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Chapter 334 Deal Two

The two parties have reached an agreement on taking shares in Cisco, which is a substantial transfer of benefits.

Knowing that the stock is bullish and that the company has a bright future, agreeing to the other party's 6% shareholding is a naked transfer of benefits in exchange for the same level of contribution from the other party.

For this reason, News Corporation has to spend real money to buy shares, and it buys shares at market price, and will not get any discounts or discounted membership prices.

The most important thing is that Murdoch has the qualifications to enter the game and can enjoy the soaring profits of Cisco. This is a sure-profit deal that everyone on Wall Street knows.

At the same time, the Fox network will receive a lucrative long-term advertising contract from Atlantic Business Machines.

News Corporation has not done nothing, it has also made great contributions.

It includes dozens of print media such as The Times, The Sun, and The Boston Times, as well as the fourth-largest Fox television news network in the United States. In the foreseeable future, they will all use a unified propaganda approach and will never allow the Wang Family Group to be discredited.

Our companies will provide positive news reports.

It is not easy to guide the direction of public opinion and create a free, healthy, fair and just media trend.

Some stubborn anti-China media people, producers with Cold War mentality, white supremacists, persecuted paranoia, TV anchors, media reporters and freelance writers, etc., none of them are easy thorns.

In the process of privatization and delisting of Atlantic Business Machines Corporation, public opinion will play a role that cannot be ignored.

Moreover, Mr. Murdoch promised to proactively communicate with Turner, the boss of the media giant Time Warner, to tacitly agree on a unified propaganda caliber and adhere to the minimum bottom line.

How much does this cost?

Turner is not easy to deal with. If Mr. Murdoch dares to make this promise, he must be prepared to be peeled off.

Everything is a transaction, and business is business.

Who wins and who loses?

Who took advantage?

It cannot be simply measured, it should be said to be a win-win situation.

Both the Wang Consortium and News Corporation got what they wanted, found an opportunity for close cooperation between the two parties, and intertwined them with strong ties of interest. The two parties are grasshoppers on the same line.

Every other line is like a mountain.

For news media groups, fine-tuning the propaganda caliber is easy and costs almost nothing. At most, it is a piece of cake to fire a few stubborn thorns.

The same thing was done by Wang's consortium, and even though I was tired and gasping for breath, I couldn't do it well.

on the contrary

After the value of Cisco Group's stock rose to hundreds of billions of US dollars, timely reduction of the weight and withdrawal of funds was an inevitable need of the Wang Consortium, and it was a step-by-step move.

The Wang Consortium's previous series of big moves, including the acquisition of HSBC and Hynix, counter-cyclical expansion, etc., were a bit excessive.

The cash flow stored by the Royal Family Fund has shrunk sharply, and has dropped to more than 15 billion US dollars, which is in urgent need of replenishment.

Because, in 1998, we had to prepare for the big move of delisting and privatizing Atlantic Business Machines.

According to the current market value of Atlantic Business Machines, which is US$146 billion, and a sufficient premium is needed to repurchase shares, the cash flow is simply not enough. It is far from enough.

In the first fiscal quarter of 1998, the profits contributed by the Wang Group's companies were only US$2.313 billion, which was completely unable to offset the huge expenditures.

Just do the math;

Atlantic Business Machines has not paid dividends in the past few financial quarters, and its huge profits have been used to pay off more than 20 billion U.S. dollars in bank loans, which it cannot expect for the time being.

Because Yangtze Technology Group was responsible for part of Atlantic Jinko Group's losses and its revenue was reduced due to the impact of the international market, it only contributed US$1.12 billion in profit in the first fiscal quarter, which was significantly smaller than usual.

Affected by the world economic environment;

Atlantic Jinko Group is directly losing money.

In Huanghe Technology Group, the profits of the Pacific chain home appliance shopping malls decreased and the losses of the LCD display project increased. The two offset the small losses.

Green Group launched a comprehensive price war in the world market and was locked in a fierce battle with Samsung Electronics. The company's profit margin dropped to a dangerous level of 3%. Excluding publicity and distribution expenses and channel expenses, it still suffered a slight loss.

