I’m in Hollywood Chapter 1017: Feasibility of the scheme
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In general, the plan given by John · Mark is equivalent to a stock underwriting contract. From this point of view, John · Mark is still quite courageous.
Investment banks are generally responsible for underwriting customer stocks in two ways, one is underwriting and the other is consignment.
Underwriting mode, the underwriter needs to ensure that all the stocks entrusted by the client are sold. If there is any surplus, the underwriter needs to invest the remaining part by itself, so the underwriter needs to bear a lot of risk. In contrast, consignment sales do not need to guarantee the share of stock sales, as much as sold. Similarly, in this sales model, the commission rate that underwriters can get is usually only half of the underwriting model.
Of course, these two methods are usually new shares issued by underwriters, and this time, John · Mark intends to underwrite all AOL stocks in Eric's hands, and the value of this stock is unprecedented.
In the plan, John · Mark proposed that Morgan Stanley use its own stock sales network to be responsible for underwriting all AOL stocks in the hands of Firefly investments. Firefly investment needs to pay Morgan Stanley5% of sales as a commission. At the same time, in order to cooperate with Morgan Stanley sales, Firefly investment also needs to give a relative discount and must also be a fixed price that is not affected by market share price fluctuations, which is similar to the issue price of an enterprise when it is IPO.
From the first time Firefly Investment Company acquired AOL30% equity with 60 million USD in 1992, until the beginning of the year to absorb AOL stocks for the purpose of strengthening control, the total capital used in the Firefly system was 1.5 billion 70 million USD A large part of it was spent on the absorption from the end of last year to the beginning of this year.
However, according to Eric's plan, only 3.1% of the shares held by the Clover Fund will be sold off next year when the AOL share price is high, which is enough to recover all the capital paid by the Firefly system in these years. No matter how much it sells, the 32.6% AOL stock of Firefly Investment Company can be regarded as a net profit for Eric.
According to yesterday ’s closing price, 32.6% of AOL stocks held publicly by Firefly investors are valued at 14.2 billion USD.
What does 14.2 billion USD mean?
In the Forbes global rich list at the beginning of the year, the Mars family that controlled the famous Mars Food Company ranked tenth, and the family wealth was only 13.5 billion USD. If we don't consider the capital gains tax and other factors that need to be paid for the time being, just the cash of 14.2 billion USD is enough to make a person squeeze into the top of the global rich list.
If you can successfully cash all the current stock prices, even if you ca n’t compare with the corporate giants such as General Electric and Walmart, Eric will definitely become the individual with the most cash reserves in global, and the amount is far more than all other rich people in the world.
No one knows the bubble component in AOL stock better than Eric. His original plan was to use the period before the bursting of the Internet bubble to sell as many AOL stocks as possible and cash out a 20 billion USD fund.
Once the Internet bubble bursts, even if the remaining stocks in your hands still maintain a very high par value for a short period of time, in fact, no investors will easily buy them at that time.
Therefore, if all can be cashed in a short period of time, it is safe, even if AOL's current market value is far below the highest point in Eric's memory, he will not resist the plan given by John · Mark for a while.
It is just that after carefully reading the plan given by John · Mark, Eric looked up and asked: "John, involving more than 10 billion USD capital operations, how confident are you that you can successfully complete this plan?"
"According to the information I have recently collected, international hot money has begun to withdraw from Southeast Asia on a large scale, and some hedge funds have begun to shift their targets to Russia rubles, and may even launch an attack on the ruble this month. Once launched, I I think the ruble will not last even a month. "John · Mark did not directly answer the question of Eric, with a touch of confidence in his tone, said:" So, Eric, I very much agree with the point you said last time, Nasdaq 2000 The point is just the beginning. For this plan, Morgan Stanley will next release a series of analysis reports on the Nasdaq index will continue to rise, to stimulate investor confidence, in this regard, I hope that Firefly Group can also give some Media resources. "
The official economic analysis reports of several major investment banks of Wall Street have a very powerful influence, and in many cases they may even affect the economic data trends of some countries.
