ray network Jian-ping lei reported on March 13
developing strategic emerging from the original board, to iQIYI privatised, to a strategic emerging board was blocked, iQIYI privatisation pause, to complete a $1.53 billion convertible bond subscription, iQIYI has attracted much attention in the capital market movements.
iQIYI, founder and CEO gong ning has to sporty) network found iQIYI financing behind the story.Gong yu, said the completed a $1.53 billion convertible bond subscription is the natural process.IQIYI with these funds is also a natural two-way choice.
gong yu also to sporty) network, points out that $1.53 billion will be used mainly in two main directions: 1, content, especially in the homemade aspects of investment to increase;2, the team's input.To the best people to join the team.
"because the financing amount is larger, baidu is iQIYI controlling shareholders of listed companies and the United States, according to the requirements of the SEC requires disclosure. After completion of the financing, the outside world seems to say iQIYI rich, can freely, unrestrained."
gong yu said, this is the misunderstanding, the first seems to be saying this matter before iQIYI broke, actually iQIYI since the date of birth has been in a rhythmic, planning and financing.
"core team headed by financing is my daily work, including equity financing and debt financing or financing form other flexible way."
second, iQIYI never burn, but in the "throw money" when necessary.The difference is: all money figure is a lively, no noise, throw money to rewarding and valuable, to hit out of the pit, at least a big noise.
rushing to continue bidding blindly buy TV and broadcast drama, is money, one of hundreds of millions of TV broadcast over two or three weeks, finished just finished, after the busy what all don't leave.
but make a phenomenal iQIYI product homemade drama, homemade network variety show, even if the cost again, and also throw money, want to hit a new road, new models, new belongs to own IP.
gong yu also by man to describe iQIYI, says trade network video service is a daughter, had other sons and daughters to rich, to be willing to part with or use, can't let her have hard feeling of lack of money."We envy, because we are not a girl, we were born to be a man."
"poor", although has not experienced do not have enough to eat wear not warm, but also has not iQIYI "full man know hungry man hunger" feeling, instead have hungry feeling, apprehension about his own future, a very anxious to break the copper flower at ordinary times.
"we are a man, when certain spell a dare to put all your eggs in one basket, even lose nothing."Gong yu said, fortunately god to iQIYI very favour, didn't let iQIYI nothing at all, but is more and more heavy in the wallet.
"have peer said this year to plug iQIYI two knives, a 10 billion. The good partner ask me not afraid of fear. If it is really two knives, of course, I'll have a fear of psychological instinct."
gong yu said that from the last fight is a few years ago, now old, run run."But fortunately is made knife 10 billion money, I am so happy, come on, 'I'm in if you haven't seen so much money?', and made the knife."
iQIYI listed there is no clear timetable
in February 2017, iQIYI completed $1.53 billion convertible bond subscription, put aside as the controlling shareholder of baidu, other convertible bond subscription funds hillhouse capital, abundant capital and good Thai fund, IDG, light international capital, sequoia power is not common.
about the financing, gong ning to sporty) network, said there are $1.53 billion convertible bond financing, because iQIYI has a history of more than six years, there have been very clear in the industry leading position.
look, the industry as a whole video site youku potatoes in these two years alibaba, tencent tencent video support, sohu in supported earnestly sohu video, look at the past, players have few large video web site, and may even further reduced.
gong yu said the video website industry has a very bright future, the most primitive, rough type of struggle, competition stage has passed.After the video website competition stage, more likely, industry gradually become mature, forming a kind of dynamic balance.
