Top of the Great Era

Chapter 2113 Looking ahead in the new year
After the New Year's Day holiday, it is a new year.

From a capital perspective, it is also a new fiscal year.The dividends, options, bonuses, etc. of the past year have all been settled, and a new round of statistics is about to start.

A lot of important news was released.

For example, the authorities officially announced that they approved Google's acquisition of Twitter for US$200 billion.

In fact, Zhou Buqi knew about this matter half a month ago.

Google has made a notice.

However, Google worked a little bit and put such a good news in the new year.

Last year, the overall performance of technology stocks was not impressive enough. Google was better. For the whole year, its stock price increased by 9.4%.However, there is still a big gap from the expected goal of 22%.

Listed companies in the Internet industry had an average growth rate of only 1.5% last year, while companies like Yahoo, which have fared poorly, fell by more than 20% in a single year.

Google's operation is actually related to the management's option income.

Regulatory authorities have approved Google's acquisition of Twitter. It is conceivable that it will benefit the capital market, and Google's stock price will definitely rise.

If this news had been released last year, the increase would have been included in last year's account.However, in the past 2011, it was almost impossible for Google to achieve the 22% growth target estimated by the board of directors at the beginning of the year, so it simply gave up.

Anyway, it's not up to standard, it's broken.

Put all your hopes on 2012.

On January 1th, the good news that Google's acquisition of Twitter was approved was released, and the increase in stock price can be placed on this year's account, which will be more in line with the interests of the management.

During Zhou Buqi's stay in the United States, he saw all kinds of capital operation routines, and it was an eye-opener.Of course, he's not bad either.

Senior Sister Zhen Yu came to convey the good news.

Both Jieyu Media and Taizun Real Estate owe the Zhou family money, which is US$5 million and US$4 million respectively.Originally, it was paid back last year, but the two companies just went public last year, so they didn't move if they wanted to keep the stock price stable.

After entering the new year, you can pay back the money.

A total of US$10.2 billion in principal and interest has been returned.

Including the management fees returned by Pluto Capital and Neptune Capital, although they did not receive dividends, they also had a lot of management fees, leaving a balance of 2.2 million US dollars.

再加上去年借来的短期债15亿美元，买进巨人队65%的股份花掉10亿美元，买进勇士队10%的股份花掉6000万美元，结余4.3亿美元。

And the balance of the family fund last year was 2.6 million US dollars.

Now, Zhou Buqi has $19.3 billion in funds available.

Such a huge amount of cash flow is terrifying to anyone, but it is still not enough for Zhou Buqi.Because next he is going to help Boss Ma, to help him take over the Ali stock that was repurchased from Yahoo.

At present, the overall situation of the technology industry has not yet recovered, and the stock price has remained in a downturn as a whole, and it is not cost-effective to cash out stocks.If it doesn't work, you can only continue to borrow money.

Not only is the Zhou family short of money, but Changyou is also short of money.

On the first business trip in the new year, Zhou Buqi went to New York, where he met Zhang Chaoyang and went to see the planned Changyou headquarters park together.

Lao Zhang is responsible for the planning, supervision, construction and construction of the park.

This time he came to ask for money.

Changyou will allocate 5.2 million US dollars to do this.

In this winter, there is nothing to see at the construction site. The main thing is to communicate with the New York authorities, construction parties, guarantors, and trade unions to understand the progress of this year's project, suitable for starting and finishing, etc.

It is also related to the surrounding water and electricity, optical fiber, transportation, housing renovation, etc. Many of them are hundreds of years old, and they have to go through layers of approval before they can be demolished.

However, the decision has already been made, and the demolition approval of two buildings has not been passed, and the main body of the building must be retained for reconstruction.

The renovation of this kind of old house will cost a lot of money.

Renovating an antique-grade old house is much more expensive than tearing it down and building a new one.

Fortunately, you can apply for subsidies for this kind of antique old houses with the authorities.

Together with Lao Zhang, Zhou Buqi put on formal clothes at night, brought his girlfriend with him, and went to a charity dinner hosted by a congressman at his home in Long Island.

If you donate 100 million US dollars, it is estimated that you can get back 3000 million US dollars in old house renovation subsidies.If you donate 200 million, I don't know if you can get back 6000 million US dollars.

It is worth mentioning that Lao Zhang's female companion is very powerful.

Very high.

An American country singer, Taylor Swift.

At the charity party, she also took to the stage to sing a song, singing the Grammy Award-winning song "Mean".

This is almost the best live version of the song that Zhou Buqi has ever heard, much better than those singers who were invited to sing at previous events.

Well, it probably has something to do with the sweet appearance of this tall girl.

Anyway, I admire it very much.

Lao Zhang really is Lao Zhang.

Great shot!

However, there are also disadvantages, that is, this little Taylor is too famous, no matter men, women, young or old, young and old at the reception, they all rush to strike up a conversation with her, and their behavior is very intimate.

Zhou Buqi was carrying Yang Mi by his side, so she was too strong, she always followed him obediently, and refused to strike up a conversation with anyone who came over shamelessly.

"Old Zhang," Zhou Buqi gave Taylor a look, "Can this be controlled?"

Zhang Chaoyang waved his hand, with a look of indifference, "The process is more important than the result. Why do you think so much? I don't want to date her."

