The diving of the stock price has made Disney executives and shareholders very depressed.
Fortunately, all the company's profits are now positive and there will be no losses in a short period of time.
Therefore, a stock price dip like this is just something that happens suddenly and will not affect the company's long-term stock price.
And because there is no loss now, the company has the opportunity to slowly adjust to adapt to the impact brought by TV cartoons.
Even though there is still time to adjust, shareholders are very clear that the time left for them is already very limited.
The latest profit points must be found as soon as possible, otherwise it will be very unfavorable to the company.
No matter how great a company is, if its profitability becomes worse and worse, it will either go bankrupt and be eliminated or will be acquired by others.
What the capital market emphasizes is the survival of the fittest, and only the strong can be qualified to live under the survival of the fittest.
"Is this EA game company too arrogant? It actually thinks its market value is as high as 35 billion US dollars. Even if they have a super large order of 10 billion US dollars, the payment model of this order is not paid in one lump sum!
According to this logic, we can completely sign a super contract of one trillion US dollars with the issuer. Anyway, it’s just selling slowly. Is this point? As long as the payment is not paid in one lump sum, it has no substantial impact on the company’s accounts.
It was just forcing the outside world to have an illusion that I was very strong. This was a trick that Wall Street Capital had already played, but I didn’t expect that in the far east, I would still regard this trick as a golden rule.” At the board of directors, some board members were very dissatisfied.
After all, the valuation of 15 billion US dollars is already a sky-high price for them.
To this day, Atari's peak is just such a market value.
However, the stock market has plunged in the past two or three months, and the company's value is not even worth 10 billion US dollars.
"That's right, this kind of thing can only deceive those fools who know nothing! If Atari also signed a super big order of $10 billion with Motorola, it is estimated that Atari's market value will be restored to at most between $15 billion and $20 billion.
No matter what, it will not soar to 35 billion US dollars, let alone even imagine reaching 50 billion US dollars! People on Wall Street will not be fooled like this, and investors who buy and sell stocks are smarter than the other.
Sales contracts like this are in prison for fraud every year in North America. Lin Ping of EA Games should be glad that his game company was not listed in North America. Otherwise, their company is now under investigation, and even Lin Ping is likely to be in prison.
No matter from which perspective, this super order was just a financial fraud with Panasonic Group." I don’t know if it was because it was sour in grapes, or if it was really determined that this was a fake contract.
In short, the faces of these shareholders are ugly than the other.
"The other party's intention is very simple, it's just that we hope we will dispel the idea of ​​acquiring. Even if we want to acquire, he can make a big profit through this acquisition.
If we really acquire at a valuation of US$35 billion, we can actually completely buy Atari Games.
At least this company was born in North America and has a more affinity brand awareness. Moreover, its sales channels are more complete than EA Games.
It’s just that I suffered a little loss in the hardware configuration of the game console in a short period of time, and at most I spent tens of millions of dollars to rebuild a world-leading home game console.
Now compared with Atari Game Company, the real gap is the game content of the two companies. The hardware gap can be easily compensated or even surpassed. However, in terms of game content, it does require huge investment and time to catch up and overtake instantly.
Perhaps with one investment, several high-quality games will be produced continuously, so that they can instantly tie or even surpass EA game companies. However, it is also possible that with continuous investment, they will not be able to catch up with their opponents in the next one or two years.
Even if you have a good gaming console, you can't produce more popular content in the market, and it will be hard for anyone to accept this end." Disney understands better than other companies how important content innovation is.
The company itself gained market recognition through creativity and content, and one classic cartoon after another successfully made consumers remember the Disney brand. It also successfully made consumers spend a lot of US dollars to buy the surroundings of these anime.
There are so many anime in the world. If you want to break through the siege and become the most profitable work, you must have outstanding features.
Otherwise, it would be just a pile of garbage on the production line.
"If we are worried about content, we can find the best game development team. We can even imitate a game console manufacturer in Neon Country. The company's name is Nintendo. After the game consoles they produce can perfectly run any product of EA Games after changing the underlying data through a third party.
This is equivalent to EA Games helping this Nintendo company to make game content for free, although from the long-term risk perspective, this Nintendo is likely to sue and lose.
But even if you lose the case, it should be a few years later, and even if you have compensation, it will only cost tens of millions of dollars or hundreds of millions of dollars.
And over the past few years, I believe that this company called Nintendo has earned far more than these hundreds of millions of dollars.
This path is despicable and shameless. However, it can increase the company's revenue in a short period of time. Moreover, if we adopt this path, we don't need to go against EA Games. We can completely spend money to purchase their company's game authorization.
At that time, these games will be openly able to run on our game consoles.
This chapter is not finished yet, please click on the next page to continue reading the exciting content behind! So, my suggestion is that we will directly acquire Atari Company." Someone at the board meeting suggested that he simply abandon Lin Ping's EA Game Company and switch to the acquisition of Atari Game Company.
This proposal, coupled with Nintendo's routine, touched many people for a while.
After all, these shareholders all control important parts of the company, and whether the company can make money is what they care about.
As for whether it will go against EA Games, there are many ways to avoid it, such as obtaining game authorization.
And even if it is compensation, Disney has the convenience of home court, and I believe the final compensation will not be too huge.
