Offer To The CEO

Monday, continued …

Hou YI and Yao Tan both walked out onto the stage, and then looked out at the gathered media. As they had discussed, Hou Yi walked up to the microphone to address the press.

"Welcome. You may all be wondering why you are here for a joint press conference between myself representing Hou Enterprises and CEO Yao representing XF International. While we are competitors in business, many of our interests overlap. As you are aware last week CEO Yao announced a mall development joint venture between both Hou Enterprises and XF International. That is the first in a ongoing series of projects that will occur between our companies. We are here today to announce an ongoing joint venture between Hou Enterprises and XF International in the Entertainment area."

Yao Tan then took over "As you will be aware both XF International has a significant entertainment division, focusing on film and television. Hou Enterprises', while having an entertainment division focuses on artist development and management and facility development. We are announcing a joint venture today, that will combine both companies' strengths for their benefit. While we will retain our separate divisions, rather than competing in certain overlapping areas, will cooperate to maximise benefits for both companies."

"Artists will have three options when they sign from now on. They can sign for the joint venture company with an option for which company's entertainment division they will go to, if the joint venture ends; sign with XF International's Entertainment Division or sign with Hou Enterprises Entertainment division. No artist, whether existing or a new signing will be disadvantaged by their decision and all existing artists without terminating their contracts will also be given the same option for their career."

Hou Yi then returned "There will also be an expansion of funding for various film and television projects. As you are aware Hou Enterprises connections with various film industries throughout the world where the artists signed to our entertainment division often work. These resources will be available to members of the new joint venture and some artists with XF International."

"This will provide artists with the opportunity to expand their careers internationally. Further, there will be additional shopping and entertainment precinct developments in the country in which both Hou Enterprises and XF International will be the sole contributors that will be developed and run through this joint venture."

"Hou Enterprises, existing re-development of its film and television lots throughout the country will continue, and while it will retain ongoing ownership of these, their management will become part of this new joint venture."

Yao Tan returned to microphone. "There is being handed out a press release that details the specifics of the various projects that will become part of this joint venture, and those that will remain each company's, and those, like the film and television lot development that while remaining either company's possession will be managed by the joint venture."

"As part of the joint venture, for existing and new artists, we have ensured an appropriate code of conduct to protect the artists, many of whom are young and impressionable people. Rumours always exist in the entertainment industry of the misuse and exploitation of young people who are desperate to further what can often be a very short career."

"All artists that are part of this venture will have clear places in which they can report, either internal attempts for exploitation or external attempts. Any person within the joint venture or either company's entertainment divisions who engages in such conduct or hides it will be subject to significant and harsh penalties including potential immediate termination of their contract."

"We will support artists who make disclosures of past actions within the industry. We cannot continue to allow this. As a parent of three 17 year olds myself, I cannot allow this to continue in this industry."

Hou Yi returned "We will not personally be taking questions about the joint venture at this time, and urge you to read in detail the press release that you will be given. It has details as to where questions can be submitted to before the close of business tomorrow, with answers being provided to all by close of business Thursday. Recruitment for senior management of the joint venture will be handled by XF International, but both companies will appoint a joint head, responsible to both companies boards."

"Now, you will be introduced to the artists who have signed with our new joint venture."

Both Hou Yi and Yan Tan, as agreed stepped back and as each artist was introduced they shook their hands before leaving the stage.