Chapter 462: Galaxy Film Company

"Mr. Xia, I will go back and discuss it with my master. By tomorrow at the latest, I will definitely give you a clear answer." Wu Siyuan squeezed out a smile and promised.

"I look forward to your response!" Xia Yu was not upset about not getting the desired result immediately and maintained a warm demeanor as he shook hands with Wu Siyuan.

"Mr. Xia, I will take my leave now and won't disturb you any further."

"Take care!"

...

Seeing Wu Siyuan leave with a heavy heart, Xia Yu smiled slightly, showing no concern.

"Boss, I noticed that Wu Siyuan didn't seem too resistant. He truly respects his master, Yuan Heping. As long as he discusses it with him, Yuan Heping will probably agree." Jiang Zhiqiang spoke cautiously, seemingly worried that Xia Yu might be displeased.

"I admire him as a person. Whether they agree or not is not a big deal. With the theater chain in hand, the rest are just minor details; there are always other people who can take their place." Xia Yu replied nonchalantly.

Their conversation with Wu Siyuan had only lasted a little over ten minutes. Although Wu Siyuan expressed his willingness to sell his company, he mentioned that there was another shareholder—his master, Yuan Heping—and that he needed to consult with him before giving Xia Yu a definitive answer.

Based on Xia Yu's investigations, Yuan Heping was indeed a shareholder of Siyuan Films, so Wu Siyuan's claim wasn't just an excuse. Since Wu Siyuan promised an answer by tomorrow, waiting one more day was not a big deal.

...

After leaving Jiuding Tower, Wu Siyuan rushed to contact his master, Yuan Heping. Even when Yuan Heping arrived at Siyuan Films' office, Wu Siyuan's anxiousness had not yet subsided.

The reason? The shock brought about by Xia Yu's aggressive entry into the film industry was simply overwhelming. It was one of the most significant events in the Hong Kong film industry!

"Ah Yuan, what's going on? Why do you seem so unsettled? Our 'Drunken Master' is doing well in theaters!" Yuan Heping, who was only 33 years old, was young but highly experienced. Having entered the industry in his teens, he was more than capable of being Wu Siyuan's mentor. He knew Wu Siyuan very well and immediately sensed something was amiss.

Wu Siyuan forced a bitter smile and said, "Master, it's not about 'Drunken Master.' A major event is about to shake up the Hong Kong film industry, and it involves us as well."

Yuan Heping raised an intrigued eyebrow. "What exactly happened?"

"Three days ago, I was at Taiping Cinema assessing the audience's response when I coincidentally ran into Xia Yu, the stock market god. We exchanged business cards, and the next thing I knew, I got an invitation from him yesterday. So, I went to see him this morning, and to my surprise, I saw Jiang Zhiqiang, the owner of Anle Cinemas, there. I learned that Anle Cinemas had been acquired by Xia Yu, who is determined to enter the film industry aggressively. He even wants to buy our company." Wu Siyuan explained with a wry smile, unsure whether to feel lucky or troubled.

Initially, he was pleased to have met Xia Yu, thinking he might leverage the connection. To his shock, Xia Yu's intention was not merely to collaborate but to take control, leaving Wu Siyuan feeling unprepared.

Yuan Heping furrowed his brows and fell silent, clearly stunned by the news.

"Ah Yuan, can you confirm if Xia Yu is truly determined to enter the film industry?"

After a long pause, Yuan Heping asked the crucial question.

Wu Siyuan nodded firmly, speaking in a low tone, "He's very determined! He also mentioned that the newly established Global Cinema will receive full support from Jiuding Bank, aiming to become Hong Kong's largest theater chain. He didn't seem to be bluffing, and there's no reason for him to lie to me."

Yuan Heping nodded slightly, thought for a moment, and said, "Then sell. We can't fight the tide. Aligning ourselves with Xia Yu might be the best choice."

Hearing his master's agreement, Wu Siyuan nodded in acknowledgment, sighing as he understood Yuan Heping's reasoning. 

