After the official submission of the IPO application, many platforms such as the Egret Portal, SEC official website, Daenerys Entertainment official website and other platforms immediately announced the prospectus of Daenerys Entertainment Group.

The first edition of the prospectus introduces the relevant information that must be disclosed in the business composition, revenue data, equity structure, development prospects of Daenerys Entertainment Group, and other related information that must be disclosed in corporate IPOs. It also includes the exchange selection, list of underwriters, fundraising scale, stock issue price range and other specific information that investors are most concerned about.

Daenerys Entertainment's business composition and revenue data are not a secret for those who are interested. In this version of the prospectus, most potential investors are most concerned about Daenerys Entertainment's equity structure and development prospects.

After internal employee subscription and cashing of senior stock rewards in March, the total share capital of Daenerys Entertainment Group was approximately 2.113 billion shares, of which Simon himself held 91.7% and 1.937 billion shares.

The outside world has always had many speculations about Daenerys Entertainment's internal subscription and reward redemption plan. Most people did not expect that Simon would transfer or reward up to 8.3% of Daenerys Entertainment's shares to the group employees in such a large amount.

According to the issue price range of $18 to $20 given in the prospectus, even if the minimum value of $18 is taken, the total value of the total 176 million shares transferred to employees will exceed $3 billion.

Daenerys Entertainment Group plans to issue 250 million new shares this time, which is also calculated based on the minimum value of US$18. The total amount of funds raised is expected to be only US$4.5 billion.

According to previous media reports, except for the high-level stock rewards, the stocks subscribed by internal employees are sold at a very low discount, and the average subscription price may be less than 50% of the actual value of the stock. It can be said that Simon Westeros directly gave away a huge amount of cash of more than 1.5 billion US dollars to employees of Daenerys Entertainment Group.

According to the prospectus, Daenerys Entertainment has a total employee size of 29,000 people, which is equivalent to a reward of $51,000 per person, which has exceeded the annual salary of most working-class people in the United States.

In 1993, the per capita annual income in the United States was only $31,000.

The actual rewards and subscription allocations are certainly impossible to be evenly distributed.

According to the disclosure figures in the prospectus, in addition to Simon Westeros' high absolute holding of 91.7%, Daenerys Entertainment CEO Amy Pascal, who holds a shareholding ratio, received 35 million shares, with a shareholding ratio of 1.65%.

Also calculated based on the minimum issue price of $18, the total value of the shares held by Pascal reached US$630 million.

This is obviously a very conservative estimate.

After the official listing, it is not impossible for these stocks to break through $1 billion.

Not only that, according to the Amy Pascal salary contract that some media once exposed, the female leader of Daenerys Entertainment has received a total of hundreds of millions of dollars in salary since she joined the company. With the guidance of an investment wizard like Simon Westeros, even if Pascal spends half of his salary for investment, including the share reward he just received, his personal net worth is likely to have broken through the $1 billion mark and become another billion dollar rich man in the United States.

After Amy Pascal, a female executive is still the third largest share of Daenerys Entertainment.

Nancy Brill, holdings total 7 million shares.

The achievements made by this small-sized senior executive who is mainly responsible for Daenerys Entertainment's peripheral products, video games, video tape chains and other businesses in recent years are obvious to all. However, in this society where men are still respected, it still surprised many people that Nancy Brill was able to get a share of stock second only to Amy Pascal.

Perhaps to explain some people's doubts, the official website of Daenerys Entertainment Group has released an additional detailed stock rewards and subscription list.

Nancy Brill's 7 million shares, of which 5 million are reward-oriented, and the other 2 million are internal subscription shares.

All of Amy Pascal's 35 million shares were rewarded. The Daenerys Entertainment CEO took the initiative to give up his internal subscription share of 3 million shares to other employees of the group.

Robert Eiger, who is tied with Nancy Brill as the group president, is mainly responsible for Daenerys Entertainment TV business, received a total of 4.5 million shares, with a reward share of 3 million shares, and 1.5 million shares are subscribed.

