"Hi, Ronald. Please sit down..." Redstone looked confident. While he was speaking, a woman gave him a hot towel. I don't know which of his "confidantes" it was.
?
This old man is a very "traditional" rich second generation in this regard. He has a wife who comes from a famous family, but both parties play their own roles.
Although it seems that Redstone is living a very good life, in fact, Redstone has been in a lot of troubles recently. After acquiring Paramount Group, his company encountered great cash flow difficulties, which separated Paramount and its original maintenance.
Summing up the assets under Yakum, we can sell those that can be sold and rent those that can be rented. It can be said that it has just passed the quarterly report mark for two quarters.
However, in September, another of his acquisitions, the acquisition of Blockbuster, was finally completed, but it caused him serious problems.
The original boss of Blockbuster had multiple board seats in the new company, and he also pretended to interfere in the company's decision-making, which made Redstone spend some money to remove him from Viacom's decision-making core.
The price is that after Redstone swallows up two companies, the annual report at the end of the year will be quite ugly, and the stock price may fall further by then.
"Sam..."
Ronald looked at the old man's pretense and felt amused. He knew the situation of his Viacom very well.
After the stocks he bought at that time were acquired by him, he also held the company's shares equivalent to 100 million U.S. dollars, which he later used as protection for short selling. Although he made a lot of money from short selling, he never found an opportunity to sell these stocks.
.
He himself has a team of analysts who focus on Viacom's stock price to look for opportunities to sell. However, for such a long time, he has not found an opportunity to sell, and the overall value has dropped a bit. It is really a frustrating company.
So he also called him by his first name. Anyway, we are all the bosses of the same listed media company, and Ronald holds less core assets at most. Besides, the media industry is undergoing profound and rapid changes. Whose assets will be in a few years?
It's not necessarily a lot.
"Hey……"
Lei Shidong knew from the title that his falsehood might be seen through by the other party, but he still wanted to give it a try. Years of experience told him that before talking about serious business, it was better to deceive him. Maybe the other party would fall for it?
"I invited you here because I know some of your recent actions. I am satisfied after eating Blockbuster. There will be no more mergers and acquisitions in the near future, including some TV station media resources and some other movies acquired by Paramount over the years.
The film libraries of studios, such as Republic Pictures..."
"How much do you want to sell it for?"
Ronald has actually done research on various assets owned by Viacom. The two professional teams and Madison Square Garden he purchased are considered high-quality assets. In addition, maybe Republic Pictures
The film library is another valuable asset.
It contains many Western films starring John Wayne (mainly his works after leaving John Ford, including those directed by himself...), and some of them were released in the same period as "Mission Impossible", and the ratings were very high.
Gao, the spy film "The Confused Detective" has a lot of loyal audiences.
Such a film library can generate income for a long time if you hold it in your hands. For example, TV broadcasts, on-demand hotels, and income from video tapes are good things that can be passed on to future generations. I would imagine that if Viacom's current cash flow is not
Even if it's tight, Redstone won't sell it.
"It's cheaper for you..." Redstone quoted a sky-high price, which had nothing to do with the word "cheap". It was obvious that Ronald was quoted as a novice or layman in business.
"Sam, it's you who want to sell something today, not me who wants to buy it... Look, I'm also very busy, so be it..." As soon as Ronald heard the price, he immediately got up and started talking to businessmen like Redstone.
If you want to do something, you have to get the upper hand, and if you are interested, you have to show that you are not interested.
"Please don't have such emotions, Ronald. You also know that I need some good business news now, otherwise you will not be able to get these assets..." Redstone was rare and patient, and asked Luo
Nader explained that TV stations and film libraries are monopoly assets.
The National Communications Association has a monopoly on wireless and cable television photography, which are non-renewable resources. The copyright library of old movies can also be used for remakes in addition to the functions Ronald imagined. Paramount can attract Tom
·When a big-name star like Cruise joins a new film, he also relies on the brand effect of "Mission Impossible" in the hearts of the audience. Otherwise, there are a lot of scripts for similar spy action movies in every studio's warehouse.
Where's the turn to get Paramount.
"So, you need some good news?" Ronald heard this. It seems that this old man is quite honest with people on the same level as him in the circle. He also relies on his strength and confidence. Anyway, this
Ronald couldn't take advantage of this kind of news. Even if he sold all his future earnings, he might not be able to buy Viacom.
