Hollywood Hunter

Arriving in Berlin on February 10, Simon did not leave for Finland until the afternoon of February 12.

In two and a half days, in addition to supporting the opening ceremony of the Berlin Film Festival, Simon also discussed the intention of the Internet industry-related cooperation with Deutsche Telekom and included the tentative film industry that produced a series of classic films in the original time and space. .

As for contacts with Constantine executives, BMW’s Covent family and even the top German government, it was only a preliminary contact between the parties and no immediate cooperation.

February 13 is Saturday.

Because of the original plan adjustments, Nokia management had to give up weekend breaks to match Simon's schedule.

In 1992, Nokia, which has completed the layout of the second-generation digital communication technology in advance by relying on the transformation of global mobile communications from the analog signal era to the digital signal era, achieved a leap-forward development.

According to the recently reported financial report, Nokia achieved a total of 9.3 billion Finnish mark sales in the entire 1992. According to the exchange rate of the Finnish mark to the US dollar of about 1 to 6.3 in the past year, it is equivalent to 1.47 billion US dollars.Compared with 1991, the turnover increased by 67%.

Of all the 9.3 billion Finnish mark sales, Nokia mobile phones accounted for 56%, reaching 5.2 billion Finnish mark.

This part of sales represents 3.76 million mobile phones.

By comparison, Motorola, which temporarily ranked first in the world in mobile phone sales, only sold 4.39 million units in 1992.

In the original timeline, Nokia followed Motorola closely in the first half of the 1990s. It was not until 1998 that it overcame Motorola, and then completely left the veteran electronics giant behind.

This time, because of Simon's advance layout, Nokia's gap from Motorola in 1992 was already very small.

With the opening of the North American market to Nokia at the end of last year and the sales channel of Verizon Telecom owned by the Westeros system itself, Nokia will be able to break into the most difficult bite of the North American market this year and fight with Motorola. , Located in Europe, Nokia has a local advantage compared to Motorola.

Coupled with Nokia's accumulation of GSM technology ahead of Motorola, it is no surprise that Nokia will be enough to achieve the overtaking of Motorola in mobile phone sales this year.

Of course, it is only the mobile phone. Motorola now has a deep foundation in many fields such as computers and semiconductors.However, it is precisely because of this diversification that Motorola’s rebound is not expected to be too intense for Nokia’s overtaking in the mobile communications field, so it is impossible for this company to know how huge a market they have missed.

You know, in 1992, the global mobile phone sales were only 13 million, but within the next five years, this number will exceed 100 million.It will take less than ten years, just Nokia, and mobile phone equipment sales can exceed 100 million.

Compared with fast-growing receivables, Nokia’s full-year loss in 1992 was 380 million Finnish marks (equivalent to 60 million US dollars). However, this is actually due to Simon’s expansion-oriented development strategy.

Simon bought Nokia for US$200 million three years ago. In recent years, it has continuously injected more than US$300 million in investment, totaling more than US$500 million in investment, in exchange for Nokia’s 1992 revenue of US$1.47 billion.

According to Nokia’s revenue of US$1.47 billion and its extremely high annual growth rate, if it goes public, the company’s market value is conservatively estimated to exceed US$2 billion.

Westeros holds 100% of Nokia’s shareholding, invests US$500 million, and exchanges for a market value of US$2 billion in three years. Such a return on investment is enough to make most investment funds jealous.

Relying on blood transfusions from companies such as Daenerys Entertainment and Cersei Capital, the Westeros system has always been short of money, even though Nokia still needs a large amount of additional funds in 1993.

However, Nokia has now shown its edge in catching up with the incumbent Motorola. Next, this company needs to face more than just simple business obstacles to continue its high-speed expansion.

Whether it is the European countries that are close to each other, or North America, which is already worried about Europe on the other side of the ocean, realizing that the rise of a communications industry giant that is not too much related to itself, it is almost imaginable that Nokia may encounter almost instinctive suppression by countries. .

