Chapter 343: USC Speech (Added for Alliance Leader

The average temperature in Champaign in early April is around 10 degrees.

This is also the first stop of the crew.

The temperature is a bit cool. Just after a scene wrapped, Zhang Chunru was busy putting a thin coat on the girl wearing a green dress.

Little Liu smiled beautifully: "Thank you! Sister Chunru."

Today is the last scene in Champaign.

Below, the whole process of Zhang Chunru's path from a Chinese girl in Champaign to a patriotic female writer who writes books for history will be restored.

Liu Yifei is very excited, because this is the road she has walked in person for three months.

Tossing and turning on the bed every night, her mind is full of the feeling of deep experience a year ago.

The performance details and action designs written and drawn in the notes, she almost doesn't need to review and practice again, and can draw them instantly like an impressionist master.

These two months are the last few steps for her to move toward the next dimension of her acting career.

Even in the handling of some details, like that fragment of the Beidian textbook material, she has been able to faintly touch the context of top-tier actors.

"Cut! Let's stop here today."

Filming ended, Boss Lu called the local North American floor manager.

"How is it outside today?"

"There are demonstrators of unknown origin of Asian descent, but there are also Chinese in Champaign who spontaneously came to drive them away."

"Haha, good, help me contact the organizers of these Chinese associations, the crew has some small gifts to give them before leaving."

"Okay, Director Lu."

Just as Boss Lu told Little Liu before, going abroad is a "foreign land" full of dangers.

The constant clamor of pro-Japanese public opinion media in North America, the framing and smearing of university professors and commentators bought by the right-wing.

And the intimidation and harassment that linger on the bottom line of the law are constant.

Including but not limited to spraying paint on the crew's vehicles, obstructing the crew's dining, and creating high-intensity noise outside the filming venue to affect filming.

It's just that soldiers come to block, water comes to cover.

Except for being rectified one by one by the young director who was prepared in advance.

These ugly faces were also recorded by Zhao Fei with the lens of a world-class photographer.

At the appropriate time, Little Liu's millions of Chinese fans on MyTube will naturally see this vlog.

8:00 PM, downtown Champaign, Hilton Garden Inn.

Except for Lu Kuan, Huang Anna and "The Big Short" Paulson were also sitting in the high-end suite.

Paulson knew Huang Anna's identity. This former senior Chinese legal counsel at Google had a prominent reputation in the industry.

The Huang Anna of later generations worked at Google until she was vice president and general counsel.

After leaving Google in 2012, she joined Twitter as legal director.

In May 2013, she was appointed by Obama as the White House's first Chief Privacy Officer, focusing on internet and privacy policies.

Obama knew deeply the horror of being monitored and wiretapped, so he found this female lawyer who had long worked in internet companies to tailor privacy strategies for himself.

However, Huang Anna didn't know Paulson's role much, although she recognized that this was a famous big short on Huaerjie, and the limelight was strong recently.

"Sir..." Paulson was a bit hesitant to speak.

Boss Lu laughed: "Just speak, Anna is the president of the Inquiry Realm's company in North America, coordinating surface affairs, and is my right-hand man!"

Paulson nodded: "Currently, according to the equity structure of Blockbuster and Netflix, I still strongly suggest taking Blockbuster first."

Huang Anna was shocked!

She only knew that the boss intended to intervene in the DVD rental industry in North America, but now it sounds like...

It's like wanting to unify the world?

This Chinese female lawyer felt gratified to have gained his trust, but Boss Lu's so-called "just speak" was limited to the strategy against Netflix and Blockbuster in the past six months.

The CDS fund that had already risen by 480% was temporarily unknown even to Liu Yifei.

The Paulson of later generations got a 600% return rate in 2007, crowning the whole US, and is now in a state of "he who travels a hundred miles, half is ninety."

"Anna, how is Blockbuster's current business situation?"

Huang Anna came back to her senses.

Under Boss Lu's instruction, she had previously cooperated with Little Liu to acquire a 15% stake in Netflix from Carl Icahn, the Wolf of Huaerjie.

"Getting worse every day." Huang Anna used numbers to prove her conclusion: "Nearly half of the stores in the US have been closed, and layoffs have attracted the attention of the Department of Labor and the Bureau of Labor Statistics."

