MTL - Reborn Capital Empire-v2 Chapter 693 scramble for MGM

Chapter six hundred and ninety-third fight for MGM

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"The question is how high an offer can we make?"

Conscart's remarks on behalf of Carl Corey made almost everyone present frown.

Regarding MGM's assets, revenue, net profit, return on equity and other data, they have studied countless times before they decided to launch the leveraged buyout plan.

Now, in MGM's asset system, the most valuable is that it has a library of 4,100 films and 10,600 TV episodes, as well as the copyright of the most dazzling jewel in the crown, "007" series, which has already shot 22 episodes. The film series, which has now created a box office of 12.2 billion US dollars, is a big cake that all film companies and capital are envious of.

As for facilities such as studios and locations, they were sold out during MGM's downturn.

As for its 1,440-person production, distribution, logistics and other departments, the revenue contributed by this year is 160 million US dollars, mostly through the production of some small-budget films and the distribution of other companies' films. While this revenue is decent, it's not enough to keep the company afloat, but not enough to pay off the principal and interest on MGM's $1.8 billion in debt.

"Based on MGM's assets and revenue, $13 per share is the highest offer that Providence can accept!" Dan Bailey said, after his eyes quickly swept over the crowd, he said slowly, "Moreover, If you really want to talk about the capital, who can compare to Bruce Guo who owns the Phoenix Bank!"

The frowns of the crowd deepened. People like Gary Barber, who are eager to get huge benefits from this leveraged buyout and retire with the trend, look even more ugly. But the MGM folks haven't given up hope entirely.

"Mr. Corey, MGM owns the largest film library in Hollywood and the highest-grossing film series, 007, and it's totally worth the high price Comscart has to pay!" Gary Barber said.

Hearing his words, the eyes of MGM's participants in the negotiation lit up, and they all focused on Carl Corey, Chief Operating Officer of Conscart.

Howard Stringer, Dan Bailey and others also looked over subconsciously.

Although the acquisition of MGM was led by Sony, the most important part of this consortium is Comscat. Everyone still remembers the shocking acquisition of Walt Disney proposed by Comscart in February this year with an actual investment of US$54.2 billion and a debt of US$11.9 billion for a total price of US$66 billion. Although it was rejected by Disney's board of directors on the grounds that the price was too low, Conscart's determination to form a super company that spanned "transmission + content" was known by the whole Hollywood and the American media industry.

More importantly, Comscat's 21.5 million cable TV subscribers, 5.3 million broadband subscribers, 1.3 million telephone subscribers, 2003 total revenue of $18.3 billion, and a transcript of $6.4 billion in net profit, let people know that this company is the second largest company in the United States. Big telecommunications companies are not bad money. If anyone here can compete with the wealthy and powerful Bruce Guo for MGM, there is no second one except Conscart.

Carl Corey is not a fool. After noticing the eyes of everyone, he understands what they are thinking. But while Comscart intends to form a major company that spans transmission and content, MGM isn't worth the high price they're paying. And according to the company's assessment, the real value of MGM is about 3.5 billion to 4 billion US dollars, and the quotation of 13 US dollars per share is equal to 3.055 billion US dollars. Add in MGM's $1.8 billion in debt. The total price of the entire acquisition is $4.855 billion.

In fact, if this offer far exceeds the actual value of MGM, if they simply let Conscart come out, they will definitely not be willing. But it's different if you pull in Providence Equity Partners, Texas Pacific Capital Fund, DLJ Commodity Banking Partners, Foursquare and Sony Pictures. They only need to pay 20% of the funds, which is 600 million US dollars, to get the right to use MGM's library of 4,100 films and 10,600 TV series, providing rich content for their own pay TV, Internet and other channels , thereby deepening customer stickiness and attracting more new customers.

Considering this aspect, although $600 million is much higher than the actual value of MGM, the implied economic benefits are enough to make up for the losses and get higher returns. In addition, if Sony really revitalizes MGM, the dying movie giant, the 20% stake can still make them a fortune.

It is for this reason that even if he knew that MGM's price was inflated, he did not immediately deny Gary Barber's words.

"Everyone, Conscart is only a part of the consortium. If we are willing to pay a high price, then what about you?" After swiping across the faces of everyone, his eyes were fixed on Howard Stringer, "Sony is this time. Advocates of takeovers. Mr. Stringer, if you want to raise the takeover offer, should you, Sony, also show your sincerity?"

After a quick thought in his heart, Howard Stringer nodded in front of everyone's eyes.

"Of course! The annual revenue of MGM's film library is close to 600 million US dollars. The copyright value of the "007" series is amazing. It is worth a higher price from Sony!"

Although whether to buy MGM at a higher price, it still needs a meeting of the company's board of directors to vote before there is a result. But as the organizer of the consortium, he has to keep the group stable, at least until Sony makes a real decision.

Representatives of Providence Equity Partnership, Texas Pacific Capital Fund, DLJ Commodity Banking Partnership, and Foursquare Group exchanged glances. Compared to Sony and Konstadt who had other plans. They are simply investments with the aim of getting a good return. If they continue to raise the offer, there is no doubt that the risk of the MGM project will also increase rapidly, so their expressions are hesitant.

"We need to go back to the board meeting before we can give a formal answer!"

Dan Bailey pondered for a moment and then said.

