Chapter 693: Fight for MGM

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"The question is how high can we make an offer?"

Kongscart's words on behalf of Carl Corey made almost everyone present frown.

MGM's assets, revenue, net profit, return on equity and other data had been studied countless times before they decided to launch a leveraged buyout plan.

Now, the most valuable thing in MGM's asset system is that it has a library of 4,100 films and 10,600 TV episodes, as well as the rights to the most dazzling jewel in the crown "007" series, which has been filmed for 22 episodes and has now generated $12.2 billion at the box office, which is a big cake that all studios and capital covet.

As for the studios, locations and other facilities, they were sold out long ago during the time MGM was down.

As for its 1,440 people in production, distribution, logistics and other departments, the revenue contributed by 160 million US dollars this year is mostly achieved through the production of some small-budget films and the distribution of films from other companies. While this portion of revenue is acceptable, it is not enough to maintain the company's operations, but it is not enough to repay the principal and interest generated by MGM's $1.8 billion debt.

"Based on MGM's assets and revenue, $13 per share is the highest offer Providence can accept!" Dan Bailey said, his gaze quickly swept over everyone, and said slowly, "Moreover, if we really want to talk about strong capital, who of us here can compare to Bruce Guo who owns Phoenix Bank!"

The crowd's brows furrowed even deeper. Gary Barber, who is eager to get a huge benefit in this leveraged buyout and retire, has a very hard to see on his face. But the people at MGM haven't completely given up hope.

"Mr. Corey, MGM has the largest library in all of Hollywood and the highest-grossing film franchise, '007,' and it's totally worth the premium price from Kongscart!" said Gary Barber.

Hearing his words, the eyes of MGM participants in this negotiation lit up, and they all focused on Carl Corey, the chief operating officer of Kongscart.

Howard Stringer, Dan Bailey and others also subconsciously looked over.

Although the acquisition of MGM was led by Sony, it was Kongscart who had the most weight in the integrated consortium. Everyone still remembers Kongscart's shocking acquisition of Walt Disney in February this year with $54.2 billion in actual capital and $11.9 billion in debt, with a total price of $66 billion. Although it was eventually rejected by Disney's board of directors on the grounds that the price was too low, Kongscut's determination to form a super company that straddles 'transmission + content' is known to the entire Hollywood, as well as the American media industry.

What's more, Kongscut's 21.5 million cable subscribers, 5.3 million broadband subscribers, 1.3 million telephone subscribers, 2003 total revenue of $18.3 billion, and net profit of $6.4 billion let people know that the second-largest telecommunications company in the United States is not bad for money. If anyone here can compete with the wealthy Bruce Guo for MGM, there is no other one other than Kongscart.

Carl Corey was not a fool, and when he noticed the look in his eyes, he understood what was going on in their hearts. But while Kongscart intends to form a large company that straddles delivery and content, MGM is not worth the exorbitant price. And according to the company's assessment, MGM's real value is about $3.5~4 billion, and the price of $13 per share is equal to $3.055 billion. Add to that MGM's $1.8 billion debt. The total purchase price of the entire acquisition is $4.855 billion.

In fact, this offer, which far exceeds the actual value of MGM, would definitely not be willing if Kongscart were simply asked to come out. But it's not the same if you pull in Providence Equity Partnerships, Texas Pacific Capital Fund, DLJ Commodity Bank Partners, Quad Group, and Sony Pictures. They only need to contribute 20% of the capital, that is, 600 million US dollars, to get the right to use MGM's library of 4,100 films and 10,600 TV episodes, providing rich content for their own pay TV, online and other channels, so as to deepen customer stickiness and attract more new customers.

In this respect, although the actual value of $600 million is much higher than the actual value of MGM, the implied economic benefits are more than enough to cover the losses and obtain a higher return. In addition, if Sony really revitalizes MGM, the twilight movie giant, the 20% stake will still allow them to make a fortune.

It was precisely because of this consideration that even though he knew that MGM's price was inflated, he did not immediately dismiss Gary Barber's words.

"Guys, Kongscart is just a member of the consortium, and if we're willing to pay a high price, what about you?" quickly swept away everyone's faces, his eyes fixed on Howard Stringer, "Sony is an advocate of this acquisition. Mr. Stringer, if you want to raise the acquisition offer, shouldn't you Sony also show your sincerity?"

Howard Stringer thought for a moment before nodding at everyone's gaze.

"Of course! MGM Library's annual revenue is close to $600 million, and the copyright value of the "007" series is amazing, and it deserves a higher price from Sony!"

Although whether MGM is actually acquired at a higher price will need to be voted on by the company's board of directors before there is a result. But as the organizer of the takeover, he must maintain the stability of the group, at least until Sony makes a real decision.

Providence Equity Partnerships, Texas Pacific Capital Funds, DLJ Commodity Bank Partners, and the Quad Group, representatives of the four companies exchanged glances with each other. Compared to Sony and Constad, who have other plans. They simply invest in order to make a good return. If the offer continues to be raised, then there is no doubt that the risk of the MGM project will also increase rapidly, so their expression is hesitant.

"We need to go back to the board meeting before we can give a formal answer!"

Dan Bailey pondered for a moment before saying.

"The same goes for the Texas Pacific Fund!"

