Hollywood Hunter

After officially submitting the IPO application, the Igrid Portal, SEC official website, Daenerys Entertainment official website and many other platforms announced the Daenerys Entertainment Group's prospectus for the first time.

The first edition of the prospectus details the business composition, revenue data, shareholding structure, development prospects and other relevant information that the IPO of the Daenerys Entertainment Group must disclose. It also includes the exchange selection of the IPO and the list of underwriters. , The scale of funds raised, the stock issue price range and other specific information that investors are most concerned about.

Daenerys Entertainment’s business composition and revenue data are not secrets for interested parties. In this version of the prospectus, most potential investors are most concerned about Daenerys Entertainment’s shareholding structure and development prospects.

After internal employee subscriptions in March and the redemption of high-end stock awards, the total share capital of the Daenerys Entertainment Group after the calculation was approximately 2.113 billion shares, of which Simon himself held 91.7% of the shares and 1.937 billion shares.

The outside world has always had a lot of speculation about Daenerys Entertainment's internal subscription and reward redemption plan. Most people did not expect that Simon would transfer or reward up to 8.3% of Daenerys Entertainment's shares to group employees so generously. .

According to the offering price range of 18 to 20 US dollars given in the prospectus, even if the minimum value of 18 US dollars is used, the total value of the 176 million shares transferred by Simon to employees will exceed 3 billion US dollars.

Daenerys Entertainment Group plans to issue 250 million new shares this time, which is also calculated based on the minimum value of $18. The total amount of funds raised is only $4.5 billion.

According to some previous media reports, except for the high-end stock awards, stocks subscribed by internal employees are sold at a fairly low discount. The average subscription price may be less than 50% of the actual value of the stock.It can be said that Simon Westero directly gave a huge amount of more than 1.5 billion US dollars to the employees of Daenerys Entertainment Group.

1.5 billion US dollars, according to the prospectus shows that the total size of Daenerys Entertainment’s current total of 29,000 employees is equivalent to an average of 51,000 US dollars per person, which has exceeded the annual salary of most working class in the United States. .

In 1993, the average annual income of Americans was only $31,000.

The actual rewards and subscription distribution are of course impossible to average.

According to the disclosure figures in the prospectus, in addition to the 91.7% high absolute holding of Simon Westeros, the shareholding ratio immediately followed by Daenerys Entertainment CEO Amy Pascal received 35 million shares, The shareholding ratio is 1.65%.

Also based on the minimum issue price of $18, the total value of the shares held by Pascal reached $630 million.

This is obviously a very conservative estimate.

After the official listing, the total value of these stocks is not impossible to break through 1 billion US dollars.

Not only that, according to the Amy Pascal salary contract that some media have exposed, this Daenerys entertainment woman has already received hundreds of millions of dollars in salary since entering the job, with investment such as Simon Westeros The Wizards pointed out that even if Pascal devoted half of his salary to investment, including the share award he just received, his personal net worth might well have broken through the $1 billion mark and become another billionaire in the United States.

After Amy Pascal, the third largest shareholder of Daenerys Entertainment is still a senior woman.

Nancy Brill, holding a total of 7 million shares.

This little child executive who is mainly responsible for the peripheral products, video games, video tape chains and other businesses of Daenerys Entertainment has made remarkable achievements in recent years.

Probably to explain some people's doubts, Daenerys Entertainment Group's official website has additionally published a more detailed list of stock awards and subscriptions.

Nancy Brill's 7 million shares, of which 5 million shares are of an incentive nature, and the other 2 million shares belong to internal subscription shares.

Amy Pascal’s 35 million shares were all rewarded, and the CEO of Daenerys Entertainment actively ceded his 3 million shares of internal subscription shares to other employees of the group.

Robert Iger, who is tied with Nancy Brill as president of the group and is mainly responsible for the Daenerys entertainment TV business, received a total of 4.5 million shares, with a reward share of 3 million shares and 1.5 million shares from subscriptions.