The easiest way to resolve this assistance to the greatest extent is through Nokia's IPO operation.

By going public, Nokia shares are sold to investors in various countries in Europe and North America, and they have an interest relationship. If someone wants to suppress Nokia, they need to consider whether they are fighting the interests of their own investors.

For Simon, listing Nokia in North America is naturally the best option.

However, as a company headquartered in Finland, most of the business is now in Europe, Nokia's most important issue is to stabilize its base in Europe.

In this way, listing in Europe is the best option.

Simon came to Finland to discuss the listing issue with Nokia's management team.

Regardless of its development speed or financial data, Nokia is the highest-quality IPO target for major capital markets, and it is not a problem to seek listing.

The key is the valuation at the time of the IPO, and the question of how much equity is transferred.

For Simon, naturally, the less equity is given, the better. However, if the number of issued shares is too small, it is likely that the true purpose of this IPO will not be achieved.If there are too many shares issued, it will inevitably be distressed.

After all, the current IPO valuation of Nokia is only about 2 billion US dollars.

Such a valuation is already very impressive for many people, but Simon knows that Nokia’s market value was once close to US$200 billion at the peak of the new technology wave around 2000.

2 billion, against 200 billion, now giving up 100 million US dollars may mean a loss of 10 billion US dollars in books after a few years.

What's more, because the Westeros system's own capital reserves are sufficient, Nokia does not need to draw too much money from outside.

After considering the whole day on Saturday, Simon finally decided to determine the proportion of new shares issued to 20%.

At Nokia’s valuation of about US$2 billion at this time, 20% of new shares can be issued, which can raise US$400 million. However, if according to the peak market value of Nokia’s US$200 billion in Simon’s memory, this equity would mean US$40 billion. .

Of course, things can't be counted as such.

If we continue to maintain Nokia's complete privatization and do not tie up the interests of this company with European and American capital, then, under the pressure of all parties, Nokia may not be able to reach its peak.

Therefore, this 20% stake is actually just the beginning.

Simon plans to gradually reduce its shareholding in Nokia in the coming years, and it is enough to pursue an absolute holding of 51%.

Because of the differences in relevant laws in European countries, this time Nokia, Simon did not intend to enable a multiple ownership structure like AOL and Cisco.

In fact, it may be that Nokia's sudden collapse in memory left a deep impression on Simon. He did not have the idea of ​​permanently controlling the company.

Or, Simon did not want to permanently control any company in the Westeros system.

The rise and fall of change is a historical necessity. Any enterprise, even once brilliant, cannot escape this fate.

Therefore, for companies in the Westeros system, whether it is Microsoft, Cisco, AOL, or Hollywood’s Daenerys Entertainment, as soon as a company begins to decline, Simon will exit as early as possible and invest capital in new field.

On the other hand, although this time it was decided to list on the London Stock Exchange in the UK, in the discussion with the Nokia management team, Simon also prepared a road show plan for North America, intending to invite North American capital to enter London to participate in the purchase of these 20% new shares.

I spent a day in Finland on Saturday and agreed on a general plan for the Nokia IPO. Simon flew to Florence, Italy that night.

The main framework is determined, and follow-up matters will be followed up by the team of James Rebold and Westeros. From the initial IPO declaration to the final listing, it is expected to take half a year and is expected to be in the second half of August Officially completed.

Florence.

The time is Sunday morning.

Sophia Fessie woke up first, gently released the man's arms, and entered the bathroom, seeing the strawberries in the mirror between her necks. Some satisfaction.

Having prepared breakfast in person, the man also completed the routine morning exercise and sat down together at the dining table.

At the end of February, the four major fashion weeks of 1993 will be opened one after another. Gucci has been preparing for the upcoming spring show recently.

After breakfast, the two rushed to the headquarters of Gucci in the city.

While appreciating Gucci's upcoming fashion week, Sofia introduced to Simon the business situation of Melisandre in the past year.

