After Simon and Janet got married, the old man tended to show off his true nature in front of Simon, just like he did to his sons. Many times he would no longer be so polite when speaking.
Hearing the old man bluntly admit that his idea was too stupid, Simon did not refute, but said patiently: "Even if the U.S. economy continues to deteriorate, relying on the Westeros Company's accumulation in recent years, it will probably be able to cope with it."
Anthony Johnston said: "Most of Westeros' existing asset portfolio has a very good development momentum. If it is necessary to sell these high-quality assets with great growth potential to make up for the shortfall caused by the acquisition of MCA and Bell Atlantic, then It’s just not worth it.”
Simon said: "This is just a response strategy in the worst-case scenario, and it may not necessarily come true. Moreover, there is no need to sell those assets by then. Daenerys Entertainment and Bell Atlantic themselves can also sell part of their equity. Relieve financial pressure.”
Norman Johnston said: "In this case, it is better to adopt a stock exchange acquisition strategy now. Bell Atlantic may not be able to do it. Daenerys Entertainment, based on Hollywood's optimism about Daenerys Entertainment, can exchange shares model is easier to succeed than a cash acquisition.”
"I actually hope to adopt a share-exchange model," Simon said, shaking his head again and saying, "However, Daenerys Entertainment is not listed. Share-exchange acquisition and valuation are a very troublesome issue."
When Forbes magazine calculated Simon's personal assets in early August, it valued Daenerys Entertainment at $8 billion to $10 billion.
Simon believes that if listed, the market value of Daenerys Entertainment can easily break through the US$10 billion mark, even US$15 billion or even US$20 billion is not impossible.
However, in the current unlisted state, if Daenerys Entertainment wants to acquire MCA through a share exchange, it will be difficult for its own valuation to exceed US$10 billion. In addition, it will have to pay a high premium for MCA shares. This model is not suitable for Daenerys Entertainment is at a huge disadvantage.
Raymond Johnston suddenly asked a question that seemed to go off the rails: "Cersei Capital, Simon, do you think there will be more suitable opportunities in the next few years?"
Simon knew what the old man was referring to about the hedge fund.
If Cersei Capital can still obtain large sums of money through operations similar to those in the past few years in the next few years, the risk of huge debt caused by the two acquisitions will be much reduced.
Thinking this way, Simon said: "The turbulent situation in Europe should bring some opportunities. However, Cersei Capital's future development focus will be on private equity, asset management and M&A consulting. The size of the hedge fund will be reduced to 30 At the same time, we should try our best not to participate in macro-hedging at the national economic level, so as to avoid being targeted by the target country’s government in other areas where the Westeros Company is involved.”
From the 1987 stock market crash to the ongoing operation of the crude oil futures market, although Simon quickly accumulated a large amount of wealth for himself, he also attracted countless criticisms.
Now, the Westeros Company has completed its preliminary layout in entertainment, fashion, technology and other industries around the world. If you want these industries to develop smoothly, you must give up something.
Just like the pound crisis in 1992 in my memory, if Cersei Capital dared to short the pound as unscrupulously as Soros did, it would definitely make a fortune. However, the British government may have nothing to do with Cersei Capital, but it can make it difficult for other industries involved in the Westeros system to operate in the UK.
There were all smart people in the study. When Raymond Johnston heard what Simon said, not only was he not disappointed, but he nodded appreciatively and returned to the topic in a gentle tone, saying: "In this case, if you insist on starting two cases at the same time, When it comes to acquisitions and adopting an all-cash strategy, it is best to introduce partners, so that not only the cash pressure, but also other resistances will be reduced a lot."
"I have considered this plan, Lei. However, if MCA introduces cooperative capital, the two companies will definitely face asset valuation issues during the integration of MCA and Daenerys Entertainment. Bell Atlantic is very suitable for this. But there is no need. After all, the introduction of partners is either to solve the funding problem, or the two parties can complement each other in terms of technology or channels, but these are not what I need. Westeros Company can definitely raise enough funds, Bell Atlantic I also have a very strong accumulation of technology and channels. All I need to face is the risk of loan repayment in the future, but Westeros Company can completely bear such risks."
