Video Game Empire

Bradshaw was indeed a little stunned, and it was not until Li Xuan confirmed that he nodded again that he believed that the other party was not joking. ↗ Xiao, he did not think that his company might be acquired in the future, but he never thought of being acquired by a company from Hong Kong, since his boss is the richest man in the world.

Although the sales share of ra's flagship product TV in the United States is getting smaller and smaller, in fact, the market value of ra's company is still as high as 4 billion US dollars. Don't look at Li Xuangui as the richest man in the world, with assets of 7 billion US dollars, he can afford to buy a company with just over half of his net worth.

But in fact, things are far from simple. Although the total market value of ra is only 4 billion US dollars, it must be purchased at a premium to convince shareholders to sell shares. The actual price can be controlled within 5 billion US dollars. Thank goodness.

To raise $5 billion in a short period of time, Li Xuan must sell at least half of the properties under his name to raise such a huge sum of money. But he holds Aikang Computer Company, Computer Park Company, Dongfang Game Company, Dongfang Research Institute, etc., no matter which one is not a rising star!

Sell ​​them to buy a TV manufacturer, and it is a TV company that has sold its LCD R&D project. This kind of stupid thing can only be done by someone whose head is caught in the door! Could it be that Li Xuan's head was caught by the door? Of course not, he is sober now!

According to the analysis of the think tank behind Li Xuan, despite the fact that RA is recognized by all Americans for its TV and radio products, in fact, of its $4 billion market value, at least $2.5 billion is to be counted in his radio broadcasts. over the television business. The nb (National Broadcasting Corporation), the first of the three major public television networks in the United States. It is a wholly-owned subsidiary of RA. The TV business is worth up to $5.6 billion, and the remaining $1 billion is other miscellaneous businesses.

"Mr. Bradshaw. Please don't rush to refuse, I think the future of ra is in Asia. Only Asia can help this century-old store to regain its glory. Because it can not only provide cheaper labor, but also has a rapidly developing The economy is also forming an emerging consumer market second only to North America, Europe and Japan.

For example, the land we are standing on now was a dilapidated fishing village four years ago, but now it has the embryonic form of a new city. Red China is embracing the world with a more open attitude than it has been in the past three decades.

Maybe it is not easy for foreign companies to enter this somewhat closed market, but Hong Kong people who share the same cultural background as China are more adaptable and flexible! With China's huge population base of more than 1 billion, it can provide the cheapest human resources and has the potential to develop into a huge emerging consumer market!

Want to catch the beat of Asia's rise. Incorporating a multinational company from Asia is undoubtedly the best choice. Orient Electronics is not a typical Hong Kong company, but more of an international company with manufacturing plants located in and around Hong Kong. The largest market of Dongfang Electronics comes from the United States. Many important subsidiaries are established in the United States, and R&D centers are spread all over the world.

Dongfang Electronics is a new company, but I am not humble enough to say that its revenue is several times stronger than that of the established company RA, even compared with the top ten companies in the US Fortune 500! But the Oriental Company is a company that was founded less than five years after all, and it lacks a rock-solid foundation.

Japanese companies can use the Japanese home market as a retreat, so they can start a price strangulation war with American companies in the United States without a bottom line. And European companies can regard the European market as their back garden. For example, Airbus has the backing of the governments of Britain, France and Germany. To compete globally with American companies such as Boeing and McDonnell Douglas.

On the other hand, Dongfang Electronics Co., Ltd. is a purely commercial company that relies on technology to rise. Not only is Hong Kong's local market small, but the current chaotic Sino-British political situation is not helping it, but is actually holding it back. Therefore, Dongfang Electronics needs ra's deep heritage in the United States. To help it secure the largest and most important market in North America! "Li Xuan stared at Bradshaw and said very sincerely.

At the dinner that day, Lu Qintian, on behalf of the joint venture kinescope factory, held a banquet for Li Xuan and Bradshaw to wash away the dust. However, Wu Nanshen, the mayor of the Deep Sea Special Zone, came to attend. After all, RA is also a well-known large group in the United States.

But Bradshaw apparently didn't focus on the Chinese food at the dinner. In the eyes of others, he is not very interested, maybe he is too tired from the journey. After all, the ra delegation flew to Hong Kong from New York via Tokyo. Before I could take a rest, I went directly to the factory in Shenhai City to visit and inspect.