Mark Belford, vice president of global operations for the global distribution of film and television productions under Daenerys Entertainment, Ella Doichman, president of Highgate Pictures, and Danny Morris, president of New World Pictures, The three shareholders hold 3 million shares, of which 2 million shares are rewards and 1 million shares are subscriptions.

The five core executives, Nancy, Iger, Mark, Deutschman, and Morris, although the total value of the stocks obtained are far inferior to those of Amy, have also exceeded the salaries of most Hollywood executives of the same level.Even if it is still calculated based on a single stock value of a minimum of $18, the total value of the stocks received by the five core executives will reach a minimum of $54 million.

Throughout the United States, there are only a handful of corporate executives who can receive such generous rewards at once.

Of course, because the Daenerys Entertainment Group prefers a flat corporate structure, except for the actual controller Simon and the CEO of Amy, other executives are unlikely to gain too much power, so the Nancy five Relative to Amy's return will not be too high.

In fact, the distribution rules of most enterprises are like this.

The leader takes the biggest head, and the income of the second-level executives may be one less than zero.

What's more, the high rewards Amy Pascal has received are also factors for her as the founding veteran of Daenerys Entertainment. Among them, the other core executives have only joined after the gradual rise of Daenerys Entertainment.

In many cases, the sooner you join a company, the more you will get.

Just like Steve Ballmer, Microsoft's early core executive, can gradually accumulate a net worth of 10 billion US dollars, and decades later, Microsoft will be brought back from the bottom of the valley to the peak of the trillion-dollar Indian CEO Satya Na Della can only earn tens of millions of dollars in annual salary.

The same is true of Igrid including now.

The three of Jeff Bezos are expected to obtain 5% of Igrid’s stock after the contract expires, and the e-commerce business has successfully converted Igrid’s Big Three into Big Four Alice Ferguson, Even if Simon specifically adjusted the contract for her after recognizing the ability of the female housekeeper, Alice before Igret's IPO could only get up to 3% of the stock.

In fact, in Simon's mind, the ability of the female housekeeper is much stronger than that of Tim Berners Lee and Carol Bartz in the original Big Three, almost equal to Bezos, but this is the case.

The topic returns to Daenerys Entertainment. Tom Pollack, who was the president of Daenerys Pictures after the original merger and acquisition of Universal Pictures, obtained the smallest share of stocks among the seemingly core executives. There are only 1.5 million shares, of which the award share is 500,000 shares and the other 1 million shares are for internal subscription.

It is also clear in the circle that this executive, who is the core of the Daenerys film industry among the core brands of Daenerys Entertainment, actually has very low authority.

Most decisions of Daenerys Pictures were made by Simon and Amy personally. Although Tom Pollack had a presidential title, it was more of a butler-like executive role, and the other party joined Daenerys Entertainment. It's also late, and it's actually not the core of Daenerys Entertainment Group.

The ability to get 1.5 million shares may be Simon Westero's face in order to protect the veteran Hollywood executive.

In addition to the core management, such as Pixar President John Lasseter, Daenerys Special Effects President Mark Silvers, Marvel Entertainment Chairman Stan Lee, Fashion TV President Anna Coleman, etc. Executives at all levels of Silk Entertainment shared a total of another 13.5 million share awards and a subscription share of approximately 7 million shares.

According to comprehensive statistics, among the 176 million shares transferred by Simon Westeros, 63 million shares are of an incentive nature, and are basically owned by management above the level of the Daenerys entertainment department.The 113 million shares are of a subscription nature, and the management took away a small amount of shares, only 14.5 million shares, most of which were subscribed for employees of all walks of life.

Speaking of which, the biggest difference between the two parts of the award and subscription is actually tax.

Many senior executives receive bonus-type stocks that are subject to income tax standards.

It is not necessary to subscribe for some shares for the time being, only need to pay capital gains tax when selling in the future.

Moreover, because the shares subscribed internally are of additional nature, Daenerys Entertainment does not need to pay taxes, but the funds raised must be used as a cash reserve for Daenerys Entertainment for company development purposes, and cannot be allocated to Simon individuals.

