Top of the Great Era

Chapter 1890 Cash Transaction
Although Manchester City has put some pressure on Boss Zhou after the local tyrants in the Middle East took over, but he generally feels good, and it is not too late to make up for it.

Manchester United has a solid foundation.

Although Manchester City spent 2 million pounds to renovate their training base, their foundation is too weak.Manchester United can do better than them by spending any money.

Now that Zhou Buqi does business, there is a feeling of being pushed all the way.

All walks of life, everything!
come on!

Just like Bill Gates, who has retired from Microsoft and is able to dominate in other fields of business, such as finance, charity, industry, and food, and has developed the thinnest condom in the world. Even investment in the agricultural industry is included.This buddy seems to like being a farmer. He is constantly buying land and has become the largest landowner in the world.

However, doing business is not a step-by-step plan, you have to keep up with the changes in the market.

In many cases, the force majeure of some major market changes makes people uncomfortable.

For example, the European debt crisis that has recently spread across the world.

Zhou Buqi is going to go back to China by plane, and go to the Hong Kong government to make the final arrangements before the IPO of Jieyu Media.He just completed the listing of Taizun Real Estate a few months ago, and he is already very familiar with the process.

On the plane, I heard a series of very bad news.

It's not from Senior Sister Zhenyu, nor from Xu Baihui from Jieyu Media, but from Don Mattrick, who is in charge of the game business.

Mattrick's energy is obviously not as high as before. Even knowing the inside news that he is about to become the CEO of Changyou, he can't hide his depression at the moment, "Zhou, the economic crisis is coming again."

Zhou Buqi knew, "Is the European debt crisis?"

"Yes, it has already affected the financial market in the United States." Mattrick was very helpless, "The major banks, investment banks and financial institutions in the United States have recently announced their first-quarter financial reports, which are shocking, and their profits generally decreased year-on-year. About 30%."

A year-on-year decrease of 30% means a decrease of 2010% compared with the first quarter of 30.

This is miserable.

Financial institutions have finally come out of the subprime mortgage crisis, their performance has begun to recover, and the economic trend has begun to improve, but the European debt crisis has come.

If the financial industry is impacted, the entire financial market will suffer fluctuations.

This is the force majeure of the general environment, and it is very helpless. Even Boss Zhou has three heads and six arms, and he cannot stand alone against the background of the deterioration of the global economy.

It is conceivable that Changyou's share price has collapsed again!
Zhou Buqi secretly worried about Lao Zhang, and asked knowingly: "How is the stock market? Is there a lot of turmoil?"

"It's huge!" Mattrick's expression was serious, "All stocks are falling, all market indicators are plummeting, Changyou... Changyou's share price has dropped by 13% in the past two days, and now only $6.2."

Four weeks ago, Changyou went public.

The issue price was US$11.5, and now the stock price is only US$6.2... almost cut in half!
This wave of operations has pissed off American investors.

Fortunately, the plummeting stock price is not a problem of Changyou itself. It is caused by the financial environment and the differences in the perception of the entire game industry. It is the stock prices of game companies around the world that are plummeting.

If it is a matter of Changyou's individual, the American investors must be in a hurry, and they will start to join forces in private to initiate a class action lawsuit.

Zhou Buqi is very lucky.

The European debt crisis is force majeure, and no one can resist it.

The timing of Changyou's listing is chosen at the most opportune time!
If he had listened to Lao Zhang's suggestion, or listened to the foolishness of those Wall Street investors, modified the listing plan, and delayed the IPO date for a few more months... not a few months, but a month's delay, Changyou's IPO listing would have completely collapsed.

When Changyou went public, its financing scale reached US$26 billion.

If it is delayed, it will be able to raise 13 billion US dollars if it goes public at this stage.For Changyou, the stock price and market value are all fictitious. These things are changing at any time, and the money you get is the real benefit.

For the same thing, that is, the time difference of four weeks, Changyou earned an extra US$13 billion!
The capital market is really amazing!

Of course, this is also due to the courage of Boss Zhou, who saved Changyou with his prompt decision.If he hadn't acted decisively at the beginning, and bought the remaining 7000 million shares out of his own pocket and pushed forward the IPO process forcefully, causing Changyou to fall into complicated and lengthy bargaining with those financial institutions, it might have been a bad thing.

With this strong reason, he, the chairman of Changyou's board of directors, is even more legitimate.

However, there is still a little doubt that cannot be explained.

Changyou launched on March 3th.

The first quarter is almost over.

Could it be that there was no unified understanding within the financial institutions in the United States at that time?Didn't feel the impact of the European debt crisis?Outsiders don't know, they have all kinds of data inside, they must have known it a long time ago.

Why did Changyou go public at that time, or was it unanimously recognized by the capital market?Even on the first day of listing, Changyou's stock price soared all the way, and its market value soared to more than 250 billion US dollars.

