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Chapter 1326: Layout Blockbuster

After February 22, if there is no word on Simon's 30th birthday on various media platforms, it is impossible.

However, some people expect that because Simon Westeros’ 30th birthday triggered a news boom, the media and the public once again focused on the super rich man’s excessive personal wealth, and whether it should even be restricted. Such public opinion tendencies did not happen at all.

Most ordinary people have only some scattered and plain thoughts in their impressions.

Oh, Simon Westeros is 30 years old.

Then continue your life.

A few people who can see the essence through phenomena are feeling that Westeros system is becoming more and more powerful in public opinion control. You should know that Simon Westeros’ 20th birthday was a quarrel all over the world. At that time, the other party was just a film and television upstart who had just risen in Hollywood, or, with the huge amount of original accumulation completed by the 87 stock market crash.

It is incomparable to the present.

In any case, Simon has too much personal wealth. The hidden power represented by this wealth has reached the level of being able to easily manipulate a country. This is a consensus among many people, and all parties have more or less experienced the threats in it.

However, unless the United States can experience a strong and severe social change of magnitude, it is basically unlikely to destroy the Westeros system. However, if there is such a change, and whether the Westeros system can escape or not, can other federal capitals stay out of it?

In fact, there is another way, the more extreme one.

However, the question is, who dares to take the lead in planning a related operation against Simon Westeros?

When Kennedy was assassinated, in order to avoid revenge, the Kennedy family suffered a "curse" for decades, just to prevent this political family from returning to politics. The key to this matter is that the Kennedy family lost their power after leaving the White House and Washington, and therefore they were unable to take revenge.

For the Westeros family, if Simon Westeros encounters the same incident, the power and wealth of this family will not disappear out of thin air.

Simon Westeros is a lunatic.

This is proven whether it is a bombed manor in Pittsburgh, Pennsylvania, the mafia family that evaporated overnight in Italy, or the war in Rwanda. Therefore, not to mention whether the extreme measures can be successful, even if they succeed, who can guarantee that in some cases, in order to avenge Simon Westeros, there will be no second madman in the Westeros family?

In the final analysis, Simon's rise is so fast that many people have the idea of ​​suppressing themselves and are far away before they can execute it.

Simon himself, after his 30th birthday, no matter how many people outside think, his life has not changed much. In the following days, he spent time continuously meeting with important guests from all over the world who came to attend his birthday party to discuss various topics.

This is how time comes to Friday, February 27.

Finally, an important news related to the Westeros system was publicly announced that Daenerys Entertainment and Philips, the Netherlands, officially reached an agreement to acquire Philips' record giant Polygon through a stock and exchange model. The transaction price of both parties was US$9.5 billion, with half of stocks and cash each. Including Polygon Records' total debt of US$1.2 billion, the total transaction size was US$10.7 billion.

On the day the news was announced, Polygin's European stock market value rose 6% in a single day, closing at a price of US$9.26 billion.

As for Daenerys Entertainment Group, according to common sense, when a large acquisition occurs, the stock price of the party that initiated the acquisition will inevitably fall. However, on the one hand, due to its size, and on the other hand, a series of major positive news from last year's "Counter-Strike OL" to Christmas "Titanic" and the recent "Witch Blair". In particular, the big explosion of the game "Counter-Strike OL" has allowed the market to see the growth potential of this media giant outside of its core film and television business. For several consecutive months, Daenerys Entertainment's stock price has been in a state of continuous rise.

On Friday, Daenerys Entertainment's stock price rose 2.1%, with a closing market value of US$371.5 billion. Compared with the market value of US$310 billion when Forbes counted the new year's Rich List in October last year, the cumulative stock price increase was nearly 20% in more than four months, and it still firmly led the New York Stock Exchange.

In addition to the two companies involved, British EDA Records, which was also rumored to be in the process of negotiating acquisitions with Daenerys Entertainment, had a stock price plummeted by 11% in one day due to the announcement of this news, so that an executive of EDA Records threatened to sue Daenerys Entertainment on his Facebook homepage.