The group of ra company may not even adjust the time difference. And Bradshaw also decisively refused, Lu Qintian arranged the entertainment after the dinner. In fact, only Li Xuan knows best in his heart that the chairman of the ra company was not because of lack of energy, but was shocked by his words before the dinner started.

The other party estimated that during the whole dinner, they were thinking about the possibility of Oriental Company acquiring Ra. After the dinner, Bradshaw invited Li Xuan to his guest room for a detailed discussion. This is what he had long discussed before.

Since the late 1970s, mergers and acquisitions among American companies have become increasingly active with the help of the capital market. In the past, there were very friendly negotiations between companies to reach goodwill mergers and acquisitions, but under the instigation of investment banks such as Morgan Stanley and Goldman Sachs, hostile mergers quickly became mainstream.

In a traditional good faith merger, the management of both parties agrees on the terms of the acquisition first, and then the acquiree submits the details of the agreement to shareholders for selection.

But the so-called hostile merger is that the management of the acquiree rejects the takeover proposal, and the acquirer forcibly acquires enough equity in the open market to achieve its goal. In this case, the management of the acquiree will often react violently, and even if the acquisition is finally realized, it will pay a huge price.

For example, just last year, Martin Lipton, a well-known merger and acquisition lawyer in the United States, invented the poison pill plan for an acquired company.

The so-called poison pill plan, the specific explanation is the equity dilution anti-takeover measures. When the acquirer touches the preconditions set by the poison pill plan (such as acquiring 20% ​​of the shares), the acquired company will automatically place preferred shares below the market value to common shareholders.

The acquirer is naturally excluded from the placement plan, so that the equity they have acquired will be quickly diluted. When they want to continue the acquisition, they must pay a premium to the original stock price based on the benefits of the company's placement of preferred shares, which greatly increases the cost of acquisition.

As a foreign capital, Dongfang Electronics Co., Ltd. wants to acquire a well-known American company such as ra, which is easy to cause public criticism. For example, when Sony acquired Columbia Pictures in later generations, it was met with massive opposition from the United States. For another example, when CNOOC acquired Unocal, it failed because of strong opposition from the US Congress.

Therefore, a hostile takeover has never been in Li Xuan's plan. Only with the support of ra's management, and under their guidance, can Li Xuan be able to use the thunderous momentum to complete the acquisition before the public opinion in the United States. Then he can calmly face the challenges of Congress, the White House and other aspects.

After all, RA owns the most influential public television network in the United States—nb (National Broadcasting Corporation). Li Xuan wants the US government and Congress to agree that it will not be easy for such a media group, which can have an important influence on American public opinion, to be controlled by foreign capital.

And although Li Xuan said so much before, in fact, the real purpose of the ra company he acquired was to go to the nb TV network. In America, the land of free speech, the power of the media is the most feared by politicians and business corporations.

Li Xuan is not going to use nb to smear his competitors. For a foreigner, doing so is actually very risky. But he only needs to hold such a media company in his hand, and he can make countless cold guns and secret arrows think twice before launching, so that the Oriental Group can truly obtain a relatively relaxed competitive environment in the United States.

"Li, I don't mean to offend, but I still feel that Oriental Company has not been able to acquire ra company. If you want our management to cooperate with you to convince shareholders, it must first be a complete acquisition~www.readwn.com~ and cash. Acquisition! And this will be the largest non-oil merger in U.S. history!" Bradshaw said, shaking his head.

A full takeover is to agree to buy 100% of the stock in the hands of all shareholders, which is much higher than the capital required for full control (50% equity).

For the other party's reminder, Li Xuan did not hesitate. He still had a genial smile on his face: "Of course, I know the difficulty of this acquisition, especially since Dongfang Electronics is still a foreign company! So in the next time, I will keep bothering you, and slowly go to the You show the sincerity and confidence of our Dongfang Electronics Company.

I also hope to have an in-depth discussion with you, the advantages and disadvantages of mergers and acquisitions for the two companies, and the future development strategy of ra company! Hope you don't get bored by then and shut me out! "

Bradshaw looked at Li Xuan's confident eyes, and couldn't help feeling a little more in his heart. At least this shows that the other party made the decision after careful consideration, rather than a hasty move that is blind and arrogant.

If the other party can convince himself with sufficient reasons, Bradshaw does not exclude being acquired. The current ra company has a sense of suffocation, and it also needs to inject a fresh spring into a dynamic emerging company like Dongfang Electronics! (To be continued..)