Chapter 592

Fang Hong and Liu Tianxian appeared on Time magazine; this level of attention will last for some time.

After all, it's something that hasn't happened in many years—Chinese actors and directors haven't graced Time magazine in a long time.

This also signals Liu Tianxian's status in the entertainment industry has been infinitely elevated, and her international clout has risen.

"China's International Ambassador of Cinema!" BBC!

"China's Elegant Representative in Cinema!" Hollywood Reporter.

"Fairy on the Chinese Screen!" South China Morning Post.

These are the evaluations from domestic and international mainstream media, calling her a representative of Chinese cinema and the image of China's film industry—praise of no small measure.

The magnitude of this honor is evident; it carries more influence than winning an award.

A masterpiece with seven billion dollars in global box office—no exaggeration.

Even though Nezha 2 earned over ten billion domestically, its influence in other global markets was not nearly as great.

Don't be fooled by the hype—foreigners don't really get it.

Of course, compared to other Chinese-language films, its box office is utterly unmatched.

Liu Tianxian received lavish praise, and Fang Hong was no exception.

Hollywood Reporter: "Principal is the pioneer of Chinese sci-fi cinema; Gravity demonstrates the potential of China's film industry."

Variety: "Principal is the new hope of China's film industry!"

The Guardian: "A bridge spanning Eastern and Western cultures!"

Many film festivals and events invited Fang Hong to attend as a guest or judge; he declined them all.

Beijing Culture and Tourism, the State Administration of Radio and Television, and university experts invited him to a symposium; he declined as well.

They just want you to analyze the success of your film, your shooting experience—nothing worth discussing; it was just copied.

It's all pointless nonsense, just idle.

The Beijing Film Festival planned to appoint Liu Tianxian as Image Ambassador, but she declined—she's filming, she has no time.

It was later given to Huang Xiaoming and Zhou Dongyu; if they knew it was something Liu Tianxian refused, I wonder what they'd think.

Huang Xiaoming probably knows—he has wide connections—but so what? He'll pretend he doesn't.

Liu Tianxian doesn't need it, but for Huang Xiaoming, it's an opportunity to showcase his image, representing Beijing and showing his sincerity to the higher-ups.

To secure Liu Tianxian, the Beijing Film Festival invented a new term: Propaganda Ambassador.

It doesn't require her to be physically present—just use her image, shoot a VCR to promote the Beijing Film Festival; Liu Tianxian had no objection, she could film it on set.

So the Beijing Film Festival's official website banner displayed a large portrait of "Liu Tianxian," with a small vertical text beside it:

Propaganda Ambassador: Liu Tianxian!

This led many fans—even overseas fans—to believe Liu Tianxian would appear at the festival's press events and promotional activities.

But it turned out otherwise—Liu Tianxian never appeared; she would only show up on award night.

After all, she was also nominated for Best Actress! She has a chance to win the Temple of Heaven Award; Fang Hong was nominated for Best Director, but he had no time to attend.

This award is just dividing pork—each country gets one; it has nothing to do with how good the film is.

The Beijing Film Festival opens on the 16th and closes on the 23rd; the award ceremony is only at the closing, still a long way off.

He's recently been busy acquiring Bona, always with his mother-in-law; she registered a company named Yuan Meng Tianchen Film and Culture under her own name.

Registered capital: 3 million yuan; Bona's registered capital is only over 1 million yuan—enough.

Liu Tianxian injected 259 million U. S. dollars into Yuan Meng Tianchen, specifically for acquiring Bona's shares.

The calculation was exact: 259 million—that's the number!

This money originally belonged to Fang Hong, but it was held in Liu Tianxian's account; when Fang Hong persuaded her with pillow talk, she agreed to the Bona acquisition plan and willingly paid.

Of course, how the capital was injected was handled entirely by finance teams—Liu Xiaoli has her own finance team, and Fang Hong has his.

With Universal's referral, Yuan Meng Tianchen acquired News Corporation's 19.3% stake in Bona at a premium of 100 million U. S. dollars.

