"Viacom is acquiring New York entertainment company Paramount for more than $10 billion in cash and stock, approximately $80.61 per share. Paramount's assets include Paramount Pictures, Simon & Schuster Publishing, McGrady
Johnson Plaza Garden, the New York Rangers and the Knicks.
It is reported that although accountants are still counting the votes, at 9 o'clock last night, several anonymous shareholders have revealed to this newspaper that Viacom's acquisition of 50.1% of the shares is a foregone conclusion. We cannot find Viacom's chairman Ray
Shi Dong confirmed the news
Barry Diller, chairman of QVC, another company participating in the M&A competition, is reported to have flown to New York last night to make a final push, but he said he would not increase his bid."
Both the New York Times and the Los Angeles Times reported the latest results of the Paramount acquisition battle in prominent pages.
What Ronald didn't know was that QVC's Barry Diller's bid was restricted by the terms of the contract in which his company was acquired by several telecommunications companies such as BellSouth. Therefore, he had no choice but to do anything about this acquisition.
New York is just making its last stand.
But Redstone also had control over these matters. After he signed a contract for about 50% of Paramount shareholders to transfer their shares to him, he also gave those shareholders who originally invested in QVC three days to sell to him.
By the time the market opens on Monday, he will probably have more than 60% control, and Barry Diller has been completely eliminated.
"Ronald, when Mr. Redstone comes back from New York, I can try to ask him to take time to meet with us. He has a lot of expectations for Paramount Pictures. I think you and Tom Cruise will be
Our two biggest box office guarantees, Forrest Gump also happened to be released after the acquisition, so we can invite him to watch it once."
Shirley Lansing called over the weekend. Redstone was going to New York to formally exercise his rights as a winner and confirm all shares. Then he also had to meet his former friend Barry Diller...
If the winner of the war does not enjoy the face-to-face admission and congratulations of the loser, it means that the war has not been truly won.
"No, I'm on a plane flying to New York. I'm also going to New York on business..."
"It just so happens that Mr. Redstone will go to the restaurant to celebrate his wife's birthday. If you are free, you can arrange an opportunity to meet." Shirley Lansing especially wanted to get Paramount Communications from Redstone.
When the time comes, catch the flattery as early as possible.
"Haha, Shirley, I appreciate your sense of humor. I also have friends I want to have dinner with. Besides, Mr. Redstone may not want to see me..."
"Why?"
Shirley Lansing listened to the busy tone on the phone and suddenly felt an inexplicable feeling in her heart. It seemed that she had also experienced the pressure of facing a superior person when communicating with Redstone.
…
"What was the result?"
As soon as Ronald arrived at the New York airport in the morning, he took a car directly to Bannon's war room. The traders there had already closed all the contracts and left with a generous check. They would be sent to Hawaii, Tokyo,
Take a long vacation to Europe and other places, hide out from the limelight for a while, and come back after things calm down.
Bannon said nothing. He wrote a number of 300 on the whiteboard in his office, followed by a comma, and then added six zeros after the comma.
"Great, what do you want to use it for?"
Ronald's capital of 100 million needed to be kept out of the public eye, so after decomposition here, he purchased a lot of short contracts through different accounts. After taking profits, he continued to short.
Thanks to Viacom's two loss-making transactions of acquiring Blockbuster and then Paramount with a market value of billions, its stock price has dropped from US$59 before the acquisition was announced to US$29.
Especially in the last round of bidding, the price fell quickly and sharply. Bannon's traders also made the most profits at this stage, and finally received a net profit of approximately US$300 million.
Bannon himself also invested a lot of his own money in it, raising his personal assets to nine figures in one fell swoop.
"I can take a good rest for a while, enjoy life, maybe invest in some real estate, or buy a team or something..."
"Then you still need to work hard. Today's professional teams are not cheap."
"Indeed, maybe we can work together again and be bosses together..."
Ronald made a joke. The two opened a bottle of Romanee-Conti worth five thousand dollars and drank to the rising sun.
"To be honest, I still want to work in the film and television industry, especially television. Our current television mainly focuses on serving audiences in big cities. In many small towns in central and southern China, there is no television that meets their tastes..."
Bannon drank some and lit a large cigar, feeling a sense of satisfaction.
Ronald didn't speak, he just watched the sunlight shining into the office, seeming to light up everything.