Mark Belford, vice president of global operations who is in charge of the global distribution of film and television works under Daenerys Entertainment, Ella Deutschman, president of Gaomen Films, and Danny Morris, president of New World Pictures, all of which are 3 million shares, of which 2 million shares are rewarded and 1 million shares are subscribed.

Although the total value of stocks obtained by Nancy, Eiger, Mark, Doichman and Morris, the five core executives received far less than Amy, it has exceeded the salary of most senior executives of the same level in Hollywood. Even if the minimum value of a single stock of $18, the total value of stocks obtained by the five core executives reached $54 million.

In the whole of the United States, there are only a handful of corporate executives who can receive such a large reward at one time.

Of course, because Daenerys Entertainment Group prefers a flat corporate structure, except for Simon, the actual controller and Amy, the CEO leader, no other executives can gain much power, so the returns Nancy and the five people will not be too high compared to Amy.

In fact, the distribution rules of most companies are like this.

The head takes the biggest lead, and the second-level executive income may be reduced by one zero.

Moreover, the high rewards Amy Pascal received were also due to her as the founding veteran of Daenerys Entertainment. Other core executives only joined after Daenerys Entertainment gradually rose.

Many times the earlier you join a company, the more you get.

Just like Steve Ballmer, an early core executive of Microsoft, could gradually accumulate a net worth of tens of billions later, Satya Nadella, an Indian CEO who brought Microsoft from the bottom to the peak of the trillion-dollar market value in a few decades later, could only earn tens of millions of dollars in an annual salary of tens of millions of dollars.

The same is true for Egret now.

Jeff Bezos and the other three are expected to receive 5% of Igrit stock after the contract expires. Alice Ferguson, who is in charge of e-commerce business, has successfully transformed the Igrit three giants into the Big Four. Even if Simon specifically adjusted the contract for her after she recognized the ability of the butler, Alice could only get 3% of the stock before Igrit's IPO.

In fact, in Simon's mind, the female housekeeper's ability is much stronger than Tim Berners Lee and Carol Butz of the first three giants, almost comparable to Bezos, but that's what the world is.

The topic goes back to Daenerys Entertainment. Tom Pollack, who was once the president of Universal Pictures, served as the president of Daenerys Pictures after the merger and acquisition case, has obtained the lowest share of stock among a group of seemingly core executives, with only 1.5 million shares, of which the reward share is 500,000 shares, and the other 1 million shares are internal subscriptions.

It is also known in the circle that this executive, who is the core of Daenerys Pictures, the three brands under Daenerys Entertainment, actually has very low authority.

Most of Daenerys Pictures’ decisions were made by Simon and Amy themselves. Although Tom Pollack had the title of president, he was more of a butler-like executor role. Moreover, the other party joined Daenerys Entertainment late, so he was actually not the core of Daenerys Entertainment Group.

The reason why Simon Westeros can get 1.5 million shares may be Simon Westeros to protect the face of this old Hollywood executive.

In addition to the core management, such as Pixar President John Lasseter, Daenerys Special Effects President Mark Sylves, Marvel Entertainment Chairman Stan Lee, Fashion TV President Anna Coleman, etc., Daenerys Entertainment executives at all levels shared a total of 13.5 million stock rewards and a subscription share of about 7 million shares.

According to comprehensive statistics, of the 176 million shares transferred by Simon Westero, 63 million are reward-oriented and basically owned by management at the Daenerys Entertainment Department's supervisory level. 113 million shares are subscribed by management, but the management has not taken away much, with only 14.5 million shares, most of which are subscribed by employees of all levels.

Speaking of which, the biggest difference between the two parts of the stocks that are rewarded and subscribed is actually taxation.

The reward-based stocks obtained by many executives need to be taxed according to income tax standards.

There is no need to do this for the time being, and you only need to pay capital gains tax when you sell it in the future.

Moreover, because the stocks subscribed internally are of additional issuance, Daenerys Entertainment does not need to pay taxes. The funds raised must be used as cash reserves for Daenerys Entertainment for company development purposes and cannot be allocated to Simon individuals.

