Top of the Great Era

Chapter 1359 EMI
Zhou Buqi commissioned Heidrick & Struggles to do two things.

1. Select 2-[-] excellent managers for the commercial promotion of Manchester United;

Second, looking for a CEO for a digital media company about sports under Ziweixing.

Definitely the second thing is harder.

To select a CEO for a key business of Ziwei Star, you must be a world-class manager, a world-class talent, and the annual salary may not be too high, 100 million to 200 million US dollars is enough.But if options are included, the annual remuneration will not be less than 1000 million US dollars.

So this matter has yet to come to fruition.

You must understand the Internet, media operations, sports, and football; you must have experience in important leadership positions in large companies or successful start-ups, and you must be innovative and have a deep understanding of the mobile Internet. Brits under 35...

The conditions are too harsh, at least a few more months to hunt.

In contrast, finding a professional manager for Manchester United is much simpler.After more than a month, Heidrick & Struggles screened and screened 200 candidates from around the world one by one, and finally provided a shortlist of 3 candidates according to various requirements of the employer.

This time when he came to England, Zhou Buqi said that he would bring Sister Bao with him because of this list.

The 3 people on the 3-person shortlist are all British.

Two are now working in the United States, one is the vice president in charge of consumer and international business of HBO under Time Warner, named Brandon Henk; the other is the director of Disney's business development department, mainly responsible for market development, named Joseph Drap.

These two people are in Hollywood, not top bosses, but middle and upper managers.

Mainly young people, all under 40 years old.

Another person has a big background.

It is Gilbert Lawrence, senior vice president of marketing and commercial promotion of EMI Records.

This is no ordinary middle-level executive, this is a real executive, and in charge of the most important marketing and commercial promotion, in the EMI Music Group, at least the top five real power bosses!
Moreover, he has another advantage, that is, his home is in the UK, and he has been working in London for many years.

Even according to Heidrick & Struggles, he is willing to cut his salary to join Manchester United.

It really is a world-class headhunter, this is a treasure hunt.

Although EMI Records is headquartered in the UK, it is a large global company.Moreover, music and film are not separated, and EMI has a close relationship with Hollywood.

The predecessor of EMI Records was actually transformed from Columbia Records UK, and merged with several European record companies to become today's EMI Records.Columbia Records America later evolved into what is now Sony Records.

In the final analysis, music is also inseparable from Hollywood, and it is all differentiated from the seven major film and television companies in Hollywood's early years.

Prior to this, Zhou Buqi had a brief exchange with Sun Zhengyi.

Sun Zhengyi said that it is too difficult to acquire Universal Music at this stage. Vivendi is not short of money, and they don't want to cut their flesh and leave under the background of the bad economic situation.

If you want to invest in the music industry, EMI is the best choice!

The current EMI Records has fallen into a historic trough, and if it is not handled properly, there is a risk of bankruptcy at any time.

The list provided by Heidrick & Struggles just confirms this point.

Xu Baihui is very envious of the music industry.

If Zhou Buqi and Softbank jointly win the EMI record, Xu Baihui may not be able to end in person.And Xue Baoshan is now in charge of the copyright business of Jieyu Media.

If she really won EMI, maybe Sister Bao can stand up!

After Zhou Buqi negotiated with her, Sister Bao agreed without even thinking about it.It's not that she is so interested in the music industry, but that she has a reason to often fly with Zhou.

Mr. Zhou's business is spread all over the world, and it happens that EMI Records is also a worldwide multinational company.

The distance between the two sides will not widen.

That night, Zhou Buqi was embarrassed to fool around with the two little secretaries, mainly because of the tender face of Baomei. It would be fine if familiar people like Wen Zhixia and Wu Yu were fine, but not so familiar little secretaries like Sun Wanran and Feng Muer. , she couldn't let go.

Zhou Buqi restrained himself, and only spent the night with Sister Bao, which made her very satisfied.

After the clouds collected and the rain cleared, we talked about EMI Records.

"I checked some information. EMI Records is indeed going to have an accident recently. It's quite miserable, and it might go bankrupt." Xue Baoshan is already a big girl, and she has faded away from the greenness of her college days. charming.

Zhou Buqi gently hugged her with one hand, rubbing her back, "Bankrupt? Isn't it so?"

Xue Baoshan said softly: "It may be more serious, do you know Terra Firma Capital?"

"Well, a private equity firm in the UK is quite famous."

"Yes, the founder of Taifeng Capital also took a Chinese name called Ge Hansi. I don't know who gave it to him. A big man took a woman's name."

Xue Baoshan pursed her lips and smiled lightly.

Zhou Buqi asked curiously, "What happened to him?"

Xue Baoshan said: "He bought EMI. It happened in 07. At that time, EMI was in crisis. Warner Music wanted to buy it, and the asking price seemed to be 48 billion US dollars. EMI is the British entertainment industry. According to Ge Hansi’s assessment, the music industry was in a downturn and digital music was in its infancy, which was a good opportunity to buy the bottom. Then, Ge Hansi found Citibank and initiated a leveraged buyout of EMI.”

