American Fortune Life
Chapter 1217: Opportunities for Dominant NBC Worldwide
“NBC Global! I'm interested!”
When he heard Andy's words on the phone, he frowned tightly. Buffy's unpleasant heart could not help but relieve him, his eyebrows stretched, his smile on his face. What he had previously feared about the big opening of the lion did not appear. Turns out it was just a bridging matter, which was not difficult for him. Turns out he's a smart, decent young man.
“Ha ha, you guys, you seem to have a lot of obsession with the media empire, but NBC Global is not cheap, even in the current economic situation, at least 20 billion dollars, can you eat it? ”
Hearing Warren Buffett's twitch, Andy couldn't help but frown and say, "Even if I ate it, do you think General would really sell me all the NBC World? ”
“No, that's the tongue of their public opinion, and even if they agreed to trade, it would be a conditional deal, and they would die holding shares and board seats. ”
Andy was prepared for Warren's judgment, but to quickly build a media empire on a large enough scale, it could only be done through capital operations. Although AMC TV was gaining momentum, there was no way to compare it to the three major NBC, ABC, and CBS radio and television networks.
The news that Warren brought him this time undoubtedly gave him an opportunity to take advantage of the fact that, if it were to work, it would not necessarily be possible to fulfill his dream of a media empire.
“I helped, and I think Jeffrey Immett, the general CEO who's going through a tough time, would be very happy to meet you as a brilliant genius, so when are you going back to New York, I can arrange a time for everyone to play golf together, and now it's time for Autumn High, you won't refuse to use the hot weather again? ”
“Oh, of course, and I'm really progressing in my skills right now, and playing ball is my best sport!” Andy raised his eyebrows slightly, smiling in the corner of his mouth, and said with a double tone.
Unfortunately, there was no difference between what he said and what he said to the deaf. The old hooligans didn't hear Andy's words. They just laughed at Andy's skills and agreed to contact him, which ended up being a satisfactory communication.
After hanging up the phone, Andy sent a text message to Al in New York letting the think tank sort out the details of General Electric. It was definitely after hearing the news about NBC Worldwide that he thought about it temporarily. Although it upset his planned acquisition, the opportunity passed slightly and must not be let go.
If he could truly win the NBC World, the acquisition of the AMC estate would be complete, and at this moment Andy's ambitions swelled again, shining brightly in his eyes.
Half an hour later, Andy turned on the video link and started a videoconference to hear his men report to him all the information they had gathered about the general electricity, its analysis and judgment.
“ Unlike banks, GE Finance itself has limited deposits and is currently in a very difficult position.
GE Finance's previous high leverage was underpinned by high performance at the time, but now its profits are falling and GE is in a state of operational tension, causing market panic and sharp falls in equity prices, and capital operations are in trouble.
Together with the recent strengthening of government regulation of “non-banking system-important financial institutions", GE Finance's inability to carry out a variety of high-leverage financial operations has become a heavy burden for the parent company.
Lower corporate credit guarantee ratings have led to higher financing costs and further shrinking profits. The loopholes and risks exposed by GE Finance have put more pressure on investors to regularize GE and reduce finance.
It can be said that the current General Electric CEO, Jeff Yimert, is slowly losing the trust of the Board of Trustees and continues to consolidate his position with external strength and good news. ”
Listen to the think-tank analysis, Andy touched his chin, and he thought, "General Electric, too, once had a market value of over 600 billion dollars. Are they really so short of money? Or do you just want to use this financing to boost stock prices and defuse investor panic? ”
“Boss, they don't even have 300 billion in market value right now, because of their size, which is why they lack money. If the chain breaks, it may collapse instantaneously, which is not alarming. ”
Alvitelli's face seriously explains Andy's doubts and continues to highlight the data to support it.
“As of July 17 of this year, General Electric's second quarter financial results show that the company's net profit for the quarter was $2.67 billion, well below $5.07 billion for the same period last year. Corporate revenues also fell to $390.8 billion from $46.84 billion last year.
On the basis of all the data analyses, we conclude that $33 billion of the company's total pre-tax revenue of $45 billion last year was used to sustain business operations and that the remaining $12 billion could not pay off the interest generated by its debt of $43 billion.
By July of this year, General Electric's net tangible assets stood at only $17 billion, but its asset liability ratio was as high as 3000 per cent - more than $500 billion already owed. This means that once the asset base value drops by 3.3%, all of its tangible assets will be zero!
General Electric must therefore find more sources of funding. Where the capital market is reluctant to lend a hand, its way out may simply be open source throttling and the sale of assets.
And since the first quarter of this year, when there was word on the market that General Electric was about to sell or split the appliance business, analysts on Wall Street have been urging General Electric CEO Jeff Yimert to divest the NBC Global and Consumer Finance businesses.
Since the former is the main cause of the shrinking of GEM profits, the latter is inconsistent with GEM's development strategy, which focuses on industry, finance and health.
I suspect that Jeff Imert has probably accepted the above recommendation, and even this time with the assistance of external forces, General Electric should begin to prepare for open source throttling and the sale of mismatched assets. ”
Andy's eyes lit up slightly, and then he looked at the think-tank members in the video window, his eyes focused on Al's face, and he said seriously, "If I offered to buy NBC Worldwide now, Jeff Imert would probably enjoy it, wouldn't he? ”
Aldour was slightly stiff, and the think-tank members in the conference room were also face-to-face. For the sudden arrival of Big BOSS, they were all made a little speechless. Although there was enough money, they could swallow NBC Global, but what about the acquisition plan they had prepared before?
But after all, they only work, and big BOSS can naturally change their goals, and all they do is serve big BOSS, and several data analysts in the think tank immediately came together and started sorting out data for NBC Global.
And Al frowned for a moment and asked, “Boss, do you want to buy it all or just take control of NBC Global? ”
“With a wholly-owned acquisition, General Electric doesn't necessarily agree, and I'm not going to spend too much cash on NBC Worldwide, as long as I become the number one shareholder, take control of NBC Worldwide, and then... ”
Andy didn't say the whole thing, but he knew that his boss pissed on Xing and Al naturally knew what the boss didn't finish, so he ate it slowly? Al muttered, "Well, let's put AMC TV, Peak Entertainment, Weinstein Film Discount plus cash to complete the absolute control of NBC Worldwide, but then we will inevitably be repressed in the negotiations, if Marvel Group is added. “
“Absolutely not. I won't lose each other, Marvel Group. I won't make the deal!” Andy didn't even blink his eyes and directly rejected Al's offer to Marvel.
“Hulu Video, I think it's definitely very appealing to NBC Worldwide, so we can have some advantages in the negotiations, and of course, if this is to succeed, the most critical person is Jeff Imert, CEO of General Electric. ”
After hearing Al's analysis, Andy nodded slightly and smiled confidently: "Don't worry, even if the acquisition doesn't succeed, I'll make a fortune on General Electric this time! ”
“Boss, you want to invest in General Electric Preferred Stock?” Al asked with some uncertainty and a slight frown, which didn't sound like his own boss.
“Oh, how is it possible that I don't have that much patience and time to wait for their performance to slow down and they'll still be cashing in $12 billion in common stock? Oh, you say if Warren Buffett this god and I this genius who was bragged as a god of wealth were to share in General Electric at the same time, would you say their share price would go up sharply? ”
When I heard Big BOSS's plan, Al nodded with a smile and spat in his heart. This is his boss!