In fact, through 113 million shares of internal stock subscriptions, Daenerys Entertainment only recovered $1.09 billion in funds.In other words, the actual reward value that Simon gave back to the entire Daenerys Entertainment Group's employees far exceeded the media's estimated 1.5 billion US dollars.

In fact, Simon doesn't really recognize the claim that money can buy people's hearts. He even believes that I will give you as much as you pay.

With the rapid development of Daenerys Entertainment Group over the years, Simon will not underestimate his role in it, but he will not ignore the concerted efforts of the group, so he will not be stingy when it comes to giving.

However, Simon did not intend to let go of control of Daenerys Entertainment.

The prospectus specifically stated that Daenerys Entertainment will adopt a dual shareholding structure. After completing the equity adjustment in March, the 1.937 billion Daenerys Entertainment shares held by Simon will be all Class B shares with 10 times the voting rights The 176 million shares held by all employees of Daenerys Entertainment are Class A shares, and voting rights are only one-tenth of Class B shares.The 250 million new shares planned to be issued during the IPO are also Class A shares with only one-tenth of the voting rights.

It is expected that after the official listing in late June and early July, the total share capital of Daenerys Entertainment Group will expand to 2.363 billion shares, Simon's personal shareholding ratio will drop to 81.9%, but the voting power will still be as high as 97.8%.

Even if Simon intends to sell some of his shares in the future, he has the right to convert Class B shares to Class A shares before the sale.It can be said that as long as Simon does not voluntarily give up, even if the Westeros family’s shareholding in the Daenerys Entertainment Group drops to less than 10% after many years, it can still maintain absolute control of the company.

It is not hard to imagine that because of the recent public opinion situation, after the exposure of the dual shareholding structure of Daenerys Entertainment, it is naturally an inevitable criticism.

Simon just ignored it.

Whether it is Cisco, AOL, or Daenerys Entertainment, Simon’s dual equity operations are completely within the rules of the game.

Even if some people are dissatisfied, even if the authorities modify the relevant provisions of the company law in the future, it is impossible to change many of the established facts without retrospecting the previous unspoken rules under US law.

Since the news of Daenerys Entertainment's upcoming IPO, the industry generally has a popular saying that the entertainment giant, which has about 40% of Hollywood's core movie business, does not have much growth potential. Not optimistic about its long-term development prospects.

Recent facts have proved that this view is very wrong.

Other than that, it is just that during this time, the social game "Happy Farm" produced by EA company of Daenerys Entertainment suddenly achieved phenomenal success. It has proved that in addition to the movie business, the game business of Daenerys Entertainment still owns Very large growth potential.

Daenerys Entertainment Group’s first week of Easter film is the third "Ninja Turtles" series "Ninja Turtles 3" series, the film opened on April 1, the first week of the seven-day box office was finally 21.62 million US dollars, Compared with the film's production cost of US$40 million and the advertising budget of US$20 million, the opening performance of US$21.62 million clearly fell short of expectations.

However, it is estimated that the total box office in North America is about 80 million US dollars. In fact, it has also made a fairly good ending for this series. Counting the overseas box office, the film can easily recover costs and achieve profit through the global theater distribution.

At the same time as the movie was released, Nintendo's "Ninja Turtles" series of games also launched another sequel on April 1st. The North American and Japanese markets sold 116,000 boxes in the first week, even if they could not match the first generation. The Ninja Turtles game has more than 5 million boxes of world-class phenomenal sales. According to the results of the first week, the global sales of this sequel are expected to be around 2 million boxes, which is still a very rare success.

Online games, console games, plus EA's strength in the PC stand-alone field through real-time strategy games and sports games, the industry predicts that the future output value will be no less than the video game field in the movie market, and Daenerys Entertainment will have a long future For a period of time, it maintained a very rapid growth.