Bona's current market value is about 500 million U. S. dollars; 19.3%—nearly 20%, or one-fifth—is precisely worth this amount.

This was the agreed price; they held it for over five years—they deserve some profit, otherwise why would they be so cooperative?

News Corporation originally invested 60 million U. S. dollars.

The acquisition agreement was signed by legal teams from both sides; neither party showed up—just sign and done.

Of course, this equity transfer must notify Yu Pangzi—he has the right to know, and it must be publicly announced.

"Yuan Meng Tianchen acquires 19.3% of Bona's shares from News Corporation!"

This was announced publicly via the stock exchange; Oriental Fortune, Financial Times, Sydney Morning Herald, and other international media reported it as a financial news item.

After all, it's a listed company—such a major event must be disclosed to shareholders and investors.

But no one knows what this "Yuan Meng Tianchen" company actually does? It seems to have appeared out of nowhere, showing only one person: Liu Xiaoli.

But this isn't what international media care about—they merely reported it as a routine financial event.

The information occupied only a small section of the page; it wasn't a major news story.

International media didn't pay much attention, but domestic media took extraordinary interest, republishing the international report as front-page headlines, leaving everyone stunned.

The news came suddenly, startling capital firms like Sequoia and Matrix Partners; in a blink, Bona lost one-fifth of its equity.

The film industry was shocked; some couldn't accept it—when they found out it was Liu Xiaoli, Liu Tianxian's mother and Principal's mother-in-law, some couldn't sit still.

They didn't know if Bona and Yutu had some secret connection, or if Principal was engaging in malicious acquisition—if the two had a secret alliance, the impact on the industry would be enormous.

This news made Huayi and Enlight Media restless; both publicly stated: "We will continue to monitor the situation."

It's no wonder they're alarmed—Yutu alone is enough to give them headaches, and Bona is also a major player, deeply entangled with Hong Kong's film circle.

Xu Ke, Dante Lam, Wang Jing, Andrew Lau, Er Dongsheng, Chen Kexin—all have deep cooperative relationships and agreements with this company.

Put it this way: half—or even more—of the distribution rights and investment shares for Hong Kong directors' films shot in the mainland belong to Bona.

Even Hong Kong actors like Liu Tianwang, Guo Fucheng, Zhang Jiahui, and Gu Tianle must cultivate good relations with Bona.

Because this is a Neidi company, a window for Hong Kong film and television.

Such a company in the Principal's hands, and their survival space will be further squeezed.

Neidi looks for Jade Rabbit, Hong Kong looks for Bona — so where do they go?

Don't judge today's Hong Kong films with later eyes; today's Hong Kong films still have plenty of market.

And over these years Bona has been building a nationwide distribution network, including theater chains, cinemas, and online distribution channels.

And Bona itself still has 30 cinemas with 250 screens, all in first- and second-tier prosperous cities like Beijing, Tianjin, Shanghai, Shenzhen, Guangzhou.

Such a complete-system behemoth, decades of operation — if the two sides really join hands and cooperate, it will undoubtedly shake the film and television circle.

It's equivalent to the eldest and the third making up; then the second is caught between two fires.

What they don't know is that Yu Pangzi was also frantic, calling News Corporation's old boss Rupert Murdoch overnight to ask about the situation.

Murdoch had no nonsense: "You're already going private. Holding it no longer makes sense for me. Someone's willing to pay a high price, so I sold."

A stock that hadn't risen much in all these years, only making a few tens of millions of dollars — far below expectations, not as fast as making a movie.

"Then you should have given me a heads-up, old man!" Yu Pangzi seemed a bit agitated.

No advance word at all, catching him off guard. He had originally been seeking funds to buy back the shares from these international capital hands.

Who expected such a sudden turn.

"Does it matter whether I notify you or not? Back when your Bona had no money, it was I who put money in to help you develop, to help you through the tough times. Now that you're on the right track, am I not even allowed to make some money, not even allowed to have some ability to act?"

Murdoch hit back directly, not giving an inch of face!

