Reborn in Hong Kong as a Tycoon

Chapter 420 Deciding to Split the Business
After the meal, Wade Thomas said goodbye and left, while Lin Baicheng called Isabella and Bill Hawes to the villa.

Together with Haruko Mori, Lin Baicheng called the three of them to the study to talk.

Lin Baicheng first talked with Isabella and Bill Harveys about the listing of Galaxy Games, Wade Thomas and the capital market's unfavorable view of the console game business, and the splitting of related businesses.

"You guys said, should I choose to spin off the console games and then list Xinghe Game Company? Or should I not go public for the time being and strive to develop console games and then go public?"

Lin Baicheng asked the three of them, wanting to hear their opinions.

"Chairman, I think you should spin off the console game business and promote the listing of Xinghe Game Company."

Haruko Mori was the first to speak out, and she said: "Whether you are optimistic about the console game business or not, it does not affect the splitting of the business. If you think that the business will definitely be established and bring you a lot of profits, then splitting After the division, the profit of this business will belong to you alone. If you are not sure whether the business can be developed, then you should also separate the business to avoid affecting the company's revenue and profit, thereby affecting the company's profit. listed."

"Without counting the console business, Galaxy Games' current operating data is excellent. This is a great time to go public. It is likely to get a fairly high price-earnings ratio at this time. But if you don't go public first, once console games If the company’s business does not develop smoothly, it will inevitably affect the company’s performance, which will affect the company’s listing plan. Even if it can still be listed, the price-earnings ratio will definitely not be as high as it is today.”

"Of course, all of this must be based on the premise that you are willing to list the company, chairman. If you are not willing to list the company, then now is a good opportunity. Since the capital market is not optimistic about the company's mainframe business, once If you decide not to split the business, then Goldman Sachs will definitely not be willing to push forward the listing of the company, and I am afraid that you will have to think carefully if you want to list Goldman Sachs."

After hearing Haruko Mori finish speaking, Lin Baicheng said: "Let me first declare that whether Xinghe Game Company goes public or not is my personal opinion. In other words, if going public is more beneficial to me, then I will choose to put the company on the market." On the contrary, I prefer not to go public for the time being.”

"Chairman, the advantages of going public still outweigh the disadvantages. This is also an important reason why many companies want to go public."

Isabella said: "Chairman, what I'm going to say next may not sound good, I hope you can understand. At present, the four games launched by Xinghe Game Company are all very popular and have created a lot of profits for the company, but one game is in the market. Before listing, no one can guarantee whether it will be a hit, so you should take advantage of the company's good time to list the company."

"Once the company goes public and the ban on stocks is lifted, you can reduce your holdings. To put it bluntly, even if the company does not develop well, your losses will not be too great, because you have already reduced your holdings and returned them to circulation. If you have raised some funds, it will not affect your wealth."

"It's okay to say something bad, as long as it makes sense."

Lin Baicheng nodded slightly after hearing this, but he did not tell Isabella that he could almost guarantee that the game he made would be welcomed by the market. Such words would only make people think he was too arrogant, after all, such things as "rebirth" It is impossible to tell outside, and no one will believe it.

"Chairman, in fact, even if every game the company produces in the future becomes popular and makes a lot of money for the company, you still have nothing to lose."

Bill Harveys finally said: "First of all, the company's current revenue and profit are high, and the price-earnings ratio after listing will definitely not be low. Although your shareholding ratio will decrease after listing, your wealth will actually increase. It is better for the company to make a lot of money every year. Even if you don’t reduce your shareholding, you can also choose to pledge your shares to banks or institutions, so as to get a certain amount of cash to develop other enterprises, and you can still get relevant profit dividends for the money the company itself earns.”

"It would be a good thing if the console games developed by Galaxy Games can be developed after they are split off. At that time, whether it is to let Galaxy Games acquire them at a high price, or you will list the split company , can bring you greater benefits.”

"So, all three of you suggested that I spin off the console game business and let Galaxy Games go public."

Lin Baicheng nodded. Haruko Mori, Isabella, and Bill Harveys all had similar opinions. They all believed that it would be better to list Galaxy Games now.

"Yes!"

Haruko Mori, Isabella, and Bill Harveys all nodded.

Lin Baicheng thought deeply about the gains and losses. First of all, Galaxy Games Company will go public sooner or later. Even if it is not listed this time because of the console game, as long as the performance of the console game is not too bad after the release, the company will go public next year. Otherwise, Goldman Sachs might be messing with his son behind the scenes.

Don't look at Lin Baicheng's cooperation with Goldman Sachs is quite good, bringing a lot of benefits to Goldman Sachs, but as long as the benefits are large enough, secretly targeting Lin Baicheng is nothing to Goldman Sachs, it is a normal operation.

Lin Baicheng never thought that after he let Goldman Sachs make some money, Goldman Sachs would stand firmly on his side and help him resist some pressure. This is impossible, so Galaxy Games is very profitable and very dependent on the US market. It must be listed to give up the benefits.

Lin Baicheng thought about it, since it will be listed sooner or later, it is very necessary to spin off uncertain console games and let Xinghe Games go public with a higher price-earnings ratio.

In the long run, console games will definitely make a lot of money, but there is no guarantee that they will be cold when they first go on sale.What Lin Baicheng can guarantee is that he will persevere until the dawn comes.

"Well, I'll listen to you, split the console game, and first list the company that owns the arcade business."

After thinking for a while, Lin Baicheng made a decision.

Bill Harveys listened and said: "Chairman, if this is the case, then there is no need for Galaxy Games to borrow from Goldman Sachs."

"I know this, I will make a private loan with the shares of Galaxy Game Company."

Lin Baicheng nodded, and said: "The most important thing right now is to spin off the console game business and set up a separate company, so that whether it is the production and sales of console games, or the listing of Xinghe Games, the talent will not be affected."

Now that the mainframe has been developed, it is impossible to keep it in production. Fortunately, if it is only delayed for half a month or a month, then there is no problem, and Lin Baicheng can accept it.

(End of this chapter)