Chapter 504: The Situation is Stronger than the People

Regarding the plan for handling Netflix, Chen Jiajun had two options.

The first was capital injection, and the second was a full acquisition.

However, with the lessons learned from Wang Zhiyuan, Chen Jiajun had to secure the right to speak in this negotiation.

Reed Hastings immediately began to brag incessantly about Netflix's grand prospects. If Chen Jiajun hadn't known the situation with Netflix, he would have thought their streaming business was already online! After listening to this guy brag for a long time, Cao Weicai finally couldn't help but interrupt: "Mr. Hastings, as far as I know, it seems only your online DVD rental business is doing okay. As for the rest... forgive my bluntness, it doesn't seem to compare to Blockbuster!"

"But Netflix's model will definitely be able to replace Blockbuster in the future; Netflix represents the future!" Reed Hastings said solemnly: "This is a company with infinite potential!"

Reed Hastings had repeated these words countless times on the road to finding investment for Netflix.

As he kept saying it, even he himself started to believe it a little.

Otherwise, given this guy's past business style, he would have sold Netflix off long ago.

Cao Weicai nodded and said: "True, and it is precisely because of Netflix's close relationship with the internet that we approached you. However, in my view, Netflix's model is not novel. If necessary, we could replicate the miracle of Netflix on Amazon again!"

"Mr. Hastings, you probably don't know how many users Yahoo has today, do you!"

Hearing Cao Weicai's words, Reed Hastings' incessant bragging was suddenly choked off.

Indeed, compared to Yahoo's tens of millions of users, what was Netflix with only six digits? To put it bluntly, if Yahoo really threw its weight around to compete with Netflix, converting just one-tenth of its users would be enough to beat Netflix black and blue.

Hearing this, not only did Reed Hastings shut his mouth.

Even Marc Randolph sitting next to him had his expression turn ugly.

If Yahoo really engaged in vicious competition with Netflix, it would be a catastrophic disaster for Netflix.

However, the two were clearly overthinking it.

This sentence from Cao Weicai was just meant to intimidate people.

Yahoo was currently raking in money in the search industry, with its stock price hitting new numbers every day.

How could they possibly abandon their main search business to turn around and compete with Netflix? Wouldn't that be brainless?

Moreover, rashly changing their business strategy would cause David to explode over there alone.

Most importantly, it would easily affect Yahoo's current stock price.

Cao Weicai said indifferently: "Let's be direct, Mr. Hastings. We have our eyes on Netflix only because we see that Netflix can inject fresh blood into Yahoo, and Yahoo's current revenue method is too singular, which is why I have my eyes on other tracks."

Reed Hastings didn't dare to continue bragging at this moment, and acknowledging Chen Jiajun's words, he said: "Then Netflix meeting Mr. Chen's needs is absolutely no problem!"

"That's right, we have a natural foundation for cooperation!" Cao Weicai continued.

Reed Hastings tentatively asked Cao Weicai: "I wonder in what way United Aerospace Capital intends to carry out our cooperation?"

Marc Randolph on the side also pricked up his ears, intending to hear Cao Weicai's offer.

The best way to cooperate would be for United Aerospace Capital to inject capital into Netflix without interfering with Netflix's independent operations.

But such a thing was clearly impossible.

One could tell from Cao Weicai's attitude that Netflix was not a necessity for United Aerospace Capital.

Cao Weicai nodded and said: "United Aerospace Capital will offer Netflix two ways of cooperation!"

The two men didn't speak, just looked at Cao Weicai.

Cao Weicai continued: "First, United Aerospace Capital injects capital into Netflix, just like Yahoo did back then!"

Hearing Cao Weicai's words, Reed Hastings' heart sank.

If they injected capital using that Yahoo model, United Aerospace Capital would definitely have to obtain absolute controlling interest.

This was not a good thing for Reed Hastings.

One must know that Netflix was not a listed company now; apart from some scattered shares held by Marc Randolph and others, the rest were all in his hands.

If he accepted this method of capital injection, the shares in his hands would definitely be heavily diluted.

How many shares would he have left by then? If it came to that, it would be better to just sell Netflix for a good price.

Moreover, Reed Hastings' personality was not that of a wage earner who would work for others! So, hearing Cao Weicai's words, Reed Hastings didn't even think and asked directly: "What about the second one?"

"United Aerospace Capital will acquire Netflix in its entirety!" Cao Weicai looked at Reed Hastings and said slowly.

Hearing this, even though he had some slight preparation, Reed Hastings still felt uncomfortable in his heart.

In the company of Netflix, his contribution was no less than that of the founder, Marc Randolph.

Although he did not directly operate the company's business, he had always been the one handling the funding.

However, because of the withdrawal of loan, he had already been pushed into a corner.

So, after only a moment of silence, Reed Hastings said to Cao Weicai: "I wonder what price your side intends to use to acquire Netflix?"

Hearing Reed Hastings' words, Marc Randolph on the side widened his eyes: "Reed, this is not what we agreed upon before! We previously..."

Reed Hastings shook his head to stop Marc Randolph from continuing, then said to Chen Jiajun and Cao Weicai: "Can we pause for a moment? We seem to need some time!"

Chen Jiajun looked at his watch and said with a smile: "This is an important matter, please go ahead!"

Reed Hastings nodded and pulled Marc Randolph out of the conference room.

Then the two went directly to the staff to ask for a lounge.

After the two sat down, Reed Hastings said indifferently to Marc Randolph: "Marc, have you thought about Bank of America?"

"United Aerospace Capital has at least operated a successful internet company. If we wait for the company to be seized by the bank and then sold off after being broken up, what do you think will happen?"

Marc Randolph opened his mouth, unable to say anything for a moment.

