New Global's IP underwriters include six or seven banks, all of which are world-class financial giants.

0.% rake...... It's not enough.

The reason why everyone has a good relationship with New Global and wants to undertake the IP operation of New Global is because it is profitable and profitable!

It is by no means comparable to the 0.% dividend.

Wall Street's investment banks, in effect, act as both athletes and referees, taking advantage of this privilege to make a lot of money.

For example, when Hollywood agents fight for the remuneration of their actors, all the remuneration will go to the actors, and the agent only takes about 0% of the share. If it's a superstar, the rake will be lower.

If the actor asks for a $0 million salary, the agent uses his ability and connections to win a $20 million salary. So can this $0 million spread fall into the pockets of brokers?

Of course not!

$20 million belongs to the actors, and the agent can still only take a cut.

That's what the intermediary is.

The underwriter is essentially an intermediary.

But the big investment banks obviously don't have the professional ethics of Hollywood agents, and they play a two-pronged game.

Assuming that New Globe has an issue price of $200 for IP, then New Globe's 200 million shares can be accounted for $40 billion.

If in the process of IP, New Global's stock is sought after and loved by investors, and the stock price is speculated to $300, where does the $00 difference go?

The difference of $00 is matched with the size of 200 million shares, which is $20 billion!

It's a huge amount of money!

Will this spread go to New Global's account?

No!

New Globe will only get $200 of the issue price, and the subsequent price increase has nothing to do with New Globe. The $00 that is speculated up will fall into the hands of investors and investment banks who have turned their hands.

What's more, big investment banks will play the trick of being both buyers and sellers.

For example, New Universal licensed an offtake of 50 million shares to Citigroup Pictures. Citibank itself is the largest investment institution, and when you see high-quality stocks, you can buy them yourself!

So, this makes it difficult for investors to buy a lot of shares from Citibank, because Citibank buys it first!

This will indirectly lead to fewer new global stocks circulating in the market, and odd goods can be inhabited and the stock price will be inflated. Citibank then took the opportunity to sell stocks and make a lot of money.

Compared to the 0.% commission, this is how Wall Street investment banks make money.

So it's clear.

On the surface, the higher the issue price of New Global, the higher the total amount of IP financing, and the more dividends and profits investment banks get.

In fact, quite the opposite.

The lower the issue price, the more conducive it will be to the investment bank's future profits in the IP process!

Because once it breaks, the speculative behavior of investment banks will make them suffer huge losses.

It's a gambling process.

New Global wants to raise the issue price, and the underwriters want to lower the issue price.

Listing is a financial act, and New Globe must rely on the major investment banks on Wall Street.

There are still a few big investment banks that have not participated in New Global's IP, and those who have already cooperated with them dare not push New Global too much. If he annoys Donne, he slaps the table and breaks up and finds other investment banks to cooperate, then he won't make a penny.

Therefore, whether it is New Global or investment banks, in the negotiation of the issue price, they must work hard to fight for it, and they must be restrained, and they must not squeeze the other party too hard.

To be profitable, everyone earns money together.

At this time, you can't eat alone like New Globe in Hollywood, because this is cross-industry competition, and New Globe has little energy in the financial field, and must rely on Wall Street to share interests.

Relying is relying on, but what should be fought for must be fought for.

The more New Globe earns, the less Wall Street earns, and the less New Globe earns, the more Wall Street earns.

It's going to be a tough one.

The sole purpose of convening this highest-level financial conference today is to unify thinking!

At this critical moment, no one can drop the chain for me!

No matter who is lobbying behind you, no matter how important the connections are behind you, you can't back down at this time!

Grit your teeth and persevere!

The issue price of $40 is nothing to think about.

An issue price of $300 is also unlikely.

But Donn made a request, $250 guaranteed!

The issue price of $250 is just enough to raise the market value of New Globe to a height of $300 billion.

This is New Universal's top secret.

No matter how hard Wall Street tries, this bottom line cannot be breached!

Hearing Don say that the bottom line of the issue price was $250 made many people in the venue secretly relieved.

They were afraid that Don would really offer an issue price of $300-40!

If New Globe does this, there really can't be anything on Wall Street.

But the next thing can be imagined, the IP will fail, the stock will be unsold, and then Wall Street will be bad.

The cost of dealing with Wall Street is too great.

The most typical is Elon Musk.

In his previous life, he repeatedly opposed Wall Street, and then the Tesla he managed frequently encountered short-selling crises, and the stock price plummeted frequently, and several major investment banks jointly downgraded their ratings and lowered their expected stock prices, which led to the collapse of the market. For this reason, what is the use of Elon Musk shedding tears on TV several times and denouncing the meanness of short sellers?