"You are amazing." Zhou Buqi gave a thumbs up, "But she is so famous, I am afraid that tomorrow you will be on the headlines of gossip tabloids again, and scandals will be everywhere."

Zhang Chaoyang glanced at him, and snorted, "I've already stepped down as the chairman of Changyou. Gossip is just gossip. Can it still affect the stock price?"

Zhou Buqi smiled and said, "It's really sour."

Zhang Chaoyang said: "The acquisition of Changyou, is it over? It's "Talking Cat", the game company in Cyprus."

Zhou Buqi nodded, "outfit7, it's settled, cash is 5.2 million U.S. dollars, and there are 2200 million Changyou shares, the total value is about 7.2 million U.S. dollars."

Zhang Chaoyang was slightly stunned, surprised, "I remember the material Mattrick gave to the board of directors, saying that cash can only be 2 million US dollars?"

Zhou Buqi said: "Yes, that was the plan of the previous editions, and I did not agree. We can have more cash and less stocks."

"What?"

Zhang Chaoyang looked at him blankly.

Very inexplicable.

This kid is really coming in the opposite direction!

In normal mergers and acquisitions of this kind, they are more inclined to stock mergers and acquisitions, paying more with stocks and using less cash as much as possible.For example, Google acquired Twitter for US$200 billion, almost all of which were stocks.Too much cash will affect the company's cash flow.

Especially swimming.

The cash flow has already encountered a potential crisis, but this time, we have to spend 5.2 million US dollars to plan the New York headquarters park as a whole... What are we doing?Don't use more stocks, but give more cash?

Zhou Buqi said with emotion: "I can't help it. I am a responsible and mission-oriented chairman, unlike those managers who only care about their own convenience and don't care about the interests of shareholders. The current stock price of Changyou is only 8.3 US dollars, which is seriously underestimated. Yes. At this time, using stocks to trade is invisibly pushing up the transaction volume. Fewer stocks and more cash are more in line with the interests of shareholders.”

Zhang Chaoyang said angrily: "Is this the point? Cash flow! How to solve Changyou's cash flow? Unless you shrink your business, don't engage in any barbaric growth."

Zhou Buqi said: "Old Zhang, don't educate me with your old and conservative corporate thinking. If Sohu had seized the opportunity to grow wildly in the early years, it might still be an Internet giant now."

Zhang Chaoyang said angrily: "Don't come here, how do you deal with the cash flow crisis?"

Zhou Buqi said: "I have negotiated with Softbank, and we will start a round of financing. It is also for stocks, and the stock is given to the outfit7 group. It is better to give it to Softbank. Softbank still has a certain strategic value and can help Changyou in the future. Japan will launch a few more mergers and acquisitions. Then, it will issue corporate bonds.”

"Issuing debt?" Zhang Chaoyang frowned slightly, "Is it possible? Does anyone want it?"

Zhou Buqi pointed to his chest and said with a smile: "Old Zhang, who am I? If you are still the chairman of Changyou's board of directors, it may be really difficult for Changyou to get a loan in the current financial environment. I can tell you Are you the same? Put a wave of corporate bonds, and then promise the conditions for debt-to-equity swaps, and it’s done.”

Generally, as long as the conditions for debt-to-equity swap are added, it will be easier to achieve.

For example, Changyou issued US$20 billion in bonds this year, with an agreed four-year term and an annual interest rate of 4%.Various investment banks and private equity institutions can come to subscribe.

If after four years there is no money in Changyou's account and the debt cannot be repaid, that's fine.

Based on the stock price in 2012, the $20 billion was exchanged for Changyou stock.

In other words, for buyers of Changyou corporate bonds, they have two potential benefits.First, the interest rate is 5.5% per year; second, if Changyou can no longer repay the debt, it is equivalent to the equity financing in 2012, and can get a capital premium income of up to 4 years.

Of course, it is impossible for Zhou Buqi to allow the second situation to happen.

His judgment was unerring.

The future development of Changyou will get better and better, and it is impossible to accumulate so much debt that it cannot pay off its debts.

Zhang Chaoyang's character is very cautious, and he is a little worried, "The debt of 20 billion US dollars...do you want to slow down? Will such a move be too big? When you make a strategy, you only look forward and don't pay attention to the hidden dangers behind you?"

Zhou Buqi smiled, "Old Zhang, just feel at ease!"

"Sigh." Zhang Chaoyang sighed and hesitated, "Well...Softbank is going to participate in the financing of Changyou."

"Ah."

"I plan to sell a share of Changyou's stock. Since this is the case, I will sell it to Softbank."

"Real or fake?" Zhou Buqi frowned slightly, looking at him strangely, "Really want to sell? Old Zhang, it's too bad to sell now."

Zhang Chaoyang was very helpless, "Then what should we do? Sohu Video's business will cost a lot of money."

Zhou Buqi whispered, "Can't you hold on for half a year?"

"Ok?"

Zhang Chaoyang raised his eyebrows.

Zhou Buqi whispered: "After half a year, Changyou's stock price will definitely improve a lot. It is impossible for the game industry to go down like this, at least Changyou's stock price will definitely rise. If the performance does not rise, I will also suffer from capital operations." Do it!"

(End of this chapter)