Sini's troubles have brought so much trouble to Taihua Holdings Group. How could Feng Yu not fight back, how could he swallow his anger
Although those people have openly separated from Suini, and there is no direct evidence to implicate Suini in this matter, but as long as you are not blind, you can know that this matter is definitely related to Suini.
At this time, Sunny's advantageous businesses are PS game consoles, digital camcorders, digital still cameras, flat-panel TVs, mobile phones, computers, music players, etc. This does not include their movies, songs and other entertainment businesses.
Among them, in terms of movies and songs, Sunny is also top-notch in the world. Only through better works can we beat Sunny.
The image of Sunny's former ace Michael Jackson has gradually declined in recent years, and Sunny's new flag-carrying singer has not reached the heights of Michael Jackson.
As for movies, with the popularity of optical discs, Sunny has made a lot of money with her huge film and television copyrights. Fortunately, people are now more interested in new movies, so the profits of Sunny Pictures are gradually decreasing.
The best way is to combat Sanni's expansion. At this time, Sunni Pictures is seeking to acquire MGM Films, which is the last independent production company among the eight major Hollywood film companies. The company has super IPs such as 007 and Tarzan, as well as a large number of film and television copyrights.
Although few people will care about these copyrights if they are re-released, they still have a great use, and that is to use them for remakes.
Feng Yu remembers many remake movies in his previous life, and the final box office was a surprise. Moreover, Feng Yu still has some classic movies in his mind, which also need a powerful company to produce them.
The reason why MGM declined is because the movies they shot only focused on plot and not on visual effects. When going to the cinema, of course I hope to enjoy a visual feast. As for the plot being good, can’t I just buy the CD? Or go to a video website and pay to watch
Whether you buy a disc or pay to watch it, it is much cheaper than a movie ticket, and because you are at home, you will be more comfortable and free, and you can watch it repeatedly.
So now MGM's main revenue is from selling optical discs, but their disc production is handed over to Sony Pictures because they don't have their own disc production factory!
Sunni Pictures took a fancy to MGM's vast copyright and the appeal of its established film company, so it planned to take it. But in fact, Sunni Pictures did not have enough cash, at least not enough to acquire MGM.
No matter how depressed MGM is, based on those copyrights and the company's brand value, it is still worth four to five billion US dollars. Of course, it is no longer comparable to the tens of billions of dollars in value of other companies.
Sunny has recently invested too much money in electronics, such as digital cameras and digital camcorders to ensure a leading edge. For example, music player products have to catch up with aiwa. For example, the newly added plasma flat-panel TV camp requires a large investment. For example, mobile phone sales are declining, requiring increased investment. Computer sales are declining, and investment needs to be increased.
Even the video game consoles they have dominated for several years have had to increase investment in research and development and strive to launch new models as soon as possible due to the strong rise of gbox and the upgrading of Rentian.
So despite the fact that Sunny's revenue last year was pretty good, if it wanted to acquire MGM, it really couldn't come up with the money.
During the dot-com bubble two years ago, Sini's stock price continued to fall. It has just slowed down recently, but it is still more than 30% lower than at its peak.
Therefore, if Sunny wants to acquire MGM, it can only use financing and mergers and acquisitions, which is also a very common method of mergers and acquisitions in the United States.
The acquisition plan announced by Sunny is a special leveraged buyout, which uses MGM's assets as collateral, issues high-risk bonds, and borrows mortgages from banks or other investment institutions.
For example, Sunni needs US$5 billion to acquire MGM, but the actual assets paid may only cost US$10 million. This is the power of leveraged buyout.
But at the same time, if MGM's operating conditions are good and its assets begin to increase in value, Sunny will not be able to share the income brought about by the asset appreciation. It will not be able to obtain normal operating and management income until the loans and bonds are cashed and paid off.
Many people like to buy such high-risk bonds because the higher the risk, the higher the return may be. Sometimes a seemingly junk bond may bring hundreds of times the return. Of course, it is more likely that this bond has indeed turned into garbage, a piece of waste paper.
This is a kind of gamble, some people like it, and some people stay away from it. The ecstasy of success, the failure won't hurt much, as long as you don't buy too much.
In his previous life, Suani united several investment companies to acquire MGM, and then acquired MGM through a series of equity transactions and other means.
This has also allowed Sunny Pictures to further grow. In a short period of time, it has brought tens of billions of dollars in revenue to Sunny Pictures, which can be described as an unprecedented success.
However, this was also an overdraft, overdrafting MGM's brand potential, so later MGM fell into bankruptcy again, and was eventually dumped by Sunny to the Telescope Company.
The acquisition of MGM is not just about film and television, but also includes hotels, resorts, movie theaters, cafes, etc. Feng Yu is only interested in film and television and theater chains. As for hotels, resorts, etc., Feng Yu actually has no interest at all and plans to spin them off and sell them.
At this time, someone who is interested in this aspect needs to join, such as Donald.
"Feng, you said you want to acquire MGM? Do you want me to complete this acquisition with you?" Donald looked a little confused in his eyes. He usually only invests in real estate and stocks, not film and television.
"Donald, MGM not only has movies and TV shows, but also resorts, hotels, cafes, etc. Are you interested in these? The real estate market in the United States has been rising recently." Feng Yu asked with a smile.
Real estate prices in the United States have risen. As the king of New York real estate, Donald's assets have naturally continued to skyrocket. Donald is crazy about real estate.
Donald's eyes lit up. There was no good real estate investment in New York recently, and investing in other places was also a good choice.
"You mean, after the acquisition, we will split the MGM business, and the real estate will belong to me, and the rest will belong to you?"
Feng Yu nodded: "How about it, are you interested? You know, for hotel and other property management, our Fengyu Holdings Group does not have particularly good talents, so we can guarantee no loss in our hands, but in your hands , you are guaranteed to make money!”
"Feng, when can we meet and talk in detail?"
"I will fly to New York the day after tomorrow and we will have an interview!"
…
ps: Just look at the title and you will know that there are ten updates today. Unexpectedly, one of the villains in this book, Trump, actually succeeded in counterattacking. The fourth child made a bet with his friends and won a meal. Wow~~~(To be continued.)