As for short selling on the stock price, Viacom's stock price has been hovering on the floor for a long time now. If it breaks up and sells various parts of its business, it can almost recover the market value, and there is no room for short selling.
"Yes, what are your suggestions?" Redstone did not reject Ronald's new ideas.
"I'm here...no, I'm here with a few of my friends...Hi, I have some Viacom stocks. Do you want to buy them back? I'll give you a suitable price..."
The reason why Ronald agreed to come to see Redstone was mainly because he wanted to sell this bad stock. Wall Street analysts can use accounting to calculate the various assets owned by Viacom and conclude that this stock will no longer be available.
Falling conclusion.
But as an insider, Ronald knows very well that the so-called assets of Hollywood companies have a wide range of fluctuations...
This chapter is not finished yet, please click on the next page to continue reading the exciting content! After all, this is probably the only place where even Wall Street money can be defrauded. The final rate of return for the money invested in movies is not very good. No matter it is
Invest in a blockbuster movie like Batman, or invest in a winning director like Spielberg. The two seemingly safest investments in Hollywood ended up with losses on their books.
"Do you have stocks worth 100 million?" Red Shidong suddenly jumped up from his seat. His two golden caterpillar-like eyebrows suddenly stood up. His whole person suddenly changed from the temperament of an old man to that of an old man.
He brings with him a lot of the murderous aura of his youth.
"When I acquired Paramount and Blockbuster, I suffered a lot of short-selling attacks on the stock market. Was it you?"
Redstone is indeed a giant in the capital market. When he heard that so many stocks were controlled by Ronald, he thought of being shorted. With so many stocks at the bottom, no wonder he dared to use leverage to short himself...
"Of course, I did it. Sam, your merger and acquisition caused your stock to fall a lot. If I don't short-sell, wouldn't I be losing money along with you?"
Ronald said nonchalantly, and picked up an orange, rubbed it slowly a few times, and then began to peel it. Speaking of which, the fruits that Paramount gave to the executives were really good, and they were not the kind with hard skins that are easy to transport across the country.
Ordinary commercial fruits are the kind of high-end products with thin skins, high water content, and easy rottenness that can only be supplied to a limited number of customers.
"Why are you doing this?" Redstone's eyes were fixed on Ronald. He was most concerned about the controlling matter and would never tolerate the loss of power. He would even agree to be acquired in order to control Viacom.
The chairman of the two companies did not hesitate to put the new company into risks in the capital market, but also spent more money to buy them out.
Now Ronald suddenly said that he had so many stocks, why didn't it scare him? This was the amount he said himself, and what else was left unsaid? In the final analysis, this kind of silent accumulation of a large number of stocks
The ability is the most terrifying.
"Relax, Sam. I just want to make money. I bought some Blockbuster stock, and it went down after you bought it. My financial analyst told me that I could make some money by shorting these stocks, and they took it.
It’s called hedging your bets, what’s called hedging?”
Ronald clapped his hands. The oranges were very moist and tasted very enjoyable. He wiped his hands with a napkin and went to get another one.
"So you're just after money?" Redstone's vigilance dropped slightly. Anyway, acquiring two large companies will definitely cause the company's stock price to drop. If it weren't for the tight control of the SEC, he would have ended up shorting himself.
Anyway, what Ronald earns, strictly speaking, is not his own money, but the idiots in the market who compete with him and are unreasonably optimistic about Viacom. As long as they are not coveting his own equity, then anything can be said.
"Sam, you are putting me in a difficult position. If I sell these stocks on the open market, I'm afraid the stock price will drop a lot. Why don't we make an agreed stock transfer, and you can buy them back at a price slightly lower than the market price?"
, and then do the cancellation process, which is equivalent to buying back the stock. Isn’t this the good news you want?”
Ronald smiled and expressed his thoughts to Redstone.
Anyway, Viacom is unlikely to have a business miracle in the short term. If you want Wall Street analysts to say something good, you have to do something else.
For example, buyback is one of them. The company has funds on its books, buys back shares from shareholders, and then cancels them. This is equivalent to narrowing the denominator and making each share of stock more valuable. If Viacom is a business
If the company is a good company, then this is a better move than a dividend, and Wall Street is likely to increase its view on the stock.
But that's not what Ronald proposed. Viacom is in a very troublesome situation. The company has many assets, but not many of them can generate enough cash flow. If it is repurchased on the open market, it may
It will be self-defeating and disgust Wall Street.