Raymond Johnston felt the firmness in Simon's tone, shook his head slightly, and sighed: "With debts of tens of billions of dollars, Simon, your current net worth is unmatched by anyone. There is no need to risk this anymore." kind of risk."
Simon smiled and said: "Actually, Lei, everything now is just the beginning for me."
Raymond Johnston was stunned for a moment, then reached out and patted Simon on the shoulder. He stopped trying to persuade and said, "Then, you brothers, let's chat for a while."
After the old man finished speaking, he was about to get up and leave when he remembered something and said: "One more thing, Simon, you and Jenny should have a child as soon as possible. Even if you two are too busy or want to enjoy the world of two people and don't have time to take care of the child, , you can leave it here in Melbourne, Jenny’s mother and I will help bring it.”
Simon nodded and explained: "Jenny and I also really want a child, but Jenny has been silent for more than half a year."
Anthony Johnston asked without hesitation: "Have you checked, I mean, physically?"
Simon nodded: "I checked twice and everything is fine."
Janet, who was very resistant to the hospital because her stomach had not moved all the time, still had a check-up with Simon in private.
Norman Johnston also expressed concern: "Maybe you can try in vitro fertilization."
Simon shook his head and said: "Jenny and I plan to take another look. It's hard to say whether the technology of in vitro fertilization is really safe."
It is inconvenient to discuss this kind of thing too much among a few grown men.
Raymond Johnston sighed, stood up from the sofa, stopped Simon and his two sons from getting up, and said, "You guys can continue talking, I'm going to rest." As he said this, he passed by Simon and said, But the old man patted him on the shoulder again and said, "You can play outside, but don't have anything to do with other women. Jenny will be sad, and it will be a big trouble for you."
When Simon heard this, his expression was a little awkward, and he didn't know how to answer at all. Fortunately, the old man left the study without waiting for his response.
Anthony Johnston and Norman Johnston looked at Simon's expressions, with smiles on their faces. Anthony said: "Don't mind, Simon, my father also told us brothers that if a family like ours... If those things really happen, it will be very troublesome.”
Simon could only nod with his lips raised.
The three of them talked about some topics about Seventh TV Network and telecommunications investment. It was not until almost eleven o'clock that everyone dispersed to rest.
Early the next morning, Simon set off back to North America.
Before I knew it, it was already late October.
In the week at the end of October, one of the most talked about topics was undoubtedly the list of the world's richest people released by Forbes magazine after the North American 400 Rich List.
There is no suspense that Simon ranks first on the list of the world's richest people with a personal net worth of US$21 billion. The second-ranked Japanese real estate tycoon Yoshiaki Tsutsumi's personal net worth dropped directly to US$16 billion, a full US$5 billion lower than Simon.
It is worth mentioning that the Johnston family also entered the top 50 on the list this time with a family asset valuation of US$3 billion, ranking 36th.
However, because the Johnston family has always kept a low profile and the shareholdings of family members are relatively dispersed, this figure is actually underestimated by at least US$500 million. If the Johnston family hadn't suddenly shown their strength and directly bought Australia's Seventh Television Network for US$800 million in cash, the asset valuation figure this time might have been even lower.
In North America, although there is more and more definite news about the release of the Forbes Global Rich List and Daenerys Entertainment’s upcoming bid for MCA, in the new week, several mainstream media on the east and west coasts of North America began reporting almost simultaneously. Congressman David Meloth submitted a bill to restrict foreign investors from acquiring U.S. companies. The bill focused on curbing overseas giants' excessive involvement in the U.S. cultural industry.
The controversy caused by Sony's acquisition of Columbia Pictures last year is still fresh in our minds. Therefore, even though some people know very well that the proposal is unlikely to pass, many media have begun to follow suit and report on it on a large scale.
Panasonic, which has publicly launched an acquisition of MCA, has inevitably become the focus of this public controversy.
Affected by these good or bad news, MCA's stock price continued to fluctuate within five trading days of the week from October 22 to October 26.
As of the close of trading on October 26, MCA’s share price was finally fixed at $65.75.
