Chapter 368 Spending a Lot of Money Li Wei sighed: "No. Everyone thinks that acquiring Qiantian Music is not worth it." "Although our copyright resources have some value, the overall market trend is not in our favor." "The big platforms have almost monopolized the mainstream market, and we not only lack brand influence, but also have a very weak user base, making it difficult to compete." "Platforms like Penguin and Kuwo," Li Wei continued, "have the copyrights of the most popular singers and songs, and users have long been accustomed to listening to songs on their platforms. Even if we own the copyrights to some classic old songs and independent music, it is difficult to attract enough users.” “Yeah…” Chen Tianming smiled bitterly, with deep helplessness in his voice, “Over the years, although our resources are unique, it is still a niche market after all.” "Plus, these big platforms have always been using free strategies, which makes it impossible for small and medium-sized companies like us to compete." He sat back in his chair and covered his face with his hands, trying to suppress his anxiety. "We also wanted to implement the legal fee model at the beginning, believing that users would pay for high-quality music."
Chen Tianming's voice was full of frustration when he said this. "But what was the result? Once we started charging, users immediately left. Almost all of them went to Penguin and Kuwo." Li Wei nodded: "Yes, they have strong financial support and can even get those popular singers to sign exclusive copyrights." "Once we start charging, we lose the market. Users are simply not willing to pay for our music content." "After getting used to listening to free music, who would be willing to pay for genuine music?" Chen Tianming's eyes revealed a bit of helplessness. “But we don’t have the capital to provide free listening to users like Penguin and Kuwo do.” "If we also provide services for free, we will be digging our own graves and will have no income to support our operations." Chen Tianming leaned back in his chair and sighed tiredly. His head was aching and he was filled with anxiety and powerlessness. The company's situation was deteriorating, and industry giants such as Penguin and Kuwo were eyeing it covetously. He knew that if Qiantian Music lost the copyrights of those old singers, it would almost be equivalent to losing its last hope of survival. "Mr. Chen, this is a really tough situation." Li Wei also shook his head helplessly, "Every step is like walking on the edge of a cliff. If you are not careful, you will be doomed." Just then, there was a gentle knock on the door. "Come in." Chen Tianming said in a low voice, his brows still furrowed. A young secretary pushed the door open with a look of uneasiness on his face: "Mr. Chen, there's Vice President Ma outside who's here to visit." "Vice President Ma?" Chen Tianming frowned, his eyes full of confusion, "Which Vice President Ma? I don't remember making an appointment with anyone." The secretary was also a little uncertain and quickly explained: "This Vice President Ma said she is from Zemeng Company." "Zemeng Company?" Chen Tianming reacted a little slowly, searching the name quickly in his mind. After a moment, he vaguely remembered that this seemed to be an emerging operating system company that had been quite active in the industry recently. Li Wei raised his eyebrows slightly: "Zemeng Company? Why did they come to us?"
Chen Tianming shook his head, also confused: "Isn't Ze Meng working on operating systems? What does that have to do with our music?" He knew very little about the company, but occasionally heard some rumors that Zemeng was expanding rapidly and planning to integrate its ecosystem. "Ma Lijuan..." Chen Tianming whispered the name softly, but he had no impression of it at all. "Maybe they're here to discuss some kind of cooperation." Li Wei guessed, "However, Zemeng Company is also an emerging force in the industry. They have been making a lot of moves recently, so they may have some new plans." Chen Tianming nodded, although he was confused. But he also felt that this was an opportunity: "Anyway, since they came to our door, we have to see what their plans are. Let her in." The secretary nodded and walked out. Chen Tianming sat at his desk, still thinking about the unfamiliar name "Zemeng Company" in his mind. Although Ze Meng had heard of it recently, he still couldn't connect this name with Qiantian Music. A moment later, the secretary pushed the door open again, followed by a capable woman. She was dressed in a professional suit, walked steadily with a smile on her face, giving off a very confident vibe. "Hello, Mr. Chen, I am Ma Lijuan, the vice president of Zemeng Company." Ma Lijuan walked forward with a smile and extended her hand. Chen Tianming immediately stood up with a warm smile on his face. He shook her hand and said, "Vice President Ma, welcome! I'm sorry that I didn't prepare for your visit in advance. Please forgive me." "No, you're welcome, Mr. Chen." Ma Lijuan responded with a smile, and then under the guidance of Chen Tianming, the two walked into the reception room together. The reception room was not luxurious, but it was clean and tidy, which showed how much importance Chen Tianming attached to this meeting. After Ma Lijuan sat down, she looked around briefly, then put the documents