company in the future, but this identity has changed too quickly. I believe Jiang will never agree.

"That's okay." Fan Wubing said indifferently, "Anyway, this is the case. I have nothing to care about. You can discuss with Mr. Jiang when you go back. If it works, come to me as soon as possible, forget it if it's over half a month."

Vice President Wang left with a frown, but finally found someone who was willing to invest and could take out 300 million yuan in one go, which was not so easy to find. This time, he was able to hand in the job to President Jiang. As for where to go, they made a decision based on their bosses, and they had already done their duty.

After watching Vice President Wang leave, Wang Shihan said to Fan Wubing in a striking manner, "Mr. Fan, your appetite is big enough! He will immediately need 75% of the shares of the other party!"

Fan Wubing laughed and replied, "Are there many? Actually, not many!"

From an objective perspective, Wanyan Company is now at the most critical moment. If Fan Wubing doesn't take action, I think no one will help them. After all companies withdraw from various VCDs next year, Wanyan Company will only end up being squeezed out. It is difficult to recover the cost, let alone profits.

What Fan Wubing is willing to take action is to take out real money. The investment of 300 million yuan is equivalent to two or three times their previous investment. Why can't we take up the majority?

After thinking about it, Wang Shihan also said, "It's really not much. In fact, they can't understand this. If Mr. Fan becomes a major shareholder, then Wan Yan's development will be limitless. It's more than ten thousand times better than where they are now. However, people who are skilled often cannot understand this truth!"

Fan Wubing nodded and admitted that Wang Shihan was right. If he took over Wanyan Company, he could kill others by just spending money, not to mention that he was actually a little killer. At least he wouldn't be as confused as they were, and he didn't know what kind of preparations to make for his future development. This is his biggest advantage.

"By the way, Brother Wang, you have put some effort into the vcd disk before. Do you have any feelings?" Fan Wubing suddenly asked.

Wang Shihan did not expect Fan Wubing to ask him this question. He had worked hard on this before, but after hearing Fan Wubing's advice, he gave up the idea of ​​entering the vcd disk drive and turned to think about the ideas provided by Fan Wubing to develop the pirated disc industry. It was an emerging industry with higher profits. At this time, he felt a little strange when he heard Fan Wubing ask about his feelings about vcd disk drives.

However, since Fan Wubing asked, it would not be aimless. So Wang Shihan thought about it carefully and said to Fan Wubing, "I think the entry threshold for this industry is very low, so as long as you have certain technical conditions, it depends on the size of the capital. As long as it reaches the scale, it will not be impossible to continue. But it is strange that the market capacity now seems to be very small, far from reaching the expected sales of 2 million units per year, which makes people feel very strange."

"You don't know the reason, but I know--" Fan Wubing said with a smile.

Wanyan's vcd disc machine is a brand new audio and video product. The problem they faced before was to develop software and hardware together. The initial investment was 17 million US dollars, of which hundreds of millions of R&D funds were used up. It is said that 20 million yuan of advertising expenses were invested this year.

More than 100 million yuan of R&D funds were invested, and the product was developed, but it did not apply for patents in time and made a technology monopoly. Other manufacturers only needed to spend a very small cost to obtain complete sets of mature production technologies.

Wanyan Company suffered a huge loss in the early product costs, and its next defeat was the huge advertising expenses invested this year. In fact, until 1995, the DVD player market was still in the cultivation stage. Before the emergence of pirated movies, the market capacity of DVD players was very limited. No matter how much advertising expenses were invested, it would not have the expected effect.

Advertising is a business that requires continuous investment. Once interrupted, advertising will become ineffective as time goes by. If the advertising budget of 20 million yuan is delayed to the second half of 1995 and then invested, it may bring Wanyan Company back to life.

But now, hehe.

In the early stage, hundreds of millions of research funds and 20 million advertising costs have been invested. So far, the number of DVD players sold has not exceeded 20,000. Although each DVD player is priced at 5,300 yuan, it is difficult to recover the cost, let alone any profit.

Unfortunately, Wanyan Company’s funds are out of touch!