Unfortunately, when the reporter called me to question, he was reluctantly unable to provide a legitimate reason.

At the same time, select multiple potential acquisition targets for negotiation to avoid one party starting a price. This is a strategy that many companies will adopt when launching mergers and acquisitions. Because it is not clear that Simon's fundamental goal is Polygin. In the eyes of many people, it is only the most important thing about EDA Records that has been unwilling to reach an agreement as soon as possible, and the result is that it misses the opportunity.

The entire record industry is declining rapidly, missing the excellent opportunity to integrate into Daenerys Entertainment. The plummeting decline of EDI on February 27 will only be the beginning. Because of this failure, some major shareholders of EDI expressed strong dissatisfaction with the management, and internal turmoil is likely to occur next, which just gives Daenerys Entertainment the opportunity to poach some famous singers of EDI.

Malibu.

Daenerys Cinema, the meeting on the acquisition lasted for two hours. Nancy Brill, who was in charge of the acquisition negotiation, reported in detail to Simon various details of the preliminary agreement, and everyone discussed some matters that would deal with transaction reviews by various authorities, and even longer-term formal merger plans.

After the meeting ended, Daenerys Records CEO Richard Palmes and other senior executives left. Simon called Amy and Nancy to stop him and said another thing: "About Blockbuster, because the recovery of the Internet industry is much earlier than I thought, we need to acquire this company in advance, and at least we must achieve absolute holdings."

When Juviacom achieved control of Blockbuster's video chain, Simon began to promote reforms strongly. In recent years, Blockbuster has been constantly innovating its business model, especially the launch of Blockbuster Online. With the concept of the Internet, this videotape rental chain giant once had a market value of nearly US$40 billion at the peak of the new technology wave last year.

However, it seems that success or failure is "online".

In order to promote online business, in the past two years, Blockbuster has completely divested its previous franchise store model, leaving only self-operated stores that can smoothly cooperate with online business. The scale of self-operated stores is also constantly shrinking. Compared with the scale of more than 5,000 chain stores around the world at its peak, Blockbuster currently has less than 3,000 stores, half of them locally and overseas.

It is still the golden period of videotape and DVD rental business. Blockbuster has voluntarily cut off 40% of its stores and abandoned the franchise model, which is almost equivalent to handing over a large number of physical rental businesses.

On the other hand, although Blockbuster's hybrid online business accounted for 38% of the total revenue, due to the significant reduction in stores, the total revenue scale not only did not grow positively in 1997, but instead shrank by more than 10% in total. Even profits continued to decrease due to large investment in online business.

At the heyday of the new technology bubble, this was nothing. As the bubble burst, Blockbuster's stock price also swept downward.

Even though the Nasdaq began to recover during this period, Blockbuster's recent market value was only about US$14 billion, compared with the peak of US$40 billion, the market value shrank by 65%.

Simon originally expected Blockbuster's market value to fall below 10 billion US dollars before taking action. Now it seems that it is better to take it as soon as possible to avoid any changes.

When Amy heard Simon mention this, she immediately thought of the plan she had talked about: "Simon, it's true that the Internet industry has begun to recover recently, but all aspects are generally not optimistic about Blockbuster. Didn't you also say that we can wait a little longer?"

Nancy nodded slightly along the way.

Because she is directly responsible for this part of the business, she knows better than other Daenerys executives about Blockbuster's internal shareholders and external capital markets' negative attitude towards the company.

Nearly a year after the new technology bubble burst, some shareholders and some core executives of Blockbuster have always hoped that the videotape leasing giant can reverse its operating strategy, return to tradition, and increase its layout of physical stores again.

Unfortunately, I have never been able to do it.

Blockbuster's stock price has also fallen even deeper than many other new technology companies.

Simon shook his head: "No need to wait any longer. Blockbuster has a series of important layouts related to our future. I have told you more than once. Make a plan as soon as possible and set up a team to absorb Blockbuster's stocks from the open market, and at the same time, negotiate with other Blockbuster shareholders to start a full acquisition."

