Chapter 696 Proposal for Merger

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In a two-tier network service model, network operators can charge additional fees to website owners who enjoy priority location and faster speeds. This means that if you spend more, you'll be able to enjoy higher speeds of broadband and a better internet experience. Just like 5G and 4G, in the same Internet environment, Internet companies that provide 5G broadband services are definitely more popular than Internet companies that provide 4G broadband services.

This also means that rich large Internet companies can rely on strong capital to crush small and medium-sized Internet companies, and the stronger the stronger. At the same time, users have to pay for the expenses of the big Internet companies. And the real benefits are AT&T, Kongscat, Verizon and other telecom service providers.

"If it's just a matrix company, 'net neutrality' doesn't matter to me. But if you stand in the shoes of Ruby and Google. I am a proponent of 'net neutrality', otherwise we will have to curry favor with you operators in addition to providing better service to our customers." ”

Carl Corey smiled, "Although Mr. Guo doesn't like it. But network operators, including Conscat, AT&T, Verizon, and all telcos, will try to overturn 'net neutrality'. Although it now seems that the law and public opinion are biased in favor of the principle of 'net neutrality'. But in the future, when Google, Amazon, Ruby and others stabilize their leadership positions, in order to suppress the subsequent competitors, they may not be so opposed. When it fails, the principle of 'net neutrality' will not exist. AT&T, Kongscart, Verizon will all get big gains. ”

Carl Corey's words were visionary. Before Guo Shouyun was reborn, he clearly remembered that the Federal Communications Commission of the United States voted to overturn the 'net neutrality' regulations introduced during the *** administration. Under the new regulatory scheme, broadband Internet access and mobile networks are no longer classified as 'public utilities', but are reclassified as 'information services' and 'private mobile services'.

In this competition, Kongscat, AT&T, Verizon and other telecom providers won completely!

"Mr. Corey's words may become a reality in the future, but for now. It's not easy for telcos to overturn network neutrality. Guo Shouyun said.

"In a few years, Kongscart can afford to wait. However, Mr. Kwok has always been long-term. Haven't you thought about planning for the future?"

"What do you mean?"

Guo Shouyun's eyes narrowed.

"Invest in telecommunications companies, for example!"

Looking at Carl Corey's glittering eyes, Guo Shouyun said indifferently: "You don't mean to let Kongscat buy the matrix company, right?"

"No, it's not an acquisition, it's a 'merger'!"

Carl Corey accentuated his tone as he said the last two words.

"Now that Kongscart has a market capitalization of $62.46 billion, Matrix, although not listed, is assessed to be no weaker than Disney's $48 billion. In the event of the merger, Mr. Kwok's stake in Matrix will undoubtedly become the majority shareholder of Kongscart Matrix. Take control of a massive company with a market capitalization of over $110 billion, combining content and channels, and truly stand out in the media and telecommunications industry. ”

The merger of media and telecommunications almost became the mainstream of Hollywood before Guo Shouyun's crossing. And knowing that the revenue of the telecom company will continue to grow with the popularization of the Internet and mobile phone Internet, he does not mind letting Kongscart and Matrix merge, but if the merger is merged, he must get absolute control of the new company.

"Is this proposed merger Mr. Corey's own attention, or is it a decision of Kongscat's management?"

Seeing that he didn't immediately refuse, Carl Corey's expression immediately became invigorated.

"Although now it's my own decision. However, Mr. Guo understands that Kongscut's acquisition of Disney some time ago, although it failed in the end, the company's determination to enter the media industry and enrich the content side is also clearly known to the outside world. Matrix is a more promising media company than Disney, especially in film and television. If Mr. Guo agrees to merge. I guarantee that Kongscat's management and board of directors will give it serious consideration and will ultimately execute it!"

"I am more than willing to believe in Mr. Corey's competence and assurance. But if this is carried out, it will involve a huge transaction of hundreds of billions of dollars. Everything has to be considered in the long run. Also, I'd like to see this happen after the Matrix buys MGM, otherwise the consequences of distraction are often not too good. Guo Shouyun nodded and said.

Carl Corey thought about it briefly and nodded. Regardless of whether the merger between the two parties will succeed in the end. Without Sony Pictures as a key ally, it would be too risky to buy MGM Pictures at a premium of nearly 40 percent. After all, Kongscart has no experience in the film and television industry, and MGM's three consecutive years of losses can hardly make people trust enough.