Wanyan Company spent all its money on the eve of the launch of the DVD player market and fell into a survival crisis.

At present, Wanyan Company's annual output of disc machines is only a few tens of thousands. Although it now accounts for 100% of the disc machine market, when next year and next, when DVD player manufacturers such as Aido, Kim Jong, and Xinke rise, the annual production capacity of tens of thousands of units is in the market rankings, and even the shadow cannot be seen, let alone recovering investment and making profits.

Wan Yan wants to make a comeback, so he can continue to raise funds to expand production capacity. When the DVD player market suddenly breaks out, he will take advantage of the opportunity to seize the market.

Before the large number of pirated video discs appeared, the dismal market of video disc machines and Wan Yan's miserable operation had already made investors lose confidence. The most important point is that introducing the entire production technology of video disc machines does not even require more than one million yuan. However, investing in Wan Yan has to share the over 100 million yuan of cost of Wan Yan's early investment in R&D. No investor would be so stupid as to do this discount transaction?

If Fan Wubing had to do a VCD disc machine project, he would choose to start a new job and would never invest in Wanyan Company. It would be cost-effective to buy Wanyan at a very small price, but it is probably difficult for the founders of Wanyan to accept it.

However, Fan Wubing knew that the conditions for the outbreak of the disc player market are already in place. The reason for the failure to break out for the moment is not other factors, but because the current domestic production capacity is only tens of thousands of units of Wanyan Company. At the same time, the disc player market is also severely restricted by the disc source. In turn, the narrow disc player market also limits the development of the pirated disc market.

In Fan Wubing's opinion, Wanyan Company still has an advantage, but it has been more than a year. The reason why they did not succeed is that they did not understand the unspoken rules of market operation. They had to follow the right path and the evil path. Only then could they achieve success. This is like the relationship before Fan Wubing's rebirth. Although they bought computers and were under the banner of national brands, they also rely on giving money to beauties to open up joints. Regarding this matter, a friend of Fan Wubing did it for them at the beginning, so he was naturally very clear about the inside story.

"If you want to do big things, you can't be careful of the small matters." Fan Wubing said to Wang Shihan, "Etiquette, righteousness, integrity and shame should be discussed, but after we succeeded, as for the stage of starting a business, the right way was to do anything. Marx said very clearly in the Theory of Capital that when capital comes to the world, it is blood and dirty things from head to toe, and capitalists will naturally not be good birds. We don't need to give up the opportunity to become superior because of a little fame."

"Mr. Fan, what you said is really incisive-" Wang Shihan was sweating all over his head, thinking that Mr. Fan was really able to say and dare to speak. What he said made people feel frightened. I don't know how he made his fortune back then. Could it be that he had used all means to get a lot of blood?

Fan Wubing laughed and said, "I'm actually encouraging you."

"What are you encouraging me?" Wang Shihan was confused and didn't know what Fan Wubing was talking about.

"I encourage you to develop a piracy career!" Fan Wubing replied with a smile.

Inspiring Wang Shihan to develop his pirated CD career was also a random decision by Fan Wubing. However, when he thought about it carefully, he felt that there was a deep intention in it. If he could make the CD market bigger and complete the film source this year, it would provide sufficient bullets for the disc player market, and the market capacity would be expanded, and the basic conditions for his intervention in Wanyan Company would be met.

As long as the market capacity meets the conditions for expanding reproduction, once the funds are in place, it can expand Wanyan Company's sales ten times or even hundreds of times, and at the same time reduce the cost to less than 1,000 yuan. In this way, the two basic conditions required by the market will be met, one is the low price of the disc machine and the other is sufficient disc resources. The market explosion will occur more than a year in advance. Wanyan Company relies on its own time difference to increase sales to one million units in one fell swoop, which is not a fool.

Wang Shihan was killed by Fan Wubing for a while, and finally understood Fan Wubing's general consideration. He couldn't help but admire him. He said to Fan Wubing, "Mr. Fan, you really have a plan! But now it depends on whether Wanyan Company has this enlightenment. I think it is difficult for them to accept your conditions!"
Chapter completed!
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