Ronald proposed that in order to reduce the volatility of the stock price in the public market, the two of them could conduct an over-the-counter transaction and agree to trade at a price slightly lower than the closing price, so that the SEC and stock investors would not be dissatisfied.
When the time comes, Redstone can do whatever he wants with these stocks.
However, Redstone is really in embarrassment. The cash on Viacom's account was used to make this equity transaction. If the stock market has a negative view of this transaction in the short term and the stock price continues to fall, he will be in even deeper trouble.
In serious trouble, the annual report at the end of the year may not be released.
"Can you accept the installment payment?" Redstone asked. He wanted the deal, but he didn't want to pay real money.
"Oh, for God's sake, you have reached the point where you have no money now?" Ronald poked Redstone's sore spot unabashedly.
Before the old man turned his back, Ronald came up with a new idea, "In this case, I will find a new owner for the shares in my hand. I guess you won't object, right?"
"Who is it?" Redstone's nerves became tense again. He couldn't eat it, and he didn't want others to eat it. It was best to let Ronald accept the installment payment and transfer it to himself first. After the two shocking mergers and acquisitions, his own
National Entertainment Corporation (controlled by the Redstone family), occupies
Viacom's equity has also been greatly diluted. Although he still maintains control of voting rights from the A/B share arrangement, he does not want the shares in the hands of small shareholders like Ronald to be lost.
Being concentrated into the hands of a predator who has the ability to compete with him for control.
"Goldman Sachs, I am going to use them to find a suitable person to exchange shares. You know, many people want your Viacom shares now, and there is no more suitable time in history than today..."
"
Ronald finished the second orange and said with a smile showing his white teeth to Redstone.
This chapter is not finished yet. Please click on the next page to continue reading the exciting content! "Don't be kidding, who is it?" Of course Redstone understands that the so-called Goldman Sachs only acts as a broker to acquire Ronald.
stock and then exchange it with another person who controls stock of comparable value in another company.
The person who finally gets this stock will not be from a company like Goldman Sachs. They never make long-term shareholders. If Ronald names any of his enemies and opponents, he will be angry. Even if he sells the iron, he will sell it again.
Even if you want to sell some assets, you must also control the stocks in the hands of the right people.
"Relax, Sam. I talked to the Bass family in Texas... and they happen to want to sell some Disney stock..."
Ronald stopped teasing the old man. It is not good to make enemies for no reason.
After George Jr. became the governor of Texas, the Bass family also attended his celebration and showed their kindness to the new governor, the eldest son of the boss.
Little George was also happy to show Ronald and the Bass family that he had extensive connections. It happened that two tycoons from other states and two from this state, after some exchanges, Ronald was surprised to find that they were among the top seven in Hollywood.
An important shareholder of Disney.
They have invested in Disney since the 1980s, and have been very satisfied with the stock price since Asner took over. As of this year, their investment has increased significantly. As the largest investor in Disney, their stock is equivalent to approximately 2 billion
Market value of U.S. dollars.
After enjoying considerable returns over the years, the Bass family also began to want to gradually sell for profit. Coupled with the recent firing of Katzenberg by Eisner, they have doubts about the future stock price and are preparing to sell.
.
It happened that Ronald was not optimistic about Viacom and the Bass family was not optimistic about Disney, but both parties had positive comments about the other's company. Since the governor's victory party, the two began to hire lawyers and accountants, as well as companies like Goldman Sachs
The middleman negotiates the transaction.
Recently, the two sides have basically reached an agreement.
However, SEC regulations and the series of agreements for Viacom's acquisition of Blockbuster may require Ronald to first inquire about the price of Redstone before selling. Otherwise, he may be investigated by the SEC, especially since it is more sensitive.
If a share swap transaction is reported by a major shareholder, there will be troublesome investigation procedures.
So taking this opportunity, Ronald also completed the procedure.
Redstone is not too worried about the Bass family. What they have done at Disney is very reassuring. They have not interfered much in the business for ten years and are content to quietly gain profits as an investor. Such people are very important to Redstone.
Such people with a strong desire for control are the most suitable.
Soon, the stock exchange deal was about to be concluded, and Eisner, who received the notice from the Bass family, also called Ronald.
"Ronald, what do you want?" Eisner's shares are much smaller than Redstone's, and he is even more paranoid about control than Redstone.