I’m in Hollywood Chapter 546: It ’s so crazy
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"Now that you have made up your mind, I certainly have to think about the longer term."
Chris smiled and said: "As for the acquisition, the information you have collected is very comprehensive. Although Nokia recently sold a good 1011 mobile phone, the dilemma of Nokia itself has not been resolved, plus Our capital advantage, there is not much problem in acquiring Nokia. What we want to discuss is just which acquisition method to use, Eric. If a wholly-owned acquisition, the premium will be high, and your original plan to acquire TV Network will also be hindered. Now, among North America four Major TV Networks, Fox TV Network is the fastest growing and certainly will not be sold. In addition to three Major TV Networks, the market value of any one of them is more than 10billion USD. If you use a share swap to buy, you will even lose the absolute controlling right of Firefly. "
Eric has always been thinking about these issues. Things like the Gulf War will certainly not happen again for the second time. When it shares broke out, it would have to wait a few years for the money to be circulated. The earlier the acquisition of TV Network, the better.
Eric vaguely remembers some data. In the original time and space, the order of the fusion of North America three Major TV Networks and Film Studio is ABC, CBS and NBC. In 1996, Disney completed the merger and acquisition of ABC. It was probably 19billion USD, but only three years later. In 1999, Viacom acquired CBS. However, it took 37billion USD, and the size of the two TV Network is not too different. This situation occurs mainly because of the rising share prices caused by the rapid economic growth of United States in the 1990s.
"Chris, do you think it is feasible to adopt the method of issuing corporate bonds to acquire TV Network based on the current performance of Firefly?"
Chris thought for a moment, Eric did not conceal many of his plans. If you follow the plan adopted by Eric and him, then Firefly can probably raise 5billion USD cash in the negotiation process of TV Network acquisition, but want to annex any of three Major TV Networks, for the sake of insurance. The capital scale is probably around 15billion USD.
15billion minus 5billion USD ...
Thinking of this, Chris suddenly widened his eyes and looked at Eric with an incredible look: "Issuing a corporate bond of 10billion USD, Eric, you are a lunatic."
Not to mention the debt financing of 10billion USD, until 1993. Even in the world, there are very few funds involved in corporate mergers and acquisitions that exceed 10billion USD, not to mention the issuance of 10 billion USD-scale corporate debt for the purpose of merger and acquisition. This can only be described as crazy.
Eric didn't care about Chris's appearance of being frightened. Tao: "Chris, let's think about it from another angle. We all know the current situation of Metro Goldwyn Mayer. Metro Goldwyn Mayer's current asset scale is around 10 to 1.5 billion USD, but this company's debt is as high as 1.7 billion USD. The debt ratio is more than 100%, but If the acquisition of TV Network is completed, the asset size of Firefly reaches 30 billion USD. There is absolutely no problem. Then when the existing liabilities are added, only 40% will be less. "
"But, Eric. 1 billion-level liabilities and 10 billion-level liabilities are no longer a simple numerical problem."
Eric knows this, of course, investors generally buy corporate bonds because the risk of bonds is relatively low, and they do n’t have to bear the risks of corporate performance fluctuations like stocks. Therefore, the greater the amount involved, the more cautious the investor will be and find the company debt of 10 billion USD at one time. Even a giant like GM Group hasn't done so far.
However, Eric is full of confidence. In the memory, the original process of Disney acquisition ABC TV Station. The 10 billion USD level of debt financing was successfully completed, not to mention that Firefly Pictures is now much stronger than Disney in parallel space and time: "Chris, perhaps for other companies, one-time issuance of 10 billion USD corporate bonds, this kind of funds The scale is indeed too large for Wall Street investors, but Firefly is different. Last year, the net profit of Firefly Pictures was close to 1 billion USD. This year, it is only the Box Office of the three films of the summer season "Jurassic Park", "A Bug's Life" and "Deep Impact" The net profit will reach 500 million USD, which is only part of the omnichannel operation of the film. Such profitability is enough to dispel the concerns of most investors. "
Chris was about to speak, car stopped suddenly, and Eric looked out the window, only to find that car had been parked in the hotel ’s underground parking lot.