Despite the poor market environment, the Carrefour supermarket chain has still steadily contributed nearly 1 billion US dollars in profits, which is very rare.

The remaining profits are joint contributions from other small companies.

Marvel Animation made good profits in 1997, but there is no need to expect it to contribute to profits. Spending all of it to develop in 1998 would not be enough, and it would still need bank loan support.

Let’s not talk about HSBC, which was bound to suffer losses in 1997 due to the financial turmoil.

Silicon Valley Red Hat Systems, Athlon Microprocessor Company, Yahoo, Photo Gallery, Video YouTube website, Amazon website...

Every one of them is losing money. The little profit Yahoo makes is not enough for itself to burn, so it can’t be counted on.

In addition, Cisco, which is fully committed to mergers and acquisitions, will definitely not be able to contribute profits now.

so

In the first fiscal quarter of 1998, the combined profits of all the companies under the Wang Consortium were only US$2.313 billion.

There is also a huge amount of scientific research funds allocated, and this expenditure cannot be saved. The combined budget of each laboratory is at least 450 million US dollars.

Therefore, the Wang Consortium needs to withdraw a huge amount of funds, so it is reasonable to sell some Cisco shares to gain the friendship of News Corporation and withdraw the funds at the same time.

With these six to seven billion US dollars in his pocket, he has a lot of confidence.

For Wang Yaocheng, making money is the easiest thing. Even if he buys Samsung Group's packaged assets, after the financial crisis, the value growth will not be inferior to that of Cisco.

Wang Yaocheng negotiated the deal and felt much better; "This time, who is coming to lead the merger and acquisition of Samsung Electronics?"

"What you will meet are people from the Rockefeller family, which will definitely surprise you."

"Oh...who is it?"

"Please let me keep this little secret for the time being. It will be revealed naturally when the time comes. Anticipation is also a precious human emotion. It would be good to experience it at the right time."

"expect?"

Wang Yaocheng looked at Mr. Merck with a dumbfounded look, and said with certainty, "What do you expect? I can't wait to kill these bastards. Without the full-scale sniping by Wang's consortium, how could Samsung Group fall into a total loss? How much price did we pay for this? I

Do you expect others to pick up the fruits of victory and then throw some scraps to you?"

"Don't be so excited. Samsung's packaged assets are not scraps, but a pretty good deal."

"Mr. Merck, that's just a side business of the consortium. It doesn't matter. It's inevitable."

"Haha, profits of more than one billion US dollars, you cunning little fox, don't say you are not tempted."

Wang Yaocheng looked at MSD with a sincere face; "Goldman Sachs has gone through the entire negotiation with them. What do you think we should ask for?"

"Haha..." Merck laughed dryly and said nothing.

"Exclusive M&A consultant, 5.5% commission, now we can talk about it."

"The asking price should be around US$1.35 billion, and the final transaction price can be around US$1.6-1.7 billion. Unexpected situations cannot be ruled out."

"Okay, we will send people to participate. The Royal Family Fund entrusted Goldman Sachs to fully lead this negotiation. The price exceeds 1.7 billion US dollars, the commission is reduced to 4%, and the merger and acquisition plan exceeds 1.85 billion US dollars."

MSD smiled bitterly and tapped Wang Yaocheng with his hand, but what he said was: "Deal."

We have cooperated for many years, know each other well, and have experienced dozens of mergers and acquisitions cooperation with each other. There is no need to say any false polite words, and everything can be entrusted with confidence.

Cisco alone has cooperated in 16 corporate mergers and acquisitions, with the merger amount reaching 11.6 billion U.S. dollars. The joint efforts of several parties have created the glory of Cisco.

Chambers alone could not complete the task even if he suffered a small intestinal hernia due to exhaustion.

a moment later

Si Wanru and Miss Deng Wendi came chatting and laughing together. It seemed that they both got along well.

far away

Miss Wendi Deng smiled sweetly and said, "I'm really sorry for everyone, I really miss my dear Murdoch so much. Can you please give him back to me? I'm very curious, the three most outstanding men in the world will talk together.

What?"

The three big men sitting on the sofa were calm and motionless, with faint smiles on their faces;

What to talk about, will we tell you?


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