"iQIYI this stage is not to find who, who to choose, more is to follow."Gong yu, participate in iQIYI convertible bond fund, basic is iQIYI birth date, even before they know, have the opportunity, all nature is a two-way choice.
why do you choose convertible bonds financing?Said gong yu, the convertible bond is a kind of financing way, there are a lot of technical requirements, and all kinds of balance, there are many factors to consider, professional and stronger.However, gong yu did not disclose the specific financial details.
the financing of 1 years ago, baidu CEO robin li and Gong Yuyuan plan according to the price of $2.8 billion, to buy baidu iQIYI held 80.5% of all outstanding shares.According to the purchase price calculation, iQIYI value of 22 billion yuan.
in July that year, baidu the small shareholders, hedge fund Acacia Partners issued an open letter, think of the MBO price is too low, iQIYI valuation shall be not less than $5.8 billion.Li and gong yu during the month represented by the buyer of the consortium to withdraw an offer.
baidu when the explanation is that because the structure and the purchase price of failure to agree a deal, the buyer consortium decided to withdraw the offer, terminating its baidu held by iQIYI shares 80.5% of the overall plan.
gong yu, said about the matter, the fundamental reason is that the capital market, the domestic capital market is the most main cold, causing iQIYI if return for capital operation, risk bigger, this is the core factor.Other factors, all can be ignored.
of course, the withdrawal of an offer must have the negative impact of bad mainly dispersed gong yu and some executives of energy.
when iQIYI listed is the subject of attention.Gong yu said, listing is not the ultimate goal, not the phoenix nirvana, the top, is the means to realize the purpose."We would be very close observation opportunity, but there is no clear timetable."
"iQIYI ultimate ideal is to become a great entertainment, the Internet era, if need listed on this method, we naturally come to the use of the means."
gong yu said, in the process of using this method to achieve the ultimate goal, the interests of the employees and shareholders to fully guaranteed, and other important means, such as health and the advanced enterprise culture is to build and careful maintenance.
will input of homemade drama
video website development to today, after the piracy problem off the original industry, royalties for loss has become the industry's important reasons.
, for example, "junior iii li, peach blossom" single set close to 5 million, the trek kunlun market single set costs more than 10 million."If taken pass", "ode to joy" single set costs 9 million - 10 million.These rights have become a problem video web site had to be taken into account.
sohu video CEO Charles zhang said, such a high price, is not sustainable mode by advertising support, this causes the network video industry continuing losses.
gong ning is also very attention to this problem.Gong yu told ray emperor net, this basically is the relationship between supply and demand, as the outstanding works, the supplier is too scarce, and support the demand of capital is too much, too much money, this is a necessary experience stage.
"in the short term, video website must spell price. If you don't spell price, on the road. Only spell price, will die."Gong yu said, the most fundamental way to video website is homemade.Homemade is core with IP, with at least part of the power.
at present, there are a lot of a lot of film and television play "a little fresh meat," without acting with ultra high commissions, are acting shortcomings.
when it comes to this phenomenon, gong yu believes that is the relationship of supply and demand determine, works are the novels, plays, actors, directors, and so on creators, now work is too little, can have visibility and interact with the audience, to produce more viscous actor is too little.
"so actor is going to rise, is expensive, there is no way. But you take a fancy to play on, nortel and play, this year academy admissions, registration of all record. This is proof that you feel good here, all to bandwagon, supply increases, the next two to three years balance sooner or later."
iQIYI in 2017 to 10 billion, including copyright, self-control, vertical and other areas of more than 192 head.Once the best our ", "the sun of the seed of violence after the fire, iQIYI are also trying to create phenomenal network by homemade play play.
of course, may also be a phenomenal net play can not find.IQIYI solution is that part of the money into the business, such as "old nine door", particularly strong commercial planning process, the other part will be devoted to art pieces and not too easy to explode the red areas.
"to a fish to eat, iQIYI to profit, the need for a comprehensive model problems, such as through IP ecological construction, increasing self-control and paid membership, rather than just by a model."
gong ning to sporty) network, said iQIYI do content to put into 10 billion, spent 10 billion to buy content, or is there a difference between this do and buy, sell, sell, sell, sell literature, buy derivatives, eventually iQIYI is a big apple tree model.
so, when a show special blasting red iQIYI will consider as a separate sell to users?
gong yu gave a negative answer to this, according to the current will not, the main reason is the user habit.Hit movies, TV shows are in monthly, because the user acceptance needs a process, namely the hand in a money can literally see.