"In states like North Carolina and Virginia, employee protests have already appeared, and the situation is not good."

"The key is..." She took out the documents in front of her again: "Last week's board meeting, Antioco resigned because his high bonus of 7.6 million USD was refused."

The mastermind behind the scenes puffed out a smoke ring and smiled with satisfaction.

As mentioned earlier, the acquisition pressure of Blockbuster lies in the fact that its stores are a huge debt burden.

Before truly taking charge, the Inquiry Realm's core strategy is to use Netflix to beat it to a pulp.

But there is a small obstacle in this, and that is this Blockbuster CEO Antioco.

He proposed a "merging network" strategy during the confrontation with Netflix, which also introduced offline traffic to online, making Netflix's pure online advantage stagnate.

If the situation is allowed to develop, Blockbuster might be able to survive for a while in the short term.

It's just a pity that the vision of capital is short-sighted.

Just like in later generations, Blockbuster's shareholders' meeting decided by unanimous resolution to refuse to pay Antioco's high bonus, and also used public opinion pressure to force him to resign.

Of course, Huang Anna, who had already become one of Blockbuster's shareholders, didn't do less networking.

Antioco for Blockbuster, for Boss Lu, is like Yuan Chonghuan of the Ming Dynasty, absolutely cannot be kept!

First dismiss him, wait until he regains control of Blockbuster, then give him clothes and food, and recruit him back to the account.

The three sipped coffee, and the situation is very clear now.

According to the previous ideas, using Paulson's professional team to use offshore companies, through secondary market fund-raising and bulk transactions of institutional investors, direct tender offer acquisition is fine.

This pile of garbage, obviously, no one will ask about it now.

After several months of planning, it can be said to be a very cost-effective acquisition, and the rest is nothing more than dealing with the review of the Foreign Committee and the Department of Justice.

It's just that this conspirator from the East seems to have a new idea.

"Anna, Paulson, I propose a plan."

"The day after tomorrow I am going to USC to donate and give a speech. This is to create momentum for the acquisition of Blockbuster. I will invite many Hollywood stars, directors, and practitioners from USC."

"I can reveal two pieces of information in the speech."

"First, I have already acquired shares in Blockbuster and am preparing to acquire it."

"Second, I want to declare in front of all North American media and film industry practitioners that I am optimistic about streaming media, which is Blockbuster's core strategy for the future!"

Paulson doesn't understand this line very well, and is still savoring the meaning between his lines.

But Huang Anna has already frowned: "President Lu, isn't this exposing our true goal?"

"Hastings has always been optimistic about streaming media. If he knows that Blockbuster will be retaken by someone who is also optimistic about streaming media, or someone like you, a successful internet entrepreneur and film director, he..."

The senior Chinese lawyer's analysis stopped abruptly.

Two exclamations came from the room!

"Netflix?"

"Netflix!"

Huang Anna and Paulson screamed at the same time!

Paulson realized with a start: "Lu, you want to lure Hastings out of the cave!"

"That's right!"

Boss Lu put down the coffee cup not lightly or heavily: "Netflix's Hastings is extremely strong, has absolute control over the company, and has never given up his ambition for streaming media."

"If we want to determine the status of the DVD channel in North America, Netflix is a hurdle that cannot be crossed. Sooner or later, we will still deal with them."

"Either defeat it in the mall, or directly pull the salary from the bottom and hostilely acquire it."

The young director laid out his plan: "I want to throw a bait at USC to see if Hastings will react."

"If he sees the crisis and attempts to use funds to intercept the dying Blockbuster, we can surprise attack Netflix while in chaos!"

Paulson said with a serious expression: "Netflix's equity structure is AB type, Hastings has a high voting right of 97%."

"If our hostile acquisition is seen through, as long as he convenes a shareholders' meeting, whether it is a White Knight, Golden Parachute, or Poison Pill, they will make us pay the price."

These three means are common strategies for dealing with anti-acquisition.

White Knight is introducing friendly capital to hold shares and maintain the overall controlling position.

Golden Parachute restricts the hostile acquirer, prohibiting them from dismissing, or dismissing management with ten or twenty times the compensation.