Representatives of DLJ Commodity Bank Partners and Sifang Group nodded in agreement.

At this point in the meeting, everyone understands that it is no longer possible to reach a unified agreement today. Although Gary Barber and MGM's representatives were dissatisfied. But they were weak in this meeting, and in MGM's embarrassing business environment, they didn't have much bargaining capital with big players like Sony Pictures, Kongscart, Providence Equity Partners, Texas Pacific Capital Fund, DLJ Mercantile Bank Partners, and the Quad Group.

After the adjournment was announced, everyone left. Howard Stringer, back in the car, sat in the back seat of his Lincoln stretch and pondered for a moment before pulling his phone out of his pocket.

"Bruce, shall we meet in the evening?"

"Howard, I've been waiting for your call. ”

"Seven o'clock tonight, Clover Country Club, I think you should know there. ”

"Of course!"

Guo Shouyun replied affirmatively.

Society is a big dye vat, in which there are clear classes, and each class has its own social circle. And the country clubs that can be found all over the United States are where the upper class often meets.

Clover Country Club is one of the top private clubs in Los Angeles, home to Hollywood's biggest names and the best in business, law and sports, making it the perfect place for those looking to take their careers to the next level.

"See you in the evening!"

"See you in the evening!"

After hanging up the phone, Guo Shouyun smiled faintly. The call, combined with the information he had gathered, gave him a rough idea of what Howard Stringer was going to meet and discuss tonight.

"Bang...!"

The astonishing movement made Guo Shouyun subconsciously look up at the basketball court not far away. With the violent shaking of the basketball hoop, a huge figure was letting go of his hands holding the basket, and his feet fell to the floor. Next to him were teammates who were a little annoyed and afraid.

"Smack!"

Larry Brown applauded lightly and looked at Yao Ming with admiration, "He is the only super center I have seen in all these years who can be comparable to Olajuwon on the inside! With Yao's existence, the Clippers don't have to worry about their interior problems for at least ten years." ”

"Compared with competition, Yao's economic value is more worthy of our joy. Since he joined the team and become a regular player, the Clippers' ad revenue has tripled. "Elgin Baylor, as the team manager, is clearly more focused on the team's revenue than the coach, who is more focused on the results of the game.

Noticing the admiration in the eyes of the two looking at him, Guo Shouyun was also secretly proud in his heart. Yao Ming is the best sports star in China for so many years, combining competition and commercial value. Although he pays more attention to football, he has also heard many classmates and colleagues around him share what it was like when they watched the Rockets play.

One of the most memorable things was when I first started working, and a buddy from a team said that they had a 20-minute break in the morning and a 10-minute break in each class. It takes two minutes to get from the classroom to the cafeteria, and four minutes to go back and forth. Just to be able to watch the ball for six minutes, every broadcast Rocket game day, hundreds of people rushed from recess to the cafeteria. No matter how simple the Rockets scored, the audience applauded.

The roommates who never watch the ball and the girls in the class can recite the names of Alston and Scola backwards.

Discussing "the Rockets point guard is too bad, when will Boss Fergus come back" became an early Nikkei topic. Weaver, Bunch Wells, and Novak are all hot spots at a certain time. In the fourth quarter, I can't rest assured that I don't have a 20-point lead.

Outside the school, all the restaurants that can't look at the central five are all bad. On weekends, in order to watch the whole game, the restaurant waited at the door before it opened. And many students who never go to an Internet café simply break their hooves and go to an Internet café to watch.

All kinds of crazy behaviors have made Yao Ming and Rocket the deepest memories of adolescence.

It is this madness that makes the economic value of Rocket and Yao Ming soar. In ten years, the value of Team Rocket has increased more than ten times. And that's not counting the part that Alexander took from the Rockets' profits, which was used for private investments in real estate and wine estates.

"Coach Brown, congratulations. You should be the first to be able to defend the title this year. Guo Shouyun said with a smile.

Last year, after defeating Duncan's Spurs in the semifinals, the Clippers swept the Nets in the East 4-1 and won the first NBA championship in franchise history.

This year, the Lakers, who also defeated the Lakers in the semifinals, who had an empty luxury roster but were at odds with each other. The final swept the Pistons, who did not have Billups, and won their second NBA championship.

The successive successes have also made the Clippers the top championship team in the entire NBA.

"The most important thing is that the players bought by the owner are amazing, otherwise I wouldn't have been able to lead them to consecutive championships!"

Guo Shouyun smiled and nodded, "Regarding the team's lineup, is there anything else that needs to be added?"

"The main lineup of the team has been running in for more than three years, and there is no need to make too many changes. It's okay to just reinforce in individual positions. ”

"That's good! I'm sure the Clippers will be able to create a strong dynasty under Coach Brown. ”

"I'll do my best!" said Larry Brown confidently.

"By the way, our arena and training facility in San Jose will be ready for use by the middle of next year. So this year is our last season in Los Angeles to make a big impression on everyone. It is also to lay the foundation for the use of the new venue. I think it's a good idea to win three times in a row!" Guo Shouyun nodded and said.

"We think so too!"

Larry Brown and Elgin Baylor looked at each other and laughed at the same time.

After patting the arms of the two of them, "Okay, you also heard it just now, I still have a party in the evening, so I left first." ”

"Goodbye, boss!"

"Goodbye!"