Chapter 669 Bloomberg's Hostility (Repair)
In the third week after its official listing, Daenerys Entertainment's market value successfully broke through the $120 billion mark on July 13 due to the phenomenon of "Forrest Gump".
Although the stock price rise has begun to slow down further, some Wall Street analysts who are extremely optimistic about the development momentum of Daenerys Entertainment have already made the argument that the company's stock price will rise to a high of $65 in the next year. According to the total share capital of Daenerys Entertainment Group, the stock price reaches $65 and the market value will exceed $150 billion.
Many industry media have expressed their recognition of this.
Because even if the market value exceeds US$150 billion, according to Daenerys Entertainment's recent earnings expectations, it is only equivalent to a price-to-earnings ratio of 57 times.
If it is other corporate giants that have already hit the industry ceiling, the price-to-earnings ratio of up to 57 times is obviously an exaggerated one, but it is not an exaggeration for Daenerys Entertainment, which has repeatedly created business miracles.
Of course, there are no opposition voices.
Bloomberg, a famous financial information company on Wall Street, published a targeted commentary article, which detailed the company's status quo that seems to be booming on the surface and has actually reached the extreme of the industry.
Especially when Daenerys Entertainment Group's core film business has occupied half of Hollywood, even if it has always maintained its current strength, it has been lucky enough to break the shackles of industry uncertainty to produce popular films, but there is actually no room for much growth.
On the contrary, as the engine of the diversified development of Daenerys Entertainment, once there is a change in the film business, it will inevitably lead to the decline of the entire company.
Therefore, although Daenerys Entertainment has no sign of its prosperity and decline in the short term, and the global film industry is also in a period of rapid growth, this entertainment company whose development momentum has reached its peak should have a reasonable price-to-earnings ratio of between 20 and 30 times.
At this stage, the price-to-earnings ratio exceeds 45 times and the market value exceeds US$100 billion, and there is a serious bubble component.
Bloomberg analysts believe that this phenomenon is entirely due to the market's blind admiration for Simon Westero's personal wealth miracle. However, investment should not be blind, but should be subject to rationality.
Bloomberg's development is far from reaching the peak of Simon's memory, but its influence is no less than that of any financial media.
So, when this article called on investors to return to rationality was published on the morning of July 14, Daenerys Entertainment's stock price fell by more than 1% after the opening, and then it was in a downward state of fluctuation all day.
Bloomberg's articles are just about the facts, but from many recent news comments by this financial information company, people with keen intuition can feel the hostility.
As for the reason, it is in AlphaBeta, which was founded by B Girl.
After spending a day in Ohio on Monday, Simon arrived in New York on Tuesday to attend the internal evaluation meeting of AlphaBeta's financial information software Alia.
Although AlphaBeta's short-term client development goals are concentrated on the underlying traders group of large financial companies and small and medium-sized financial enterprise users, as news of the Westeros system continues to spread to the field of financial information, Bloomberg, which has been unique in development over the years, has clearly felt the threat.
In order to avoid disguised promotion for Alia, which will be released in the end of October, Bloomberg did not make any public statements about this matter in a disguised manner. However, Bloomberg founder Michael Bloomberg has stated more than once in private that Bloomberg will do anything to maintain its business model and intellectual property that has many patents.
The purpose of this statement is self-evident.
After being established for more than ten years, Bloomberg certainly has not experienced competition, but under Bloomberg's innovative information terminal model, its previous competitors are vulnerable.
This time it was obviously different.
Anyone who pays a little attention to AlphaBeta can discover Simon's emphasis on this startup.
In order to support AlphaBeta, Simon personally came forward to select the top financial analysis and software development talents from Cersei Capital and Egret, and in the past six months, she appeared in many social occasions in the Manhattan financial circle with Girl B more than once.
As the software release approaches, a marketing team from the Igrit software sales department has quietly entered AlphaBeta. At the same time, Cersei Capital, Morgan Stanley and Goldman Sachs, three famous Wall Street giants, have quietly participated in the testing of Alia's trial version some time ago, and have signed official software procurement contracts in recent days.
There are millions of financial practitioners in the United States, and there are countless around the world. However, the installation volume of Bloomberg terminals with an annual fee of up to $15,000 is only more than 20,000. Even Wall Street giants such as Cersei Capital, Morgan Stanley and Goldman Sachs cannot equip all traders with expensive Bloomberg terminals. The relatively simple service provided by the Alia financial information software, which is far beyond the old-fashioned stock market display, has undoubtedly become the best financial software suitable for large-scale equipment of ordinary employees.
