Chapter 313: Buying Xingdao News Group?

"Yes, boss, the crisis at Xingdao News Group is extremely severe, to the point of life and death."

Yan Wenhan's smile faded, and he spoke with a serious expression.

Seeing Xia Yu's face turn solemn, Yan Wenhan continued explaining the situation.

"The fundamental issue Xingdao News Group is facing is a lack of funds, which has led to a series of problems that can be summarized in three aspects."

"Firstly, they are being pursued for debts by banks. Their bank accounts have been frozen. I've heard that Xingdao News Group has loans from multiple banks, with the largest one being from Hong Kong Commercial Bank, amounting to ten million Hong Kong dollars. Now, several banks are demanding repayment."

"Secondly, many advertisers are seeking compensation due to the sales fraud. This has involved allegations of fraud, and many advertisers have stationed themselves outside Xingdao News Group's offices, demanding refunds of their advertising fees. Some are even demanding double compensation for their losses, or they'll take the company to court on charges of commercial fraud."

"Finally, and most critically, Xingdao News Group is still in a state of suspension and rectification. All employees are currently idle, and with the accounts frozen, they can't even pay salaries. The staff is getting restless. Under the current circumstances, even if the company wanted to reopen, it would be impossible without resolving the issues with the advertisers and banks. Even if the Hong Kong government were to lift the suspension, reopening would still be far off."

"So, it's a deadlock now. The only way out is to immediately find money to resolve the issues with the advertisers and banks to attempt to resume operations."

"However, given the current situation, no one would dare to lend money to Hu Xian. That's why she's considering selling the company to escape. Otherwise, not only will the company go bankrupt, but Hu Xian might also face prison."

After Yan Wenhan finished speaking, Xia Yu's gaze became as deep as the starry sky, and he began to ponder.

According to Yan Wenhan, Xingdao News Group's situation was indeed dire, and to put it bluntly, it was at the point of life or death.

Without money to solve the problems, there's no hope for resumption. Salaries can't be paid, and without any prospect, employees will surely leave.

Once employees leave and the team disperses, it's game over. No amount of money will help then.

So, as Yan Wenhan said, Hu Xian's only option is to immediately raise money to repay the banks and then resolve the advertisers' issues before trying to find a way to resume the newspapers and continue making money.

But there's another problem!

Even if the newspapers are resumed, given the history of sales fraud at Xingdao News Group, which advertiser would dare to place ads?

And there's also the possibility of a sales crash!

Without advertising revenue, with declining sales and operational expenses, how much can the newspaper make? Breaking even would be a huge achievement for Hu Xian!

So even if resumption happens, Xingdao News Group's value would be significantly diminished. It would be a good outcome just to survive, let alone turn things around.

"Bankruptcy and imprisonment hanging over her head, Hu Xian is indeed very likely to consider selling the company!"

Xia Yu thought to himself.

Finding a capable buyer, transferring all risks and debts to the new owner, and getting some cash in the process would be a huge difference from bankruptcy and imprisonment!

Of course, the premise is that Hu Xian needs to find someone with both the capability and willingness to take over the company!

And Xia Yu could confidently say he had the capability and resources!

If he could acquire Xingdao News Group, then…

With this thought, Xia Yu's eyes flashed with a glimmer of excitement.

"Is this news something Xingdao News Group proactively released, or did you have someone investigate it secretly?"

Xia Yu asked sternly, needing to clarify this to make accurate judgments.

Yan Wenhan was taken aback, his brow furrowed as he thought for a moment before responding, "This news was leaked by Xingdao News Group. However, I believe it was intentionally leaked."

"Why do you think so?"

Xia Yu pressed further.

"Because I also heard a rumor that Hu Xian had a major outburst at the company, cursing at the British, which suggests there may be British interests behind this."

"The advertisers who are stubbornly refusing to settle are likely instigated by the British. Unless she sells the company. But I've heard the price offered was too low, and Hu Xian is unwilling to sell."

