"The current situation of MGM is similar to that of EMI. In 2005, Sony took the lead in forming a consortium and launched a leveraged buyout of MGM. Now it can no longer pay the debt and is about to go bankrupt."

"I know this matter is too complicated to handle."

Zhou Buqi can be regarded as half a member of the Hollywood circle, and he knows some inside information. This is a capital game exclusively used by Hollywood to harm Wall Street.

By the way, is there any way to complete the acquisition of a US$5 billion company for US$100 million?

There are many ways.

If it is in China, you can find out the original sins of the company's founder's family. If you say you have it, you must have it, and then they will be arrested and sentenced, and the company will be confiscated. After the confiscation, the company will conduct asset evaluation. A finely decorated high-end apartment will be evaluated as one

At 70 yuan per square meter, a house is only worth 7,000 yuan. Through a "public" auction, you can use 100 million U.S. dollars to receive 5 billion U.S. dollars in assets.

The United States plays a capital game, mainly the notorious leveraged buyout.

With a principal of US$100 million, you can take the lead in organizing a consortium, and then find some capital institutions to cooperate to jointly raise US$1 billion to establish a holding company. Then use this US$1 billion as the principal, and use future corporate assets as collateral to provide capital to the capital institutions.

With a loan of US$4 billion and a total financing of US$5 billion, the acquisition can be completed.

After completing the acquisition, the company will be saddled with a huge debt of US$4 billion.

The main controller only spent 100 million US dollars and held 10% of the shares, and took control of a large company with 5 billion US dollars. The next step is to adjust the business, split, sell, reorganize, and start a wave of selling and selling. First, pay back

Make a wave of money, and then seize the main business to make money.

Sony Pictures is a Hollywood giant, so it is even more ruthless.

In the case of MGM, on the surface Sony invested US$5 billion to acquire MGM. Now MGM is on the verge of bankruptcy and Sony Pictures is going to vomit blood from the losses.

In fact, Sony Pictures is playing the trick of organizing a consortium to buy out the company. They don't care about MGM's financial growth at all. What they pursue is to gain control of MGM.

Once you have control, you are the maker of the rules and the referee. It is too easy to make money.

"007" is the core asset of MGM. First make a "007", the producer is MGM, and the distributor is Sony Pictures. Then, a miracle happened.

Sony Pictures' investment in MGM was recouped by just releasing one "007" movie.

All subsequent operations are profits.

As for how big MGM's debt is and whether it will go bankrupt, it doesn't matter at all. Anyway, MGM's movies will be distributed by Sony Pictures, which is a sure-profit deal.

Therefore, the two companies, MGM and EMI, look the same, but in fact they are completely different.

MGM is a production company. It is only responsible for producing movies and has no distribution company. It has to be distributed by a third party and has no own channels. EMI, on the other hand, has a complete music production company and distribution company, and the lifeblood is in its own hands.

Masayoshi Son has just started researching the entertainment industry, but he doesn’t quite understand it yet.

Zhou Buqi explained the twists and turns to him, "On the Internet, content is king, but the entertainment industry is a traditional industry. In traditional industries, channels are king. Whether it is movies or music, only by mastering the distribution rights can we have autonomy.

Quan. MGM has been castrated,

Of course, even if it is castrated, it still has great investment value. "007", "Tom and Jerry" and "Lord of the Rings" owned by MGM are all the highest quality copyrights. When combined with Internet streaming media, there is no need for a distribution company. Comparable

After all, EMI's business is more complete."

"Okay, let's discuss it later."

Masayoshi Son is a person who does great things.

He recently spent more than 20 billion US dollars to acquire a US telecommunications giant. From his perspective, since he wants to invest in the entertainment industry, a mere EMI record cannot satisfy his appetite. Now that he has done it, he has to do something big.

Go into a business with a big "vision".

Unfortunately, Hollywood has been in business for hundreds of years and is more complicated than imagined.

Neither NBCUniversal nor MGM are excellent investment targets.

After the phone call ended, Shi Jinglin was puzzled, "Isn't Masayoshi Son Japanese?"

Zhou Buqi said: "To be precise, he is Japanese-American."

"Why do you have to cooperate with him?"

"There is a foundation of trust. He believes in me and I believe in him. What's more important is that he does things quickly and moves quickly. If he wants to cooperate with other capitalists, just wait! A small business with billions of dollars

If you don’t conduct careful research for two or three years and negotiate for two or three years about business, don’t even think about it!”

"Um……"

Shi Jinglin was about to speak but stopped.

Zhou Buqi smiled and put his arm around her shoulders, "If you have any doubts, just ask and I will give you some advice!"

Shi Jinglin blinked a few times, "Today is New Year's Eve."

"Um."

"Which house do you live in?"

"We agreed to go with Ning Lu."

"She...she's not...she's a yellow flower girl, right?"

"Yes." Zhou Buqi sighed, "I can't help it, you are all too superstitious and too feudal, so I can only go with the flow. There is a new atmosphere in the new year. If you lose your virginity on New Year's Eve, you will have good luck in the new year.

"

Shi Jinglin twitched the corner of her mouth, "It sounds familiar to me! It seems like someone told me, and you believe this the most."

"Really? Did you hear it correctly?"

"I'll go too!"

Shi Jinglin was eager to try.

"Huh?" Zhou Buqi frowned, "Isn't it bad?"

Shi Jinglin said plausibly: "I also have unresolved troubles. I can't even interfere with Yuanwei Group's mineral water business. I'll go too. I want good luck too."

"You don't mind if it's bloody."

"Don't mind it, it's exciting."

"Depend on!"

"Is that okay?"
Chapter completed!