Bannon earns so much here, but I wonder how much Paulson can earn...
"With a net income of 400 million, plus deducting taxes and other expenses, where do you plan to put this money?"
Paulson also personally attended the meeting with Ronald. Goldman Sachs' level is much higher. They use a large number of put option contracts and can mobilize more short-term leverage. Although they entered the game later than Bannon,
But it is much more profitable than over there.
"What is your suggestion?" Ronald also brought a team of lawyers and accountants. After their estimation, in this large-scale short-selling operation, Goldman Sachs's Global Asset Department used trading commissions, options contracts, and margin interest.
Wait, you can easily earn 80 million.
This still does not estimate the profits that Goldman Sachs will make after seeing the fat. Looking at the people in the global marketing department who are smiling happily, it is probably a lot. Otherwise, Paulson is unlikely to come to attend in person again.
This chapter is not over yet, please click on the next page to continue reading the exciting content! "If you want to put this money overseas, then we recommend investing in some assets in Japan and Britain. The situation of pounds and yen assets is stable
.There are also some tax avoidance benefits, I guess..."
"I want to transfer the money back to the country, and I need money that can be fully used for domestic investment..." Ronald said that I still need to transfer the bulk of the money back to the country, and pay all the taxes that should be paid, and do not engage in radical tax avoidance actions.
"In that case, you will need to pay a maximum capital income tax of 39.6%. If you continue to invest in stocks for more than one year, you can get a preferential long-term capital gains tax rate of 28%, and you may have to pay a tax of more than 100 million at most.
However, the 1031 similar asset exchange provisions were just passed this year. If you are willing to buy real estate and hold it for a long time, you can enjoy almost unlimited deferred tax benefits until you sell the asset."
Ronald discussed with the lawyer and accountant for a while, and it was roughly consistent with what they gave. Anyway, the money must be used in America. If you buy assets, just buy assets. After all, in America, only those who pay taxes will get the government benefits.
People who try their best to avoid taxes will also be watched by the government...
Only by paying taxes can you have the right to representation. This is the foundation of America's founding, and it remains true to this day. Moreover, if state taxes are paid in New York State or California, you can also get the protection of local politicians.
Of course, those tax avoidance and deferral clauses that are 100% legal must also be used. I just don’t know what suitable assets are for sale now? With a total of 700 million assets, there are not many opportunities to spend them all at once. Is it really true?
Like Bannon said, buy a professional sports team?
"Are you considering buying any assets?"
Paulson kept smiling throughout the whole process. Ronald, a big client, was rich and decisive, and trusted him and the people at Goldman Sachs. Most importantly, he was also very lucky. The most important secret of Goldman Sachs' success
, is to find those lucky people and then stand with them.
"Yes, do you have any suggestions?"
"Yes, isn't the person who needs to sell assets most to obtain cash right now right in front of you?"
"Redstone?"
…
"Mr. Redstone, Mr. Redstone, what do you think of winning the Paramount acquisition battle? Do you have any comments?"
At the famous "21" restaurant in Manhattan, New York, Redstone had dinner with his colleagues and his wife. When he went out, he was stopped by reporters. All kinds of questions were thrown at Redstone one after another like a barrage of bullets.
"Don't say that, I haven't won yet. There is no winner until Paramount certifies the winner."
"Mr. Lei Shidong, if you win the acquisition as you wish, how will you view the company's development strategy?"
Redstone just smiled, and his silence allowed reporters to continue chasing him until he got into a car and left.
"Call all Paramount executives and I want to interview them one by one. Anyone who does not conform to my strategy will have no place in Paramount Communications in the future..."
After getting in the car, Redstone's face changed as expected. He suffered heavy losses for this acquisition.
The value of his personal shares in Viacom alone fell from $6.6 billion before last September's bidding war to $2.85 billion as Viacom's stock plummeted.
After the merger, Paramount-Viacom will pay US$600 million in dividends and interest per year. However, the cash flow calculated by accountants is only US$7.7 billion per year.
No matter what the outside world says about him, after this acquisition, Viacom and Redstone are on the verge of bankruptcy. There is an urgent need to sell any valuable assets of the group to make up for the shortfall in cash on the books.
