"Announcement of major changes in the equity of Wang An Computer Company: On November 11, Tiankun Entertainment Company and Gu Biao {natural person} purchased more than 10% of the equity of Wang An Computer Company.

From now on, Gu Biao launched a privatization offer for Wang An Computer. Any natural person or legal person who holds the equity of the company may sell his shares in Wang An Computer to Gu Biao {natural person} at the average price of the 30 trading days with the highest transaction price in the previous 90 trading days, plus a 50% privatization premium.

The privatization offer period lasts for 90 days, and within 90 days, if the proportion of outstanding shares in the market is reduced to less than 5%, the privatization process will be declared successful, Wang An Computer will be delisted as scheduled, and the equity of the holders of tradable shares will be automatically converted into non-tradable shares.

Within 90 days, if the proportion of outstanding shares in the market remains above 5%, the privatization process will also be terminated, but the company will continue to be listed, and the previous equity transaction will remain valid......"

On November 11, 1987, the relevant agencies of NASDAQ finally released this public news worth thousands of dollars. It indicates that Citibank finally decided to cut the meat and retreat.

The choice made by Gu Biao was not only to take Citibank's shares, but also to let Wang An Computer Company delist from the NASDAQ, that is, privatize.

Since then, my brother has stopped playing with stockholders. With such a high-quality asset, it's good to make a lot of money by yourself, and you don't need to rely on the stock market, anyway, the cash flow profits can't be used up.

If the stock dog wants to play, the brother will throw a little bit of garbage stocks such as Tiankun music in the future and give it to the stock dogs to grab.

Meat is impossible to have meat, and it is good to give bones.

In the case of privatization, because it is necessary to induce the shareholders of outstanding shares to sell their shares and exit, it is necessary to give a premium higher than the current stock price, otherwise it is not beneficial for others to sell.

Generally, this premium is at least 20%.

If the privatization initiator is in urgent demand, and the stock price has fallen significantly and is undervalued, then 30% is also normal.

And the premium given by Gu Biao this time is 50%, which is said to be the price of absolute conscience, and this 50% is not added at the lowest level, it has to be the average price of the previous 90 trading days and the 30 trading days with a higher stock price, so it is absolutely blameless. Even in the past 90 trading days, Wang An Computer Company has been at the ultra-low level of the stock market crash, which is enough to make up for the injured hearts of retail investors.

Many people who are not familiar with the privatization process may think that privatization can only be achieved if all outstanding shareholders are willing to sell their shares at this premium.

In fact, there is some misunderstanding here, because there will always be die-hard nail investors who are not willing to sell their shares, and if they really pursue 100% recovery, it will inevitably lead to the failure of all privatization processes.

Therefore, the U.S. stock market has set a red line, that is, 95% privatization.

If the shareholding ratio of nail investors who refuse to sell no matter how the offeror bids is less than 5%, then these nail investors will not be able to prevent the delisting.

They will only speculate on stocks and become long-term shareholders. After privatization, there was no longer an opportunity to monetize through the circulation market. When he wants to cash out, he can only sell to other shareholders of the company first, or don't cash out for the rest of his life, and keep the shares and other dividends.

……

A few days later, in New York, Peterson, a trader at the Blackstone Fund, reported to Gu on the latest privatization progress:

"Based on the average price of the highest 30 trading days in the past 90 trading days, Citibank's 45% stake has a final base value of $440 million, and the final buyback price is $660 million after a weighted 50% privatization premium, and the deal was closed last week.

In the five trading days of the first week after the privatization offer was issued, 4% of the remaining 11% of the outstanding retail shares opted to accept the offer to exit, and 3% accepted the offer to exit in the second week. Therefore, as of November 21, the current outstanding shares in the market have fallen to 4%, which is lower than the statutory lower limit for nail households.

In addition, the traditional management of Wang An Computer also sold internal restricted shares at a privatization offer price, but the proportion was relatively low, accounting for only about 3% of the total share capital.

So far, you own a total of 45% of Citigroup's shares, plus the original 9% of the outstanding shares, the 7% of the new outstanding shares after the privatization, and the 3% restricted shares absorbed internally, for a total of 64%.

In terms of the remaining shareholding structure, Wang An holds 21%, the outstanding shareholders hold 4%, and the rest of the senior management and internal shareholders total 11%. So far, all of your equity acquisition expenses for this privatization have totaled $950 million in cash.

Now, you can immediately declare the privatization successful and the privatization process over, in accordance with the law. You can wait a little longer, if you want to take in 4% more of the outstanding shareholders and 11% of the other internal restricted shareholders. ”

"64% is enough, you can't be too greedy, if it exceeds 70%, let others not even retain a veto, then it is not very like a technology company, and the public will not trust it." We can't put on the appearance that we want to eat and wipe clean and harm the interests of minority shareholders. Gu Biao expressed his position very knowingly, and motioned to Peterson to help him accept it when he saw it.

Peterson told him that "the privatization cost a total of $900 million to acquire the entire equity," and this price includes all the expenses that Gu spent on the circulation market before the privatization process was initiated, as well as capital taxes and fees.

However, Gu Biao's previous expenses on poaching technical talents and acquiring technology patents from Wang An Computer Company were not calculated. The money for those layouts is all added up in bits and pieces, and when you add up all the indescribable costs of hiring lawyers and building momentum for media outlets such as the Wall Street Journal, the total is more than 200 million.