Mergers and acquisitions themselves are industry reshuffling and personnel cleaning, which will undoubtedly increase the cost of the acquirer.

Poison Pill was mentioned earlier and will not be repeated.

Lu Kuan laughed: "If I have an affiliate now, holding 14% of Netflix's stock, will it be of any help?"

"What?" Paulson was a bit horrified.

"Don't be surprised, I have a Chinese capital affiliate that injected 300 million last year to get Netflix's stock. This is also the reason why Netflix has been able to strike Blockbuster unscrupulously for the past six months. They have sufficient bullets."

Paulson nodded: "There is a certain chance, but I don't have much confidence in how to bypass the concerted action agreement."

Boss Lu sneered in his heart, thinking to himself: You don't have it, I have it.

Boss Lu laughed indifferently: "Try it, anyway, we must first let this old fox take the bait."

"Hastings is an excellent entrepreneur, and he is also a director of Microsoft. Microsoft's current CEO Ballmer is very optimistic about him, so how can he be defeated so easily."

This is a tycoon who made Netflix the world's number one media and entertainment company in later generations. For such an opponent, no amount of caution is too much.

Huang Anna asked for instructions: "If Netflix and Hastings don't take the bait, do we still follow the plan..."

"Follow the plan to acquire Blockbuster. At worst, fight a real battle with him. It's not like we don't have advantages."

The conspirator smiled cunningly: "Anna, contact this Antioco in advance, maybe he will be re-employed soon."

"Yes, boss."

——

According to the plan, the Inquiry Realm quickly created momentum among North American media, claiming that it intended to take over the dying Blockbuster, and started blowing wind first.

For a time, there were countless jokes.

Most of them were high-ranking Huaerjie analysts, mocking this Chinese youth with heavy money as a frog in the well, who had never fought a rich battle or lived a rich life.

Selling Twitter to others, but now thinking of collecting scraps and begging for food.

If it is said that there are still a few people in the industry who can smell a trace of something wrong from this, Hastings can obviously be counted as one.

The secretary knocked on the door and entered: "Sir, this is the invitation."

"Is it from that oriental director?"

"Yes, tomorrow at USC, Disney President Iger, Harvey of Miramax, and some Hollywood stars and directors will be present."

He had never seen Hastings take the initiative to request attendance at this kind of activity, mostly invited but not arriving.

Should it be because he is interested in the "potential new owner" of the old opponent?

US Eastern Time, April 20, 2007, 10:00 AM, University of California, Los Angeles.

After Hastings shook hands and greeted a group of industry insiders, he sat in his seat, looked back at the auditorium of the School of Film, and it was already full.

A young director with a handsome appearance walked onto the podium. The students of USC and UCLA in the same city offered crazy applause and shouting, which shocked Hastings.

Does this oriental director have such popularity in North America?

All along, Boss Lu has been building his persona as a world citizen in North America.

Because this is conducive to his subsequent commercial planning.

From the fame of *Whiplash*, to the explosion of *The Domain*, directly defeating his compatriot Jackie Chan and becoming famous.

Subsequently, his wit and humor at several Golden Globe and Oscar awards ceremonies, and his casual indifference different from general Chinese big directors, all left a deep impression on North American film fans and industry insiders.

By the time the myth of MyTube's sale was born, this modern creator of the "American Dream" had been widely recognized and identified by the North American film and internet circles.

In 2006, *US Newsweek* conducted a survey, voting for the most well-known Chinese faces in North America.

The top three are Jackie Chan, Lu Kuan, and Yao Ming, and Little Liu is also on the list in the top ten.

Others include well-known director Ang Lee, actor Gong Li, US Secretary of Labor Elaine Chao, designer Lin Ying, cellist Yo-Yo Ma, etc.

Obviously, after today, this young director's acceptance in the North American film scene will be higher.

This is Hastings' judgment based on the situation on the stage—

USC President Shi Diwen and George Lu Kasi, who graduated from USC, shook hands with Lu Kuan on the stage.

Subsequently, Shi Diwen and Boss Lu held the 50 million USD donation certificate together, accepting the clicking sound of long guns and short cannons.