Chris took all the information back into the suitcase and said, "Eric, I will pay attention to this matter. When I return to New York, I will take the time to do a feasibility assessment. Jorma Ollila may return to Finland in the afternoon, so we and him Only one lunch time, let ’s focus on Nokia first. "
Eric nodded, got off the bus, and arranged for Chris and his party to be close to noon. Eric and Chris on behalf of Firefly hosted Jorma Ollila in a nearby restaurant,
According to the negotiation between Eric and Chris, Firefly Investment will issue an acquisition offer to Nokia within three days. Before the completion of the acquisition, their positions with Jorma Ollila will be temporarily opposed, so the conversation between the two parties at this luncheon did not There are too many substantive issues involved. Eric just talked to Jorma Ollila why he was interested in Nokia. Jorma Ollila talked about the prospects of digital mobile phones and global mobile communication network (GSM). Full of joy.
Jorma Ollila returned to Finland in the afternoon to conduct preliminary communication with the shareholders of Nokia Group ’s current major banks.
Eric and Chris rented the hotel ’s meeting room and began to discuss the specific acquisition plan.
Although the Nokia Group has successively divested or sold the papermaking, rubber and television businesses that have suffered losses in recent years, as a once diversified Finnish giant enterprise, in addition to the mobile communications equipment sector, the Nokia Group currently also owns energy, For other businesses such as pharmaceuticals and cables, this part of the asset has not been divested and sold because it has remained profitable, and it accounts for about one-third of the group's total assets.
Although Europe mobile communication companies in some countries have already started to operate the GSM network. As a result, the sales volume of Nokia's first GSM mobile phone 1011 has been increased, but the GSM network has not yet been fully popularized, and coupled with the huge investment in R & D in the early stage, although the GSM mobile phone has a broad prospect, the Nokia mobile phone department is still in a loss state. Funds have also been fed back by other profit-making departments. Except for the Eric traversal, no one can predict the explosive growth potential of the Prophet GSM mobile phone in the next few years. Without seeing actual profits, shareholders of the Nokia Group will not tolerate this The situation has continued, which is why Jorma Ollila urgently needs external investment.
Anyone knows. Energy and pharmaceuticals are full of profiteering industries, but Eric is not at all interested. After all, in terms of scale, these businesses of Nokia are not even small shrimp in front of those giants.
After a detailed discussion. Eric ultimately decided to acquire Nokia ’s mobile communications department as its top priority. This department not only includes the mobile phone business, but also the communications equipment business. It mainly produces base station equipment for the GSM network. As the earliest country to use the GSM network, Nokia has Technology is much ahead of other communication equipment manufacturers.
The next afternoon, Eric and Chris walked out of the meeting room, and Chris still held a stack of documents. Said: "In order to develop GSM mobile phones, the Nokia Group has been losing money in the past two years, which means that Nokia has invested all the profits generated by those profitable departments into the development of GSM mobile phones. Now that the results have been released, I think Nokia shareholders only need to have a little vision , Will not package and sell the mobile communication department to us. "
"Who knows, maybe Nokia shareholders will rush to cash out," Eric said: "But in any case, we must at least get an absolute controlling stake in Nokia."
This is the bottom line of the acquisition discussed by the team over the past two days. Chris also nodded and said, "So. I will issue an official tender offer to Nokia tomorrow morning, and more. Regarding the name of the offshore investment fund just discussed, you can call it a name."
Because the tax rates of different countries are different, in the process of cross-border acquisition, the circulation of large amounts of funds will always involve tax issues. The usual solution is to inject funds into an offshore company and then conduct investment operations through the offshore company. At the same time, this offshore investment can also play a role in hiding assets. Although it is only 1993, because of the convenience of offshore investment, the capital scale of each offshore capital center of global has exceeded 10,000 billion USD.
Eric remembered the voice of the two little guys when talking to New York yesterday, and quickly said: "Call it Hawaii fund."
Chris nodded and smiled: "Do you prefer your daughter?"
"Yeah, haven't you heard that kind of argument, the son is the enemy of father previous life, and the daughter is the lover of father previous life."
"It seems that there is such a statement, and I think it is quite scientific. For a long time, my relationship with Papa is not very good, but Emily has been very harmonious with her father. Maybe you do n’t know, I have had several disputes with Emily ’s father, and almost every time she stood by her Papa. ”Chris said with a smile on the corner of her mouth, and said again:“ Then I will let the person register this name. ”
Eric Hum, the meeting room is at the bottom of the hotel, the two came to the end of the corridor, the rest of the team went directly to the restaurant for dinner, but Eric had to go upstairs to change clothes, Chris also has some things to go to room one On the way, when waiting for the elevator, Chris asked curiously: "Which company's date is tonight?"
