Chapter 55 EA Corporation
In September, the weather in California is still very hot. But the city of San Jose is close to the West Coast, and there's a cool air in the air.
Henry was reading the development plan that Karina had sent by e-mail, and it was written that she was going to spend $100 million to seed invest in a start-up Internet company, and that she also suggested that the company invest in a game company! In recent years, game companies have sprung up, growing rapidly, and the profitability is very high.
Among them, she gave two examples. One is Nintendo Japan, and the other is EA America!
Nintendo is a giant in the video game industry, after the release of the FC game console in 1983, it has become the world's No. 1 game company in a few years, with total sales of nearly $2 billion and profits of more than $500 million in 1988 alone!
EA was founded in 1982. It is a company specializing in the production and distribution of computer games, the company was established in a short time, but it has grown rapidly, and on October 1 this year, it is ready to be listed on the NASDAQ.
Henry was silent for a moment after reading Karina's plan.
He is very familiar with both companies, especially Nintendo!
Presumably many people have used the red and white machine, played Super Mario, Contra, Tetris and other classic games. Its games were sold all over the world, and the characters in the games were also popular all over the world, and 25 of the world's 30 best-selling toys were related to Nintendo!
By 1992, this year alone, Nintendo's earnings would be on par with that of Hollywood as a whole, and comparable to the revenues of the three major American television networks!!
Nintendo has repeatedly replaced Honda, Toyota Group, and become the No. 1 company in Japan!!
You can see how awesome Nintendo is!
As for EA, although not as legendary as Nintendo, it has since developed into a hegemon in the computer game industry, becoming the world's largest developer and publisher of interactive entertainment software. And it also has EA-Sports, EA-Games and three global brands, which is really amazing!
Nintendo, Henry can't get involved at all. So, Karina's suggestion to Henry is to buy EA!
Henry didn't think about it, and directly replied to an email: "Go all out to acquire EA !!"
In order to emphasize this sentence, Henry deliberately added three exclamation points at the end!
It didn't take long for Karina to reply with an email: "Okay!"
Henry stood up, stretched his body, and did a set of aerobics, which he learned in high school, and I don't know if it works! If you don't exercise every day, I'm afraid that you will get old in the future and be riddled with diseases. It's all over once, you can't be a tired ghost, right?
At first, I thought I could rule by hanging the arch. Who knows, things are not as simple as you imagined. If you really feel comfortable handing it all over to a professional manager, then your company is not far from going out of business. Others will empty your company little by little, and eventually become an empty shelf there! Although there are many methods of supervision in the United States, there are even more ways to exploit loopholes!
Henry has to ask about the development of the company under his name every once in a while, and important things have to be decided by himself, and many documents have to be signed by himself to take effect, so as to ensure the safety of the company as much as possible, and will not be deceived by the company's management, or occupy the magpie's nest!
However, if he does this, Henry is very tired, because he has a lot of companies......
"It seems that you need to use a personal doctor or a nutrition specialist...... I don't know if there are any health masters in the United States, if there is, it would be nice to invite them all along! What is it to spend some money for the sake of a small life!!?" Henry muttered to himself while lying on his chair after doing a set of radio gymnastics.
After thinking about it for a while, Henry made a phone call, told his subordinates what he had just thought, told them to investigate, and then invited someone over!
The investigation may take a while, however, Henry is still young and in no hurry. What he is most anxious about now is whether Weifeng Capital can buy EA Company. Three days later, Karina called Henry and said, "Henry, things are a little bad!"
"What's wrong?" asked Henry hurriedly.
"EA rejected our offer to buy!"
"Are you not satisfied with the price?"
"It's not!"
"The main thing is that their founders are adamant not to sell the company!"
"Then if we invest in EA, can we get a controlling stake?"
"I'm afraid not...... The company's largest shareholders are very optimistic about EA's development prospects, and unless we pay several times the price, they will not sell their shares! Moreover, EA is about to go public, and once the financing is successful, they will no longer be short of money! At that time, it will be even more difficult for us to buy it!!
"Do you estimate how much it will cost us at least if we have to take a controlling stake in EA?" said Henry, frowning.
"At least $350 million!"
"So much !!"
