Hollywood Hunter

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Simon was whispering with Bryce Levison, a slightly hoarse old hello came in his ear: "Hey, Simon."

Looking around, it turned out to be Warren Buffett.

In the top circle of this social pyramid, Simon is not the first time he has met with Buffett. He has also met in some social occasions before, but he is not familiar.Hey, one less!Like to invite everyone to collect: () Zhai Shuyuan updates the fastest.

Simon knew that Buffett would attend and planned to have a chance encounter. In fact, both sides knew each other's purpose. Otherwise, a 65-year-old man of Buffett would not ask for an invitation letter to attend such a fashionable party.

In the past history, the reason why Buffett agreed to sell the Metropolitan ABC Group to Disney in 1995 also saw that the impact of cable TV and the Internet on traditional public television networks was becoming more and more obvious, so he chose to cash out at a high level.The facts basically proved the correctness of Buffett's decision.By the way, it's one less!Zhai Shuyuan, update the latest chapter as soon as possible!

Buffett's cash-out time seems to be slightly earlier, but it is in line with the investment criteria of this veteran investor who does not pursue to earn the last dollar. It is this prudent investment strategy that let the original space-time Buffett clear out before the subprime mortgage crisis. The two-bedroom stocks have avoided the impact of Berkshire Hathaway.

With a smile, he stood up and shook hands with Buffett, and then casually introduced Bryce beside him. After greeting, Simon whispered in the woman's ear, and after a little reluctance, Bryce turned and left, and then he was with Buffett. sit down.

Buffett watched the mermaid as Bless walked away, joking with Simon: "I really envy you young people."

Simon also smiled: "You are not old at all, Warren." Japan, there was no way to watch it!One second to remember, Zhai Shuyuan ().

The investment tycoon had separated from his original wife in the 1970s, but the two had never divorced, and had been in and out of public places as husband and wife in recent years.At the same time, Buffett has already cohabited with another partner, which is considered to be a spouse.

It is rumored that the relationship of the trio is still very good. Buffett now sends holiday cards to family and friends, even with the signature of three people together.Over the years, many media have teased Warren Buffett with two wives out of all kinds of thoughts.

In fact, Buffett's wife and wife are not worth mentioning in the rich circle.

When one can touch the scenery at the top of the pyramid, one must find that many things go far beyond the boldest fantasy ever.

Except for having a Grange desk for spending money, Buffett is no different from ordinary super rich in other respects. One of them is often attending various top social gatherings.

Of course, except for charity parties that need to donate money.

He politely complimented the party again, but Buffett’s topic turned to Igret. He asked Simon questions about the company. Although the billionaire is 65 years old, whether it’s memory or His thinking is still quite sharp and agile, and a lot of data related to Igret seems to be printed in his mind.

Moreover, it is clear that Buffett is puzzled and questioned about the financial data of Igret's rapid rise.

In the past history, the Internet wave was surging no matter what, Buffett firmly did not involve the new technology industry that he was not familiar with. This even caused Buffett to lose eggs on the spot at the Berkshire Hathaway annual meeting, accusing him of missing The best investment opportunities.

Now, the old-school conservative Buffett clearly still can’t understand the Internet: “In this way, the Amazon online store is indeed the most loss-making business. Simon, have you ever thought about divesting this business or cutting investment in this area , Can be developed more steadily,

Simon realized that Buffett was interested in Eaglet's IPO.

This is not surprising.

Buffett's favorite is the company that owns the "moat". Nowadays, whether it is advertising or software, it can be described as "city high trench". No other company in the industry can compete.

However, for this investor who is very focused on profit margins, Igrid’s flaws are also obvious. The most important point is that the investment is too aggressive, thus causing a huge loss that is completely unnecessary in his view.If you cut or get rid of these burdens, Igrid will immediately become Buffett's most ideal investment target, with a high growth rate, high profitability, and a corporate moat that is difficult for peer companies to cross.

