Hollywood Hunter

The waves caused by the launch of "Happy Ranch" last Friday have not dissipated. Daenerys Entertainment has once again created phenomenal explosions like "American Idol". With the release of this reality TV ratings data, on Wednesday, the capital The market still gave the most direct feedback for the first time.

At 9:30, the New York stock market had just opened, and Daenerys Entertainment's stock was up 2.6% from yesterday's close.

This is nothing.

The most striking thing is the share price of the Metropolitan ABC Group. On Wednesday, the stock price of the Metropolitan ABC Group directly exceeded the $172 agreement price agreed by the two companies in June. As of the afternoon closing, the stock price of this veteran media giant Has reached 179.75 US dollars, with a market value of 21.9 billion US dollars.

Compared with the price of the single stock of 172 dollars and the total market value of 20.9 billion US dollars, the gap between the share price of 7.75 US dollars and the total market value of 1 billion US dollars was widened in one day.

Daenerys Entertainment’s share price was also locked at 81.25 US dollars at the close of the afternoon, which is a 10.1% increase from the June 73.75 US dollar agreement price, and the total market value has reached as high as 171.6 billion US dollars.

All in all, the share price of the Metropolitan ABC Group actually increased from 145 dollars when it was announced in June to more than 179 dollars now, because Daenerys Entertainment originally gave a very high premium, more than three months, large Metropolitan ABC Group's overall increase reached 23.5%, so the calculated growth rate is actually far more than Daenerys Entertainment.

In the past three months or so, the stock movements of the two companies have violated the conventional laws of corporate mergers and acquisitions.

Most corporate mergers and acquisitions, from the conclusion of the agreement to the final review and merger of the regulatory authorities, the price of the acquired party usually does not exceed the agreed price of the transaction, just like the Metropolitan ABC Group, considering that the transaction may eventually be rejected by the regulatory authority Waiting for the risk, it is reasonable to say that it will not exceed 172 US dollars.

This was true before the merger and acquisition passed the review by the regulatory authority.

Even after it was announced on Tuesday that the transaction was approved by the authorities, the closing stock price that afternoon was only $169.375.

However, when the merger and acquisition passed the review and the news of the "American Idol" reality TV ratings broke out almost coincided, the accident created a rare situation on Wednesday that the Metropolitan ABC Group stock rose sharply and even broke the price agreed by both parties.

This kind of growth feedback is actually because investors are extremely optimistic about the prospect of the merger of both parties.

The original "Survivor" has allowed NBC TV Network to win the public TV network market share championship for several consecutive years. This time it is also a phenomenal reality show with a viewing level of 30 million. ABC takes the next year's public TV network market share. Champions, there is almost no suspense.

This is the rule of the media and entertainment industry, full of personal heroism.

For people.

Also for film and television projects.

The once FOX once relied on a "American Idol" to contribute most of the profits of the TV network, and with super high ratings, it completely achieved the same pace with the other three old TV networks.

However, the fundamental goal of capital's pursuit of the Metropolitan ABC Group is Daenerys Entertainment.

Also in accordance with the rules of most mergers and acquisitions, the share price of the party that initiated the acquisition will often decline or even plummet after the news is announced. Just like the former AOL Time Warner, the AOL share price that initiated the acquisition one month after the two parties reached an agreement. It plunged more than 20%.

However, from June 19th when Daenerys and the Metropolitan ABC announced that they had reached an M&A agreement to close on the afternoon of September 27, over three months, Daenerys Entertainment Group’s overall share price rose by 10.1%, with a sufficient market value. This is an increase of 15.9 billion US dollars, which is equivalent to the market value of more than half of the metropolitan ABC Group.

Now that an agreement has been reached, unless the transaction is cancelled, the two parties will definitely pay and settle in accordance with the original agreement when they merge.

At the close of business on Wednesday, September 27, Metropolitan ABC Group’s share price was $179.75,

In the original M&A agreement, the shareholders of the Metropolitan ABC Group were free to choose the payment ratio of stocks and cash. In this way, even if they were converted into Daenerys Entertainment stocks at a starting price of $179.75, they would theoretically be over 5%. Book income.

This is of course only theoretical.

The key is to look at the stock price trend of the two companies after the merger is officially completed. However, depending on the situation, obviously not many people are pessimistic about the share price of the new Daenerys Entertainment Group after the merger. After the "Idol" ratings data are released, Some Wall Street analysts believe that after the merger, the share price of Daenerys Entertainment Group still has at least 50% room for increase, and the total market value is expected to hit 300 billion US dollars.

If the predictions come true, this merger is obviously the wisest option to exchange more stocks.

Even Warren Buffett in Omaha specifically called to request detailed ratings and expected earnings information for "American Idol". This old-school investor who once publicly publicized in Simon's memory that he did not believe in a business miracle was obviously cautious. Consider whether to change the established exchange strategy for half of the stock and half of the cash.

Because he refused to invest in technology stocks, Buffett has faced a lot of pressure in recent years. Berkshire Hathaway’s share price fell in the first half of the year even when the US stock market rose, or was it because of Daenerys and the Met The announcement of the ABC merger only allowed Berkshire Hathaway, the major shareholder of the Metropolitan ABC Group, to stop its decline.