Any business that can bring cash flow, such as Paramount Productions and the TV stations affiliated with the group, must aggregate the advertising revenue generated from blockbuster movies and TV series with high ratings to the group head office.
Because when acquiring Blockbuster, the various terms were not very good despite the embarrassment. Redstone also had to fight with Hu Yichenga, the original owner of Blockbuster, to try his best to compress his power in the board of directors, and then
Really eat Blockbuster in its entirety.
Based on this calculation, the merger of the three companies may be approved by the SEC and regulatory agencies at about the same time. By then, Blockbuster will be like a cow, continuously contributing cash flow to Viacom.
Many of Paramount's assets were quickly sold to fill short-term losses.
Redstone is very confident. When he acquired Viacom, the acquisition amount was 3.2 billion, and he was saddled with 2.8 billion in debt. Over the past seven years, he has used various means to not only get Viacom out of debt, but
And no core assets have been sold.
The current total debt is only 10.2 billion, which is much smaller than the potential value of New Viacom of 30 billion. As long as Paramount’s various assets are sold quickly, the dangerous moments in the past few years will pass.
.
"Shirley, we want to talk about Paramount Pictures' box office revenue this year. How much do you estimate it will earn?"
On Monday, after Redstone was officially confirmed by Paramount's board of directors and became the new owner of the old media company, he immediately called each business department to confirm which ones should be retained and which ones should be sold to pay back the money.
, which people should be retained and which should be let go.
Martin Davis, the former chairman of Paramount Media, was dissatisfied with Redstone's renege on not giving him a director's seat, and wanted to take the money and leave. His stocks and options, plus a golden parachute.
The contracts and profits took away hundreds of millions of dollars from New Viacom's accounts.
Redstone just feels as if he has become younger again. He seems to have regained the energy he had when he acquired Viacom. These small problems have only a positive stimulating effect on him.
"This year we have Forrest Gump directed by Ronald Lee, and we have three film deals with Tom Cruise's production company..."
This chapter is not over, please click on the next page to continue reading! "Very good, when I return to Los Angeles, you have to give me a detailed analysis of income and profit in the next three years. By the way, you said it was Ronald Lee
The director’s movie? I want to see it in person. You inform him to come..."
Redstone smiled and hung up the phone. To deal with such subordinates, you should keep them confused and not let them see through your thoughts. There is also a Ronald movie. I didn't expect this little guy to have the opportunity to interact with you so soon.
When he meets me again, he mentions that he did not sell Blockbuster shares to him at that time. Sure enough, he regrets it as he predicted, right?
Redstone will not let go of this situation. In front of his subordinates, maintaining such an image of being a god of knowledge will make them feel scared. It is his character to retaliate when he takes revenge. This will definitely be reflected in Shirley Lan
Xin and others left a deep impression.
After making a round of phone calls with his subordinates and enjoying their trembling looks, Lei Shidong was in a good mood and went out to be interviewed by reporters from several major newspapers.
"Mr. Lei Shidong, what are your thoughts on the success of the acquisition?"
"Just like I did when I acquired Viacom seven years ago, let me make these companies what they should be."
"Mr. Redstone, why would you engage in a fight that would be so costly to win at a point in your career when most executives may be planning to retire comfortably?"
"I want to do this, it adds length to my life. I just love what I'm doing. Do you think I'm old? I'm telling you, yesterday I ran two and a half miles on the treadmill and
Played tennis for an hour..."
"Mr. Redstone, Paramount Communications, Blockbuster, and Viacom's many assets, do you have any plans to sell them?"
"I want to better integrate the resources of several companies. For core assets, we will not only not sell them, but also invest more and better manage them. Some marginal assets are not in our future blueprint, of course they will
Consider selling."
"Well... Paramount has a lot of assets that are not in the blueprint of the old man Redstone..."
By the next morning, Ronald had just come back from a charity event for veterans in New York when he saw Redstone's interview in the newspaper. On the other side of his desk was a copy of Paramount Communications provided by Goldman Sachs for sale.
Assets, the long list was dragged to the edge of the table, and then hung down.
"These are all very good assets..." DDH CEO Ed Bastian was drooling next to him. There was a long list of names of local TV stations and radio stations...
"Look for someone to look at it and give me a list that you think is good. Paramount Supermarket has opened." Ronald said with a smile, and then his eyes stayed on the top few names on the asset list...