Shi Diwen held the microphone, different from the vigorous expression desire of domestic school leaders, and was relatively concise: "Thanks to Director Lu Kuan from China, this is a great gift to film art, please speak!"

Those who could come to the scene today, except for Boss Lu's connections, were basically his fans.

The applause thundered instantly.

Boss Lu took the microphone calmly and walked to the podium.

For this former public relations company boss in his previous life, building his persona in North America is an important proposition.

Previous various films, especially the explosion of *The Domain*, made him an artist and filmmaker.

MyTube's successful entrepreneurship, sale, and participation in the *Larry King Live* interview program, which is the hottest in the US, made him an internet entrepreneur.

And the wit and humor at the Oscar awards ceremony, and the close relationship with old white men like Tarantino and Harvey.

All are telling North American circles, widely announcing his subtext:

I "yearn" for this hot land, I hope to integrate into you, I am a world citizen!

Please don't have doubts and precautions about my enterprise operation and industrial mergers and acquisitions.

Like your Secretary of Labor Elaine Chao and Yahoo President Jerry Yang, I am a firm supporter of the American Dream!

It's just a disguise of a conspirator from the East.

But North American people eat this set!

Including today, at this moment, this Chinese director who speaks fluent American English showed an American humor as soon as he came up.

"Yesterday I called Shi Diwen and asked if Mr. George Lu Kasi had a cold recently and couldn't come to the event."

"Shi Diwen said no problem, he will definitely come to support! After all, he donated 175 million USD to the school this year and is our honorary school director."

Boss Lu looked at the USC president with some resentment: "Shi Diwen, you still don't understand the tact of oriental people."

"I only donated 50 million USD, and Mr. George Lu Kasi donated 175 million USD. Do you think he is a suitable guest?"

The audience burst into laughter instantly!

Shi Diwen and George Lu Kasi on the stage both made a spreading hand gesture.

Quentin in the first row put his fingers into his mouth and blew two hooligan whistles.

He likes Lu Kuan's humor and madness.

The only regret is that he hasn't gone to the scene to scatter and play with this group of fox friends for a long time.

"Okay, just kidding."

"Mr. George Lu Kasi is a filmmaker I respect very much. He built a magnificent and huge worldview from nothing, promoting the revolution and application of special effects technology."

"And this is also the original intention of my donation to USC this time."

"After communication with the school, this fund will be used for the cooperation between the Butian Film team and the USC School of Film in the directions of motion capture, 3D modeling, 4K HDR equipment research and development, etc."

In other words, this fund is a targeted subsidy for USC's research and application in special effects technology, and the results and patents are shared by Butian Film, the school, and the discipline group.

This is the same cooperation method as George Lu Kasi's donation, except that the latter also donated a teaching building named after him.

Thieves don't go empty-handed. Even if it is to build a persona and do public relations, Boss Lu won't treat himself badly.

This is the same as hiring a top international special effects team when making *The Domain*, all spending money to buy technology.

After a burst of applause, Boss Lu continued to talk eloquently.

"Last year I gave a speech at a domestic university and told domestic colleagues that Hollywood is not only a commercial opponent, but also an object of dissection."

"The concept of Hollywood film industrialization is worth thinking about and practicing by every individual in the domestic industry and industrial chain."

Everyone in the audience nodded. Hollywood appears as a dumper image globally, and it is very normal to be regarded as an opponent to study and catch up with.

This group of power holders in the North American film scene should listen more happily. After all, in their eyes, this is praise from chasers and imitators.

"As a film director who has worked and started a business in both China and the US, and also a bridge for Chinese and American film cultural exchange, I talk about North American films in the country, but in North America, I want to talk about China's opportunities today."

"Everyone may know that the Inquiry Realm and Disney formed a platter last year, and our first superhero film adapted from Marvel will be released in 2008. In addition, we have many batch film cooperation regarding independent films."

"Thanks to Mr. Iger's excellent commercial vision, seeing the magnificence of the oriental market, and promoting the deep cooperation between the Inquiry Realm and Disney under the conditions of global economic integration."

"Recently, my Inquiry Realm company in North America is also preparing to enter Blockbuster to explore online streaming business."