"So, I suspect Hu Xian intentionally leaked the news, either to attract more buyers or to force the British to offer a higher price."

Yan Wenhan said seriously, then looked at Xia Yu, waiting for instructions.

Xia Yu frowned slightly, his mind racing.

"The British?"

"It's very likely that the British are taking advantage of the situation to exploit it. But who exactly? It's surprising that even someone as proud as Hu Xian would have to lower her head and secretly leak the news. There are many capable British individuals; who could it be?"

"Wenhan, do you know who might be exploiting the situation?"

Xia Yu asked.

"I don't know, but I've already sent people to investigate before I arrived. I don't know if they'll find anything."

Yan Wenhan replied honestly.

Xia Yu nodded slightly, not probing further. He pondered for a moment and said, "Forget about who it is; it's not important. What's important is that we need to find a way to acquire Xingdao News Group."

"Acquire it?"

Yan Wenhan's eyes widened in surprise. He hadn't thought of buying it.

When he first received the news, his immediate thought was that Xingdao News Group no longer posed any threat. Jiuding Media's dominance was firmly established, and the media industry would be Jiuding Media's domain in the future.

He hadn't considered buying it because he thought it wasn't worth it and that the risk was too high. Jiuding Media had no need to make such a purchase.

Furthermore, even if Jiuding Media wanted to buy it, whether Hu Xian would be willing to sell was another matter. Xingdao News Group's current predicament could be traced back to Jiuding Media. Given the enmity between them, Hu Xian would probably be unwilling to sell to Jiuding Media.

"Boss, is it really possible to buy it? And wouldn't it be too costly?"

Yan Wenhan asked, puzzled.

Xia Yu smiled and said, "How do we know unless we try? What if there's a possibility?"

"As for whether it's worth it, once it's in our hands, it will be worth it. The cost can only be determined through negotiation until it's deemed worth it!"

Xia Yu genuinely wanted to acquire Xingdao News Group.

High cost? Negotiate it down to a reasonable level!

High risk? It's relative. It's a huge risk for Hu Xian, but for Xia Yu, it's minor. He can easily resolve it!

And having Xingdao News Group in his hands is better than letting it fall into someone else's hands. At least the potential threat would disappear, and his own strength would increase.

Even if the "Xingdao Daily" and the "English Tiger News" are similar to Jiuding Media's newspapers, Xia Yu has many ways to reform them once he acquires them.

The media market is so large. Even with a couple of hundred newspapers in Hong Kong, there's still room. There are many newspapers similar to Jiuding Media's, but so what? As long as the quality of the newspapers is improved, and proper positioning is done, taking market share from others is feasible. Or, the newspapers could be revamped to avoid direct competition with Jiuding Media's papers. If they can't compete with "Jiuding Daily" or "Fengyun Daily," they could still compete with others.

With Jiuding News Agency on hand, Xia Yu doesn't worry about a lack of high-quality news to publish. He would worry more about not having enough newspapers to cover all the news!

"Alright, boss, I'll go and try immediately."

Seeing the boss's attitude, Yan Wenhan, though somewhat skeptical, agreed and nodded.

Soon, Yan Wenhan left with a heavy heart. When he returned to the office later, just before noon, he still had an incredulous look in his eyes.

"Boss, I probed Hu Xian, and to my surprise, she didn't refuse. Instead, she wants to meet with you."

Yan Wenhan reported.

The fact that she didn't refuse means there's a possibility, and the fact that she wants to meet with Xia Yu means the hope is even greater. If the negotiations go well, it's quite possible to buy it.

The specific outcome will depend on the boss's skill!

"Meet me?"

"No problem. Agree to it and let her decide the time and place."

Xia Yu said with a smile, allowing Hu Xian to set the time and place. She would surely feel Xia Yu's goodwill, even if she was upset. This would be beneficial for the negotiation.

"Alright, I'll reply to her immediately!"

Yan Wenhan nodded firmly.

"Go ahead, and be quick!"

Xia Yu nodded with a smile.