The previous subprime mortgage crisis was because Wall Street major investment banks repeatedly advocated the security and return of high-risk housing mortgage loans through the publication of a series of economic data, which made a large number of investors who bought the relevant bonds lose their blood. . Among the misguided investors, even the Europe financial giants such as Deutsche Bank, this shows the strong influence of the Wall Street investment bank.
As the Nasdaq broke through 2000 points, many investors who realized the technology stock bubble began to become more cautious. However, if a Wall Street investment banking giant like Morgan Stanley makes a clear endorsement of the Nasdaq index trend, a large number of investors will be affected.
John · Mark said these words, he has already made clear his confidence in this plan and the intensity of expenditure.
After thinking for a while, Eric asked another question that he was more concerned about and said: "So, how long do you need?"
John · Mark has apparently considered this detail, and resolutely replied: "In three months, Morgan Stanley needs one month to release relevant economic forecasts to build momentum. If the Russia economic crisis erupts as scheduled during this period, we Will be more confident. Only one month later, Morgan Stanley can sell AOL shares to our affiliated investment institutions. "
"In this case," Eric leaned against the back of the sofa, looking at John · Mark, and said: "How do you think I should deal with the plan that I said in the video conference?"
At the video conference in New Zealand at the end of June, Eric strongly requested other shareholders of AOL to buy 10% of AOL shares in Firefly investment within one month, otherwise Firefly investment would choose to sell to the open market.
At this time, the time limit given by Eric has passed for almost half a month, and it is naturally impossible for him to stop casually.
John · Mark suddenly found that he was still negligent. From yesterday afternoon to now, he almost feels that after taking out this very secure plan, Eric will definitely not stick to the original plan.
After the Eric is finished, it pauses for a moment, before waiting for John · Mark to speak again, it says: "John, let me talk about my thoughts."
John · Mark didn't make a good speech for a while. When he heard Eric, he nodded subconsciously.
"Actually, everyone knows that, including Morgan Stanley, the other shareholders of AOL are not too resistant to buying these 10% stocks. You are just worried that the Firefly investment will put the remaining stocks on you."
Eric has come to a stop here and continued: "However, your plan has solved the problems faced by everyone. In this case, I can make some concessions, that 10% of the stock, It is still undertaken by the AOL shareholders, and the price is calculated according to the 4billion USD I originally gave. Next, the Firefly investment gives Morgan Stanley15% AOL stock underwriting rights at a price of 6billion USD. At the same time, Firefly investment is publicly guaranteed and will not be reduced within one year. Holding the remaining stock. "
John · Mark showed a surprised look on his face. He did n’t expect Eric to make such a drastic change to the plan he brought out in such a short time.
It's just that, after careful consideration, John · Mark has to admit that the revised plan of Eric is undoubtedly the most advantageous for Firefly investment.
Sell a total of 25% of the stock at a price of 10billion USD. According to the current market value of AOL, Eric probably gave up the benefits of 900 million USD. But in fact, this price is comparable to the price quoted in the Eric video conference at the end of June.
At the same time, the transaction will be divided into two parts, 10% of which will be undertaken by other shareholders of AOL according to the plan given by Eric, and Firefly investment will not need to pay Morgan Stanley5% commission.
The other 15% of the stock is underwritten by Morgan Stanley. Compared with the original generous underwriting plan, this will undoubtedly greatly increase the success rate of sales and reduce risks. At the same time, Firefly investment can also recover funds in the shortest time.
If it is only 15% underwriting, Morgan Stanley absolutely does not take as long as three months.
Selling 25% of the stock, Firefly investors still control 7.6% of the stock.
The shareholding ratio is reduced to less than 10%. Although it is still considered to be a major shareholder, Firefly investment can no longer have a great impact on AOL. Coupled with the Eric ’s promise not to reduce its shareholding in the last year, AOL stock price will be completely free of Firefly The investment may reduce the shadow brought by the holding, and return to the overall trend of the rapid rise of the entire market.