Alia's pricing is very clear, with a monthly price of $150 and a year-on-year package of $1,500.
Not to mention Wall Street major customers such as Cersei Capital, even ordinary individual investors who are slightly interested in the stock market can easily bear the expenses. In comparison, the Bloomberg terminal, with an annual fee of up to $15,000, seems unreachable for most grassroots financial practitioners who can only make tens of thousands of dollars a year.
At this stage, the number of Bloomberg terminals purchased by various Wall Street giants is generally only a few hundred. But this time, for Alia, the three companies signed a total of 1,500 purchase contracts at one time, which is not just a big deal due to Simon's personal influencing factors.
Such a starting point is enough to make Bloomberg, who was in the early stages of that year, far beyond reach.
For more than half a year, Simon has only provided limited advice for Alia's development based on the fields he knows. More than funding and resource support, he can't see the quality of the software. However, because Simon's attention has also been paid to it, Janet, who said that this software is great.
Moreover, judging from the fact that Cersei Capital and three other companies directly signed procurement contracts after participating in internal trials, this software has been recognized to a considerable extent before it was officially launched.
Of course, Simon's favor is included in this cooperation between the three companies.
However, if the software itself is not qualified, Simon himself will not allow Cersei Capital to be purchased and used by even the Westeros system's own company.
The affirmation of three companies including Cersei Capital directly erected a golden sign for Alia.
After the official listing, Alia's promotion will be twice the result with half the effort by relying on three Wall Street star customers who have reached a cooperation as live advertising.
In order to further promote Alia, B Girl has also formulated a plan to provide free trial versions to some American universities.
This is a later story.
In modern society, there are few successes without reason.
Bloomberg, who was actually relying on Michael Bloomberg's connections that he had worked on Wall Street for many years, obtained a software development contract from Merrill Lynch in advance to get a smooth start. When the contract was signed, the Bloomberg terminal was still in PPT and did not even have a beta product.
Subsequently, Merrill Lynch became a shareholder of Bloomberg and used its customer network on Wall Street to sell Bloomberg terminals, which greatly led to the success of Bloomberg now.
Girl B does not have the connections that have been working on Wall Street for many years, but has a larger backer like the Westeros system.
Therefore, even if the product has not been officially launched, even if it will not target the high-end customer base occupied by Bloomberg terminal for a long time in the future, the company still makes Bloomberg feel like it is facing a big enemy.
The Westeros system has proved its success in many fields over the years, and Bloomberg terminal is far from reaching the level of using its own data and information ecosystem to completely monopolize the market many years later. Bloomberg's commentary article calls on the market to look at the business miracle created by Simon, but Michael Bloomberg is obviously not calm at all about the arrival of Alia.
AlphaBeta is headquartered in Greenwich, Connecticut, mainly for the sake of saving operating costs and tax avoidance.
After finishing work in Manhattan on Thursday afternoon, Simon came to AlphaBeta headquarters.
About name change.
As the product entered the trial stage, the girls A and B felt that the name AlphaBeta was not as simple and easy to remember as Alia. It was still the concept of Simon when he named AlphaBeta products himself. The company and product that was easily remembered had many potential advantages.
The new company name is also ready-made.
Name it directly according to the name of its products, Alia.
Simon actually understood the two girls' little thoughts.
Once AlphaBeta is renamed Alia, it will intentionally or unintentionally become the fifth "woman" in the Westeros system after Daenerys, Melisandra, Egret and Cersei, which will undoubtedly further increase the market's confidence in this software.
A very common name like Alia, of course, will not register in advance based on the business habits of Westerners.
Girl B operated quietly for a while in advance and bought or registered Alia's trademark in major countries such as the United States, the United Kingdom, Japan, Australia, etc., but this expenditure totaled more than US$2.3 million. This is the result of operating through shell companies. If you buy it in the name of AlphaBeta, a Westeros system subsidiary, the price may directly increase by ten times.
Even if you don’t plan to change your name, since you want to launch Alia software, it is imperative to acquire trademarks worldwide, so this expense cannot be avoided.
Including such a spending on the name, AlphaBeta has invested more than 18 million US dollars in the past six months. This is still the case where Girl B saves as much as possible. The vase fund of Girl A and B has a total of 20 million US dollars.
Simon has paid special attention to this matter.