In addition to Nokia, in order to cooperate with the negotiation of "GATT (General Agreement on Tariffs and Trade)", Eric must also take into consideration the matter of discussing cooperation with the film forces of Europe.
"People on the side of Crédit Lyonnais S.A., the largest shareholder of Metro Goldwyn Mayer, both of the movies released during the summer season Metro Goldwyn Mayer were in huge losses. Crédit Lyonnais was auctioned last year for Metro Goldwyn Mayer, and now I want to get rid of Metro Goldwyn Mayer, but I ’m selling Previously, they hoped that the performance of Metro Goldwyn Mayer will recover, so that it is easier to find a next home. "
The elevator door opened, Chris and Eric turned sideways, let the guests in the elevator leave, and then walked in. Chris pressed the button, and then the topic just asked: "Don't you ever think about buying Metro Goldwyn Mayer?"
"Of course I think, I am very impressed with the huge library of Metro Goldwyn Mayer. If I can win the Metro Goldwyn Mayer library, I will not only be able to make full use of Firefly's current omnichannel operating resource advantages, but also for the future development of TV Network. There are also great benefits. After all, TV Network still needs a lot of high-quality content. But apart from the film library, Metro Goldwyn Mayer has nothing to make me Tempted. "
In that change in 1986, Ted Turner only left the library before Metro Goldwyn Mayer1948, which is why Time Warner ’s Turner broadcaster began to play Metro Goldwyn Mayer ’s old movies in recent years, but Metro Goldwyn Mayer still has more than 4,000. The film's copyright and the larger number of TV series episodes copyright, the library scale is second only to Time Warner. But because of Metro Goldwyn Mayer's consecutive years of losses, this once brilliant film giants could not take advantage of the scale of the huge film library, and could only continue to struggle in the vicious circle of continued borrowing and continuous losses.
Chris said: "Is there still 007copyright?"
“At the current debt scale of Metro Goldwyn Mayer, according to the annual interest rate of 5%, the annual debt interest to be paid is as high as 80 million. Metro Goldwyn Mayer launches an 007 on average for two years, and the profit generated is not enough to pay interest on corporate bonds, so Metro Goldwyn Mayer has been losing money all these years, and has more and more debts. "Eric said casually about Metro Goldwyn Mayer. Suddenly, he could not help kicking the elevator wall with his toes, and said with some excitement:" I suddenly I thought of a good idea. "
Chris looked over suspiciously: "Huh?"
"Compared to the Big Mac Crédit Lyonnais S.A., all Film Studios of Europe are small fish and shrimp. If Crédit Lyonnais is used to match them, and then the Metro Goldwyn Mayer" shell "is used as a carrier, Firefly can be used from this one. Get out of the matter, no longer need to interrupt the established operating trajectory. "
Chris also understands what Firefly has to do to cooperate with the negotiation of "GATT (General Agreement on Tariffs and Trade)". After listening to Eric, he immediately understood what he meant. The original Firefly's many production plans for next year and even the following year have been determined. Cooperating with the negotiations of GATT (General Agreement on Tariffs and Trade), Firefly needs to devote some resources to share with Europe movie forces, then the established development plan of Firefly must make corresponding adjustments, but if Firefly indirectly cooperates with Europe Film Studio through Metro Goldwyn Mayer, this department does not have to go too far Adjustment.
However, Chris is not too optimistic about Eric: "You just said that the annual profit of Metro Goldwyn Mayer may not even be the interest of corporate debt. I think those Europe Film Studio will not know this, you think they Will you agree? "
"Then invite all parties to sit down and negotiate. Metro Goldwyn Mayer is in this situation. I think as long as it can lead this company out of trouble, those creditors will also agree to temporarily give up some benefits, otherwise once this company goes bankrupt, Metro Goldwyn Mayer ’s The assets are not enough to repay its current liabilities, and the biggest problem of Metro Goldwyn Mayer is that there is not enough funds to start more movie projects. Creditors have demand, Europe Film Studio has funds, and Firefly can provide quality movie projects. These conditions add up , Can almost revive this lifeless Film Studio, do you think they will be excited? "
Chris nodded, but said: "Did you just say that you are very excited about the Metro Goldwyn Mayer library? If Metro Goldwyn Mayer is really like you said, you will want to acquire this Film Studio in the future, it will cost more Now. "(To be continued)