In fact, through 113 million internal stock subscriptions, Daenerys Entertainment only recovered $1.09 billion in funds. That is to say, the actual reward value of Simon's entire Daenerys Entertainment Group's employees far exceeds the media's estimate of $1.5 billion.

Simon actually doesn't agree with the saying that money can win people's hearts. What he believes more is that I will give you as much as you pay.

With the rapid development of Daenerys Entertainment Group over the years, Simon will not underestimate his role in it, but will not ignore the unity of the group. Therefore, he will not be stingy when it is time to give.

However, Simon did not intend to let go of Daenerys Entertainment's control.

The prospectus specifically states that Daenerys Entertainment will adopt a dual equity structure. After completing the equity adjustment in March, the 1.937 billion Daenerys Entertainment shares held by Simon will all be Class B shares with 10 times the voting rights. The 176 million shares held by all employees of Daenerys Entertainment are Class A shares, and the voting rights are only one-tenth of that of Class B shares. The 250 million new shares planned to be issued during the IPO process are also Class A shares with only one-tenth of the voting rights.

It is expected that after the official listing in late June and early July, the total share capital of Daenerys Entertainment Group will expand to 2.363 billion shares, Simon's personal shareholding ratio will drop to 81.9%, but the voting rights will still reach 97.8%.

Even if Simon intends to sell some of his shares in the future, he has the right to convert Class B shares to Class A shares before selling. It can be said that as long as Simon does not give up voluntarily, even if the Westeros family's shareholding in Daenerys Entertainment Group drops to less than 10% many years later, he can still maintain absolute control over the company.

It is not difficult to imagine that because of the recent public opinion situation, after Daenerys Entertainment's dual equity structure was exposed, it naturally became an inevitable criticism.

Simon just turned a deaf ear to this.

Whether it is Cisco, AOL or Daenerys Entertainment, Simon's dual equity operations are completely within the rules of the game.

Even if some people are dissatisfied, even if the authorities modify the relevant provisions in the Company Law in the future, it is impossible to change many established facts again according to US law without retroactively following the unspoken rules.

Since the release of the news that Daenerys Entertainment is about to make an IPO, there is a popular saying in the industry that this entertainment giant, whose core film business has accounted for about 40% of Hollywood's share, no longer has much growth potential, so it is not optimistic about its long-term development prospects.

Recent facts have proved that this view is very wrong.

Not to mention the rest, it is just that the social game "Happy Farm" produced by EA company under Daenerys Entertainment suddenly achieved phenomenal success during this period, which proves that in addition to the movie business, Daenerys Entertainment's game business still has great growth potential.

The first week of Easter Daenerys Entertainment Group's release film is the third "Teenager Turtles 3" in the "Teenager Turtles" series. The film started painting on April 1, and the box office in the first seven days of the first week was US$21.62 million. Compared with the film's production cost of US$40 million and the promotion budget of US$20 million, the results of US$21.62 million in painting were obviously not as expected.

However, the expected total box office of around 80 million US dollars in North America actually made a pretty good ending for this series. It counts as the box office outside Shanghai, and the film can easily recover costs and achieve profitability through global theater distribution.

At the same time as the movie was released, the "Teenage Mutant Ninja Turtles" series of games on Nintendo console platform also launched another sequel on April 1. The first week sales of the two major markets in North America and Japan were 116,000 boxes. Even if it cannot be comparable to the phenomenal sales of the first generation of "Teenage Mutant Ninja Turtles" game with more than 5 million boxes worldwide, according to the results of the first week, it is expected that the total global sales of this sequel will be around 2 million boxes, which is still a very rare success.

With the strength of online games, console games, and EA in the PC stand-alone field through real-time strategy games and sports games, the industry predicts that the future output value is no less than that of the electronic game field in the movie market, Daenerys Entertainment will maintain a very eye-catching and rapid growth for a long time to come.

