he also said frankly: "We have actually participated in a lot of mergers and acquisitions, but if the price is very high, we immediately quit. My business purpose has a boundary. I will not intervene when your performance-to-price ratio reaches any boundary, and I will not force the target that is not suitable." then wait for the next opportunity. " The most important strategy of M & A lies in integration and cooperation.
original title Perfect World CEO Xiao Hong: acquisition is an intervention with commercial boundaries black-rimmed glasses, clean and short hair, elegant and sharp in conversation, is Perfect World's CEO Xiao Hong. It is now the eighth year since he joined Perfect World in May 2008. under his leadership, Perfect World has also grown from an ordinary Internet company to the largest "video game integration" aircraft carrier company in China. Xiao Hong, who graduated with a bachelor's degree in physics from Tsinghua University and a master's and doctor's degree in engineering from the University of Southern California, works in creative industries. Some people say that he is a contradiction and needs the rigor of engineering scholars as well as the creativity of the game industry. Some people say that he is the most suitable manager, and his status as a scholar keeps him calm and sober in the relatively impetuous industry. recently, the A-share listed company perfect Global officially changed its name to Perfect World, which also means that Perfect World officially returned to the A-share market and completed the comprehensive restructuring of its listed system video game business. Recently, the reporter had an exclusive interview with Xiao Hong, the core leader of Perfect World. Xiao Hong said that he was a very calm person, and that he could not deliberately do anything about mergers and acquisitions or IP in the crazy big media industry. He also said frankly: "We have actually participated in a lot of mergers and acquisitions, but if the price is very high, we immediately quit. My business purpose has a boundary. I will not intervene when your performance-to-price ratio reaches any boundary, and I will not force the target that is not suitable." then wait for the next time. " strong > the most important M & A strategy lies in integration and cooperation / strong > with the promotion of capital, media culture has become the most popular industry in China, and many enterprises are scrambling for high-quality targets, even at sky-high M & A costs. In the face of more and more fierce M & An integration, Xiao Hong has become more calm. "We have actually participated in a lot of mergers and acquisitions, but if the price is very high, we immediately quit because it is no longer in line with my business purpose." My business purpose has a boundary, so if it is not appropriate, I will wait for the next time, so I do not force it. If this target does not meet your requirements, then there can be no mergers and acquisitions, this is a business calm logical thinking. " Compared with the determination of other entrepreneurs to win in mergers and acquisitions, Xiao Hong believes that no enterprise is worth buying at a very high price. "if its performance-to-price ratio exceeds my limit, we don't want anything good." therefore, for Xiao Hong, sky-high price M & An is not a wise business behavior, and blind M & A through capital market leverage is only a flash in the pan and can not promote the sustainable development of the enterprise. in Xiao Hong's mind, the most important thing in M & An is integration and cooperation. "I should be looking for companies like us that want to develop their business to a certain level in the next few years, and he sees the opportunities we can help him and what kind of help our platform can give him," he said. From the perspective of game enterprises, we have film and television resources, other layout resources, Chinese resources, and sometimes global resources. From the perspective of film and television enterprises, they want to enter the game field, and they not only want to enter the Chinese game market, but also want to enter the world game market. When they look at it, it seems that only Perfect World can. This is our value, the value we give is not only money, but also can help them develop. " "when it comes to mergers and acquisitions, it is not so simple. It is not about spending money on assets and then loading listed companies to give an account to shareholders. This is definitely not the case." Xiao Hong said. recently, Perfect World shares are also being suspended due to major asset restructuring. strong > Movie Linkage / strong > the popularity of "Movie Linkage" has not abated since 2013, but the success rate is very low, still in the "look beautiful" stage. Even if the game is adapted into the most successful "Warcraft" film this year, it still faces a situation that is not recognized by all players and the box office is dismal in the North American market. well, Perfect World, who has super reserves in film, television and games, how to make the IP in his hands seamless in the best way, so that both film and television audiences and gamers will recognize it, which is something Xiao Hong has been thinking about. Xiao Hong called Perfect World's "video game linkage" a 2.0 concept. in Xiao Hong's eyes, "Movie Travel Linkage" has two levels. He said: "the first level is what people often call cross-marketing and cross-border marketing, but we need to enter the second level of content production, that is to say, film and television producers and game producers have already begun to work together at the story writing stage." "Perfect World has a movie and tour linkage group inside. Everyone collides with their ideas every day. The image of the game and the image of the film and television have been figured out, and both sides can be satisfied, and let everyone understand that they are one. Therefore, in order to make both users like this work, we will work closely together from the very beginning. " of course, this is not an easy thing to do, Xiao Hong said. In the end, it must be ready, and only powerful enterprises can do it. "I think we are ready, of course, we must still have difficulties, there must be some failures, and we will certainly learn in the process, but I am afraid we are the only company in the industry that has grown to such a stage in both fields. Our obstacles are much smaller than others, so I think we are more likely." Xiao Hong also believes that the most important point for the success of "Shadow Travel Linkage" lies in the scale effect. He told reporters: "We produce 500 hours of TV dramas and 30 game projects a year, of which we design two 'video game linkage' projects, so no matter how big we invest, it doesn't account for that large proportion of our total." it's not that risky. Of course, we also know that the work must be risky, no matter what the project is, but when risky projects account for a stable and sustainable growth and do not account for such a large proportion of your overall, your risk is manageable. " "so the later the economies of scale will come out, and eventually we will win the market in a more sustainable and long period of time, because we can bear such risks." Xiao Hong said. strong > Future Direction to build Biosphere from Big Tree to Forest / strong > as a leader in the industry, how can Perfect World maintain steady growth in the industry in the future, and how to deal with all kinds of chaos in the industry? strong > Reporter: / strong > the fields that companies are involved in are the craziest, one is film and television, the other is games. How can the company be more calm in madness? strong > Xiao Hong: / strong > it's still the right time. If we had been a layman today, we would not have entered the industry under such crazy circumstances because the timing was not right. But we started in 2004 when we entered the game, and we can start investing in this area even earlier in the studio in 1997, so accumulation is very important. With these accumulations, we have such a platform and strength in the game field today. strong > Reporter: / strong > it was not yet a crazy time for film and television. strong > Xiao Hong: / strong > Yes, we dare not say that we are forward-looking, but we are not crazy when we enter, but now it is crazy. However, in the crazy world, we are already rooted and established enterprises. strong > Reporter: / strong > Perfect World is already a big tree now, but the growth process of big trees is often not as fast as that of small ones, and the annual growth may be limited. How to maintain the continuous growth of big trees in a limited process? strong > Xiao Hong: / strong > this is the change of our entire biosphere. Perfect World this tree is a banyan tree, any of its branches fall on the ground, we hope it can develop into another tree. Although these trees are very small at first, they form a forest, so our biosphere is actually the concept of this forest, and the new growth point is not necessarily on this trunk. of course, it seems that there will still be a period of growth on this trunk. The growth of film, television and games is still very fast, and we have not relaxed or given up on this growth at all. but you will find that I am planning ahead for the development in 5 years' time. As you said, if your tree is getting bigger and bigger, you are less likely to maintain 10%, 20%, 30% growth. But if there are those small trees next to me, they also have time for rapid development, then my growth is amazing, and we will become a forest, and those small trees may add up to be thicker than my big trees. Edit: nancy