At the same time, the MCA board of directors officially approved Panasonic’s acquisition offer of US$6.6 billion after several adjustments on Friday, October 26, and plans to hold an extraordinary shareholders’ meeting next week to vote.
This obviously means that Daenerys Entertainment must take action before MCA shareholders vote.
East Coast of the United States.
Simon's estate in Greenwich, Connecticut.
The time is Saturday, October 29th.
The black Mercedes-Benz sedan stopped in front of the villa. Until Raymond Smith, the chairman and CEO of Bell Atlantic, got out of the car, he was still a little confused about the purpose of Westeros' sudden invitation to him yesterday.
However, when he saw the young couple appearing in front of the villa to greet him, Raymond Smith still smiled and stepped forward to greet them. Apart from anything else, this young man who has created a huge business empire in just a few years is worth meeting anyway.
While shaking hands and exchanging pleasantries, Simon was also sizing up the middle-aged man in front of him, who had risen from the lowest level employee to the position of chairman and CEO of Bell Atlantic.
Raymond Smith looks to be at most fifty years old. He is in a black suit. He is tall and looks much younger than his actual age. He has a Chinese-character face that exudes a shrewd and capable temperament. The only thing that is not harmonious is probably the ridge on the bridge of his nose. A pair of old-school large-frame tortoiseshell glasses.
Although it was Saturday, none of us were very leisurely people, so we only arranged to meet for an hour. Raymond Smith had to fly to Europe immediately after completing the meeting.
When everyone came to the study, Janet personally served Raymond Smith a cup of coffee, and placed a glass of juice in front of Simon before turning around and leaving.
Raymond Smith picked up the coffee and took a sip. He noticed the juice in front of Simon and asked with a smile: "Simon, don't you drink coffee?"
Simon shook his head and said: "I used to drink, but I stopped recently."
Raymond Smith did not ask the reason, put down his coffee cup, and skillfully found another topic, saying: "Speaking of which, regarding the last exclusive contract with AOL, I have studied the World Wide Web developed by Igret. The technical solutions have great potential for development. If Bell Atlantic had not been able to focus on other businesses in recent years, I would not have wanted to sign that agreement."
Simon took advantage of the situation and said: "The fixed-line phone business has already entered a bottleneck stage, and the federal government will not open up controls on the telecommunications industry in the short term. So, what is Bell Atlantic planning to do next?"
When Raymond Smith heard this question, he looked at Simon for a few times and suddenly smiled: "Simon, maybe you already know?"
Simon hesitated for a moment, then nodded and said: "Mobile communications."
The Westeros Company has collected enough information on Bell Atlantic during this period, and Simon naturally knows the company's next development ideas.
Affected by the AT-T split in 1984, regional telecommunications companies were unable to enter the long-distance phone business and cable TV business, and telecommunications equipment manufacturing was also restricted. In addition, the Internet industry was not yet large enough to satisfy Bell Atlantic's appetite. .
Therefore, the only business that Bell Atlantic can focus on expanding next is mobile communications.
In fact, Raymond Smith's upcoming trip to Europe is to examine the new generation of GSM digital communication technology that has gradually taken shape in Europe. Moreover, in the original time and space, it was precisely because of Raymond Smith's early focus on the mobile communications industry that Verizon once became the largest mobile communications operator in the United States with a user base exceeding AT-T.
At this time, Raymond Smith heard Simon blurt out the word "mobile communications" and felt that he roughly understood the purpose of this young man's invitation to him today. He smiled and said: "Simon, I happen to know that you have invested in a mobile communications equipment company in Europe. Manufacturer, Nokia, right? Moreover, this company has good accumulation in the new generation of GSM digital communication technology, and it seems that it is still developing a new generation of digital mobile phones. Therefore, you invite me this time in the hope that both of us can work together Cooperation in the field of mobile communications, right?”
Simon did not expect that Raymond Smith would directly misunderstand the purpose of inviting him to meet today, but he smiled and nodded, saying: "If there is a chance, I certainly hope that Bell Atlantic can cooperate with Nokia."