Regarding the merger between Matrix and Kongscat, Guo Shouyun and Carl Corey reached a verbal agreement and promised each other that they would not reveal anything about the merger to the media until the dust finally settled, and Carl Corey left in a hurry under Guo Shouyun's send-off.

"Boss, did you really decide to merge with Kongscut?"

Back in the office, Buddy Morris, who had been with him all along, asked.

"You don't think it's appropriate?"

After waving his hand to sit down, Guo Shouyun asked.

"Matrix is a media company, while Kongscat is a telecommunications company, and the two sides are not involved in the same field. If we merge, I am afraid that it will be difficult for the two parties to integrate into one company in the face of two industries that are unfamiliar to each other. In addition, now the matrix is in a period of rapid expansion, "Pirates of the Caribbean", "National Treasure", "Harry Potter", "Fast and Furious", "Marvel Universe", "Dark Universe", and the "007" series after the acquisition of MGM, plus "Transformers", "Smart Ghost Record", "Tales of the Night" and other film and television rights, just through the movie box office, and peripheral product revenue, we can get more than $7 billion a year from it. ”

"Matrix Games has been in existence for five years and has increased its revenue by more than 67% per year. Pixar, Marvel Comics, Matrix Records are thriving, and we're already earning more than $2.4 billion a year from them. Matrix Cinema has become the most luxurious cinema in the world. After the expansion of Universal Studios, the revenue of Universal Studios also continued to grow. And in another two to three years, three giant Universal Studios in Singapore, Huaxia Magic City, and Beijing will also open. We'll be earning twice as much from theme parks. ”

In terms of radio and television, "The Voice of America" and "America's Got Talent" continue to be popular, and "Prison Break", "Lost", and the just-released "The Big Bang Theory" have become American phenomenal TV series. After obtaining the NBA broadcast rights for five years, CW Sports Channel has obtained the broadcast rights of 11 events such as the English Premier League, the Bundesliga, Wimbledon Tennis Open, and the World Athletics Championships. Although the CW public television is not as influential as NBC, CBC, ABC, and Fox, it is also the fifth largest public television network in the United States and the fastest growing one right now. Canal+, TNT, the two major pay-TV stations, as well as Hulu streaming, are also increasing in subscribers. ”

After a pause, Buddy Morris calmed down, "Boss, we are not Kongscutt, their telecommunications business has developed to the peak, and they can only rely on continuous mergers to meet the growth of performance." We're different, and we still have a lot of room for improvement. Merging wasn't the best option for us. ”

Guo Shouyun looked at the subordinates in front of him who were already very familiar with him with some surprise.

"Buddy, it seems that you have really grown a lot in the position of CEO of Matrix Company over the years, and you would never say such things before!"

A hearty smile appeared on Buddy Morris's swarthy face.

"The matrix company is growing day by day, if I, as a manager, can't keep up with its pace and quickly improve my ability, I'm afraid even with your support, I won't be able to stay in this position for long!"

Guo Shouyun smiled and nodded, his subordinates never wanted mediocrity.

"There is a lot of room for improvement at Matrix, but that doesn't stop us from negotiating a merger with Kongscat. When the time comes, we just need to quote our premium higher. And, if we merge and we get control of the new company, what's the difference between Matrix Kongsit and Matrix?"

"But in the long run, you're at a loss!"

Guo Shouyun waved his hand, "Although in the long run, I may lose some money in capital gains." But the industry and social impact of owning a strong, $110 billion company that is still growing has more than made up for it. … Buddy. Money, I'm not short of it. But industry influence is not easy to build. ”

"In addition, with the increasing number of Internet users in the United States, Kongscat's business as a U.S. broadband provider is also growing, and our merger with the other party may not be as you might expect, and it will be a financial loss. ”

"And if you look at Time Warner, if it weren't for the huge revenue that Time Warner Cable provides every year, Time Warner would have been killed by AOL. ”

Buddy Morris nodded.

"If we merge with Kongscat, how much will we pay a premium?"

"As long as we are guaranteed to get an absolute controlling stake of 51%, then this premium is the most appropriate premium!"

There is a merger between AOL and Time Warner, but the two sides continue to fight, dragging down the company's performance. Guo Shouyun definitely didn't want to make the same mistake with the merger of Matrix and Kongscat. Either he holds the power of the company and sweeps away all those who dare to challenge his authority, have little ability, and disregard the overall situation, and govern with an iron fist, or he is willing to abandon the merger.