Boss Lu's eyes swept over Hastings, whose expression changed drastically in the front row, as if he was just narrating a trivial matter, and continued to give data.

"Regarding the Chinese market, I will list a few numbers, please be informed."

"The box office in China in 2002 was about 160 million USD, and last year this figure was about 480 million, three times in four years."

"In the first half of 2007, the domestic box office figure has exceeded the whole of last year, and this year is conservatively estimated to be more than 750 million USD, which is a very terrifying growth rate."

Boss Lu paused: "Just like the 'China Threat Theory' touted by some newspapers, have you felt the threat from Chinese films?"

Iger and others in the audience applauded with a smile.

Mocking the authorities and anti-war are political correctness in Hollywood, which is a fixed program for the Golden Globes and Oscars.

"If calculated according to this compound growth rate, and considering the appreciation trend of the RMB, it will be about 2017, when the Chinese film market will be on par with the US, which is only 10 years away."

The mainland box office first won the global film market championship in 2020 in later generations.

In this life, with the butterfly wings, it will only be faster.

"At that time, the total box office of China and the US can account for 75% to 80% of the world."

"I think this should be able to attract the attention of everyone in the industry to the Chinese market, right?"

There was an uproar in the audience, and there was no lack of industry elites chewing on this number and the meaning behind it.

Boss Lu used the old trick again, still using the blue ocean market of China as bait to eliminate possible acquisition hostility.

At the same time, it is also to remind the Hollywood power holders present!

The importance of the Chinese market now exceeds the Japanese market. Some media under the Six Majors that have recently made strange remarks about *History*, you should weigh the seriousness of the matter!

It is impossible for them to empathize with the blood feud of the countrymen, but it is feasible to use money to force capitalists to bow their heads.

The supporting actor in the audience came, and a USC student raised his hand: "Lu, talk about how to cooperate with Chinese films."

The microphone was handed to his hand. This USC director student with a few acne on his forehead admitted: "After watching *The Domain* and the videos on MyTube, I am very yearning for China."

"Last year, your film school recruited students, and it's a pity that I wasn't selected."

Boss Lu laughed: "Thank you for your support."

"Regarding cooperation with Chinese films, I think Mr. Iger, who has deep thoughts, has taken the lead. I will add two points."

"The first is the supplement of technical means and professional talents."

"Hollywood's film industry is developed, with as many as 150 types of work, many of which are lacking in the country."

"Even taking the most common lighting engineer, the Beidian I graduated from now even canceled the lighting major, because lighting engineers have turned to photography, screenwriting, and directing."

"No students, no teachers, can't maintain the professional scale."

"Our Chinese lighting engineers now mostly come from Yanling, Xuchang, Henan Province. Lighting technology is taught by father to son, master to apprentice. The industry scale is relatively small, and high-end lighting engineers are also relatively scarce."

"Because they haven't learned systematic theoretical knowledge, most of them are influenced by experience and feeling, and cannot provide directors with more professional lighting effects and combinations."

Lighting engineers are called "Light Masters" in the country. Because talents are scarce, they have a high status in the crew.

If an actor offends the lighting engineer, he will make you lose face;

If the crew offends the lighting engineer, he will make you lose money.

This remark was said by Wang Changtian, chairman of Enlight Media, at the 2017 Shanghai International Film Festival.

He claimed: Lighting engineers from Henan Province control the Chinese film and television lighting industry village by village.

The young director changed the subject: "But as far as I know, this industry is in a state of talent surplus in Hollywood."

"At least this time the *Sky of History* crew recruited lighting engineers in the union, and the number of applicants exceeded my imagination."

"Just like the countless graduates who broke their heads to enter Industrial Light & Magic, or maybe you can consider Butian Film in the East?"

The audience burst into laughter. This young director tried every means to insert a small advertisement for himself.

"In

Boss Lu proposed the industrialization of film domestically, so the director segment could finally be cultivated in a targeted manner.

But what about talent in other lines?

The domestic cultivation mechanism was temporarily unable to provide a blood transfusion, but these various types of specialized talent were in surplus in Hollywood.

It was just that, constrained by the development of the era, these surplus talents had not yet seen the opportunities coming from the East.

What Boss Lu was doing was called showing the way, not leading the way.