"Yes, EA since its inception, more than a dozen games have been released in a row, all of which are very popular, especially sports games are very popular in the United States, last year's "Madden's Rugby" game invited John Madden, the coach of the Oakland Raiders, to join, once the game was released, the sales were very hot, and many sales points in the United States lined up in long queues, and even the "New York Times", "Washington Post" and other major American newspapers have made special reports on this!!"
350 million?
Henry touched his head, a little hesitant.
Karina said at this time: "350 million is just a conservative price, we want to really win the controlling stake in EA, I'm afraid we need more!
Henry shook his head, still not wanting to give up on EA, after all, he was so famous in his previous life.
"Karina, you asked the founder of EA to come out, I want to meet him!"
"Okay. ”
The phone hung up, and Henry was silent, quietly thinking about the acquisition of EA.
The next day, Karina replied to Henry, "Henry, EA founder Tripp Hawkins promised to meet you at three o'clock in the afternoon, at the headquarters of Mighty Capital!"
"Okay, I got it!"
Henry then ordered someone to drive to Mighty Capital, and when they arrived there, it was only noon, Henry and Karina had lunch together, and Karina talked to Henry about EA founder Tripp Hawkins. A graduate of Harvard University, Tripp Hawkins spent his early years as head of marketing at Apple, where he witnessed the company's rise firsthand. But in 1982, he resolutely resigned and founded EA Company! Therefore, he had high hopes for EA Company, and he had no intention of selling the company at all, and he himself held 45% of the company's shares! Weifeng Capital wanted to control EA Company, but it was very difficult!
After hearing this, Henry frowned deeply, "If we can't talk about it, we will give up this acquisition!"
At three o'clock in the afternoon, Tripp Hawkins arrived at Majestic Capital on time. Henry exchanged a few pleasantries with him and invited him to the conference room.
"Mr. Hawkins, let me take the liberty of asking, do you want to make EA the world's No. 1 game company?"
"Of course!" Tripp Hawkins nodded, thinking to himself, as he asked what he meant by this, and what kind of medicine was sold in the gourd.
"In that case, EA should accept the investment of Weifeng Capital!"
"EA can raise money through listing!" If it were an ordinary venture capital institution, Tripp Hawkins would definitely accept the investment, but Weifeng Capital had bad intentions and wanted to buy EA, which he would never allow!
"Mr. Hawkins, if a company wants to grow and grow, it is not only a matter of money, but also of connections and channels. We have a good relationship with Nicholas Group and Global Online, and if EA accepts the investment from Alpha Capital, it can be of great help in terms of online publicity! and technically, it can also get strong support!"
Tripp Hawkins was slightly surprised, he didn't expect the connections of Prestige Capital to be so strong. Tripp Hawkins lowered his head, thought for a moment, and said, "If Weifeng Capital promises to hold no more than 20% of EA shares, I will agree!"
My ultimate goal is to buy EA, and if the agreement stipulates that the number of shares held by Weifeng Capital cannot exceed 20%, then what do you want it to do?
No!!!
Since its establishment, Weifeng Capital has never been an ordinary venture capital firm, but a venture capital firm dedicated to serving Henry's company!
If he can't control EA, how can Henry integrate the game industry into his own Internet empire? This is a very serious problem! So, instead of not controlling EA, it is better to support or build a new game company. At least such a company would be at the mercy of Henry, and it would be easy to integrate it into its own empire!
Obviously, this negotiation ended in failure!
After Tripp Hawkins left, Henry shook his head and said with a look of pity on his face: "It's a pity for EA, ......"
"Are you sighing that you didn't buy EA?" asked Karina.
"No, I'm sighing for the future of EA. ”
"Why?"
"Because of me, EA's future fate must be very difficult...... Henry said lightly as he looked into the distance.
EA is not a good company, and it has done well in sports games, and as for other games, they are all made by acquiring other game companies. Henry said that he will take care of the well-known game companies that EA will acquire in the future, such as Distinctive-Software Studios that produced Need for Speed, Origin-Systems which produced Genesis, Bullfrog Company, a British studio that produced Dungeon Keepers, Maxis Studios, which produced SimCity, and Westwood Studios, which produced Command & Conquer...... (3rd Update...... New book for the top !!)
;