On the other hand, after the backstreet boy group under Daenerys Records officially released the record of the same name "Backstreet Boys" on March 25, the album sold only 270,000 copies in the first week in the United States, and the subsequent week was even more It counterattacked to 320,000.It is expected that the total sales of "Backstreet Boys" in the United States will reach about 15 million copies. Although the overseas potential is temporarily unknown, based on the popularity of North America, the conservative estimate of the total global sales of this record can also exceed 20 million copies.

Simon has personally followed the formation and promotion of the backstreet boy group since last year. After a busy year, he has finally paid off.

The success of the Backstreet Boys group not only means that Daenerys records have established a foothold in the mainstream pop music field, but also means that there is real feasibility for the mass production of Teen-Pop singers.

Similarly, the sudden popularity of the Backstreet Boys also added another point to this entertainment giant in the relatively weak record field at the critical time point for Daenerys Entertainment to submit an IPO application, proving that Daenerys Entertainment In addition to the core film business, the Group also has huge growth potential in the recording field.

In the prospectus of the prospectus in the prospectus, in addition to the prospects for the two high-growth businesses of games and music, it also highlighted the TV business that Daenerys Entertainment has been actively deploying.

In terms of content production, Daenerys Entertainment has not only created a reality TV craze, but also launched popular series such as "Song Fei Zheng Zhuan" and "Desperate Housewives" in recent years.

In terms of TV stations, Daenerys Entertainment has fully owned the basic cable network USA with a total subscriber base of more than 90 million. Fashion TV, launched last year, has also completed the full opening of major countries such as North America and Europe. The two goals The cable TV network with a precise and clear audience has maintained a very rapid performance growth rate.

Not only that, Daenerys Entertainment also stated in the prospectus that it will further expand into the TV field after the IPO.

This description is not at all obscure.

The lifting of the federal media integration ban is an inevitable trend. Once the ban is lifted, Daenerys Entertainment is undoubtedly the most powerful one to merge with the three traditional public television networks in the United States.

Some analysts on Wall Street predict that the listing of Daenerys Entertainment is largely to pave the way for the future merger of large public television networks. On the one hand, it is to raise funds, on the other hand, through the public listing to reduce the federal The political and commercial obstacles to the further expansion of Silk Entertainment.

Therefore, it can be seen that whether it is a game and music business that is still developing at a high speed from inside Daenerys Entertainment, or it may be further expanded into the TV field in the future, this entertainment giant can continue to maintain considerable for a long time in the future High growth.

What's more, Daenerys Entertainment's movie business did not really touch the ceiling.

Only in the United States, the film market has maintained a natural growth of more than 10% in the past few years. Hollywood, which uses super blockbuster blockbuster movies as a "siege hammer", is more unstoppable in the global movie market, and Hollywood The super bombshells of the past few years are basically from Daenerys Entertainment.

Considering that Daenerys Entertainment has a strong guarantee of Daenerys special effects, Pixar Studios, Marvel Entertainment and many other technologies or IP, the Hollywood giant continues to maintain its performance growth in its core film business. problem.

Coupled with the layout of the Daenerys Entertainment Group in the areas of consumption, theme parks, movie theaters, video chains, etc., the first edition of the prospectus confidently predicted that Daenerys Entertainment could still maintain 20% in the next five years. % To 30% annual revenue growth.

Obviously, in order to leave room for himself, this forecast number still tends to be conservative.

After all, in the two years after the MCA merger, the annual growth rate of Daenerys Entertainment reached 37% and 35%, respectively. This is actually already the growth data of the company under the strong situation of the core movie business of Daenerys Entertainment.

It is conceivable that even without considering Daenerys Entertainment's potential expansion into the large-scale public television network, at least in the next five years, Daenerys Entertainment will continue to maintain an annual revenue growth rate of more than 30% is not a problem.

Although after Daenerys Entertainment submitted its prospectus, many ulterior media and Wall Street analysts still insist that Daenerys Entertainment has touched the growth ceiling, but most potential investors have real value for Daenerys Entertainment stocks. But he knew everything.