"This is the first point: I represent domestic film companies and practitioners in welcoming North American film talent to go to the mainland for exchange and study."

"The second point: in today's increasingly close cultural exchange between Chinese and American films, if Hollywood wants to grasp the blue ocean that is China, it must value the Chinese audience."

"Understanding the tastes, preferences, national taboos, and belief culture of the mainland audience does not necessarily have to be linked to politics; rather, I advise everyone to treat the mainland audience as attentively as you treat North American customers. This is the conscious behavior of a cultural product producer."

"Otherwise, the audience will definitely vote with their feet."

"Just like the filming obstacles our *Sky of History* crew encountered in Germany and the United States some time ago, I hope all media can report truthfully and value the feelings of the Chinese audience."

"I am very gratified to see that whether it is the White Rose or the Peace Association in Germany, or the anti-war organizations in the United States—including those of different skin colors, races, and ethnicities—they have all brought us solidarity and support."

"They spontaneously came to the vicinity of the set to applaud and cheer for us, driving away the troublemaking protesters. Thank you very much!"

Boss Lu used the consistent tone of domestic public intellectuals toward the Americans, with his voice, stage presence, and expression all revealing a sense of sincerity:

"Art has no borders; this is the meaning of cultural exchange, and it is the warmth and moving experience that film, the seventh art of humanity, brings to us."

His tone paused: "Alright, let me end today's exchange with a sentence I consider quite romantic."

The young director hit the main point again, gesturing to the donation certificate in his hand:

"These checks are not investments, but love letters written to film. I hope Chinese and American films get better and better. Thank you!"

A unique and innovative speech had concluded, and the follow-up interviews and PR arrangements were still on the way.

USC students and Hollywood practitioners all saw the opportunities coming from China;

Film industry bigwigs saw a blue ocean;

Harvey, Quentin, and other cronies saw the consistent, stable performance of this old partner; he was simply a perfect orator.

His bewitchment of human nature, his guidance of topics, and his timely jokes were all just right.

There seemed to be only one guest in the entire venue who was burdened with worries.

Because he saw a potential competitor!

This was a competitor who held massive amounts of cash (from the sale of MyTube), was proficient in the film industry, and had the Chinese blue ocean market as his backing.

Boss Lu walked out of the main entrance laughing and talking with Iger and the others. Hastings walked over very politely: "Lu, hello, I am Reed Hastings."

Boss Lu looked him up and down with surprise: "Mr. Reed, I've long admired your name. I must thank you for crushing Blockbuster; you are a true industry leader!"

Hastings was not impressed by his flattery: "Lu, can we chat for a few minutes?"

"Of course."

Iger understood the implication: "I'll head to the reception first."

"Lu, I am very interested in the streaming media you just mentioned. Can we exchange some thoughts?"

The Berlin Best Actor was just about to hold forth as he had on stage, but then he seemed to "suddenly" remember something and pursed his lips.

"Hmm... Reed, actually this is just an immature idea. I think perhaps now is not a very good time for an exchange."

He gestured toward President Shi Diwen, Iger, and the others waiting for him outside: "How about we set a time to talk later?"

Hastings' expression remained unchanged: "Alright, see you then."

He watched the young director's departing back and suddenly took out his phone: "Bring the car around, back to the company."

He wouldn't eat, and he wouldn't drink.

Reed Hastings was left somewhat bewildered by Boss Lu's smoke screen, unable to figure out what he actually meant.

In the office, the "fast is better than perfect" slogan was on display, but Hastings' hands, flipping through the data, couldn't get fast at all.

He had discovered a "Chinese point," but he also found it somewhat absurd.

The relationship between Liu Yifei and Lu Kuan, their collaboration history, and the scandal events.

Did they have anything to do with Blockbuster or Netflix?

Hastings remembered that pretty Oriental girl who kept describing the terrible prospects of streaming media.

For the sake of that life-saving 300 million dollars, he had no choice but to submit.

He inevitably had a thought—were this Crystal and Lu in collusion? Were they plotting against Netflix?

But that made no sense!

According to the provisions of the *Securities Exchange Act*, once one holds more than 5% of a company's shares, one must declare and disclose it to the exchange within ten days, stating whether there are any related parties.

