2493【Privatization】
After the successful merger of Columbia Records and MCA Records, the summer began to promote the merger of Tianxia Production and Columbia Pictures and Universal Pictures.
At the beginning of this plan, he had one more thing to deal with, that is, to privatize Columbia Pictures.
Columbia Pictures is still a listed company. Although Xia Tian is a well-deserved major shareholder, accounting for more than 80% of the shares, he still cannot do whatever he wants, otherwise he will violate the laws of the United States.
At that time, not only will there be huge compensation to the small shareholders, but there may also be a possibility of losing control of the company.
Just like the prototype of Iron Man, Howard Sius, the boss of Thunderbolt Hua Films, was deprived of control of the company while holding 73% of the company's shares.
Now in the summer, we will promote the merger of Columbia Pictures and Tianxia Production and Universal Pictures. If the minority shareholders of Columbia Pictures oppose, request the disclosure of specific details of the merger, and require the review of whether the interests of shareholders are harmed during the merger, it will cause a lot of trouble for this merger, which will greatly drag the merger down.
So before promoting the merger, Xia Tian hopes to privatize Columbia Pictures. In this way, merging the three films will become his own business, and no one is qualified to quit.
Moreover, after Columbia Pictures takes over private ownership, it makes money and does not have to be distributed to other small shareholders in the summer. It is also able to withdraw large sums of money from the company without having to explain to anyone. It can be said that it is a huge advantage.
You should know that since Columbia Pictures took over in the summer, it has made money every year. In the most year, its profit reached 1.35 billion US dollars, which is more than the other five Hollywood giants combined.
Moreover, in the future, as long as there is summer in charge, Columbia Pictures will not be likely to lose money. In particular, it has laid a solid foundation for Columbia Pictures, not only won the Pixar Animation Company, but also bought the famous Marvel.
In the future, the Marvel Universe, which makes more than one billion dollars in profits every year, and Pixar Animation, which guarantees both reputation and box office, will provide strong momentum for the development of Columbia Pictures.
Once privatization is completed, these profits will be exclusive in the future and do not have to be distributed to anyone. It is really enjoyable to think about it!
...
Summer then proposed a private plan to small and medium shareholders at a price of $67.5 per share.
In 1987, when Columbia Pictures acquired shares in the summer, its stock price was only twelve dollars.
After eight years of development, Columbia Pictures' stock price has reached 52 US dollars, up nearly four times, making it the most eye-catching stock among American entertainment stocks.
Stock investors are also very confident about the stock, believing that it still has potential to continue to grow. Especially after the summer acquisition of Universal, people are more convinced that Columbia Pictures stock will rise.
Because after winning the two giants in Hollywood in the summer, its strength has grown far beyond other Hollywood companies. Based on the Matthew effect, the theorem that the stronger the stronger the weaker the weaker the more powerful it is. In the future, the strength will be stronger and Columbia Pictures will be stronger, so its stock price still has a lot of room for growth.
Therefore, after the team's audit, they proposed a privatization price of $67.5 per share to Xia Tian, which is fifteen dollars higher than the existing stock price.
This price seems outrageous, but if you don’t offer such a high price, you probably won’t be interested in selling your stocks to summer. After all, based on the previous growth pattern of Columbia Pictures’ stock price, the stock price may rise to seventy or eighty dollars in another year.
If you buy back the stock at a price of $67.5 per share, you will have to pay about $3 billion in summer. Even for him, this is a huge sum of money.
Because in recent years, although I have made a lot of money in summer, I have also spent a lot of money. Oil in the Middle East and Eastern Europe, iron ore in Australia, factories in Patsima, and real estate in Hong Kong... one by one, all require money.
So these three billion dollars were obtained from Wall Street banks in the summer through borrowing.
The reason why I didn't get money from the Bank of East Asia is that the 3 billion US dollars is considered a huge sum of money for the Bank of East Asia, and it cannot be borrowed at once.
Furthermore, during this merger, he also needs support from Wall Street.
You should know that behind Hollywood film companies in the United States, almost all the Wall Street consortiums stand. They are the largest funders and the actual controllers of Hollywood.
To be honest, Xia Tian’s merger will have a certain impact on them. If it weren’t for Xia Tian’s good relationship with Yuta Chamber of Commerce, they would have long since jumped out to object.
If that is true, the merger of the three companies will definitely be a silence. After all, no matter how strong summer is, it is impossible to compete with Wall Street.
Xia Tian also knew this, so he borrowed them $3 billion to give them some sweetness.
...
After the launch of privatization in the summer, it soon caused a sensation in the U.S. stock market.
The price of stocks with fifty-two dollars and the acquisition of sixty-seven dollars is not bad.
But when it comes to the stock "Columbia Pictures", I think the price is not high.
Because this stock has performed very well in recent years, its stock price has doubled almost every two years, which is much better than most stocks.
Therefore, at the beginning, not many people are willing to sell stocks. They hope to give higher prices in the summer.
However, Xia Tian made up his mind to stop offering high prices.
Sixty-seven US dollars is definitely a very reasonable price. You know, when he bought it, the stock price was only twelve US dollars.
In these few years, the stock price has risen more than quadrupled, and he is worthy of investors.
"Sixty-seven-five dollars, it's definitely a reasonable price, I won't raise the price anymore." Xia Tian said to the outside world.
At this moment, someone offered a purchase price of $70 per share in the stock market to acquire Columbia Pictures' shares. This price is 2.5 dollars higher than the summer offer.
"Mr. Xia, this is someone deliberately raising the stock price of Columbia Pictures. In this way, the price you offer is no longer attractive." James, the head of the privatization team, told Xia Tian.
If the stock price is raised to seventy dollars, it will have to be around eighty-five dollars in the summer to attract investors. In that case, he will spend nearly one billion dollars more.
This is not a small number.
Xia Tian nodded and knew this.
"If they want to force me to submit in this way, I will never let them succeed." Xia Tian said firmly.
Sixty-seven-five dollars is his limit, and he will never surrender.
:.:
Chapter completed!