"I believe the monolithic paid market must be bigger and bigger, but now is not the time."Gong yu says, only in a breakthrough development bottleneck permeability of the monthly period, will consider this model.
the current circumstances, iQIYI advertising will raise prices?Gong yu's answer is not obvious, is caused by various reasons:
first of all, advertising inventory supply network video industry is very big.Because the user on the increase, the user perception in the market, natural advertising inventory is also increased.
second, the demand side because of the influence of the macro economic situation, growth is not so optimistic, or a state of equilibrium.
gong yu, said the video industry is growing high proportion of income, so on the increase in the number.If the unit price is on the rise, and macro situation is bad, the increase of the two dimensions, advertisers will be unable to stand.
in 2017, is the theme of the iQIYI determine breakthrough with harvest, breakthrough refers to the original industry who haven't done, iQIYI to do, for example, the original business model is not sound, incomplete, iQIYI to do.Harvest stage may require three or four years.
gong yu pointed out that iQIYI has invested in 67, the industry in more than ten years, should start a return, this is a harvest.And asked about iQIYI when profitable, gong yu said, "a long way, a year, at least to do more than three years."
below is interview iQIYI jian-ping lei gong yu, CEO of transcript:
jian-ping lei: gong always hello, first of all, congratulations on your recently completed a $1.53 billion convertible bond subscription, this time is very high, the size of funds is very strong.Why iQIYI choose these funds, why so much money?
gong yu: I think the financing of more use one word to describe the whole process, is to follow.Because iQIYI already has a history of more than six years.In the history of more than six years accumulated in the process, in the industry have a very clear lead.
as an investor, is certainly chasing interests, from the perspective of financial investment, from the perspective of strategic investment, requires its own reward.Of course need to use in how to balance the risk, does everybody about the industry.
if the value of this industry, value the iQIYI is that, given the iQIYI in the industry leading position, so the second question is no longer exist, the main is that he is optimistic about the industry.
actually, rational analysis, the industry has a very good future and bright prospect.At present, and the most primitive, rough type of struggle, competition stage has passed.
although is not a industry mature stage, but has come to the competition stage.At the same level of competition of enterprise is running out, otherwise will likely continue to reduce.But the possibility of greater industry gradually become mature, form a dynamic balance.
iQIYI is such a stage of industry location.So, this logic is not who I am looking for, I will choose who, more is to follow.
to be honest with you, for me, the investors know not for a year or two, not two or three years, mostly from iQIYI, as of the date of birth as iQIYI, before even dealt with me.Have the opportunity, all nature is a two-way choice.
financing is one of love, "ecomax" tube team daily work
jian-ping lei: why not just choose the financing way, but choose convertible bonds?
gong yu, actually this is financing.Financing has a variety of ways, loan and debt, also have a direct equity investment, there are a lot of technical requirements, as well as a variety of balance, there are many factors to consider, professional and stronger.
this might involve some of the details we deal, and it is not convenient to disclose.
jian-ping lei: the $1.53 billion in financing, after a lot of people say iQIYI and have money to burn money, what about the outside world?
gong yu: the subtext here, is the original love, burn very little money, or not.
many things for various reasons could not disclosed.In fact, as long as the rational analysis of it over carefully iQIYI growth over the past few years, you will understand.Due to the industry or in the input stage, every year to blood transfusion.
is not to say that this time you can check the online public financing distance information between the several years, there is no funding.Financing is iQIYI executive team, especially one of my daily work.
there are many financing, debt, equity financing, so the whole process of financing is a routine work, is subtle.It's just the financing amount is too high.
baidu is the controlling shareholder iQIYI, capital markets in the United States, at the request of the securities and exchange commission, is the need to disclose, so exposed this time.
willing to spending money on high investment Shelled out a new model
jian-ping lei: you said never burn, but say when it's necessary to hit money again, how this statement?
gong yu, this is I give definition, a bit of film and television, after all there are packed in.I admit that money to you, that is to say, the real return less, even no, basically did not have money to burn, not some kind of reward.
of course, return a lot of, is the most direct cash income return, also may be the accumulation of brand, also may be the talent or the accumulation of industry status and so on.I think, the concept of money is wasted money, can't change the return.