Netflix's situation was already very serious, serious to the point of being beyond saving.

"Instead of waiting for United Aerospace Capital to inject capital and dilute the shares in our hands, we might as well sell Netflix for a good price!" Reed Hastings said solemnly to Marc Randolph: "By doing this, at least you and I won't have to sleep on the streets, understand!" Even though Marc Randolph was reluctant, he had to compromise in the face of the current situation.

If the company were seized by the bank, leading to both of them going bankrupt, the outcome would definitely be more painful than death.

After persuading Marc Randolph, the two returned to the conference room.

Subsequently, Reed Hastings said to Chen Jiajun: "Mr. Chen, we agree to United Aerospace Capital acquiring Netflix in its entirety!"

Since the general strategy had been negotiated, there was no need for people of Chen Jiajun and Cao Weicai's level to be present anymore.

The rest could be completely left to lawyers and agents to discuss, as long as they didn't let the deal fall through.

A few days later, Chen Jiajun spent a premium of 80 million US dollars to purchase the 88% stake held by Reed Hastings, becoming the actual controlling owner of Netflix.

Reed Hastings made at least 40 million from this transaction, and he was extremely satisfied with this guy.

At the very least, regarding his years of investment, he not only recouped his costs but also made a profit.

As for Marc Randolph, he felt very helpless that the company he had founded with his own hands had been acquired by someone else.

But circumstances were stronger than the man; without a source of funding, he could do nothing.

After leaving the business center in Los Angeles, Marc Randolph prepared to go home with a look of disappointment on his face.

But at this moment, a Rolls-Royce pulled up in front of him.

After the car window rolled down, Chen Jiajun's face was revealed.

"Mr. Randolph, do you have a moment to chat?" Chen Jiajun said with a smile on his face.

Marc Randolph looked at Chen Jiajun with some surprise, not understanding what this Big Boss still had to talk to him about after having already acquired his company.

"Could he be planning to mock me?"

This thought emerged from his mind, only to be extinguished by himself.

He had no personal feud with Chen Jiajun, and in fact, they had only met for the first time in the last few days.

Moreover, he did not believe that a tycoon worth millions or more per minute would be bored enough to amuse himself at his expense.

So, after hesitating for a moment, he still got into Chen Jiajun's car.

After sitting down, Marc Randolph couldn't help but ask: "Mr. Chen, I wonder what business you have with me?"

Chen Jiajun said to Marc Randolph: "Mr. Randolph, I have always felt that you are the true creator of Netflix!"

Hearing Chen Jiajun's words, Marc Randolph couldn't help but feel moved, though on the surface he still said humbly: "It was just the result of everyone's joint efforts."

"That is a fact." Chen Jiajun waved his hand and said: "Compared to the old and cumbersome Blockbuster, if Netflix can obtain the funding to continue, it might just be able to replace Blockbuster's position as the giant in the DVD rental industry!"

Hearing Chen Jiajun's words, Marc Randolph's eyes suddenly lit up: "Mr. Chen thinks so highly of Netflix? Does that mean you won't treat it as an expansion business for Yahoo?"

Chen Jiajun smiled slightly and said: "I have never had that thought."

"Then how..."

Marc Randolph quickly realized what was happening.

Negotiations are negotiations, and using some commercial deceptive tactics is understandable.

Clearly, compared to Reed Hastings, who was anxious to sell as soon as he saw Netflix losing money, Chen Jiajun was much more visionary.

Thinking of this, Marc Randolph suddenly gave a bitter smile: "Mr. Chen, no wonder you can make your business so big! But the acquisition is already complete; I don't understand why you are telling me this!"

Chen Jiajun said with a smile: "Because I am quite optimistic about it!"

"Hmm?" Marc Randolph immediately raised his head.

"The model for Netflix was built by you single-handedly. I don't think anyone understands Netflix better than you, and no one wants to make Netflix bigger and stronger more than you! Isn't that right?" Chen Jiajun said with a smile: "Therefore, I would like to invite you to come back as the CEO of Netflix and recall the old employees of Netflix!"

Ever since Netflix received capital injection from Reed Hastings, Marc Randolph's original team had been completely broken up.

Many people were even directly dismissed.

The two were originally good friends, and when the capital was injected, it was agreed that Marc would only be responsible for operational issues.

Regarding Reed Hastings' actions, he had absolutely no way to stop them.

Now, hearing that Chen Jiajun was actually planning to recall the old employees, Marc Randolph was ecstatic.

His voice even trembled slightly as he said: "Mr... Mr. Chen, are you serious?"

"Of course I am serious. Furthermore, in order to avoid turmoil in the company caused by changes in equity, I will not adjust the original structure of Netflix! This is to stabilize morale!" Chen Jiajun continued.

Hearing Chen Jiajun's words, Marc Randolph took a deep breath and said: "Mr. Chen, this matter is truly too sudden; I need some time to think it over carefully."

Chen Jiajun nodded: "That is expected, but Mr. Randolph, please do not take too long to consider; I will not be staying in Los Angeles for very long!"

"Of course, three days; in three days I will give you a concrete answer!" Marc Randolph said hurriedly.

Chen Jiajun nodded and said nothing more.

Westerners are relatively direct; saying they will consider it means they are truly considering it, not a polite refusal.

Chen Jiajun could afford to wait a few days.

After Marc Randolph got out of the car, he immediately rubbed his face, then took out his phone and dialed a number...

A few days later, those employees who had accompanied Marc Randolph in the startup gathered in Los Angeles and met with him.

Subsequently, he accepted Chen Jiajun's request and officially became the CEO of Netflix.

And with his original subordinates, he prepared to do some great work. (End of this chapter)