Of course, Simon will not do this in order to meet Buffett’s investment intentions, shaking his head: "Warren, e-commerce is an integral part of Eaglet’s business system. This business seems to be a loss, but it can be very large. To a certain extent, increase the types of services in the Internet industry, and thus increase the user’s adhesion to the Internet. In short, this is a kind of market cultivation. This is true of all the business that Igrid is doing now, as long as the public is made aware that the Internet has Only with sufficient services will they gradually consume directly or indirectly in this field."

Buffy nodded his head and shook his head again, saying: "However, Simon, now any business in the Internet field does not lack capital to develop. I think Igrid can be more focused. You must know that a company is too focused on diversity Change, the results are often not too good."

Simon said: "Of course I understand that Igrid is already in the relevant layout, and I will also streamline this company at the right opportunity, but not now."

The right opportunity that Simon said was after the bursting of the Internet bubble.

The Westeros system's advance in the field of new technology has no way to block the normal economic laws of the capital society. The day when the bubble bursts will come sooner or later.

At that time, Simon will not only streamline the business, but Simon will also streamline the huge and swollen employee team that Igrid quickly swelled up.In recent years, in order to pursue rapid expansion, Igrid has actually accumulated a variety of problems. Simon will use the Internet bubble to burst and drastically simplify and solve as much as possible to achieve a nirvana for this company.

Warren Buffett clearly couldn't understand Simon's thoughts, and thought it was the pretext of the young man in front of him. He could only shake his head slightly and turned to the topic: "Simon, I found that you are in the process of acquiring ABC, right?"

In this matter, Simon has actually revealed many flaws.

For example, ESPN shares received from the Hearst family.

For example, last year's big IPO financing.

And in the past few years, several popular TV programs such as "Friends" and "Emergency Room Stories" have been deliberately handed over to two other television networks. Simon's arrangement is similar to the Hollywood-based foreign cooperation projects, with parasitic penetration.However, in Buffett's view, this obviously has the purpose of deliberately inhibiting the development of ABC in order to lower the quotation when initiating an acquisition. This is actually another part of the fact.

In this case, Simon did not turn around and nodded: "Yes, after the lifting of the media integration ban, further integration in this area to adapt to global competition is an inevitable trend. Metropolitan ABC is my top priority, of course Is not the only option. Warren, if you want, we can talk about the offer now."

Berkshire Hathaway holds a 25% stake in the Metropolitan ABC Group. Buffett’s right to speak about this company is actually greater than Chairman and CEO Tom Murphy. As long as he agrees, things can basically be finalized. .

Buffett did not immediately respond, but instead complained: "Simon, Daenerys' stock price is too high now."

Simon just smiled and shrugged.

In my mind, I recalled Disney's acquisition of Met ABC, which was a mixed transaction of half equity and half cash.Obviously, this time, Buffett is also so thoughtful, except that Daenerys Entertainment’s stock price is very high now. This investment tycoon does not want to get an all-cash acquisition, and is worried about the conversion or partial conversion. Metropolitan ABC Will suffer from it.

Because he has been silently paying attention, Simon knows that the current market value of the Metropolitan ABC Group is about 16 billion US dollars. Because the Westeros system has led the recovery of the entire North American stock market in advance, the current market value of Metropolitan ABC must be beyond the original timeline. Counting the company's liabilities of about $3 billion, the acquisition has not yet started. The overall $19 billion has happened to be exactly the same as the total transaction value of Disney’s acquisition of Metropolitan ABC.

This time, Daenerys wants to acquire this company, assets and liabilities, the total transaction volume must be more than 20 billion US dollars.

Simon does not feel any loss or pressure on this, because Daenerys’ market value is actually higher, currently exceeding $130 billion, according to the financial report of Daenerys Entertainment’s first fiscal quarter of 1995 released in February, The price-earnings ratio has reached more than 120 times that Buffett is absolutely unacceptable.

By comparison, the Metropolitan ABC Group's P/E ratio is only 37 times.