I hope, and iQIYI did the same, in the past many years, it is expensive to do although many, investment amount is very big, even for some people, is beyond ordinary people imagine.
but we think it is hit is out of a hole, that it is a noise, it is a business model, or is a certain stage by leaps and bounds.
at the beginning of the iQIYI three or four years, we are always against TV to buy more, because I don't think it's meaning.TV series by television is a kind of content, and it the whole business model, pricing, monetization method, etc., are all TV stations.
in this case, if buy the sole, is bound to higher price, the higher price in their monetization ability can't reach a level, especially the capacity of the monetization of television, the money is in vain.
because when you have conditions like television monetization ability, a TV series, he began to the high price of the previous pay no connection with you.So this kind of money, I think it is burning money.
however, we analysis the variety show on TV in 2014, it is best for young people to a certain line of satellite TV, a year, non-exclusive, here to pay 6 million yuan.
then I consult with the head, he was also interested to earn extra money, so the two of us picked five programs, at that time is, for the submission of 6 million, to five programs, two sole, this is a step, it is a scary growth rate.
but look from the development trend, the future is right, I am willing to throw money.Including later run to it, brothers, 3, 350 million buy show, a show of 350 million, is expensive at that time, but I'm willing to do.
the result put a TV variety show in the network video industry monetization ability improved a lot.In fact, the two projects are making money, including the 2014, planning to do grave notes, a set of 6 million.
in 2015, which at the time, although the growth rate is very high, but it is the trend of the future.We are willing to go to high investment to throw money, hit a noise, shelled out a new model.
will make homemade content into
jian-ping lei: after received $1.53 billion, what are you going to use in what aspects?
gong yu, money is money, both usd and RMB, a dollar is a dollar.The whole industry or suggested budgeting, for iQIYI, though the industry leading position, but he needs to keep blood transfusion, need to continue.
so the money still on the investment.I hard to tell where this note must be used, but the main direction, there are two:
the first, contents, various forms, especially in the homemade aspects of investment to increase;
in the second place, the team's commitment.The number is not necessarily the first, but to the best people to join the team.
jian-ping lei: regarding the content of this part, which some subjects iQIYI specific preference?
gong yu: comprehensive video web site, everyone in the field of mass model, comprehensive competition.
so I hardly favored the subject of a certain class or two classes, but I can say that is in line with the mainstream values, north and south direction winner-take-all, and, both men and women love this type of the direction of the subject matter is our key.
video is still a long iQIYI main
jian-ping lei: these two years, such as well quickly, today's headlines rise slowly, and attracted the attention of more and more investors and the audience.What do you think the rise of these short video web site?
gong yu: you just said, one is to live, is a video.Actually speaking, from the perspective of technology innovation is not a new things, even more than we are now engaged in the business, the history of the original video is older.
however, the last time the biggest problem is the way to monetize didn't find, in the last two or three years, may be a year or two, found the monetization way, and the market's explosive growth.
for us, we are set up by the end of 2009, 2010, has been focusing on the long video, focus on professional video, focus on the more like the original traditional film and television industry, Hollywood mode shift to online Internet business model.
this is our own skills, we need to do, and must be as its main business, has been playing in the end, has been doing it.It must be right, no doubt.
another market while the original investment is not big enough, but suddenly find its ability to monetize, will be part of commitment to do it.
but our main business is in our best of film and television industry in the field of the Internet era, this is our main business.
short video piracy with legal weapon
jian-ping lei: I saw in the industry and a phenomenon, such as today's headline above there are a lot of short video from video capture part of the inside, like this, its audience and hits is very high.What do you think about this phenomenon?
gong yu: this is a legal problem, but the law is to protect the industry is especially important to the healthy growth of one factor, if beyond the scope of the law allows, then surely we decided that this kind of behavior with piracy, so we are sure to hit.
of course, from a technical innovation or patterns, if you do not damage the interests of the core of the original film and television production industry, we have some innovative way to do it, we are very willing to try, to innovation.