On the other hand, after Daenerys's Backstreet Boys group officially released the record of the same name "Backstreet Boys" on March 25, the album sold 270,000 copies in the first week of the United States, and the sales in the following week counterattacked to 320,000 copies. It is estimated that the total sales of "Backstreet Boys" in the United States will reach about 15 million copies. Although the overseas potential is currently unknown, based on the popularity of North America, the total global sales of this record is conservatively estimated to exceed 20 million copies.

Simon has been following up on the formation and promotion of the Backstreet Boys Group since last year. After a year of busy life, he finally got some rewards.

The success of the Backstreet Boys group not only represents that Daenerys Records has gained a foothold in the mainstream pop music field, but also means that there is a real feasibility in the attempt to mass-produce Teen-Pop singers.

Similarly, the sudden popularity of the Backstreet Boy also added another point to the entertainment giant in the record field, which has always been relatively weak, at the critical time point when Daenerys Entertainment submitted its IPO application, proving that Daenerys Entertainment Group also has huge growth potential in the recording field in addition to its core film business.

In the explanation of the company's development prospectus, in addition to the outlook for the two high-growth businesses of gaming and music, it also highlights the TV business that Daenerys Entertainment has been actively deploying.

In terms of content production, Daenerys Entertainment not only created a reality show craze, but also launched popular dramas such as "Seinfeld" and "Desperate Housewives" in recent years.

In terms of TV stations, Daenerys Entertainment has fully owned a basic cable network USA with a total subscription user base of more than 90 million. The professional fashion TV station Fashion TV launched last year has also completed the full launch of major countries such as North America and Europe. Both cable TV networks with precise and clear target audience groups have maintained a very fast performance growth rate.

Not only that, Daenerys Entertainment also stated in its prospectus that it will further expand into the TV field after its IPO.

This description is not at all obscure.

The lifting of the federal media integration ban has become an inevitable trend. Once the ban is released, Daenerys Entertainment is undoubtedly the one with the most strength to launch mergers to the three traditional public television networks in the United States.

Some Wall Street analysts predict that Daenerys Entertainment's listing is largely paving the way for future mergers of large public television networks. On the one hand, it is to raise funds, and on the other hand, it reduces the political and commercial obstacles of the federal further expansion of Daenerys Entertainment through public listing.

Therefore, it can be seen that whether it is the game and music businesses that are still developing rapidly within Daenerys Entertainment, or the possibility of further expansion into the TV field in the future, this entertainment giant can continue to maintain considerable growth for a long time in the future.

What's more, Daenerys Entertainment's film business is not really touching the ceiling.

However, in the United States, the film market capacity has maintained a natural growth of more than 10% for several consecutive years. Hollywood, which uses super blockbuster movies as the "siege hammer", has been unstoppable in the global film market. The super blockbuster bombshells in Hollywood in the past few years have basically been the hands of Daenerys Entertainment.

Considering that Daenerys Entertainment has strong guarantees such as Daenerys special effects, Pixar Studios, Marvel Entertainment, etc., it is no problem for this Hollywood giant to continue to maintain its performance growth in its core film business.

In addition to the layout of Daenerys Entertainment Group in consumer perimeters, theme parks, cinema chains, video tape chains, etc., the first edition of the prospectus confidently predicts that Daenerys Entertainment will still maintain an annual revenue growth of 20% to 30% in at least the next five years.

Obviously, in order to leave room for yourself, this prediction number still tends to be conservative.

After all, in the two years after the merger of MCA, Daenerys Entertainment's annual growth rates reached 37% and 35% respectively, which is actually the corporate growth data under the very strong core film business of Daenerys Entertainment.

It can be imagined that even if Daenerys Entertainment further expands into the field of large public television networks, it will not be a problem for Daenerys Entertainment to continue to maintain an annual revenue growth rate of more than 30% in the next five years.

Although many media and Wall Street analysts with ulterior motives have insisted that Daenerys Entertainment has reached the growth ceiling after submitting its prospectus, most potential investors are well aware of the true value of Daenerys Entertainment's stock.
Chapter completed!