Chapter 746 VAM with Ballmer
"Lee, can you take the liberty of asking, what is the yield of the Clippers?" Ballmer asked curiously.
"Ten percent." Richard said categorically.
Under normal circumstances, Ballmer bought the Clippers for $2 billion, and later the Clippers had a market value of $2.2 billion, which is not a 10% yield, but it has risen by 10% in five years, but it is actually the same as not rising......
"What? It can't ......," Ballmer said with a frown.
His finance team conservatively estimates that the yield on the acquisition of the Clippers will be around 25%!
And if it's only 25 percent, Richard is full enough to buy the Clippers?
Ballmer instantly disbelieved Richard, and he wondered if Richard was deliberately using this argument to discourage him from buying the Clippers.
But think about Richard should not be naïve to this extent, how can anyone in this room be stupid.
"Listen to me, Mr. Ballmer."
"First of all, the 10% I said is based on the premise that you get the Clippers, not the situation when I get the Clippers, you should know that different people run the Clippers, and the yield must be different."
"And I think Mr. Ballmer knows a lot about my abilities in this regard." Richard exuded a powerful sense of confidence.
When it comes to basketball, Richard has absolute confidence.
Ballmer nodded, Richard admitted that he was right, but he didn't think that he could only get a 10% yield by running the Clippers, although he was definitely not as good as Richard, but there was no problem with reaching 25%.
Richard cleared his throat and continued: "Secondly, the most important reason is that the purchase price of $2 billion, and a 10% yield is quite good. ”
……
As soon as he finished saying this, not only Ballmer was surprised, but even Paul Allen on the side had his eyes wide open.
"What? $2 billion? Lee, are you crazy? Are you going to buy the Clippers for $2 billion? It's definitely something that only a madman would do. Ballmer's focus was on what Richard said the purchase price was $2 billion.
He originally prepared $1.2 billion, and he could add another $100 million when he reached the top, and he felt that this would be able to repel all competitors.
But now Richard is about to spend $2 billion when he opens his mouth, which directly scares Ballmer.
It's crazy, a three-fold premium to buy the Clippers? This is not what a madman is!
The Clippers have a market value of more than 600 million, and Richard wants to spend 2 billion, which is not a premium of three times.
……
"What? Lee, do you think the Clippers will have a market value of $2.2 billion in the future?! Paul Allen is clearly not the same as Ballmer.
After a brief shock, Ballmer also realized the problem, can the Clippers reach a market value of 2.2 billion in the future?
If the Clippers can really reach 2.2 billion, then the Hornets can reach $1.2 billion, which is still quite possible.
Seeing the shocked looks on the faces of the two old men, Richard nodded.
"God, what will happen in the future? Will the dollar depreciate super-depreciately? Otherwise, how could the market value of these teams reach such a high level? Ballmer said incredulously.
Richard smiled and didn't say much, some things are still better not to say.
"Mr. Ballmer, I can give you a thorough idea, my limit is $2 billion, and you probably know that I can't get that much cash right now, but Paul can help me." Richard was ready to get straight to the point and have a good talk with Ballmer.
Ballmer nodded, Richard's limit was $2 billion, and he didn't have the slightest doubt.
He also knows very well that even if Richard contributes $2 billion, he will definitely be able to make a lot of money by then.
If he can only have a market value of 2.2 billion at that time, then Richard may be 3 billion by then.
So he could figure out why Richard was so crazy about buying the Clippers.
But he still has some doubts in his heart, what if Richard lied to himself about this?
The heart of defense is indispensable, knowing people and knowing faces do not know their hearts, he and Paul Allen are old acquaintances, but he doesn't know much about Richard.
It's hard to guarantee that Richard didn't deliberately say these words today, rejecting his plan to buy the Clippers, and when the time comes, he will buy the Hornets according to what Richard said, and he may not make a dime.
For a moment, Ballmer's face showed a look of embarrassment, and now things are a little difficult......
Caught in a dilemma, he wasn't sure what to do.
At this moment, he couldn't help but admire Richard in his heart, this kid's words actually made his old Jianghu hesitate, he was really a terrible young man.
"Steve, what are you waiting for?"
"Don't worry, Li's character is very good, if it's not good, do you think I will marry Tiana to him?" Paul Allen helped convince Ballmer to abandon his plan to buy the Clippers.
"Besides, we said that $2 billion is the limit, and this is not a joke at all, is it possible that you want to raise the price with us, and then cheapen that idiot of Sterling?"
Richard interrupted Paul Allen with a wave of his hand.
"Mr. Ballmer, why don't you do this, I can sign a gambling agreement with you."
"You buy the Hornets, if the market value of the Hornets does not reach $1.2 billion in 2019, I will make up for the difference when the time comes!"
Richard is ready to make a big move, and his wealth is moving, and even a super-rich man like Ballmer can't refuse the temptation of dollars.
Ballmer was amused, it was the first time he had encountered such a situation.
If it weren't for the fact that Richard is worth so much at the moment, he might think that Richard is a fool......
Wouldn't such an agreement cheapen itself for nothing?!
"What if it gets $1.2 billion?" Ballmer asked with interest.
"What do you mean, give me $100 million in consulting fees?" Richard said with a smile.
"Deal!" Without waiting for Paul Allen to react, Ballmer stood up directly, took the champagne in front of him and drank it down.
There is no reason not to close the deal at all, this agreement, in Ballmer's view, Richard is simply sending warmth to himself.
I must make a steady profit, even if I really give Richard 100 million at that time, and I invest 300 million to return 800 million, it is also an extremely cost-effective deal.
Paul Allen smiled bitterly, he didn't know that Richard had prepared such a gambling agreement before he came.
If he knew, he would probably dissuade Richard......
But now that the two sides have decided to cooperate, he has no room to dissuade him.
Now he only hopes that what Richard said is right, and the market value of the Hornets can really reach $1.2 billion in the future.
……
In the eyes of Ballmer and Paul Allen, Richard was really young and impulsive, and people of their age would never have done such crazy things.
But Richard naturally has his own ideas and grasps.
First of all, the Hornets' market value will not fall below $1.2 billion by then, and Richard is sure of that.
As soon as the broadcast contract was signed, Richard was slightly helping, and the market value of $1.2 billion was easy.
Secondly, Richard also wanted to strengthen Ballmer's confidence in giving up the Clippers......
If Ballmer were to join the race, Richard had a hunch that Ballmer might raise the price even to $1.5 billion.
And now that Ballmer is out of the competition, he can save a lot of money, and he can also make $100 million from Ballmer for nothing, so why not.
After the VAM agreement was established, Ballmer invited Richard and Paul Allen to a good meal, and Ballmer felt that today might be his lucky day......
didn't take any risk at all, picked up eight or nine billion dollars in vain, who said that there is no pie in the sky.
And Richard is also quite relaxed and happy, under his own step-by-step operation, he is finally about to get the ownership of the Clippers.
Now there is no one who can stop Richard from buying the Clippers, not anyone.
After having dinner with Ballmer, Richard returned to his residence and called Stern directly.
Talking to Stern about Ballmer's withdrawal from the competition.
Stern was a little shocked, he didn't expect Richard to really do it, and it was done so perfectly, it was simply impeccable.
In Stern's prediction, it is possible that the Clippers will end up running Richard and Ballmer, just like the previous Buccaneers.
And now Richard has directly made Ballmer dismiss the idea of buying the Clippers, which in Stern's opinion, is simply amazing.
He really couldn't figure out how Richard did it, and what hole cards he could have that would make Ballmer just give up his plan to buy the Clippers, without even the slightest resistance.