All of them are calculated, Gu Biao spent a total of 1.2 billion US dollars in order to seize 64% of Wang An's computer's shares, let it delist safely, and transfer some technology and talents.

This is almost the cash flow that Gu Biao has earned in the past few years After the hollowing out case of Texas Instruments, Gu Biao's remaining cash was only 40% at most, which was invested in the investment and construction of Xiangji. The remaining 60% is used as a short-term investment, or a part of the reserve fund is set aside.

Before the stock market crash a year ago, Peterson also helped Gu Biao make a small profit from this part of the funds in the technology stock bubble, with a profit of two or three billion US dollars.

Now, most of the remaining principal after investing in Xiangji, plus the money earned in technology stocks in the first half of the year, has completely spit back.

1.2 billion US dollars were spent, and Gu Biao's cash flow on hand shrank sharply again, and the cash he could get was only two or three hundred million US dollars at most, which could almost be said to be poor again.

These two or three hundred million US dollars are still the hard work of Tiankun's game console business in 85 and 86, and it is definitely not easy fast money.

It's not easy to do business, don't look at Gu Biao's current holdings of Tiankun and Xiangjidian, and also indirectly control Xia Wei Communication, which has only been established for a year, at present, what really stabilizes Gu Biao's profits every year can only be counted on Tiankun.

At least the first five years of the semiconductor chip industry have been pure gold-swallowing monsters, even if the revenue is raised, the money will be reinvested in re-expansion, and it is impossible to feed back to Gu Biao dividends.

The communication electronics industry is a little better than the semiconductor chip industry, but it is also necessary to lose money in the first year and barely maintain capital in the second and third years. If you can make money directly in the first year of entering the industry, it is a short and fast business like a game.

Oh, Gu Biao's business in Hollywood's production and distribution companies, as well as his cinema supporting projects in the mainland and Xiangjiang's entertainment layout, add up to provide Gu Biao with tens of millions of dollars in net profits every year.

When it was bleak, it was 10 or 20 million a year, and at the best time, it was less than 50 million, mainly depending on whether big artists like Cameron gave face, and they couldn't make a hit that year. Or Gu Biao's record company in Xiangjiang, did there be a new gold-absorbing and explosive singer back then, and sold explosive records repeatedly.

All in all, Gu Biao's current net profit for a year, that is, 200 million, is from the pan-entertainment industry, with more than 150 million yuan for game console companies, and the rest of the other pan-entertainment businesses have made up for the tens of millions, adding up to barely more than 200 million.

{The cost of donating money to do good deeds has been removed, and the 20 or 30 million US dollars a year in Monaco have not been counted, because those money will have to be donated to do good deeds sooner or later when the time is right.} }

Now that he has won Wang An's computer, Gu Biao also has time to sit down and take a good look at it.

Xiangjidian was put into production at the end of 85, and Xia Wei was put into production this year, that is, in the middle of 87. According to the calculation that there is no profit in semiconductors for five years and no profit in the communications industry for two or three years, these companies will basically have to wait until after 1990 to go through the blood transfusion period and enter the outbreak period.

In the next three years, to get rid of the dilemma of only the pan-entertainment industry led by game console companies to generate profits, the key depends on whether Gu Biao can transform Wang An's computer to restore profitability as soon as possible.

The ability of the personal computer industry to quickly generate profits is still much faster than that of the semiconductor chip industry and the communication electronics industry.

In particular, Wang An Computer originally had a market share of seven or eight million business office machines in the United States, and also had an occupancy rate of one or two million units in the European market, and its reputation and popularity in related circles have always been the first in the industry.

Wang An's decline was nothing more than because after Wang An himself became seriously ill, the new product development plan for nearly two years was stagnant, and no one had the ability to coordinate and promote.

Now in the hands of Gu Biao, Gu Biao wants money, money, resources, resources, and even can coordinate a lot of outsourcing, and after making up for the replacement products, there is absolutely no problem in extending the life of Wang An Computer to the completion of the transformation.

Gu Biao estimates that after Wang An's new generation of products came out, until the appearance of Microsoft's win95 operating system, which is equivalent to Microsoft's history, these years have been a good time for Wang An to make a profit.

There is a historical basis for this, because Apple has lived well since the advent of the Macintosh II computer in 1988 and until the advent of Win95. Apple's first wave of recession after Jobs' departure took 96 years to fully erupt in history, and then lasted until the beginning of the 21st century, when Jobs came back and got iPoD.

After all, the market competitiveness of ms-Dos is completely incomparable with the later winDows system.

Since Apple can make a lot of money in the past six or seven years in history, Wang An, who has been reorganized in the hands of Gu Biao, naturally has a chance.

Of course, the premise of such a dry operation must be to card the position of Apple in history, otherwise under the impact of the tide of open operating systems, how can one earth still accommodate two big names in closed operating systems.

"Now that the privatization is complete, I will hold a meeting with all of Wang An's executives in the next few days to discuss the R&D plan. Our goal is clear

The new generation of computers can no longer be limited to the narrow range of functions such as office software, we must surpass Apple in all aspects, and we cannot just be satisfied with the current situation, only superior to Apple in business office. ”