Finally, retain 7.6% of the stock. Once the market value of AOL continues to rise, Firefly investment will still be able to obtain certain gains from the rise in stock prices in the future.
It's just that Morgan Stanley's earnings will be much lower.
According to the original underwriting plan, although the risk is a bit high, once successful, according to the 5% commission ratio, Morgan Stanley will receive a commission income of 600 to 700 million USD, just this project will bring the equivalent of Morgan Stanley The annual profit is about 25%.
But now, underwriting program worth 6billion USD, Morgan Stanley can only get 300 million USD commission, more than double the original plan.
For a time, John · Mark suddenly developed a feeling of marrying clothes for others.
If Eric can see through the thoughts of John · Mark, it will certainly admire the other party's ability to analyze all their intentions in such a short time.
25% of the shares are sold at one time. In fact, the share of AOL shares held by Firefly Investment and Clover Fund still reaches 10.7%. However, the shareholding ratio of Firefly investment on the bright side has dropped to 7.6%. Such a shareholding ratio is enough to let the market put down its concerns about Firefly investment.
As for the 25% of the AOL stock, the price is only 10billion USD, which is far lower than the value of the highest market value of AOL in memory. But Eric believes that even if it is the opposite John · Mark, if he can see the future, he will probably make the same choice.
Only when the invisible 'reins' of Firefly investment set on AOL is completely removed, the stock price of AOL can follow the overall trend of the Nasdaq market in the next year or more, like a wild horse. Otherwise, AOL will always be under the shadow of Firefly investment reduction, and Eric cannot give up AOL stock reduction, otherwise, this wealth will only disappear in the future with the collapse of the Nasdaq index.
Remember, at this time next year, the Nasdaq index will also break through the 3000 point mark. At that time, watching the continuous outbreak of technology stocks, not just Wall Street, investors all over the world will be completely madly mad.
At that time, Firefly investment and Clover Fund will successively reduce their remaining AOL stocks, which will not only cause too much negative reaction, but will even be robbed by investors.
Seeing that John · Mark was silent for a while, Eric had to take the initiative to say again: "John, I believe there is still room for bargaining with the 5% commission ratio you just gave. However, as long as Morgan Stanley cooperates with my previous plan , I can now guarantee that the 15% of the Firefly investment entrusted to Morgan Stanley will be calculated according to the 5% commission ratio. What do you think? "
John · Mark hesitated for a moment, and a slight wry smile appeared on his face as calm as possible. At the same time, he admired Eric's keen business vision. He came directly to Los Angeles to meet with Eric, instead of first contacting the agent Chris · Hansson of New York Eric, and originally had the idea of "pinch the soft persimmon". At this point it is understood that his little abacus is completely wrong.
Moreover, what can he do now if he does not agree.
The business plan does not have any restrictions such as patent rights. If you do not agree, Eric can now find companies such as Goldman Sachs and Lehman Brothers to cooperate. Once this happens, it is estimated that the competitors of Morgan Stanley have to wake up laughing with dreams. Wall Street several investment banks have always wanted to **** away the super big customer Firefly.
Without any hesitation, John · Mark quickly reached out to Eric and said, "So, I wish us a happy cooperation."
Eric reached out and shook hands with each other, smiled and nodded: "Happy cooperation."
Eric will be invested in shoots of "Gravity" on Monday. The detailed cooperation details will naturally be handed over to Chris in New York.
After discussing this matter, the two discussed the matter of Firefly Group 2 billion USD bond issuance, and the sale of this bond has started since last week.
While Firefly investment is expected to receive a large amount of money, Eric has not terminated the bond issuance plan of Firefly Group. Not only because this plan has already been promoted long ago, it is impossible to withdraw temporarily, but also, appropriate liabilities can also play a role in tax relief for Firefly Group.
At noon, John · Mark was used for lunch at Cliff Peak Manor, and the other party was sent off in the afternoon. Eric took Aniston to Hearst castle in California St. Simon for the weekend.