in fact, we also filed a lawsuit against the companies, and the courts have decided that we won, or compensation, also decided that we are more reasonable, is the other party compensation for us.So this to legal weapon to defend our measures to continue to do it.
it is very simple, if a long video, such as the 110 - minute film, investment of 150 million, or 80 million, it is only a total of more than 100 minutes, if cut into, seven, eight, 15 pieces every two to three minutes, basically is the most wonderful story, the highlight of the plot, the highlight of the show, were all out.
but it brings the income, the first didn't bring benefits to our producers with copyright owners;Second to the interests of the damage, we can obtain profits didn't give to us, the existing interests have also been destroyed.
this is certainly not protected by law.Law should give investors should return, this is a basic principle.So we are sure to hit.
of course, a short video of this kind of innovation, we must support.We're going to use this kind of technical innovation, however, to find more valuable business locations.
a live issue is the same.Live for many years, the Internet must have a history of more than ten years.Like television, or several, from the perspective of an outsider to see a show, a person, a thing, a time.
there are mobile broadcast live, from the perspective of subjective, the first person to see the world.This is a new form of works of the birth of the new, the birth of a new market.So we are doing, such as iQIYI under well.
short video not dominance
jian-ping lei: do you have what kind of look forward to for the business?
gong yu: whether it is a short video, live or mobile, and we think is dispersed, the market is not a dominant, is not even our this integrated video site pattern of monopoly, the future will be very fragmented.
with our core business, so these are derived from the field, is our focus.But we will not start another domain, and then make a commitment to do it, there are specializing in, we won't do that.
jian-ping lei: just mentioned and well quickly headlines today, also many station B, what do you think of this thing?
gong yu: B station, the first is a platform that is in the face of small a platform, is the so-called secondary yuan.
of course, as the operator of an enterprise, in the face of a niche platform, is not willingly, he wants to expand its audience, to expand to the secondary yuan, will expand to the general audience.
if he is to go to secondary yuan, even to a larger population expansion, the conflicts with our comprehensive website.If just two yuan, we don't care.
there are specializing in, each to each.If the attack on my side, we are sure to defense, so can produce conflict.I think, he in the field of a vertical depth development, is very good, we can't do it.
to use wisdom to solve the contradiction between management team and capital
jian-ping lei: orange hotel CEO Wu Hai recently sold his company, describes himself as a surrogate mother in any a founder of the company may have the question, what do you think of this kind of relations between the enterprise and founder?
gong yu: first of all, this is a commercial basic rules to follow, business rules are capital first, to protect the interests of investors.Property is a property, no matter who, private property, the property agency, need protection, this is a basic principle.
so, must abide by the basic principles.However, from the operating level, the team's interests, the interests of investors, etc., be sure to keep a balance.
in fact, I find it much more like two or three same thing last year, is more of a management team, to balance the interests of all parties of a technical problem.
I think is not disruptive, not a moral issue, not a rule, institutional issues, is a technical problem, need to depend on the level of the management team, the wisdom to deal with these contradictions.
to do a great enterprise
jian-ping lei: you want iQIYI become a what kind of business?
gong yu: actually you're good, is called the great enterprise, how great?The influence of many aspects, such as the number of many, affect the person's depth is very high.
iQIYI born children born from that year, this summer at the elementary school.He from 6 months, starting in December, with the touch screen to see iQIYI cartoons.
I asked a lot of children, in their mind, video is iQIYI video is iQIYI, they put the two concepts have such as assimilation.This is one of our happiness, this is one of our great enterprise.
of course, this effect is positive, positive, sunshine, you can't let a friend has a dark side in my heart, if because iQIYI, that's our sorrow, we should not do.
so, this kind of influence on people, both the depth and breadth, particularly important.Of course, from the economic Angle has returns to our shareholders, the employees have enough returns, let some financial freedom, financial more comfortable, some people are our pursuit.
the main still can continue to develop, not sold the company for 3 years, 5 years, everyone off.Or three years, five years to earn a large sum of money, the enterprise become mediocre, become doesn't matter, this is not our pursuit.