Like a roundworm in Boss Zhou's stomach, Mattrick immediately cleared up his confusion and said, "If it's just the European debt crisis, that's okay. The Fed has strengthened the quantitative easing policy, which can form A hedge against economic trends. The reason the market is doing this badly is because Wall Street is making mistakes.”

Zhou Buqi asked, "What happened to Wall Street?"

Mattrick said: "At the end of last month, the Consumer Financial Protection Bureau of the United States released a set of survey data, showing that a group of large financial institutions such as Bank of America, Wells Fargo, JP Morgan, Citigroup, and Goldman Sachs began to use loans in 2007. Various tricks have been adopted in recovery and foreclosure review, avoiding more than 200 billion US dollars in costs, and suspected of fraud. Last weekend, the Regulatory Authority made a penalty decision to impose punitive fines on 14 banks involved. The total amount of fines is 200 billion U.S. dollars. The issuance of this fine will really make Wall Street worse after it finally got out of the subprime mortgage crisis.”

"FxxK!"

Zhou Buqi couldn't help but utter an American curse.

I said in my heart that these Wall Street capitalists can't do it either, didn't they agree to use their means to reach the sky?Didn't it say that Wall Street can control the Fed and the White House?
This is not good, the news of the violation was announced at the end of last month, and it took only two weeks for the punishment results to come out. The level of public relations, lobbying, and protests is too bad!

Just like the Korean conglomerate, it looks fierce and powerful. When the Blue House made a move, several chaebol owners were all thrown into prison.

The life and death of financial institutions on Wall Street has nothing to do with Zhou Buqi.

However, Wall Street financial institutions are influencing financial markets all over the world.

This is so fucked up!

Changyou has completed its listing. It is very lucky and fortunate that it has obtained financing and can sit back and watch the financial market.

However, Zhou Buqi still has other companies waiting in line to go public!
Jieyu Media will be listed on the Hong Kong Stock Exchange next week, and Yuanwei Group will also go public in Hong Kong two months later. Both IPOs will be affected by this wave of huge fines of US$200 billion.

In addition, it also includes Ziweixing International.

Mattrick said helplessly: "I have been communicating with EA during this period of time. They do intend to acquire a friend's studio, and they are very willing. However, due to the impact of this general environment, the price may be higher. discount."

Zhou Buqi gave a "hmm", "I understand."

Mattrick said: "My expected valuation for Friends Studio is 30 billion to 40 billion US dollars, but in the past two weeks, the game industry has been impacted by the new trend of social games and the impact of Zynga's listing, and the stock price has fallen collectively. .Now it has been hit by the financial shock, and generally suffered a drop of more than 30%. However, if the transaction is completed by means of a share swap merger, the transaction volume will not be too high, but the stock share will not change much.”

The share swap merger means that Ziweixing International converts 100% of the shares held by Friends Studio into EA shares.

Trading in this mode is actually not greatly affected by market fluctuations.

For example, the previous valuation of Friends Studio was 40 billion US dollars, and now it is 20 billion US dollars, which has shrunk by 50%; the previous market value of EA was 200 billion US dollars, and now it is 100 billion US dollars, which has also shrunk by 50%.

This is equivalent.

Except that the transaction volume has changed from US$40 billion to US$20 billion, the EA shares acquired by Ziweixing will not change.

The small problem now is that EA's stock is meaningless to Ziweixing at this stage!
Ziweixing wants cash!
If it is a cash transaction, it will be a big loss, and it will really lose 50%.

Zhou Buqi pondered for a while, and then slowly said: "Ziweixing International has not yet been listed, which will greatly limit the company's financing ability in the capital market. This is the company's biggest hidden danger. The current economic situation is not good. Keep cash in your hands. EA’s stock has long-term value, but now we have to consider the short-term risks of Ziwei Star, and cash is king.”

Mattrick said with a smile: "EA will also prefer cash transactions. In this regard, the two sides will quickly reach a consensus."

When financing, there are two options: equity financing and debt financing.

When the stock price is high, use equity financing; when the stock price is low, issue bond financing.

Ziweixing International has not been listed for a long time because Boss Zhou believes that the capital market's understanding of the mobile Internet is not accurate enough, and will "underestimate" the value of Ziweixing International, resulting in reduced financing.

So Ziweixing International is now relying on debt issuance to make a living.

However, this is not a listed company after all.

When the financial environment is tense, it is not easy for such an asset-light non-listed company to issue bonds. The most urgent thing is to find a way to store more cash in the account.

For EA, the current stock price is very low. They definitely don’t want to exchange cheap stocks for a friend’s studio at this time. It is a more cost-effective transaction to issue bonds for money and then use cash to buy a friend’s studio.

In this regard, both parties have the same interest demands, and both hope to use cash transactions.

It will be easier when negotiating.

Zhou Buqi didn't hesitate, and was as decisive as ever, "Then it's decided, follow this way of thinking, the more cash the better!"

Mattrick said: "There is one more question..."

(End of this chapter)