Chapter 73: Acquisition of Atari (1)

PS: Thank you to the Lord of the Nine Prisons, but all the names of the awesome people are always too eye-catching and waiting for the reward of book friends! These two days are two watches, I wanted to continue, but God doesn't give me a chance! My computer was stolen, for the time being, I can only use my mobile phone to type, I am not used to such code words, although it is very convenient, but it is not in the state at all! It took a day of intermittent work to finalize tonight's chapter! I hate it...... From tomorrow onwards, it's time to resume one shift a day.,Wait until I buy a new computer and two more.,I'm sorry.。 Pen? Interesting? Pavilion wWw. biquge。 info。

The world is often so strange, some people are comfortable, then there must be people who are very unhappy.

In the conference room of Warner Bros. Communications in New York, in a smoky conference room, there are four people, who are the four sons of Warner's founder, who are discussing the acquisition of Atari by the Hurricane Investment Company, which came out of nowhere a few days ago.

What to discuss?

Discuss whether this company, which has been 'losing money' for two consecutive years, should be sold, because three years ago when the company was acquired, but after spending $28 million in cash and $100 million in investment, the company's output value has not increased at all, but has continued to shrink, and the company's other computer project can only remain flat when the personal computer is hot by the fruit company.

This is the fundamental purpose of their gathering and discussion, is it to grit their teeth and persevere? Or a sell-and-cash sale? It's a conundrum in front of them!

Because of the Christmas consumption period last year, a total of 350,000 to 400,000 sets of machines were sold. The first batch was made on a production line near Atari's headquarters in Silicon Valley, California, and the machines were so heavy that gamers nicknamed them "Heavy Six" because of the six switches on the front of the machine, and some of the machines were delayed due to production process problems, resulting in losses of up to $25 million.

Last year, the production line was relocated to ChinaAMC Hong Kong, and the new version of the console has improved its shell and production process, and is much lighter than the previous California version. Atari produced 800,000 consoles that year, only 550,000 were sold. Atari therefore needed to apply to Warner for financial support to fill the funding gap.

As a result, Warner began to be dissatisfied with Atari's founder, Bushnell. In view of this, several Warner Bros. family members decided to remove Bushnell in order to eliminate the negative impact of Bushnell's misjudgment of the operation of the console market at the time.

So, at the behest of the four Warner brothers, Bushnell had to sign a lucrative seven-year non-compete agreement with the company in November 1978, and when the term expired in March this year, he resigned from his position at Atari and left the company he founded to take up a new position at Warner's Pisa Times Theater.

Now that the chairmanship of Atari has been vacant, they are already looking for a new chairman, and it doesn't matter how many days the chairmanship is vacant, but it can't be vacant forever! However, this candidate is not easy to choose, good technical personnel are not necessarily suitable for managing the company, and people who can manage the company may not know much about this industry, which is really sad.

This problem has not been solved, however, a new problem has arisen, and that is that someone wants to buy this company. Although this company did not make much money for them, but in a continuous state of loss, these people did not have much confidence in the future development of this company, so this made them extremely entangled.

Is it to continue to select managers so that the company will continue to be under the Warner Bros. banner? Or will you sell the company off for a large sum of money to invest in other areas? It's a choice dilemma that four people need to face today!

And it is very coincidental that whether it is the former opinion or the latter opinion, the people who support it are 2:2, the usual voting rules, become useless here, the only old chairman who can make a final decision, has passed away last year, leaving the four brothers to co-preside over the company.

In the end, the boss spoke: "Our brothers have also been discussing for a few days, and a lot of time has been wasted, and there are few useful ones, and they are still standing still!" I've been secretly thinking a lot about it these days, what is the main business of our company? ”

What is your main business?

The other three brothers also muttered in their hearts, do they still need to ask? Music, cable and movies, of course.

"The main purpose of the old man's generation to set up this company was to make movies, and later after the old man took charge of the company, he began to develop in the direction of music and television." The second child opened his mouth to speak, but he couldn't help but think of the old man's inglorious dark family history.

Warner Inc., founded before World War II, announced in 1956 that the company was about to go public. Founders Harry, Albert and their own son, Jack Warner, will each sell their shares. The cunning Jack Warner secretly set up a consortium managed by Boston banker Shimeco and bought 800,000 shares of Warner, about 90% of the shares. Jack Warner eventually bought back 200,000 shares from a consortium managed by Shoemeko through grey market trading.

Jack Warner completed the grey market deal in June, becoming the largest shareholder of Warner Inc. and appointing himself as its new president. By the time Harry Warner and Albert Warner discovered Jack Warner's grey market dealing, it was too late. Under Jack Warner's leadership, Warner became more aggressively seeking investment and profit.

As a result, Warner Bros. Pictures, Warner Bros. Studios, Warner Bros. Television Productions, Warner Bros. Animation Productions, and other companies were born.

The eldest didn't expect the second child to remember his old man's disgraceful family history, but continued with the second child's words: "We all know what Warner's main business is, so I have to ask, how many movies has our company made in the past few years?" ”

How many more?

The rest of the brothers were embarrassed to recall in their hearts that it was inaccurate to describe how much, and to be precise, they should be counted with their fingers.

"I think we all know how many films have been made." The Boss said. "So, I decided to shrink my business, cut all the projects that didn't have much of a big deal with our main business, and put my main energy into film."

"Including Atari?" The third child, who had always been a little taciturn, asked.

"Yes." The Boss replied. "This company not only does not make money, but we need to continue to invest money, we do not have professionals in this area, we can't accurately assess what kind of impact will continue to hold this company on our Warner, maybe it will be our money-absorbing weapon, or it may drag our funds into the bottomless abyss, you know, game consoles basically don't make money, all rely on game cartridges to make money, and these games are like movies we make."