America's Road to Wealth

Chapter 58 Bloomberg
Come aboard the Ovitz.

Abel's purpose is not for "X days and X banquets".

Although this kind of thing, he is quite curious.

His main purpose was to come for the shares of CAA.

According to Ovitz, these guests on board today.

If they are willing to sell all the CAA shares in their hands to Abel.

Then Abel will be able to become the first shareholder of CAA immediately, which is still much more than No.2.

Absolute holding is unrealistic, and CAA's shares are too scattered at present.

After experiencing internal strife, CAA is now a little bit about to decline to the second place.

But the foundation is still there, and the development of the entertainment industry looks so good now.

Investors are still more optimistic about CAA.

So in this case, unless you buy at a big premium.

Otherwise, there is little hope of absolute holding.

Moreover, in a company like CAA, having more shareholders also has the advantage of having more shareholders.

The more shareholders, the stronger its connections.

Networks and various resources are sometimes more important than profits for a company like CAA.

In addition, the guests who came to the yacht today were all screened by Ovitz.

The guests all know that today we are mainly here to discuss the transfer of shares.

The second is communication and enjoyment.

What to enjoy?
Just look around at these Hollywood beauties.

It's just that other guests may be more reserved, or they may be paying a price.

They were all waiting for Abel to go and find them.

Bloomberg didn't know what was going on, so he came here first.

Seeing this, Ovitz took advantage of the opportunity to say the main thing in advance.

Bloomberg doesn't seem to mind Ovitz's directness.

The Bloomberg founder smiled: "I know, and that's why I'm here. I'm here for Mr. Smith."

"Hmm." Abel said with a smile, "So, what do you mean?"

"I mean? Of course I want to sell it. As long as Mr. Smith wants it." Bloomberg said casually.

Bloomberg, now holds about 3.1% of CAA's shares.

This is the share he bought earlier.

I have been in my hand all the time, I have not sold or increased my holdings.

When he bought these shares, CAA's market value was only about half a billion dollars.

It cost $1500 million at the time.

Nearly ten years have passed.

CAA's market cap... well, not much.

Regardless of the fact that CAA has great power and influence in Hollywood.

But in fact, companies like CAA, even if they are giants, actually have the same profits.

In the mid-90s, CAA had 550 employees and signed about 1400 top Hollywood talents.

But the company's annual revenue is just over $1.5 million.

Today, in 2000, CAA is stronger.

There are more than 600 employees.

But last year's annual report revenue just exceeded 3 million US dollars.
It's revenue, not profit
In terms of profit, it is estimated to be less than [-] million US dollars.

So now, the valuation of CAA by many investment banks is probably around 12-15 billion US dollars.

The 11% stake that Abel previously acquired at a premium, including the premium, was about $1.9 million.

Not to mention comparing with financial companies, even comparing with medium and large companies in other industries.

The annual report and market value of CAA are not very good.

But in this era, achieving such a CAA is already a giant in the entertainment brokerage industry.

Because of this,
CAA is seeking transformation.

It's just that CAA is timid and dare not develop into other fields.

For the time being, I only think about transitioning to other commercial brokerage fields.

Don't dare to invest indiscriminately. At present, they are starting to focus on the field of commercial sports.

Such as commercial sports leagues such as NBA, NFL, and NHL.

At the same time, we are still preparing to go to the world and start to build overseas branches.

But that's all.

Even after going public in the future, when CAA's market value was the highest, it did not exceed [-] billion US dollars.

The market value has hovered around US$40-60 billion for a long time.

So from an investment point of view, CAA's rate of return is really not that good.

If it weren't for Abel's goal to be in the media industry, CAA would be a very suitable springboard.

If this is not taken into account, he would never be so serious about a company of the size of CAA.

No matter how you say it, no matter how nice it is.

Companies like UTA, WME, and CAA, to put it bluntly, are actually intermediary industries.

The intermediary industry can only make money by commission.

The commission also needs to draw a large amount of share from the employees, and the profit is what is left in the end.

No matter how big this model is, it's the same.

Probably because of that.

Bloomberg only seemed so casual when he sold his CAA stake.

The difficulty of controlling CAA does not lie in funds.

The reason is that its shares are too dispersed, and such a dispersion of shares is beneficial to its own operations to a certain extent.

Even Abel didn't want to privatize CAA.

If it is really privatized, it will inevitably affect its operation.

His idea is that relative holding is enough, about %51 will do.

If you can get control of the board of directors, around 33% is acceptable.

No matter how many shares there are, privatization is not a good choice.

This is the nature of the industry.

Unless he himself can provide sufficient resources.

For example, the Texas consortium, which has an absolute holding in the future, can provide support systematically.

The current Abel is still unable to achieve this level.

Seeing that Bloomberg was so easy to talk to, Abel immediately smiled and said, "The price will definitely satisfy you."

Bloomberg is not short of money, and Abel is not short of this money.

He is so easy to talk, but Abel owes him favors.

Therefore, Abel would rather buy more expensive and spend more money.

It's better than being in debt.

But Bloomberg shook his head with a smile, "Just follow the market price. Bloomberg's valuation of CAA is 13 billion U.S. dollars. Just use this."

Abel raised his eyebrows, so generous?

It's not like being a capitalist.

He is not familiar with Bloomberg, and the other party has no reason to be so generous.

These capitalists are not even willing to pay tens of thousands more in taxes.

This kind of opportunity to earn millions more is so easily given up.

It's just possible to want more.

But it is clear that Bloomberg does not want to continue talking about these now.

For him, CAA is just an investment.

After nearly ten years of investment, he has earned two or three times.

Seems like a lot, but that's about it for Bloomberg.

It's just that, obviously, discussions related to CAA.

The Hollywood actresses next to her were obviously very interested.

It's just that their interests are not considered by Bloomberg and others.

Bloomberg looked around at several Hollywood female stars, and then at Ovitz.

"Mr. Ovitz. I have something to say to Mr. Smith. Can you provide us with a private venue?"

Ovitz was startled, and immediately realized: "No problem."

"How about the back of the yacht? There's a small deck over there with a great view of the Atlantic Ocean. And no one can hear what you're talking about."

"Okay," Bloomberg said.

Abel shrugged, and he didn't object.

Now he's even more curious about what Bloomberg wants to tell him.

(End of this chapter)