This is what later generations call "acting in concert."

For example:

If Lu Kuan acquired 2% of Netflix stock and simultaneously had Little Liu acquire 3%, they would have to jointly disclose that they were acting in concert, that they were "one family."

If they didn't disclose and were proven to be colluding.

Then in subsequent company votes, it would be deemed invalid, and that portion of equity would have no voting power.

It was true that Liu Yifei held about 14% of Netflix equity, but if she and Lu Kuan were related parties and had not disclosed it, it would be a violation, and that portion of voting rights would be stripped.

These two portions of equity could not be combined; for Hastings, who firmly controlled the other Netflix shareholders, there was no threat.

They couldn't be that stupid, right?

Hastings carefully combed through his control of Netflix again and still couldn't find any exposed fatal weakness, which allowed him to finally set his mind at ease.

Since the enemy had no chance to get their hands on Netflix, did he have a chance to get his hands on Blockbuster?

Regardless of whether the streaming strategy this Chinese director spoke of was true or false, the market value of Blockbuster, which had decayed to this point, was around 800 million dollars.

Considering the price increases during bulk transactions and the absorption of floating shares, the cost of a full acquisition would be around 1.4 billion dollars (excluding debt).

He didn't have this money, but someone did—

Microsoft.

In January of this year, Jobs launched the first-generation iPhone at a press conference, scheduled for official sale in June.

At the same time, he announced that starting this year, he would increase content development for Apple TV and the iTunes Store to provide users with more high-quality works.

This was moving Microsoft's cheese.

At this moment, Microsoft was in the set-top box business, a concept not much different from Chen Tianqiao's Shanda in China, and Microsoft's Xbox game console could also watch movies online.

In other words, Hastings knew Microsoft also had plans to enter streaming media and wanted to entice them to take action and swallow Blockbuster together!

And he himself was also a Microsoft director.

Hastings felt excited about his plan and, with extremely strong execution, visited Microsoft headquarters the very next day.

In Ballmer's office, the CEO who had taken over Microsoft from Gates seven years ago frowned: "Does Blockbuster still have value? How are you going to handle those stores?"

The helmsman of a top-tier enterprise considers defeat before considering victory.

Hastings downplayed the issue: "Blockbuster is trash in anyone's hands, but I'm worried that in the hands of that Chinese person, it will come back to life."

"After all, he is the one who made MyTube. I have carefully investigated his industries in China; he is an enterprise leader who cannot be underestimated."

"I don't believe he acquired Blockbuster just to find a rental channel for his Jiahe film library; that is simply bullshit!"

"Believe me, Ballmer, streaming media is the future! This is a good opportunity!"

Ballmer was a bit surprised by his excitement and shook his head with a smile: "Streaming media has too many shackles in terms of format issues, just like us and Apple; we are still betting on our own sides."

Truth is always in the hands of the few. Hastings' vision was unique, but not all companies in North America recognized his judgment.

As for Apple and Microsoft, they were only laying out their plans based on the idea of diversified development, far less radical than the Netflix led by Hastings.

At this stage in later generations, Hastings had already shut down all DVD rental businesses and switched to online streaming.

It was just that in this life, he was bound hand and foot by Little Liu's 300 million dollars, which slowed his pace, allowing Boss Lu to seize this first-mover advantage and plot his Netflix empire.

Ballmer pondered: "How much money does Netflix need?"

Hastings was confident: "Netflix will issue 10 million shares to Microsoft at a price of 45 dollars per share, plus our own assets and equity pledges, to raise 1.5 billion dollars. For Blockbuster, with a market value of less than 800 million, this is more than enough."

The Microsoft CEO suddenly smiled: "Aren't you worried this is a Chinese scheme? What if he turns around and launches a sneak attack on your Netflix?"

"They are the people who wrote *The Art of War*; this is a required course for you at West Point."

West Point provides regular training classes for American enterprise leaders, similar to domestic MBAs.

"I have suspected it, but with the acting-in-concert agreement in place, I hold 97% of the voting rights and can apply for a trading halt at any time, then trigger the poison pill clause."

"No, you're wrong."