"LBO……"

Zhou Buqi twitched the corner of his mouth.

Depend on!
No wonder it is looking for Citibank, only American capitalists are the most enthusiastic about this model.When the Glazer family had no money, they found Morgan and bought Manchester United through a leveraged buyout.

The huge debts they bear must be borne by Manchester United.

Ge Hansi's acquisition of EMI Records seems to be the same routine.Cooperate with Citibank, borrow from Citigroup with the successful acquisition of EMI Records in the future, and then use the loan to acquire EMI.

No wonder European and American countries welcome Sun Zhengyi so much!

It's also mergers and acquisitions, let's see how Sun Zhengyi does it?It can be called a conscience!Looking at those capitalists in Europe and America, they are really fucked up one by one.

Xue Baoshan said softly: "At that time, Ge Hansi invested 8 million pounds, borrowed 22 billion pounds from Citibank, and assumed EMI's original 12 billion pounds, and completed the transaction at a total price of 42 billion pounds."

"How much is £42 billion?"

"I don't know the specific exchange rate, it's about 65 billion U.S. dollars."

"It's so expensive!"

"That's not enough. After the successful acquisition of EMI, Ge Hansi carried out a drastic strategic transformation, hoping to complete the digital strategic adjustment, and invested another 10 billion US dollars."

Zhou Buqi was a little bit emotional, "The idea is right, this Ge Hansi is a talent. It's a pity that he chose the wrong time. He thought that the acquisition of EMI in 07 was a bargain, but it was bought by the times."

Xue Baoshan pursed her lips, "That's right. After the economic crisis broke out, Ge Hansi almost went crazy, scolding the American bankers in a rude manner. This transaction may cost him billions of dollars."

"Isn't it?" Zhou Buqi didn't understand the inside story, "It will be fine if we persist for a few more years. After the economic crisis, spring will come. Ge Hansi should be able to understand, right?"

Xue Baoshan said: "It's useless to understand, he used a leveraged buyout. Why is Citibank willing to support him and lend him 22 billion pounds?"

"VAM agreement? Debt-to-equity swap?"

Zhou Buqi suddenly realized and remembered something.

Yes!

San Dezi seems to have said it.

The Glazer family borrowed money from Morgan for the leveraged buyout of Manchester United, and signed a debt-to-equity swap agreement at that time.If the loan is not repaid, the loan will be converted into a 40% stake in Manchester United.

Xue Baoshan sighed lightly, "Yes, debt-to-equity swaps are scary."

"how?"

"If the loan is not repaid in time, the debt-to-equity swap is ... 100 percent."

"Damn! It's amazing! It's really amazing!"

Zhou Buqi has now seen the methods of the American bankers, and he played really slippery, which really made the British people miserable.

In this leveraged buyout, Grace contributed a total of 8 million pounds and a capital injection of 10 billion U.S. dollars, a total of 23 billion U.S. dollars, and assumed more than 50 billion U.S. dollars in debt, and obtained 100% control of EMI.

Once the loan is repaid and the terms of the debt-to-equity swap are reached... EMI Records will become an asset of Citigroup.Ge Hansi's previous investment of 23 billion US dollars was all in vain.

However, Citigroup did not make any money.

In her previous life, Ge Hansi failed to repay the money, and Citibank completed a debt-to-equity swap and took over EMI.However, after taking over EMI, the bankers of Citigroup were not in the mood to run the record company that was riddled with holes. They chose to cut their flesh and leave. They immediately split EMI and sold it to Universal Music and Sony Records for US$41 billion. .

In this transaction, Citigroup also lost money.

Hitting the trough of the economic crisis, it can be said that all three parties failed miserably.Citigroup lost less, Ge Hansi suffered miserably, and EMI Records suffered even more. They were directly split up and sold off, and the century-old company said it would disappear.

So, the greater the benefit, the greater the risk.

Investing in music, the potential income is very large, and the prospect of digital music is very bright.But the risk is also great, and if you don't do it right, you will suffer heavy losses.

Investing in football has very little return, but the risk is very small, such as Manchester United.

The Glazer family's leveraged buyout of Manchester United not only did not become their burden, but also helped his family survive the financial crisis through continuous blood transfusions from Manchester United.

However, Zhou Buqi is different.

He wants to reduce the risk of the music industry and increase the income of the football industry. Otherwise, how can he prove his excellence as a reborn person?

"It seems that this EMI record is very difficult!"

"That's right, EMI Records accounted for one-third of the investment of Taifeng Capital, but it has been losing money for two consecutive years. His private equity has been unable to work, and he can't pay back the loan."

Xue Baoshan was in high spirits, and she also faintly looked forward to it.

Zhou Buqi said with a smile: "Our family's overseas business is mainly based in Europe, the most important thing is the UK. EMI is a symbol of the British entertainment industry. If it goes bankrupt or splits up, it will affect the diversified industrial structure of the UK. The authorities definitely don’t want to see such a blow. Sun Zhengyi also happens to be very interested in investing in the UK. It seems that we can really join hands to help the UK and save EMI.”

(End of this chapter)