Long Island is known as the backyard of New York, and weekdays and weekends are two different scenes entirely. Especially on summer weekends, there is a large flow of people from the Big Apple. With its azure waters, soft sandy beaches, and beautiful bikinis, Long Island is a favorite leisure and vacation destination for New Yorkers.

National Golf Course, a golf course in Southampton, at the eastern tip of Long Island, is one of the top 10 private golf clubs in the world. Undulating fairways, bunkers and greens make the National Golf Course a paradise for golfers. It's just that the course is only open to the members of the club and the guests they invite, and ordinary people don't have the opportunity to play here at all.

Li Xuan occasionally went to play golf in Hong Kong, but his level has always stayed at the rookie stage, far worse than the other two people who play with him today. But now everyone's focus is on Li Xuan, some people cheered and some applauded, because he had just made another shot into the hole!

Could it be that the rebirth aura can also increase the luck attribute? Even Li Xuan felt that his luck was too good. Less than two years ago, he had already made a hole-in-one when he was playing in Hong Kong, and he didn't make a second shot today.

For most golfers, once in a lifetime chance to score a hole-in-one is a blessing. And Li Xuan has already met twice in less than two years.

"Lee, it looks like today is your lucky day!" said a blonde man in a cyan sports T-shirt next to him.

He is the current CEO of Citibank, Mr. John Reed, and a member of the National Golf Club. Li Xuan was stained with his light today to have the opportunity to play in one of the best courses in the United States.

Don't look at Li Xuan is now the richest man in the world. But there are some things that cannot be bought with money. To become a member of one of the nation's top private clubs like National Golf Course, you need to have more than just status. There are also long queues.

Especially a person like Li Xuan who became rich in an instant, in the eyes of the traditional elite and rich. In fact, it's no different from a hillbilly. Li Xuan remembers that in another time and space, Bill Gates publicly stated many times that he wanted to become a member of the Augusta Golf Club, but was rejected by the other party for many years. Li Xuan was not particularly keen on golf, and he didn't bother to apply for membership in these self-esteemed private clubs.

"My luck has been very good, this is the second time in two years!" Li Xuan took out his checkbook, filled out a check for $10,000 and handed it to his caddie, signaling that the extra tip at this time would be divided by him and several other caddies afterwards.

"I've been playing for more than 20 years. I haven't had such a lucky opportunity yet!" The third person who played with him was none other than Thornton Bradshaw, the chairman of RCA, who shook his head with a wry smile.

"Sometimes you have to admit that luck is part of the strength!" Reed set the ball, took the driver cue from the caddy, and prepared to tee off, "Now Lee has come from behind to become the leader!"

The hole was a par-3 and the first of the trio was Bradshaw, who missed a shot on the green and landed in a nearby bunker. And the second kick-off was Li Xuan. He made a splash and scored a hole-in-one. Therefore, the person with the best level of his level suddenly became the one with the best results among the three.

Reed was the only one left to tee off on the hole, and he practiced a few times before twisting his whole body with all his strength. The golf ball draws a perfect parabola. Landed firmly on the edge of the green 135 yards away. The ball landed a little further from the flagstick, but at least it was much better than the previous one that fell into the bunker by Bradshaw.

Reed handed the club to the caddie behind him and took off his white gloves. Walk along the fairway with two other people towards the green. Golf is a sport with a soothing pace, and you can communicate while playing. Hence playing golf. In the United States, high society is a very popular social sport.

"Thornton, I've been talking to John these days. Prepare to apply for a commercial loan from Citibank with Oriental Games Company as collateral. You might as well ask him how much he can value Oriental Game Company!" Li Xuan said with a smile to Bradshaw beside him.

The Eastern Group is not short of money, so Li Xuan's purpose of mortgaging the game company is obvious, and Bradshaw immediately turned his head to look at Reed beside him.

Reed nodded to him before he spoke: "Although we still need to make a more detailed assessment of Oriental Games, as far as my personal opinion is concerned, if Li is willing to use Oriental Games Company as collateral, our Citibank can give at least $2 billion in credit!"

Bradshaw was a little surprised, he and Reed were no strangers, and knew that the other party was not only a man of his own words, but on the contrary, a slightly conservative personality. He now dares to give a $2 billion credit, and Oriental Games has mortgaged it to Citibank, and the actual loan is likely to exceed $2 billion.

Is Oriental Game Company so valuable? You must know that banks will accept equity pledge loans, and they will be discounted by a certain percentage, which is generally not higher than 75% of the actual valuation of the pledged assets. In other words, Citibank's valuation of Oriental Games is likely to be around $3 billion.

"Thornton, do you know the net profit of Oriental Games Company in the first six months of this year?" Li Xuan said confidently, "$520 million!"

Bradshaw was so stunned this time that he even forgot to take a step forward, drawing curious glances from several caddies who were consciously far behind and not eavesdropping on their customers' conversations.

For example, GE, which just announced its financial results for the first half of the year yesterday, had total sales of $13.1 billion from January to June, but its actual profit was only $740 million. You must know that GE ranked ninth among the top 500 companies in the United States by Fortune magazine last year.

RCA has not yet announced its first-half earnings report, but Bradshaw naturally knows the actual situation of his company. The profit in the first half of the year was less than $250 million, not even half of that of Oriental Games. This makes him embarrassed!