"I think I need to remind you not to let your crazy industrial planning cloud your judgment."

Ballmer revealed a piece of news to his old friend that was not to be shared with outsiders:

"You know about the CSX lawsuit against TCI. According to the judgment of our Microsoft legal team, the judge may dismiss CSX's request regarding TCI's violation of the acting-in-concert agreement!"

Hastings looked as if he had been struck by lightning; his face changed drastically!

"What's the reason?"

Ballmer smiled mysteriously: "Total return swap agreement."

CSX is a transportation company, and TCI is a fund.

The professional legal term "total return swap agreement" will not be elaborated upon here.

In short, this is a means to legally utilize current laws to bypass acting-in-concert agreements.

But why hadn't Hastings thought of this before?

Because the United States is a common law country, and this was just the judgment of Microsoft's top legal team.

But as long as the ruling takes effect, the probability of similar cases being judged this way in the future is extremely high!

In other words, Hastings' conclusion—that there was absolutely no possibility that Lu Kuan and his suspected accomplice, his rumored girlfriend Liu Yifei, could get their hands on Netflix—

Now looked like a fatal misjudgment!

Hastings naturally believed in the strength of Microsoft's top legal team.

What he couldn't believe was!

Could it be that from beginning to end, from the moment that Chinese girl came to request a stake, to Carl Icahn selling his shares in Blockbuster, and then to the streaming strategy revealed in today's USC speech!

Was it all his comprehensive plan!?

Just thinking about it, this extremely arrogant Netflix helmsman already had his hair standing on end!

Why would he throw as much as 2 to 3 billion in funds into the DVD rental industry?

Could it be that he, like himself, saw the future of streaming media?

This was simply a madman!

And a sinister, cunning, and vicious madman at that!

Hastings' back was already soaked with sweat.

Under the prompt of top enterprise helmsman Ballmer, this Netflix CEO initially grasped the strategy and wisdom from the East, experiencing the same astonishment Murdoch had felt back then.

He suddenly understood.

Why that Chinese girl, Liu Yifei, demanded that he not use the 300 million in funds for the streaming business.

Why Lu Kuan wanted to spread the word and launch an acquisition on the eve of Blockbuster's total decay.

This was to delay his layout timing, acquire Blockbuster at the lowest cost, and then...

Set a trap for him that almost resulted in his "death and destruction."

What a poisonous bait!

Hastings' expression was dark and unclear; it took him a long while to come back to his senses.

"Ballmer, according to my business investigation, he only has the proceeds from Google's acquisition of MyTube, plus his shares in Focus Media on NASDAQ; even if he pledged everything, it would only be a little over 2 billion dollars."

"He is also attempting to acquire Marvel and do a package deal with Disney; the cash in his hands will only be less."

"I have checked his capital entry records for the past six months, and they are few and far between."

Hastings' eyes grew brighter as he spoke: "Can Microsoft provide another 500 million in corporate bonds? I'll think of other ways to scrape together 2.5 billion in cash and drive this hateful Chinese director completely out of the North American DVD industry!"

Actually, what he was thinking about was the streaming industry.

Ballmer stared at his old friend for a few seconds and shook his head helplessly: "Netflix's total market value is less than 2.5 billion; this resolution cannot pass the board."

This wasn't a matter of tens of millions; this was a transaction of nearly 1 billion dollars! It had to pass the board.

"Use my Microsoft shares as collateral!"

Ballmer looked at him helplessly, gently picked up his coffee cup, and didn't give an answer for a while.

What a madman.

Hastings thought Lu Kuan was a madman, but wasn't he one himself?

Regardless, the young director's painstaking plan had fallen short at the final hurdle.

But failing at the hands of two top North American enterprise helmsmen didn't seem like a surprise.

Hastings was clearly prepared to join forces with Microsoft for a desperate gamble, preferring Microsoft to become a major shareholder in Netflix rather than being successfully calculated by this conspirator from the East.

In his heart, letting such a person get an admission ticket to the streaming track would make him a lifelong enemy of Netflix.

Why not fight to the death and strangle this disaster while he was at his most vulnerable?

The young director, who was currently filming for Little Liu on set, did not yet know that the danger of a counter-kill was approaching.

(End of chapter)