This left Yu Pangzi speechless for a moment, not knowing what to say — this was too bullying.

Anyway, just not notifying him. The equity in my hands, I call the shots. Sell when I want to sell. Just this unreasonable. Americans are indeed arrogant as hell.

The two's negotiation naturally ended on a sour note. The shares are sold, what can you do? As for Yu Pangzi's feelings, no one cares.

Just like in this world, no strong nation cares about the feelings of a weak one.

And News Corporation already has nothing to do with Bona.

Now Yu Pangzi can only pin his hopes on other investors standing by him, not selling their equity to the Principal. Currently the Principal is already Bona's second-largest Shareholder.

If the Principal gets the equity from other investors, he'll surpass him. With two selling, he could very well become the largest Shareholder. He has to respond carefully.

Thinking of this, to prevent the Principal's hostile takeover, he immediately called Alibaba's Fan Luyuan and Tencent's investment department General Manager Liu Zhiping.

Hoping they would buy the equity from other investors at a higher price, to fend off the Principal's hostile takeover.

There is precedent — Disney once helped Paramount fend off a hostile takeover.

It's just that Yu Pangzi asking Enlight or Huayi is useless; these two don't have the Principal's capital. Behind the Principal is Chang'e Technology.

Rumor has it the Zhong family is also his, with multiple companies' support. The outside world simply doesn't know how much money the Principal has, how much capital.

None of it is listed, none has published financial reports. Who can tell the Principal's capital strength? But being able to put up a hundred million US dollars in one go — well, that's not something Enlight or Huayi can block.

So he can only seek help from Alibaba and Tencent.

Alibaba and Tencent had no objections, immediately agreeing to buy other investors' Bona equity at high prices, and to buy back scattered shares on the market.

This is to prevent the Principal from growing further. If the Principal acquires Bona, it will surely affect their plan to enter the entertainment circle and integrate it.

In the future, all the cinemas will just show the Principal's movies, and they'll just sit and watch — that's a blow to their Big Entertainment Plan.

With Alibaba and Tencent's help, Yu Pangzi finally relaxed a little. If even these two can't fend it off, then no one can help him.

Actually, according to his original plan, he wanted to slowly raise private capital domestically, then through his own efforts earn money to buy back shares on the US stock market, gradually completing the privatization.

This process would be very long, but steady, and no one would suddenly hold a large stake and threaten him.

Yu Pangzi could also keep controlling Bona. But plans can't keep up with changes. These past few years, facing Jade Rabbit's blows, he basically made no money, which indirectly set back Bona's privatization progress and weakened capital market expectations.

Actually, this person, like the Principal, has a very strong desire for control.

Bona used to be a subsidiary of Poly Group. Yu Pangzi was General Manager of Poly Bona. Unwilling to be beholden to others, he broke away from Poly Group in '07, and successfully listed in the United States in '10.

So now Bona is an independent company, with nothing to do with Poly Group. Even if there is a relationship, it's a competitive one — because Poly Group also has theater chains.

Just as Yu Pangzi was relieved that Alibaba and Tencent had stepped in to help, one piece of news after another reached his ears, breaking him down.

"Haina Fund sold its 9.9% stake in Bona to Yuanmeng Tiancheng at a price of fifty million dollars!"

Adding the previous News Corporation stake, Yuanmeng Tiancheng now holds 29.2% of the equity. This stake doesn't yet threaten Yu Pangzi, but it makes him very nervous.

It also makes Huayi, Enlight, Alibaba, Tencent very nervous. The entire entertainment circle is watching this acquisition — a major reshuffle in the film and television circle.

Yuanmeng Tiancheng is Liu Xiaoli's, that is, Liu Tianxian's. Perhaps in the future Bona will be under Liu Tianxian's control.

"Matrix Partners Venture Capital sold its 7.7% stake in Bona to Yuanmeng Tiancheng at a price of thirty-nine million dollars!"

Adding the previous ones, Yuanmeng Tiancheng now holds 36.9%, only about 1% away from surpassing Yu Pangzi's 37.1%, becoming Bona's largest Shareholder.