Although the outside world can also guess that the Oriental Game Company is very profitable, if it weren't for Li Xuan's initiative to disclose the number of jù. In fact, it is difficult for others to figure out the true profitability of Oriental Game Company. In order to avoid taxes and other considerations, the internal structure of Oriental Games is actually very complex. For example, the copyrights of the most valuable games. In fact, it is not in the hands of Oriental Games, but in the hands of Li Xuan's other offshore companies in the Cayman Islands.

In order to raise funds for the acquisition of RCA, Li Xuan is ready to package and pledge the company's entire game business to Citibank, so he needs to undergo a detailed financial evaluation by Citibank, which gives the outside world a chance to get a glimpse of the real operating conditions of the game business of the Oriental Group.

In fact, the total number of employees of Oriental Game Company is actually less than 1,000, and most of them are game developers. RCA has a total of tens of thousands of employees, but its actual operating efficiency is far inferior to that of Oriental Games, which is much smaller than itself.

The profit margin of products such as televisions produced by RCA is also around 10%. But in the case of the "King of Fighters" arcade machine just released by Oriental Games, the manufacturing cost is around $800. But the ex-factory price is as high as $1,800, and the profit margin reaches an astonishing 125%.

The monthly sales volume of Oriental Game Company's arcade machines can be maintained at more than 55,000 units, and this alone can generate a profit of nearly 50 million US dollars per month. In addition, the profitability of the two major businesses of FC game consoles and GameBoy game consoles is also very unrealistic, so Oriental Games can make at least $100 million in profits every month.

Since the beginning of this year, Li Xuan has consciously begun to shrink his investment and withdraw funds. The computer park company, which used to be very rich in money, has gotten rid of its burden by going public. After several years of large-scale investment, the Oriental Research Institute also needs to slow down and digest it, and it has obtained a lot of revenue from the ERM and MIPS architectures. It is enough to maintain the company's own normal R&D investment.

Li Xuan plans to put the acquisition early next year, and he will be able to raise at least about $1.5 billion in cash from within the group. By pledging the equity of Oriental Games to the bank, Li Xuan is ready to obtain a loan of at least $2.5 billion from the bank. After all, with the current strong revenue capacity of Oriental Game Company, a loan of $2.5 billion is only a profit for two or three years.

In this way, Li Xuan will be able to raise $4 billion. It's about the same as the actual market value of RCA now. But this is not enough, he will definitely need to buy at a premium at that time, so he also needs to pledge a part of the shares of the computer park company and Aikang company. Raise another $1 billion to $1.5 billion.

Since both companies are listed companies, the pledge of more than 5% of the shares by the majority shareholder requires the approval of the board of directors. and make an announcement to the public. This is a little inconvenient for Li Xuan, who is easy to leak news and startle snakes. Therefore, he will wait until the acquisition begins.

Bradshaw's heart was already turbulent at the moment, and the two had met several times since Li Xuan came to New York. Bradshaw knew that the other party had not dismissed the plan to buy RCA, but he didn't care.

Because in Bradshaw's opinion, Li Xuan does not have the strength to annex RCA, and after the other party has tried, he will naturally retreat. The two met several times before, and the content of the discussion was not about Dongfang Electronics' acquisition of RCA, but about the future development of RCA.

Li Xuan was able to start from scratch in just a few years, making efforts in many fields such as games, semiconductors, and personal computers, and building a huge Eastern empire. Bradshaw naturally recognized the young man's abilities and was very interested in hearing his suggestions for the next development of RCA.

In Li Xuan's view, the problem with RCA is that it is big but not strong! At present, the two core businesses of RCA are the television division and the NBC broadcasting company. In Li Xuan's view, NBC's value accounts for at least half of RCA's total market capitalization of $4 billion.

In addition to these two main businesses, RCA has many other complex businesses. For example, RCA not only produces televisions, but also electronic products such as radios, record players, video recorders, and photographic equipment. In addition, RCA has a blanket production company, a small insurance company, an RCA record label, as well as a semiconductor division, an aerospace division, etc.

From the end of the 60s, RCA's main television business was defeated by the challenges of Japanese companies, and the company's top management began to diversify. However, this transformation obviously did not succeed, and instead caused RCA to be overstaffed and redundant.

After taking over as chairman of the RCA's board of directors in 1981, Bradshaw also underwent drastic reforms. NBC Broadcasting, as an independent subsidiary, has been operating well. Therefore, his main task is to revive the company's success in the television business.

In order to reduce the cost of production, after Bradshaw became chairman of the board, he forcefully closed RCA's TV production line in the United States, and transferred all production capacity to Mexico, where labor is cheaper. However, the results of his actions were not obvious, and Japanese TV sets were still able to maintain a price advantage over the finished products of RCA.

And RCA, after an internal analysis, came to the conclusion that the Japanese did not think about profits at all and had been dumping at low prices in the American market. Although Bradshaw actively lobbied the U.S. government for tougher sanctions, the U.S. television industry was actually killed by Japan in the seventies.

Unless Bradshaw can reduce production costs lower than the Japanese, it will be difficult for RCA to survive the encirclement of Japanese television. In fact, even the capital market is not optimistic about the future of RCA.

Beginning in late 1982, after the U.S. recession ended, the stock market began to enter a new bull market cycle. However, RCA's share price in this bull market is very depressed and has not risen strongly. In Bradshaw's view, RCA's current total market capitalization of $4 billion is quite undervalued.

In fact, after the trip to Hong Kong, Bradshaw has been considering Li Xuan's proposal at that time, which completely outsourced the TV manufacturing business to the construction of an Asian factory. This practice is not without precedent within RCA, for example, most of the video recorders sold by RCA are produced by Japan's Panasonic company. (To be continued......)

PS: The second chapter will be later