Struggling Jia Yueting: LeTV is more important than my own life

　　#Laogao E-commerce Online Information# It is understood that at 5:30 p.m. on January 3, US time, Faraday Future, a deep strategic partner of LeTV Super Auto, will release its first mass-produced car in Las Vegas, USA. In the official promotional poster, this "new species" is pointed out to "reconstructing the century-old automobile industry."

　　According to previous reports, FF mass-produced cars will have the world's fastest acceleration of 100 kilometers than Tesla Model X, and such a high-performance Internet car may be priced between 150,000 and 200,000 US dollars.

　　As the outside world knows, this car has a very special significance to LeTV. In the past two months, LeTV has encountered the worst crisis in the past two years, and its automobile business has been particularly questioned by the outside world. At this point in time, the significance of FF's first car is no longer limited to one car, but the outside world's confidence and judgment of LeTV. As one interviewee said, "LeTV has entered the 'confirmation stage'. Investors and capital markets need to see clear results before they can continue to invest, instead of having only one business model before."

　　In this crisis of LeTV, funding is short and automobile projects are just appearances. We are trying to find the deep causes of the LeTV crisis. The company's organizational structure, governance methods, and Jia Yueting's personal ambition, arbitrary, tolerance and choices may be the real cause of this crisis.

　　Find money: Jia Yueting's speed of life and death

　　The latest news about LeTV funds is that on December 28, 2016, LeTV issued an announcement stating that LeTV, together with Jia Yueting and LeTV Holdings (Beijing) Co., Ltd., signed a "Strategic Cooperation Framework Agreement" with strategic investors, with the transaction scale expected to exceed 10 billion yuan. Although the amount is huge, LeTV has not disclosed to the outside world about the "funding owner" behind it. Previously, more than a dozen classmates at the Yangtze Business School of Changjiang Business School had "sentences of time" and invested 600 million US dollars in LeTV.

　　How much money does LeTV owe? There are many different opinions. For example, the amount of owed mobile phone suppliers is as high as 15 billion yuan, more than 60% of LeTV Sports' copyright fees are not paid on time, LeTV's stock price falls below the closing line, and the tight capital chain leads to emergency layoffs, etc. In an exclusive interview with "Chinese Entrepreneur" on December 11, 2016, Jia Yueting denied most rumors in the market.

　　Industry view believes that if LeTV wants to survive the crisis safely, it needs to solve the funding crisis from both short-term and long-term aspects. In the short term, on the one hand, we need to find money to deal with the current debts and arrears, and on the other hand, we need to stabilize the stock price and ensure LeTV's financing capabilities.

　　In the medium and long term, in addition to adjusting the pace of business expansion, it is obvious that it is necessary to optimize the internal financial status of LeTV ecosystem and broaden financing methods. Not long ago, LeTV Finance, the seventh largest ecosystem under LeTV, was launched. This sub-ecology, which is CEO by Wang Yongli, former vice president of Bank of China, was highly expected within LeTV.

　　LeTV people in the eyes of the storm

　　The LeTV crisis was officially triggered because of the internal letter Jia Yueting sent.

　　"This letter has not been prepared for a long time, one or two weeks." Liu Hong, co-founder of LeTV and vice chairman of LeTV, told reporters that there have been many discussions on whether to issue this internal letter, but the impact will be underestimated.

　　"At that time, there were not many overdue accounts for the mobile phone business, but the internal letter seemed to be serious when it was sent." A middle-level and senior executive of LeTV Mobile denied the outside world's claim to be owed over 10 billion yuan, but he refused to disclose the specific figures. "Some suppliers who have not expired will come to ask for payments. It is impossible to ask before, but now it has caused a lot of unnecessary trouble."

　　Not only that, the shipments of TVs and mobile phones were also affected. The shipments of TVs were expected to reach 6 million in 2016, but Jia Yueting later lowered the number to between 5 million and 6 million units. The same is true for mobile phones. A senior executive of LeTV Mobile believes that if there were no such storm, "the media should be invited to participate in the celebration of 20 million sales."

　　What was even more shocking was the ordinary employees. "When I first found out, the company's WeChat group was about to explode," LeTV Sports employee Chen Peng (pseudonym), told reporters, "I feel that everything was normal before, the salary was paid and the business was done as expected," he still has not figured out the reason why the boss sent an internal letter.

　　Many LeTV employees regard themselves as followers of Jia Yueting. Although LeTV is packaged as a passionate disruptor, it is also trivial and arduous to subdivide the specific work. After the organizational structure adjustment was announced in December 2016, new media and online business groups, offline business groups and sports consumption business groups have become LeTV Sports' three main businesses.

　　Jia Yueting is tolerant, and some media have reported that he is tolerant of his employees who make mistakes.

　　A senior executive once suggested that Jia "decisive and decisive decision", but Jia Yueting believed that he should give him a chance, which may be useless and may not have the right time yet. "He is a person who knows how to be grateful, and he will be grateful for someone who has contributed at any stage of the company."

　　LeTV's overly "grassroots" entrepreneurial atmosphere has also made some foreign "big guys" unable to adapt. Compared with some relatively mature large companies, LeTV not only needs to build roads while driving, but more importantly, it is "finding direction". "So people who only know how to drive or only know how to build roads will be very painful for LeTV," said senior executives. "Many of LeTV's businesses are opened from scratch, and finding directions will become particularly important."

　　One person's company

　　The other side of wild growth is the lack of refined and deep cultivation.

　　This is related to Jia Yueting's management style of doing everything in detail and doing it himself. In terms of business, Jia pursues one-stop management to the end. In the previous and after the interviews with him in "Chinese Entrepreneur", Jia Yueting can answer accurately whether it is product research and development or financing progress, and rarely gives ambiguous answers.

　　In fact, within LeTV, whether it is the shareholders' meeting or the president's meeting, there are not many people who can really say "no" to Jia Yueting, and he accepts it. "No one says 'no', or it is useless if it says it, but the company's development requires a firewall." The above person revealed.

　　Zeng Qiang also talked about this issue in an interview before, "There should be a balance and sharing mechanism in decision-making, from individual monopoly to joint decision-making with the collective. LeTV currently lacks this mechanism."

　　Even in the company's view, Jia Yueting is extremely adventurous and has no traces of standardized business training, but the problem is that it is impossible for the whole company to "run blindfolded". In this case, standardized systems and mechanisms are essential. "Mechanisms are not used to regulate and constrain who, and these can be adjusted at any time according to the company's strategy and rhythm."

　　Before the internal letter was issued, several of LeTV's subsidiaries had revealed plans for transformation.

　　Jia Yueting has said more than once that he regards LeTV as more important than his own life, but what LeTV lacks is not ambition or a determination to die, but a business rhythm that can make dreams and reality go from sharp opposition to reconciliation and coexistence. How to grow from an entrepreneur in the green forest to an entrepreneur who can move forward and retreat freely is the well-known challenge facing Jia Yueting.

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