Nancy still hesitated: "If other capitals initiated an acquisition of Blockbuster, it can be won within a 15% premium. If we take action, the premium will be less than 20%, and the expected expenses may exceed $17 billion. Simon, frankly, I think at least at this stage, Blockbuster is not worth so much. $15 billion is the limit?"

Simon said: "Try to talk about stock exchanges, and the cash ratio should not exceed 30% this time."

According to the transaction price of US$17 billion, 30% of the cash payment is estimated to be paid in minus the shares held by Daenerys Entertainment, and the final cash expenditure is only about US$3.5 billion.

Amy said at this time: "Simon, our insistence on the online operation strategy has caused many shareholders to criticize. Daenerys' stock price during this period is obviously higher in the eyes of many people. They will definitely want more cash, and it is probably difficult to negotiate 30%.

In theory, the stocks obtained through stock exchanges are equivalent to cash, and it seems that there is still so much cash after cashing out.

Actually, it is not the case.

In order to avoid immediate large-scale selling to impact the stock price, stocks obtained by stock exchanges and mergers usually come with a lock-in period.

Daenerys Entertainment's current market value exceeds US$370 billion. Even compared with the market value of US$569.1 billion at its peak last year, the cumulative decline reached 35%, and the price-to-earnings ratio of about 70 times is still too high. If the transaction is completed, Daenerys Entertainment's stock price will continue to fall, which naturally means that the stock market value obtained from stock exchange shrinks and loses in vain.

Simon is not worried about this: "The problem now is that most other shareholders of Blockbuster are not optimistic about our strategy, so they are the parties who want to withdraw. Moreover, those people should understand that selling stocks to us is more cost-effective than always holding them in their own hands or selling them to other capitals. In short, we stick to our own prices."

Seeing that Simon had made up his mind, Nancy said, "Since that is the case, I will try to make Blockbuster's financial report in the next quarter ugly."

Control of Blockbuster is still in the hands of Daenerys Entertainment. It is not easy to start a good company, but there are too many ways to mess it up.

Blockbuster has a long-term plan for Simon in all aspects for at least 20 years in the next year. The ups and downs in the short term are irrelevant, and there is no objection to Nancy's proposal.

Amy said: "Simon, I remember you said that if you can't completely take it, you can also take over the absolute controlling stake in Blockbuster, so we will pay much less?"

"This is also an option," Simon said: "But, if possible, try not to do so. Even if we absolutely hold shares, if we continue to force our operating strategies, we will still be criticized by other shareholders. It is definitely the best to win the whole market."

Daenerys Entertainment Group is very large, and with Simon's long-term prestige and a high proportion of shares in this company, even if it has been listed, it is still Simon's one-man show.

Blockbuster is different.

Simon doesn't want to implement his online rental and even future streaming plans step by step, and there are a group of small shareholders who keep talking.

The three of them discussed some details. After talking about the matter, Amy left the conference room tactfully, leaving only Simon and Nancy.

The small senior executive felt the change in the eyes of the man opposite him, lowered his eyes slightly and pretended to clean up the information in front of him, and said, "The box office of "Titanic" in the past week was so high. It seems that there are at least 600 million US dollars in the local area, right?"

"The local area is second, overseas is the big one," Simon replied, then changed the topic: "How about we fly to Mexico after get off work? I'm at the manor in San Lucas, spend the weekend together?"

Nancy glanced at someone: "Are we the only two?"

"It depends on you."

"I..." Nancy did not pretend to be shy, and considered her little appetite for a moment, and said, "I will only stay for one night and will be back tomorrow."

If he really stayed with a certain animal for a weekend, Nancy felt that it was very likely that he would be broken.

Of course Simon didn't force himself: "Okay."

Nancy thought of something and said with a lip voice: "Then, you can fool around the rest of the time."

"You can stay and make sure no one else will appear to disturb us."
Chapter completed!
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