Winning the new financial era

Chapter 553
Of course Xie An knew what Zhang Yida meant by "cooperation". He said calmly, "Of course there is no problem with cooperation. I wonder what kind of conditions Mr. Zhang is willing to give?"

Zhang Yida pointed four fingers together, "40 billion Hong Kong dollars! I am willing to pay a 20% premium over today's closing price to privatize Digital Domain."

It stands to reason that this price is not too low, and a 20% premium is also given.

But when Xie An thought about Digital Domain's market value of more than 200 billion Hong Kong dollars, he felt that perhaps he should persist.

"5G is about to usher in, and the virtual reality industry will definitely usher in a big explosion."

Xie An laughed, "After all, Digital Domain has invested more than 2 million US dollars in the VR industry.

Everyone thinks that it is a cold winter for the virtual reality industry, and we are betting on this, betting that it will eventually usher in an explosion. "

Although Xie An didn't express his refusal clearly, Zhang Yida had heard the refusal.

"16 was the first year of the explosion of the virtual reality industry. Since then, the trend has fallen. Except for the VR experience halls in large shopping malls, there are almost no other landing applications.

Compared with mobile phones, head-mounted display devices are only one or two that technology enthusiasts like to pursue. "

Zhang Yida chuckled, "Perhaps you're right, this industry will explode, but don't think about it in a year or two.

It may be five or ten years, or it may be 20 years.

This is an area that requires a steady stream of money. Mr. Xie, have you communicated with shareholders like Softbank and Poly?

See if they are willing to spend another ten or eight years, waiting for the final harvest. "

Zhang Yida's words made Xie An's face heavy. The special effects business was already losing money, and VR was a big money burner.

According to the annual loss of 5 million yuan for ten years, the market value of Digital Domain has been lost.

Last year, Digital Domain had a market capitalization of HK$70 billion, but this year it was cut in half.

In the past two years, when VR concept stocks were popular, they had a market value of more than 200 billion Hong Kong dollars and a price-earnings ratio of more than 490 times.

But compared with the big A-share storm, it is still a little less coquettish.

In the 40 days since Baofeng went public, there were 37 daily limits, and its market value soared 28 times, with a market value of up to 400 billion yuan.

As for Baofeng’s revenue that year, it was only 6.5 million yuan, which was more than 1 million yuan more than that of Digital Domain, but its market value was almost twice as high.

But these good days are gone forever, Xie An regained his composure and said to Zhang Yida: "Can privatization be turned into investment?

Digital Domain can issue 30% additional shares to Ruixiang according to the average stock price in the past 20 days.

Digital Domain's shareholding is relatively scattered, with 20% of the shares firmly sitting as the largest shareholder. "

The corners of Zhang Yida's mouth curled up. What does this mean?Think of me as a strategic investor?

"Ruixiang is not willing to be a major shareholder, or the kind that doesn't care about things."

Xie An shook his head, "Boss Zhang, you misunderstood, I didn't mean that.

I know that Ruixiang has four major business segments, and content is one of them.

In terms of film and television production, VR games, original IP, VR entertainment, live broadcast, etc., we can cooperate with Ruixiang.

Sometimes, the goal that can be achieved by strategic investment does not necessarily have to be achieved through mergers and acquisitions, right? "

There is nothing wrong with Xie An's words, but Ruixiang has no shortage of funds.And Zhang Yida believes that Digital Domain needs to merge into the sharp direction system to play its biggest role.

So Zhang Yida said: "If you are worried about selling early, you will not enjoy the dividends of the VR explosion.

Ruixiang can use the equity to acquire the shares in the hands of your management. "

"Ruixiang's current public valuation is 2050 billion U.S. dollars, right?"

Xie An frowned and said, this is not as good as cash purchase!
It's all 2050 billion US dollars, and it hasn't been listed yet. The listing has doubled to 4100 billion US dollars?
Wouldn't that be completely equal to Ahri and Penguin?He believes that Ruixiang does not have the qualifications at present, and will not be able to catch up with Ahri and Penguin in at least two or three years.

"What about the 29.9% stake?"

Xie An proposed a new plan, looked at Zhang Yida, and reminded: "If there is more, the tender offer line will be triggered.

If the VR industry will usher in a big development in the future, it is enough for Ruixiang to directly cross the offer line by 30%.

Moreover, it can also use the money of stockholders to develop the VR industry.

If it can't develop, the loss should be less.

Of course, if it develops, Ruixiang will pay a higher price for privatization.

It's all relative! "

Seeing that Zhang Yida seemed unmoved, Xie An continued to use his sharp tongue to persuade, "As you just said, Mr. Zhang, the losses may continue for many years.

If Digital Domain is installed in Sharpward's system, it will have an impact on the market value of Sharpward's future listing and lower profits.

When the Digital Domain develops well, it will be merged directly..."

Focusing on capital operation methods, Xie An explained various advantages to Zhang Yida.

The core point is to hope that Zhang Yida will only invest strategically, let Ruixiang become a major shareholder, and retain the equity of himself and others.

Zhang Yida knew what the other party was thinking, and used Ruixiang's money to develop the business, so that he could share the dividends when it developed.

"Let Ruixiang become the major shareholder, what do you want?"

Zhang Yida asked with a smile.

He has seen the shareholding structure of Digital Domain, although no shareholder holds more than 20% of the shares.

But with the existence of "people acting in concert", it cannot be said that Ruixiang, the major shareholder, must control the overall situation.

If you think about it carefully, maybe when the VR industry explodes, Ruixiang will be kicked away.

"Give me the right to operate for five years, and if the Digital Domain cannot be brought up in five years, I will abdicate and make way for the virtuous."

Zhang Yida nodded, "Okay, I also know your appeal, I need to think about it."

On the way back.

Bao Fan didn't interrupt just now, just listened from the sidelines, and now he asked in the car, "Why didn't you agree to him?"

Zhang Yida did not answer this question, but asked Bao Fan for his views.

"Xie An, I think loyalty is like traitor."

Bao Fan glanced at Zhang Yida, "Don't think I'm scaremongering, I've always been a good judge of people."

Zhang Yida nodded, and asked back: "Then you know that this person is unreliable, and you still ask me why I didn't agree to him?"

Bao Fan asked with a smile, "Then you really gave up?"

Seeing that Zhang Yida remained silent, Bao Fan said in surprise, "Isn't it? Are you really giving up on the acquisition?

With 29.9% of the shares in hand, even if there is a major shareholder dispute at that time, it will not be easy to settle with your financial resources. "

Zhang Yida shook his head, "Didn't you see it? Zhou Yongming didn't show up today, and together they have more than 50% of the shares."

Bao Fan shook his head, "They don't necessarily all wear a pair of pants, especially when there is a conflict of interest."

He thought for a while, and then said: "However, you are right. This is also an unsafe factor.

If they collude one day, it is not impossible to kick you out. "

"You say, how about we be barbarians once?"

Bao Fan was stunned for a moment, "Isn't it? For such a small company, it's not worth it, right? Then the stock price hasn't gone up to the sky?"

Zhang Yida chuckled, "Just kidding, if you don't sell it, buying VR assets now is like picking up junk.

There are a large number of companies that have closed down in Silicon Valley, just go and receive them.It's just that the development may be slower, and the wheel needs to be reinvented, rather than just taken over and used. "

From the bottom of his heart, Zhang Yida still hopes to privatize Digital Domain.

After all, the current state of the company is not suitable for listing. It needs continuous investment, and the stock price cannot rise.

However, he intends to "be courteous first and then fight", it depends on the choices of Xie An and the people behind him.

(End of this chapter)