The financial markets are in the hands of Wall Street.

This is other people's territory, and if you don't obey, you will be beaten.

Wall Street must not be turned against for short-term gain.

Don naturally understands this truth.

Otherwise, he wouldn't have been borrowing "9·" After the incident was taken into the stock market, it was withdrawn. In fact, he also knows too many short signals about futures, oil, and subprime mortgages.

But he couldn't operate anymore.

This is tantamount to stealing money from Wall Street, and repeating it over and over again.

Relations with the big banks on Wall Street must not deteriorate.

……

The next day, Don received a fax letter from Citigroup, the general adviser to New Globe's IPO.

The letter was high-sounding, claiming that "market expectations have been greatly raised because of the particularly beautiful financial statements of New Globe in the second quarter." After the study of several chief economists of Citigroup, Goldman Sachs, Morgan Stanley, and other investment banks, it was decided to greatly raise the expected issue price of New Globe to $96!

The letter is very long, and the various reasons for the investment bank's offering price of $96 are also noted below.

One of the main ones is to lower the price-to-earnings ratio.

Quite simply, the issue price is a chance between the net profit per share and the price-earnings ratio, which is a linear relationship.

Net profit is the exact data, and if you want to lower the issue price, you can only lower the price-earnings ratio.

The reasons given are also powerful.

New Globe's profit in the first quarter was only $300 million, but in the second quarter, it soared by $2.7 billion to $4 billion!

Why?

The most fundamental reason is that since the second quarter, New Global has opened up a new business.

Dolby DVD players are now on sale!

This highly compatible DVD, HD-DVD and Blu-ray player is still the most advanced DVD player in the world and costs a whopping $299!

Since its launch in April, it has sold more than 320,000 units worldwide, generating $4.26 billion in revenue and $3 billion in gross profit for New Globe!

Almost half of New Globe's $4 billion net profit in the second quarter came from Dolby DVD players!

There is no technical difficulty in this kind of thing.

The reason why Dolby DVD players can make so much money in a short period of time is that there is currently only this highly compatible DVD player in the world, which monopolizes the market. After a while, other manufacturers will also produce similar products, and the sales of Dolby DVD players will definitely decline significantly.

This is one of them.

Second, the Dolby DVD player is a hardware product, and it is not a high-tech hardware product like Cisco and Qualcomm, but a very common functional hardware product. This type of hardware business has a lower price-to-earnings ratio, usually between 0-2.

With such a high weighting ratio, the P/E ratio of the Dolby DVD player business is so low, which will greatly reduce the P/E ratio of New Globe Group as a whole.

In the past, investment banks have given New Globe a price-to-earnings ratio of between 30 and 35.

Now it's changed, it's between 5-20.

Twice as small.

Based on such a P/E ratio, it is normal to give an issue price of $96.

Because the net profit is determined, the dispute over the issue price is essentially the battle for the price-earnings ratio.

Donne, of course, will not be satisfied with the answer given by the investment banks.

The Dolby player business has low potential and low leverage, and that's fine.

However, in Wall Street's assessment, they only saw the Dolby DVD player business, but they did not see the two aces of Faebk and Netflix!

These two Internet companies, the leverage of 500 times is not too much!

Wall Street this is a small amplification in the typical catch!

In the future, Netflix will not be split from New Universal, Faebk will definitely be split, and it will be a Big Mac.

Now it can't be split.

Faebk's money-burning attribute is too strong.

Once split, New Globe and Faebk will become two companies, and New Globe will not be able to use all resources to support Faebk regardless of the cost and consequences.

At that time, Faebk, which operates independently, will definitely look for other foreign aid in order to develop, and even have to give up a lot of shares to attract strong reinforcements. This, in turn, will further dilute the shares.

The best outcome is to go public now and use the power of New Global to help Faebk develop.

After Faebk becomes bigger and stronger, it will be spun off and let Faebk be listed separately.

Such a potential trump card is hidden within New Globe, and in Done's view, New Globe's current P/E ratio assessment is not too much between 30-35.

Wall Street's P/E ratio of 5-20 is ridiculous!

"In the past, it was said that New Global's internal offering price assessment was $300-40, even if it was the minimum standard of $300, which was very different from their $96 issue price assessment. Given the respect for Wall Street, I am willing to take a step back and go down again...... $4! That's $296!"

Gambling, tug-of-war, bargaining.

Tang En's face was peaceful.

It seems that he intends to fight with the big investment banks on Wall Street.