Chapter 860 Extra 1: Window acquisition, entering the cinema chain
During the cold winter month of June, control in major cities was slightly it is still strictly prohibited across the country.
Offline schools have opened one after another, and major universities have also announced the start time of the second half of the semester and implemented closed-door teaching.
The acquisition of Lightyear Pictures has officially begun.
China's sixth largest cinema chain, Xingtie, plans to sell 128 of its cinemas and 100% of its equity shares.
This includes dozens of first-tier market cinemas in super first-tier cities, with a proposed price of 30 billion yuan.
Leading the company team, Chen An, several senior executives and the company's legal team went to the Magic City.
We went to the other party's headquarters building and held discussions.
Not only the top management of Xingtie came, but also its holding company, Xincheng.
The headquarters of Wuyue Plaza, a national commercial plaza second only to Wanda.
Like Wanda, it expanded from real estate to the film and television cinema industry, but it was much more low-key.
The film and television industry is not the only one hit hard during the cold winter.
In the spacious conversation room, more than a dozen people including the legal team were sitting.
Chen An knocked on the table and said simply, "I won't beat around the bush. I may know the current industry situation better than you do. Wanda's losses as of the end of the first half of the year have reached several billion, so we need to discuss the price."
"Director Chen, this period will soon be over, and all the theaters we sell are large cinemas in super first-tier cities, with thousands of screens, including 267 Dolby and iMax large screens."
The other party's top brass kept talking about their own situation.
These theaters are all located in big-box office cities, and they also have many top-notch large-screen equipment.
Chen An didn't bother to care about these things. How could he not know whether the money was worth it? He just came to lower the price.
But those were prices at the height of the market.
"The negotiations between Hengdian and you have ended. The choice of whether to sell or hold on is in your hands. No one knows what the subsequent market will be like."
Chen An continued calmly: "Even after the recovery, whether the audience still has enough desire to watch movies is one thing, whether there is financial support for watching movies is another, but the accurate speculation is that consumption will definitely be downgraded in the future."
"The major industry markets that have been hot in recent years will no longer exist, and the annual box office of more than 60 billion yuan is just a past glory."
He just maintained an attitude and bargained.
By the way, scare the other party. No one can tell whether the matter is true or false.
But after all, he is the one who holds the big data of Weibo and Tik Tok, and the other party has certain considerations.
I also understand that there are situations where the other party actually says the opposite, but no one can guarantee that.
After all, movie and television theaters are not Xincheng’s main business.
The negotiations, which had been deadlocked for the whole morning, did not end and were temporarily paused.
Further negotiations may be required, so there is no need to rush.
After Chen An and others left, the silent senior executives of New Town started communicating among themselves.
"His sudden entry must mean that the market will recover, which may not take long."
"Can you guarantee it? Can you be responsible for the company's daily losses?!"
"The real estate industry is already suffering from heavy losses, and with the cinema chain now vacant for maintenance, how long can the company last? How many more months can it last?"
“It cost a lot of money to develop the cinema.”
"If you're still entangled in this, Wanda will not be able to bear it any longer. The company is in urgent need of a large amount of working capital."
"."
Compared to the anxious discussions at the parent company, Xingtie was also a little worried, but he just watched.
Firstly, they have no room for their own decisions, and secondly, they don’t care about changing bosses. Anyway, the parent company now looks at them and others with murderous eyes.
Lightyear’s senior management, Chief Financial Officer Liu Wen and Chen An got into the same car together.
She disinfected her whole body and took off her mask only after getting in the car.
"Mr. Chen, cinemas in the primary market are still too expensive, whether it's acquisition or development."
"How can it not be expensive? The housing prices in slightly better locations have gone through the roof. It's only easier for them to develop real estate." Chen An said helplessly, "Take your time. There are many opportunities this year. Even if the market is open, it won't be able to sustain it."
The consumption downgrade is not an exaggeration, the audience's pockets are empty.
“I still think it’s easier to develop from the secondary and tertiary markets first, and the company has made a lot of acquisitions these days without spending such a large amount of money.”
Liu Wen always felt that the price was too high this time.
They acquired nearly 300 cinemas from the lower-level market, and the money spent on more than 3,000 screens was less than half of this time.
Although the market size is smaller and the cinema scale is not that large, it has more screens.
The overall scale of the secondary and tertiary markets is also larger than that of the primary market.
Chen An shook his head and said, "The subsequent market opening will definitely be concentrated in first-tier and super first-tier cities."
Profitability may depend on these.
"The Eight Hundred" contributed 3 million to the box office in Shanghai and Beijing alone.
Especially Shanghai, with a box office of million, there are only five provinces ahead of it, and the top three are three major coastal economic provinces!
"Of course I want it, but definitely not at this price." Chen An glanced at the other party and said firmly.
Seeing Chen An's firm attitude, Liu Wen did not argue any more.
The company supports the idea of entering the cinema chain, but unexpectedly, Chen An, who was not restrained at the beginning and was hesitant about whether to enter the market, is now the most radical.
With such a large-scale conquest, Light Year will quickly become one of the largest cinema chains in the country.
If this transaction is completed, the market share will be second only to Hengdian.
'Light Year Pictures enters the cinema chain, creating big deals one after another, and another major cinema chain appears in China!'
At the end of June, a piece of news was broken by the media.
The leading film and television company Lightyear Pictures has made a big push into cinemas during the film and television industry's cold winter, leading countless people to speculate that the market will soon open up.
It acquired 19 cinemas under the sixth largest cinema chain at a price of 128 billion yuan, all of which are large cinemas in the primary market.
It quickly became the sixth largest cinema chain in the country!
Lightyear Pictures also held a press conference and established a subsidiary, Lightyear Galaxy Cinema Holdings Company.
The cinemas across the country, large and small, that were acquired for management were renamed uniformly.
At a time when cinema chains across the country were suffering huge losses and some were closing down, many people saw the actions of Light Year Pictures as a harbinger of an impending market opening.
Otherwise, Chen An is just a fool, which is obviously impossible.
The news came soon that the market will be gradually liberalized at the end of July.
This has made many people ready to go, especially Wanda, the industry leader.
Within a few months, the loss was nearly 10 billion yuan. The domestic theaters were not doing well, and the overseas theaters were not much better, so the movie lost money on both ends.
A stubborn mind leads to a blockage in both ends.
But now that the market has been developed, problems have also arisen: there is a platform, but no goods!
The major producers are certainly reluctant to release the big productions they have in their hands, and no one knows what the market situation is like.
I don't think it will get better, it's still in the recovery stage.
Even Chen An is unwilling to release "Detective Chinatown 3", and others will certainly not be willing to do so.
That answer itself is re-screened, it is better to do so than to leave it blank.
A series of Lightyear movies have begun to be screened in its theater chains. Since they are re-screenings, the ticket prices have naturally been reduced.
Increasing the price of popcorn and cola simply provides a good atmosphere for watching movies.
Don’t blame Boss Chen for being cruel, everyone is like this.
In the absence of any new films released, films such as "The Wandering Earth" and "Interstellar" were released.
A nostalgia project was also launched, and movies such as the "Little Forest" series and "My Sassy Girl" were brought back to the big screen.
Basically, it's better than nothing. As for sentiment, people in China still love it.
(End of this chapter)