"The same goes for the Texas Pacific Fund!"

Representatives of DLJ Commodity Bank Partnership and Sifang Group nodded in agreement.

At this point in the meeting, everyone understands that it is impossible to reach a unified agreement today. Although Gary Barber and MGM representatives were not satisfied. But in this meeting they were just underdogs, and in MGM's distressed operating environment, they didn't have much to do with Sony Pictures, Comscart, Providence Equity Partners, Texas Pacific Capital Fund, DLJ Commodities The bargaining costs of large institutions such as bank partnerships and the Sifang Group.

After the meeting was announced, everyone left. Back in the car, Howard Stringer sat in the back seat of his Lincoln stretch sedan for a moment and took his phone out of his pocket.

"Bruce, shall we meet tonight?"

"Howard, I've been waiting for your call."

"Seven o'clock tonight, Shamrock Country Club, I think you should know there."

"certainly!"

Guo Shouyun replied affirmatively.

Society is a big dye vat in which there are distinct classes, and each class has its own social circle. And country clubs all over the United States are where the upper class often meets.

Shamrock Country Club is one of the top private clubs in Los Angeles. It gathers Hollywood's biggest names, as well as business, legal and sports elites. It is the best place for people who are interested in furthering their careers to expand their contacts.

"See you tonight!"

"See you tonight!"

After hanging up the phone, Guo Shouyun smiled lightly. This phone call, combined with the information he collected, allowed him to roughly guess the content of Howard Stringer's meeting this evening.

"boom…!"

The amazing movement made Guo Shouyun subconsciously look up at the basketball court not far away. With the violent shaking of the basketball hoop, a huge figure was releasing his hands holding the basket and his feet fell on the floor. Next to him are some annoyed and fearful teammates.

"Clap!"

Larry Brown clapped lightly and looked at Yao Ming who was returning to defense with admiration, "He is the only super center I have seen in the past years who can rival Olajuwon in the interior! With Yao's presence, hurry up! The fleet will not have to worry about its internal problems for at least ten years.”

"Compared to competition, Yao's economic value is more worthy of our joy. Since he joined the team and became the main force, the Clippers' advertising revenue has tripled." Compared with the coach who pays more attention to game performance, as a team The manager's Elgin Baylor is clearly more focused on the team's revenue.

Noticing the admiration in the eyes of the two looking at him, Guo Shouyun was also secretly proud. Yao Ming is China's best sports star who has combined competitive and commercial value for so many years. Although he pays more attention to football, he has also heard many classmates and colleagues around him share the situation when they watched the Rockets play.

One of the most impressive is that when I was just working, a buddy of a team said that they had a 20-minute break in the morning in high school, and each class had a 10-minute break. It takes two minutes to run from the classroom to the dining room, and four minutes back and forth. Just to be able to watch the six-minute ball, on every Rocket game that is broadcast, hundreds of people rush to the dining hall from recess. Rockets into a simple ball will be applauded by the audience.

Roommates and girls in the class who never watch football can recite the names of Alston and Scola backwards.

The discussion of "The Rockets point guard is too bad, when will Frederick come back" became an early Nikkei topic. Weaver, Bunch Wells, Novak are all hot spots at a certain time. I can't worry if I don't lead by 20 points in the fourth quarter.

Outside the school, all restaurants that can't watch Yangwu have bad reviews. On weekends, in order to watch the whole game, the restaurant waited at the door before it opened. And many students who never go to Internet cafes simply broke their precepts and went to Internet cafes to watch.

All kinds of crazy behaviors made Yao Ming and the Rockets the most profound memories of their adolescence.

It is this madness that makes the economic value of the Rockets and Yao Ming soar. In ten years, the value of the Rockets has increased tenfold. That doesn't even count what Alexander takes from the Rockets' earnings for private investment in real estate and wine estates.

"Coach Brown, congratulations. This year the team can defend the title, you should take the lead." Guo Shouyun smiled.

Last year, after defeating the Spurs led by Duncan in the semifinals, the Clippers swept the Eastern Nets 4-1 and won the first NBA championship in team history.

This year, also in the semifinals, they defeated the Lakers, who had a luxurious lineup but had internal discord. The finals swept the Pistons without Billups and won their second NBA championship.

Consecutive success has also made the Clippers the top championship team in the entire NBA.

"The most important thing is that the players bought by the boss are amazing, otherwise I won't be able to lead them to consecutive championships!"

Guo Shouyun nodded with a smile, "Is there anything else that needs to be added about the team's lineup?"

"The main lineup of the team has been running in for more than three years~www.novelbuddy.com~ There is no need to make too many changes. It is just a matter of strengthening in individual positions."

"That's good! I believe the Clippers will be able to create a strong dynasty under the leadership of Coach Brown."

"I'll do my best!" Larry Brown said confidently.

"By the way, our arena and training base in San Jose will be completed and delivered by the middle of next year. So this year is our last season in Los Angeles, in order to leave a deep impression on everyone. In order to give new The use of the venue is the foundation. I think three consecutive championships is a good idea!" Guo Shouyun nodded and said.

"We think so too!"

Larry Brown and Elgin Baylor looked at each other and laughed at the same time.

After patting the arms of the two of them, "Okay, you heard it just now. I still have a party at night, so I will leave first."

"Boss, bye!"

"goodbye!"