Compared to the Instagram founded by D Girls and others, it only takes one or two million US dollars to start. If a financial information company wants to develop a product, it needs to hire the top professional talents, establish a huge corporate database, design complex stock and bond analysis models, external procurement data and information, etc.
$18 million is already quite saving.
More than ten years ago, Bloomberg developed the first Bloomberg terminal, which took eight months and invested more than $4 million. The 4 million in the early 1980s was basically equivalent to the current 10 million US dollars.
Bloomberg has hardly encountered too threatening opponents for so many years. One of the very critical reasons is that emerging startups usually cannot afford such companies that require a large number of top talents and huge funds to launch products in the early stages of their establishment. Even if they spend hundreds of millions of dollars in and develop formal products, they may not necessarily be recognized by Wall Street. In terms of the security of large amounts of funds, no Wall Street financial company will rashly use the products of a startup.
As for old financial information companies such as Dow Jones or Reuters that have survived for a century, they have already formed a fixed business model, which inevitably leads to a big trend. Developing products like Bloomberg terminals often threatens their core business model, so they have been allowed to develop by Bloomberg.
Ultimately, Bloomberg became an overlord in the global financial and information industry.
Now, Bloomberg’s customers have just exceeded 20,000, instead of the 300,000 that have been completely monopolized many years later, and Bloomberg’s data and social ecosystem have not been completely solid. This is the opportunity for the Westeros system.
Simon has seen the potential market size of the financial and information industry in the future tens of billions of dollars, and has no shortage of funds and connections. Unswervingly expanding this field will naturally pose a strong threat to Bloomberg.
In a conference room at AlphaBeta headquarters, I saw several new company trademark design plans that Girl B quietly prepared. After discussing, I chose one of them, which basically finalized the change of AlphaBeta's name to AlphaBeta.
"The orders of Cersei Capital, including the product income that naturally grew after Alia's official release, are enough for you to maintain a self-sufficiency operation state. Unless necessary, I will not give you more funds in the short term. Betsy, what you need to do next is not to rush to expand your business, but to continuously optimize and update this software using the application feedback from the three major customers nearby, and patiently settle for at least one year, and then start a larger-scale promotion."
The meeting ended and it was already past six o'clock in the evening.
Simon said this to Girl B when she was about to leave.
The expansion of Westeros system over the years is a miracle, but Simon is not a person who is eager for quick success and instant benefits. When it is time to take steady steps, he must be able to put his mind on it.
Although the three companies of Cersei Capital signed 1,500 software orders in advance, although the 20% discount was given privately, the average annual fee for each software was also $12,000, which can provide Aliya with a basic income of $18 million per year, which is equivalent to the investment of Vase Fund for this company in the past six months.
If a financial information company wants to improve various businesses, no amount of money invested cannot be considered 100% sufficient.
Just like Bloomberg, this old financial information company now has more than 500 journalists worldwide, and this is a very huge expense. Girl B's company can only obtain financial information in the form of cooperation with other media for the time being. This is obviously not a long-term solution. However, the creation of its own information team cannot be achieved overnight.
At this stage, if you make steady progress, the revenue of US$18 million, including the revenue brought by other customers after the software release, is enough for the company to maintain a certain degree of expansion while being self-sufficient.
Aliya, which is about to be renamed, has an equity structure of 15% for Girl B, 5% for Girl A, and another 10% for several core executives of the company. Westeros holds a 70% stake through Vase Fund.
As long as the company can remain self-sufficient in the future, the equity of B Girl and others will not be diluted again.
The equity shares of B Girl and others seem to be small. For a company that needs to invest a lot of money in the early stages, Simon is generous enough to give up 30% of the equity shares. Based on the investment of Vase Fund in the past year, the total value of 30% of the equity is as high as US$6 million.
Moreover, this is just the most primitive equity. As long as Aliya company develops smoothly, these equity can make many people become billionaires in the future.
Simon does not intend to inject funds into Aliya's company in the short term. In addition to letting the B girl settle down and avoiding being impetuous, she actually has the intention to no longer dilute their equity share.
Many business owners always encourage employees to turn into wolves, but often selectively forget the fact that wolves want to eat meat. They give employees grass and hope that they will help you to fight the country like wolves. This is a hooligan.
Narrow and stupid.
After two lifetimes, Simon has seen through too many worldly feelings. He does not lack selfish instincts in his heart, but he often warns himself not to have such a narrow mindset.
Chapter completed!