The Principal moved too fast, as if it had been planned for a long time. Tencent and Alibaba hadn't even reacted, still in discussion, when the Principal had already completed the equity acquisition.

They simply had no time — not a moment.

Very normal. Fang Hong started planning the year before last, taking over a year. How could their last-minute decision possibly obstruct it?

He's not a speculator wanting to make a quick buck and run; he wants to take Bona.

Yu Pangzi couldn't sit still, immediately calling Alibaba and Tencent's two investment heads.

"Relax, we've already communicated with Sequoia. The 10.3% won't be sold to him. Don't you still have 37.1%? You're still the absolute controlling shareholder. Now we just need to take the floating shares. Afterward, we'll help you do an asset revaluation, from five hundred million US dollars to one billion US dollars, diluting the Principal by half."

This was Fan Luyuan speaking, full of confidence.

Asset revaluation is asset restructuring — turning five hundred million into one billion. Isn't that what that Belt Brother guy did?

For Alibaba and Tencent this is very simple, as long as they're willing to put up more money. Originally a five-dollar stock, buying at ten, and they can push it up for him.

But this requires professional auditors' review, must comply with International Financial Reporting Standards. It's not like you can restructure whenever you say.

And with an extra five hundred million US dollars, you have to recalculate taxes on the extra five hundred million, and reissue financial reports.

Generally companies won't do this — after all, it's all money.

With Alibaba's reassurance, Yu Pangzi breathed a sigh of relief again, but another piece of news broke him down.

"Jade Rabbit, Mi Country's Zhong family, as well as multiple companies in the Cayman Islands, Bermuda, and elsewhere, sold the 14.1% equity they held in their hands to Yuanmeng Tiancheng at a price of 70 million dollars."

"Yuanmeng Tiancheng holds 51% of Bona's shares, in absolute controlling position—Bona has changed hands!"

These two pieces of news exploded like thunderclaps across the film and television circle and the capital circle, as if prearranged, giving people no time to react at all.

Alibaba had no time, Tencent had no time, Yu Pangzi had no time either—no one was given any time to react.

Several years ago, Fang Hong had Meng Jun continuously acquire scattered shares of Bona, buying through multiple companies over the course of several years.

And no single company exceeded 5%, meaning no disclosure was required—secretly acquiring Bona's circulating shares.

How could their last-minute decision possibly withstand Fang Hong's years of premeditation? Impossible.

Yu Pangzi slumped down into his chair at once!

Apart from Sequoia Capital's 10.3% stake, Bona now only had 1.6% of circulating shares—no one knew in whose hands—plus the 37.1% remaining in his own.

These shares added up to only 49% in total, no match for the 51% in Yuanmeng Tiancheng's hands—equivalent to Yuanmeng Tiancheng being Bona's largest shareholder.

It holds great authority over the company's decisions; if no measures are taken, Bona will change hands just like that.

Decades of painstaking effort, in this single moment, had actually fallen into the Principal's hands—this left him utterly disheartened.

Seeing this news, General Manager Da Wang could no longer sit still, publicly condemning to the media: "This is a malicious acquisition, a step backward for China's film and television industry! A step backward!"

Wang Zhangtian also stated: "The future of the film and television industry will face even more uncertainty, and China's film and television will find it all the harder to move forward."

Both men were saying that the Principal's action was obstructing the development of China's film and television industry, even causing it to regress.

It was no wonder they reacted so strongly—this was an event that would reshape the landscape of China's film and television industry for decades to come, with profoundly far-reaching impact.

Even Lao Wang Zong was cursing out Yu Pangzi in his office: "Idiot! The guy was making moves right under his nose for so many years, and he didn't even notice!"

This matter's impact on the film and television circle was too great; the landscape would be completely reshaped. They were still seeking breakthroughs on the production end, while the Principal had already taken over an established film and television company.

Were they supposed to come to the Principal to buy content from now on?

He wanted to control the upstream from the downstream, but the other party could control the downstream from the upstream!

(End of this chapter)