No matter how well they made their movies, if there were no theaters to screen them, they would end up losing money. Given Xia Yu's stance and his vision of making Global Cinema the largest theater chain in Hong Kong, it was clear that he would target the independent cinemas. There were only about 25 independent cinemas in total. If Xia Yu wanted to achieve his goal, most of these cinemas would be swallowed up.

By then, the remaining cinemas in Hong Kong would be limited to Global Cinema, Shaw Cinemas, Golden Harvest, Lee's Voice Cinema, and Twin South Cinemas. 

Shaw and Golden Harvest were mostly for their in-house productions, and Lee's Voice only had a few cinemas, primarily screening Golden Harvest's movies. As for Twin South, their focus was on the Taiwan market, and they wouldn't dare use their films for Hong Kong screenings.

Ultimately, Global Cinema would be their best shot at getting their movies shown. If they turned down Xia Yu's offer, not only would they miss their chance, but they might also find it impossible to gain access to Global Cinema in the future.

So, it made sense to yield to the circumstances and join forces with Xia Yu. By doing so, they would gain a powerful backer. Moreover, Xia Yu promised to purchase 90% of their company's shares, leaving them with 10%. The ongoing 'Drunken Master' would be kept separate from the deal, ensuring they weren't being taken advantage of.

This way, they would still be minor shareholders, connected to Xia Yu's network. The potential profits wouldn't be any less than what they were earning now, and their future would look much brighter!

"Alright, Master, I'll accept his offer." Wu Siyuan exhaled deeply and said.

"Yes, agree to it," Yuan Heping nodded.

...

The next day, Wu Siyuan gave Xia Yu his answer. Xia Yu promptly arranged the signing of the agreement, and soon, Wu Siyuan, Yuan Heping, and Xia Yu were gathered in the office to sign the contract.

Given that it was a film company, its actual assets included some equipment, old movie copyrights, employees, and industry connections, with not much else. Factoring out 'Drunken Master,' Siyuan Films was valued at 10 million HKD. Xia Yu paid 19 million HKD to acquire 95% of the company's shares.

Out of the 19 million, 9 million was for purchasing the shares held by Wu Siyuan and Yuan Heping. The extra 10 million was an infusion of capital into the company. Since Wu Siyuan and Yuan Heping didn't participate in the additional funding, their collective 10% stake was diluted by half, leaving them with 5%. Although their ownership percentage decreased, the value of their stake remained unchanged.

Therefore, the company now had two other shareholders, Wu Siyuan and Yuan Heping, each holding 2.5%.

After the signing, Xia Yu briefly chatted with Wu Siyuan and Yuan Heping about some future plans before steering the conversation towards the company's development.

"Siyuan, the company will be renamed Galaxy Film Company. You'll be responsible for managing the rebranding. Keep it low-key; don't go public with it until the theater renovations are complete to avoid unnecessary trouble."

"After renaming, expedite the hiring process, particularly for behind-the-scenes talent. Expand the company's long-term scale tenfold to ensure an annual production of at least ten films. Implement a screenwriting system for movie production. If you're unsure how, consult Huang Xizhao at Global Television."

"Regarding employee contracts, I will have Chan Shufen from Global Agency contact you to handle that."

"Understood! I'll get right on it!" Wu Siyuan promised.

After discussing some additional details, Wu Siyuan and Yuan Heping departed, leaving Xia Yu with a relieved smile. 

With the film industry layout in place, it was just a matter of time and patience.

In fact, Xia Yu had initially wanted to name the company Global Film Company, but that name was already taken by a Hollywood giant. Thus, he settled on Galaxy Film Company, hoping that one day, he might acquire Global Film Company.

There were also advantages to using Galaxy Film Company. 

First, it would not immediately reveal his connection to Xia Yu, thereby avoiding the scrutiny of Shaw and Golden Harvest.

The second long-term benefit was that in the United States, film companies were prohibited from owning theater chains due to monopoly laws. Having different names for the film company and the theater chain would help avoid such issues.