in her hand on the table, with a calm expression, ready to get to the point. "Mr. Chen." Ma Lijuan said in a gentle but professional tone, "I'm here mainly to represent Zemeng Company and to discuss a cooperation with your company." “Simply put, we hope to have a deeper cooperation with Qiantian Music - the ideal situation is to acquire Qiantian Music.” Chen Tianming raised his eyebrows slightly. Although the other party's intention was not surprising, he was still caught off guard by the direct proposal of acquisition. However, he did not show much emotional fluctuation and still maintained a professional smile. "Vice President Ma, are you talking about acquiring Qiantian?" Chen Tianming smiled, with a hint of tentativeness in his tone, "To be honest, although Qiantian is facing some difficulties in operation, we have been looking for suitable development opportunities." "It is our honor to discuss cooperation with a company like Zemeng. However, if we want to acquire the company, I am afraid we need to understand your company's plans in detail." Ma Lijuan looked at Chen Tianming, smiled, and went straight to the point: "Mr. Chen, I won't beat around the bush." "Although the Zemeng operating system has just been launched, COCO Assistant has already accumulated a large number of users through its development over this period of time." "We are not just an operating system. Our future goal is to build a complete ecosystem, and music is a very important part of our ecosystem." She paused for a moment and continued, "We noticed that Qiantian Music has very unique advantages in old song copyrights and independent music resources."
"These resources are of great strategic value to our Zemeng music application." "We are willing to cooperate with you in a sincere manner, and the ideal situation would be to acquire Qiantian Music in full." Chen Tianming frowned slightly, with a hint of hesitation in his eyes: "Vice President Ma, Qiantian does have some unique copyright resources, but frankly speaking, the competition in the market is very fierce." "Large platforms like Penguin and Kuwo occupy most of the market, and our market share is not large. Why would Zemeng be interested in a small company like us?" Ma Lijuan smiled slightly, having anticipated the other party's question, and said calmly: "Mr. Chen, you are too modest." "Although Qiantian's current market share is not large, these old song copyrights and independent music resources have a strong long-tail effect. And we at Zemeng are looking at this point." Since they had to negotiate, Ma Lijuan decided to be sincere. Will not devalue Qiantian to get a lower chip. She went on to explain: “Zemeng’s user ecosystem needs rich content support, especially in the field of music.” "We don't just look at the current market share, but the future development potential." "With the development of mobile Internet, there will inevitably be greater market demand for Qiantian Music's resources, especially the copyrights of these independent musicians." At this point, Ma Lijuan's tone became more serious: "We are willing to use a full acquisition method to help Qiantian Music get out of its current predicament, and at the same time lay the foundation for Zemeng's music platform." “In the future, Qiantian’s resources can achieve greater value-added on Zemeng’s platform.” Chen Tianming's heart couldn't help but move slightly. Although Qiantian Music is currently in trouble, he himself knows that the copyright resources in Qiantian's hands are still considerable bargaining chips in the market. It’s just that we are currently facing financial constraints and cannot compete with large platforms, resulting in resources not being fully utilized. Ma Lijuan's proposal did give him the possibility of "rebirth". However, Chen Tianming still maintained due caution: "Vice President Ma, the acquisition plan you proposed is indeed attractive, but we at Qiantian also have our own considerations." "Can you tell us about Ze Meng's valuation of Qiantian, or what kind of acquisition price you are prepared to offer?" Ma Lijuan smiled slightly, her eyes firm: "Mr. Chen, Zemeng Company attaches great importance to this acquisition." "After preliminary evaluation, we are willing to acquire all the shares of Qiantian Music for RMB million." "Four hundred and fifty million?" Chen Tianming was shocked. Although this price was almost the same as his expectation, But he was caught off guard when the other party proposed it so bluntly. “I know this price may surprise you, but please believe that we are making a reasonable offer based on the actual value of Qiantian.” After Ma Lijuan finished speaking, she waited quietly for Chen Tianming's reaction. Chen Tianming did not agree immediately, but frowned slightly and fell into a brief contemplation. The purchase price of million yuan is indeed a great temptation for Qiantian, which is currently heavily in debt. The company has been losing money for a long time and its capital chain is tight. This amount of money will undoubtedly provide him and Qiantian’s employees with a good way out. But at the same time, he still felt a little unwilling, after all, this was the company he founded. After thinking for a moment, Chen Tianming smiled and said with a slightly hesitant tone: "Vice President Ma, your proposal and offer are very attractive."