Seeing Simon smile and not answering, Buffett frowned slightly, and then asked, "Simon, do you think there is room for Daenerys' stock price to rise?"

Simon shook his head: "Warren, who can be sure of this kind of thing. However, I have enough confidence in Daenerys, many people say that the company's growth has reached the ceiling, however, they only need to pay attention Looking at the financial report, it is not difficult to find that the quarterly financial report released by Daenerys in February still has a year-on-year growth rate of 39%. I believe this growth can continue for a long time."

Buffett frowned again for a moment, and seemed determined to say, "Simon, I can sell the Metropolitan ABC to you. However, I think my shareholders also need to be guaranteed enough interests, so I hope to get a cash plus cash The payment method for conversion bonds is half cash and half convertible bonds based on the current stock price, with a 10-year term and an annual interest rate of 8%."

Every investor has his own specific investment style.

The transaction method of cash plus stocks or bonds is a common method used by Buffett in acquisition transactions.Cash can ensure the security of the bag, stocks or bonds, not only can save a capital gains tax in the short term, but also can maximize the benefits for a period of time in the future, and Buffett often asks for the maximum risk-free benefits.

Simon chose to refuse without hesitation: "Warren, if you insist on this, we don't have to talk about it."

Daenerys Entertainment’s IPO last year was to prepare for the acquisition of the public television network. Taking into account the financing during the IPO and some subsequent Daenerys profits, the current cash reserve of the entire Daenerys Entertainment Group reached an alarming 170 One hundred million U.S. dollars.As long as the cash is not spent, it will inevitably bear the loss of inflation, the more huge the cash.

Therefore, for Daenerys Entertainment, even if its own stock price is very high, all-cash acquisition is also the most preferred option.

Buffett now wants both cash and a stable high-interest bond, and also requires that this part of the bond can be converted into future stocks of Daenerys Entertainment at any time in the future according to the agreed stock price. This is a good thing. This investor has enjoyed it many times, but it was only when some companies were in a dilemma that they had no choice but to agree.

The Daenerys entertainment situation is getting better. Simon would be blamed if he agrees to such obvious unequal transaction terms and is not scolded by other shareholders.

Despite this, Simon did not want the transaction to be directly yellowed, and he slightly softened the tone: "Warren, I will definitely not accept this type of transaction model with unequal additional terms. You are responsible for your shareholders, I The same is true. So, either all cash or all stocks, or cash plus stocks, without any extra clauses, otherwise, I can only try to cooperate with two other TV networks. And, frankly, now Hollywood, has Only Daenerys Entertainment has the strength to acquire the three major TV networks. With the development of cable TV and the Internet, the decline of the public TV network is very obvious. The later you choose to sell, or sell to other companies in the future, it is impossible Obtaining too high a price, if you always hold it in your hand, unfortunately, the value of this TV network will shrink faster, just like the current paper media industry."

Buffett heard Simon's words, his expression remained the same, and said, "Simon, why do you want to buy a TV network if you think so?"

Simon Road: "A separate TV network has been difficult to develop, however, this is an indispensable part of a large media group, it can provide marketing and sales channels for other businesses of Daenerys. This I don’t think you will understand."

Buffett shook his head gently again, without refuting Simon's argument, but instead shattered his thoughts again: "Daenerys' stock price is too high."

The old man still wanted stocks, but obviously couldn't accept Daenerys' high price-earnings ratio of 120 times.

Simon laughed: "Then choose all cash, Warren, you should also hear the news, the capital gains tax will be adjusted soon, and then, the 15% capital gains tax rate, for your investment in the metropolitan ABC these years In terms of earnings."

Even if the deal is negotiated now, it will involve huge mergers and acquisitions at the level of US$20 billion. It will take at least three to five months to really wait for the transaction to be completed.

According to the information obtained by Simon, it is no surprise that the Capital Gains Tax Reform Act will be passed in May. By then, Berkshire Hathaway, which has held shares in the Metropolitan ABC Group for many years, can fully enjoy the most favorable Capital gains tax rate.