summary, iQIYI future to do a the age of the Internet a great entertainment.
greatness lies in: continuous innovation, technology innovation or creative content.Size is enough big, big enough to positively influence people's life, actively change the pattern of the industry, and society benefit.
open, he is in a healthy and sustainable development of ecosystem in a link, although is the dominant part, but not the interests of the winner-take-all, can promote the ecological system in each link coexistence and co-prosperity.
iQIYI culture is a special respect people's culture, respect for both engineers and literary and art workers, both users, customers and partners, whether employees or investors.
content creation is the essence of mining work of human nature.So we should respect for the artists with the highest degree, even if they have a lot of personality, it is their job, it's their wealth, this is human nature.
from the heart, in his bones, sincere respect for people.Gentle words, concealed a splendid.Require every iQIYI members to do this.
iQIYI culture is a culture of inner strength, because our trade is the top of the society, but they are dreaming of iQIYI can be closed tomorrow, we must be strong inside.
iQIYI culture is a culture of kindness, because too many people in the history of iQIYI iQIYI help and support, they are iQIYI benefactor, iQIYI always remember them and were dripping of grace when yongquan.
iQIYI listed is no timetable for
jian-ping lei: iQIYI establishment has for many years, we in fact in the capital market to you also have a lot of expectations, such as listing, if listed, which place would you choose.What's your opinion on this problem?
gong yu: first of all, the schedule has not, this is not a simple prevarication, actually we don't have any.
analysis for this reason, the main thing is that our industry characteristics, the input is too big, the investment, including money, manpower, resources, including time.
we really not two or three years the industry can work, industry structure can be industry, needs much time.
at present, after entering the competition period, the shape of the industry structure has been established, but the formation of a stable pattern, also need two or three years, this is a relatively optimistic forecasts, and may need more time.
some of the characteristics of the analysis of the capital market, and so on, our ultimate goal is not listed, listed just do the business better, to be a good means of a one hundred - year - old, this method is used in the medium term.
in this case, it's more that we should technical analysis when listing the most advantageous to the development of enterprises.Of course, to employees, shareholders, the management team to balance various interests.
but more important is the enterprise long-term sustainable development, healthy development as the first, among the listed as a means.If iQIYI ready, the interests of all parties are satisfied, this is the core of the problem.
so, we would be very close observation of opportunity, but there is no clear timetable.
video website development differentiation
jian-ping lei: I see ali bought after put the youku potatoes, so several large video web site, now what do you think it has reached a stage, so when will it be profitable in this industry?
gong yu: first of all, he needs a dynamic balance.Reflect on the balance, not for the whole industry wasteful investment do spell spell price, investment, the industry to form a certain balance.
what is useless?That is, if I put it down to one and it produced benefits for industry, enterprise long-term produced benefits for themselves, that's right.
to be afraid of is that the meaningless input to hit, I got the brief return, his happiness, but the happiness moment, is to begin, start from scratch to hit, this is pointless.
of course, this is an industry according to the market rule must experience a development stage, but this stage is fast in the past, that is to say I do put on long-term interests, my spelling is medium to long term, the strength of the future, this will form the differentiation between enterprises.
in fact, you look at the video three, or combined with China's Internet industry before the top eight, top ten enterprises, have their own positioning, almost didn't coincide.The same to our industry, the differentiation of model will gradually form.
this is a whole, is not a partial or local time or local business, for example, you have to say you the play ten out of ten play with me, is there a difference nature?This is too difficult.
but for iQIYI, are the big apple tree model, the content of the IP as the core, constitute an ecological, if we made, that is our independent, with strong content IP as the ecological core ecological built, the other is different.
tencent could take his social platform as the core, social platform is a platform, there are a lot of content, with text, pictures, music, video, and game monetization, he may be the ecology.
ali is electricity, trading as the core content of an ecological, has his own value, how to form a certain economic effect to him.IQIYI is content as the core, to form an ecological.
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ray emperor founded by senior media person jian-ping lei, a net as the headline writer, if reproduced please specify the source.