"However, this is a major matter concerning the company's future after all, and I need time to carefully consider it with the team." Ma Lijuan nodded slightly, showing her understanding: "Of course, Mr. Chen, such a decision takes time." "Zemeng Company has enough patience to wait for your reply." “But I hope you can make a decision as soon as possible, because we value Qiantian Music’s resources very much and hope to promote cooperation as soon as possible. Chen Tianming saw Ma Lijuan off, returned to the office, sat in a chair and pondered for a moment. Zemeng Company's offer is attractive. A full acquisition of million yuan can solve all of Qiantian Music's current financial difficulties. But he knew in his heart that this deal was not a simple one, especially since Zemeng Company was on the rise and its future potential was immeasurable. He looked up and saw several senior executives waiting for him in the conference room. Chen Tianming decided that this matter must be discussed with the team, after all, it concerns the future fate of the company. When I walked into the conference room, several senior executives were already there. Li Wei, the financial director, was the first to speak: "Mr. Chen, I heard that Ze Meng offered million to acquire Qiantian in full? This price doesn't sound low." Chen Tianming nodded and briefly explained to them the details of Ma Lijuan's proposal. As he finished speaking, silence fell in the conference room, and several senior executives fell into thought. Zhao Qiang, the operations director, was the first to break the silence: "Mr. Chen, million is not a low price, but I think we can't make a decision in a hurry." "If a big company offers million, we have no bargaining power, but if it's a small company, we can give it a try!" "Zemeng is indeed a fast-growing company, but it is a new company after all, and no one can predict what the future will be like." "If we sell it to them at this price, we can ask for a little more shares. Will that be more powerful for us?" Chen Tianming was silent for a while, then nodded: "What you said makes sense." "Selling out the entire business means that we have completely given up on the chemistry between Qiantian and Zemeng. Although this can solve the immediate problem, it may also mean that we lose future opportunities." "Mr. Chen, I think we can talk about buying shares." Marketing Director Lin Feng suddenly suggested, "Zemeng Company's current ecological layout is very large, including operating system, software, and ecological integration. They have great ambitions." “If we can cooperate with them by taking a stake.” “Not only can we use their platform to increase our influence in Qiantian, but we can also share in their growth dividends in the future.” Li Wei also nodded in agreement: "That's right, it's not cost-effective to sell it directly." “Although Qiantian’s old song copyrights and independent music resources are not worth a lot of money now, they are resources with a long tail effect and may have great room for growth in the future.” "Especially with the development of mobile Internet, young users' demand for independent music is increasing." Zhao Qiang echoed, "The Zemeng system is indeed powerful and has unlimited potential, but if we sell them all now, it would be equivalent to giving up all possibilities for our Qiantian future." We can invest and cooperate with each other. Zemeng will be responsible for providing the platform and users, and we will provide resources, so that both sides can benefit.”
"Invest?" Chen Tianming nodded thoughtfully. He began to think in his mind that Ze Meng was indeed a fast-rising dark horse. If the Zemeng operating system successfully captures the market in the future, their Qiantian music resources can be revitalized with the help of the Zemeng platform. If he buys the shares, Qiantian will not only be able to retain a portion of the shares and the right to speak, but will also be able to grow with Zemeng in the future. "This plan can be considered." Chen Tianming raised his head and looked at everyone and said, "I also think it is not appropriate to sell it in full. "Although we are in a difficult situation now, the future market is too uncertain and the prospects of the Zemeng system are very broad. We should not give up easily." (End of this chapter)