The official detailed financial report will not be released until next week. Simon only listened to a rough estimate, but can confirm that Mei Li Shanzhuo has just passed the past year, and the financial data is also very gratifying.

Because of excellent financial data support, at lunchtime, Sofia talked about another acquisition plan that surprised Simon.

"Christie? You mean, the auction house?"

Sitting in a historic Italian restaurant in the city of Florence, Simon was a little surprised to hear the name Sofia said.

Sofia nodded and said, "Yes, Christie's."

With that said, noting that the man's expression was a little weird, Sofia asked: "Is there any problem?"

Simon quickly smiled and said, "It's nothing, it just feels a little weird."

"Ok?"

"Look," Simon smiled more, and said: "In the future, my children will grow up, and it will be advantageous to show off with their friends. Others may say that my mother just bought a Gucci handbag, my father. I bought a painting at Christie’s for $10 million, but my son can say that Gucci belongs to me, and Christie’s belongs to me."

Sofia imagined the scene that Simon portrayed, and couldn't help laughing, saying, "Your son just needs to say that my father is Simon Westero."

Simon nodded in sympathy: "Well, indeed."

Sophia gave Simon a white look and said, "So, did you agree?"

Simon waved the tableware gently and said, "I don't know anything about Christie's or even the auction industry. Also, why would such an incumbent company choose to sell, and the approximate price?"

Sophia said: "If it were in the past, we really did not have the opportunity to buy this company. Christie's has a 200-year history. However, you also know the economic situation in recent years. Japan's rise in the 1980s and the North American economy have continued The days of several major auction houses in the world have been very moisturizing, but since the stock market crash in North America in 1987, because of the continuing economic crisis, the wealthy people have begun to reduce their spending. The Japanese stock market bubble burst, making this new market with great potential in Asia also It is weak rapidly. The auction industry also has a Matthew effect. Christie’s has held about 30% of the auction market in the past few years, which is lower than the 40% of Sotheby’s. However, these two companies have more than 70% of the auction market. The performance gap of the auction houses is very large."

Speaking of this, Sofia paused, sorted out the information in his mind, and continued: "In the past year, Sotheby’s annual profit was US$265 million, but Christie’s was only US$52 million. The difference in market share between the two companies is not At 10%, profits differ by a factor of five. Market shrinkage in North America, Europe, and Asia has not stopped. Worrying that this situation will continue, Christie’s has just released the wind of seeking sales."

The North American stock market began to recover after the Gulf War, but the overall economic situation is still not optimistic. Japan in Asia is now going downhill. The Japanese tycoons that were bought out by the world have also stopped. The sterling crisis last year caused European countries to fall into an economic crisis. In this way, the world economy is at its bottom in the last decade.

Simon knows more clearly that this is the bottom of the next decade.

Christie's worried that the auction industry will continue to shuffle, eventually causing the original situation where Christie's and Sotheby's two strong sides turned into a Sotheby's dominance. This kind of worry is not unreasonable.

With the weak market, the rich who still have the ability to buy expensive collectibles will obviously only tend to one with more strength. This will only cause Sotheby’s to become stronger and stronger. Christie’s wants to maintain its market share. Taking measures such as reducing commissions or increasing marketing expenses will further reduce their profit margins, but this may not improve the operation of this auction house, but will make him and Sotheby’s gap more and more Big.

The most important point for Christie’s to get rid of this dilemma is that the auction market can flourish again.

It's just that the global market is in a downturn. Although everyone knows the economic cycle, no one knows whether Christie's can survive this downturn.

In this case, it is not surprising to choose to sell yourself.

For Simon, this is the best opportunity.

Because no one knows better than him, with the rise of the new technology wave, the global economy will recover rapidly in the next few years. At the same time, although the Japanese economy will fall into a long-term downturn, Asian countries will also be in the next two decades because of The rapid economic growth has become a consumption upstart in the collectibles industry.

Buying the Christie's auction house now will definitely be an excellent bargain-hunter.