Moreover, the verdict that was delayed for several years was probably solved by Disney's immediate crisis, and the money earned in these years was beyond everyone's imagination.
This proposal to change the acquisition target has received support from many people.
It is easier to acquire Atari.
After all, Atari is a complete listed company. Even if Atari's shareholders do not agree, Disney can complete the holding of the company in the stock market.
What's more, the shareholders who support Disney to enter the game industry this time also have the background of Wall Street Investment Bank.
And these investment banks have the stocks of Atari Games.
Unless it is just a game where the left hand is sold to the right hand, it is not difficult to acquire some from the stock market, but it is not difficult to achieve the company's holdings.
There is no need to completely reach 51% of the holdings, as long as they exceed the number of votes of the current largest shareholder.
But just as everyone actively expressed their agreement, some people clearly put forward opposition.
"Everyone seems to have forgotten that when we were about to enter the game industry, why did we choose EA Games, not Nintendo, nor Atari Games.
Everyone is suspected that EA Games Company, Panasonic Group and Motorola jointly engaged in financial fraud.
But I think this is EA Games’ major layout for the future gaming industry.
The other party is already developing a new game console, which has obviously been successfully developed and has entered the stocking stage. Such a large-scale procurement of accessories naturally requires large-scale production.
It is not difficult to find out from the size of the other party purchasing memory chips that this company is very ambitious about the future. Therefore, there are rumors in the market that EA game companies have positioned their valuation between 35 billion and 50 billion, which is not groundless.
None of us here are newcomers who have just entered the investment industry. The evaluation of any industry, even emerging industries that we do not understand, such as the game industry, is not allowed to be easily deceived.
If we want to give up the acquisition of EA Games, it means we are likely to fall into an abyss that will never be restored.
When a company is upgrading its industry, we not only ignore it, but instead spend all the chips in our hands to buy backward production capacity.
Atari Games is indeed engaged in new research and development, but their research and development scale is simply incomparable to this company.
What makes people feel even more unacceptable is that EA Games has completed R&D and entered the stage of large-scale production. As the former king of North America, they cannot come up with a decent response strategy.
Who can guarantee that the new console launched by Atari Games now will compete with this EA Games Company.
If we fail, we will not only make Atari Games go bankrupt in an instant. Even Disney will have to go bankrupt because of this acquisition." Some people think that this acquisition is a huge risk, knowing that the opponent has completed the research and development of new machines and is preparing for stocking on a large scale.
At this time, it will probably take 1 to 2 years to acquire a company that is already behind.
Although the R&D cycle is not too long, it takes a lot of time from R&D to production to the supporting products of the game.
Once errors occur at any stage, it will be a disaster for Disney.
After all, what the company wants to acquire is not a small company worth tens of millions of dollars. Even if the acquisition loses, it will only cost tens of millions of dollars.
But this time, you can only win but not lose.
Even if you want to acquire Atari, you may need to spend more than US$5 billion.
The board meeting fell into silence for a moment, after all, such warnings were very important.
Especially for this group of investors, everyone does not want to lose money or even lose all their money.
For them, even losing a penny is what they think they will be their own lives. Not to mention, once this investment fails, even Disney may be implicated and forced to go bankrupt.
At least for the time being, he is still making a profit. Once he goes bankrupt, the stocks he holds will be worthless.
After so many years of struggle and investment, it is likely to be wiped out overnight.
"Since you said that there are huge risks in our acquisition of Atari Games, but I can't afford to acquire EA Games. In this case, we might as well give up entering this industry and continue to build our animation and movies and playground facilities.
Perhaps maybe in a few years, our amusement park will usher in a boom in tourists. At that time, it will become a new growth point for our company's interests." The meeting was deadlocked, and some people suggested that it was better to do your original job honestly.
At least within familiar industries, neither the risks experienced nor the investment required will lead to the company going bankrupt overnight.
However, at this moment, a blocking sound suddenly came from outside the door.
Just after the noisy sound, the door of the conference room was suddenly opened and several Asian faces walked in.
"Sorry, I'm going to break into everyone's meeting. We are Nintendo's company representatives. After we learned that your company was interested in developing the game industry, we begged to meet and negotiate with your company overnight.
However, after contacting each other, the company did not even arrange a chance to meet. As a last resort, please forgive us for being rude.
This time we came to bring a cross-holding plan, where both of us hold 10% of each other's shares. At the same time, Nintendo asked Disney to authorize all intellectual property rights to us to make them into games.
As for the equity difference, we Nintendo will immediately make up for it in cash.
In this way, Disney has a sector in the game industry. Nintendo has also obtained good allies and intellectual property authorizations.
With Disney's support and Atari Co., Ltd.'s alliance, I believe that the profitability of our Nintendo will satisfy everyone here.
I also brought our financial statements in Neon Country.
Neon Country is the main market of EA game companies, and the fact that we can get enough profits from them has proved our ability and strength." While speaking, regardless of the rolling eyes of these foreigners at themselves, the negotiators of Neon Country Nintendo immediately sent a report written in English to everyone present.
As for how much moisture this statement is? It doesn’t matter. What’s important is whether this group of people are willing to invest in a new game company like Nintendo.
Chapter completed!