This time, if most people choose to exchange more stocks, Buffett insists on splitting cash stocks. It is difficult to say whether it will cause investor dissatisfaction again, which will cause Berkshire Hathaway's stock price to fall all the way again.

Warren Buffett is dismissive of technology stocks, because new technology companies are generally in the stage of burning money, and they can't see the clear profit prospects and Buffett's most concerned about cash flow.

Daenerys entertainment is different.

Even if the stock price is high, Daenerys’ films, TV, games, and music business contribute very much to the company’s revenue and profits, and it still remains when the company itself is already an industry giant. With rapid growth.Because of the generally adopted long-term series production strategy, compared to other media and entertainment giants' chance-based investment, the stability of Danellis Entertainment’s business is also very strong, and there will be no fluctuations in high and low profits and losses. , These are in line with Buffett's investment standards.

The only drawback is that Buffett has difficulty accepting the excessively high stock price that Daenerys Entertainment has exceeded his psychological price point.

Now, even if it is still difficult to accept, Buffett still has to consider making a more market-friendly choice against his will.

Ordinary viewers will only feel some emotion that the two companies' share prices have risen more. They are more concerned about the 5,000 players promised to be delivered in the first issue of "American Idol".

In the media commentary on Wednesday morning, many people also felt that the success of "American Idol" was inseparable from this large-scale sweepstakes.Other TV programs that give gifts are often only a symbolic gift of ten or eight. If there are 5,000 gifts in an issue like "American Idol", there will be none.

Because this kind of thing is too difficult to deal with.

How to ensure that tens of millions of viewers can vote in a relatively short period of time, how to set up a lottery system, how to ensure fairness, how to send a large number of gifts to the audience after winning the prize, etc. Process, necessarily means additional budget expenditure.

This "American Idol" first solved the voting problem smartly.

Each contestant will have a unique participation number. The audience dials the hotline system specially developed for Daenerys Entertainment by Verizon Telecom. No manual answer is required. Only the audience needs to enter the player number to complete the vote. .

Voting on the online platform is even simpler.

Log in to the official website, find the voting page, enter the player number, and click to confirm.

Then you can get the lottery qualification.

Because the autumn stage is still in the sea election stage, the audience vote is mainly focused on participation, and the spring stage of the competition stage will begin to affect the results of the competition after the year.

The 5000 players in the two episodes of the first episode will be randomly selected directly through the specially developed online lottery system, and the results will be published on the official website of "American Idol". Voters need to independently check whether they have won the prize, and then register their address, Danny Lisi Entertainment will send the prizes one after another.

In addition to the final delivery of gifts, the whole process does not require too much human intervention, so it saves the most cost.

Including the delivery of prizes, it also uses Amazon's logistics distribution channels. At this stage, Tinco Baier has opened its own online flagship store in the Amazon online store, even if it is a total of 100,000 players in the first season of "American Idol", Compared to the total online sales of Tinkerbayer’s main products, it is not a big deal.

The key to all this is coordination between different companies.

Daenerys Entertainment, Tinkerbell, Igret, Verizon Telecommunications, etc., there are not so many small companies that need to work closely together to make a reality show. Ability to give so many gifts in a short period of time without chaos and unnecessary budget overruns.

This is obviously not something that other TV networks can easily do.

After the launch of "American Idol" on September 26, on September 28, "Sex and the City" was launched online on USA TV.

Through the popular broadcasts of the spouse series Reality Show and "Desperate Housewives" and other episodes, the national basic cable network USA TV network that had taken over from MCA and bought half of Paramount's shares has become one of the most successful basic cable stations in North America. , Mainly for female audiences.

Over the years, the number of subscribers to the USA TV network has grown from Daenerys Entertainment’s initial 21 million to 62 million now, covering more than 70% of the US population.The operator's share has risen from the pitiful 15 cents to 55 cents, which has also more than tripled.

Therefore, at the current stage of the USA TV network, only the monthly operator score of US$34 million is reached, which is half of the total annual revenue of US$60 million that Daenerys Entertainment initially took over this TV station.As for the full year, because subscribers are still growing at a high speed, it is expected that in 1995, the total revenue of the operator and advertising revenue of the USA TV network will exceed US$800 million, and the net profit of the TV network is expected to reach more than US$100 million.

Simon has been vetoing the TV department’s proposal to open the US sub-channel in recent years to avoid being too distracted. However, as the content of the US TV network continues to enrich, it will be logical for the USA to open the US-2 and even the US-3.

At the current stage of the USA TV network, the most popular main episode is still "Desperate Housewives." This TV series that began in 1992 has arrived in the fourth season. When the previous season began on September 14, the number of viewers in the first episode was Reached 12.5 million."Sex and the City" is scheduled to be broadcast on Thursday, September 28th. It is to use the popularity of "Desperate Housewives" as a guide. After receiving certain feedback, it will be adjusted according to the ratings.

Compared to the boom caused by "American Idol", "Sex and the City" is much lower-key.

Because it is no longer produced by HBO, the TV department produced this episode into a one-hour episode, the standard 43-minute duration, the first season is 16 episodes, this time there is no stop loss plan, because the project budget is very low, one episode The cost is only $1.5 million, and the total cost in the first quarter was only $24 million.

This is because shooting in a high-consumption metropolis such as New York, otherwise the cost will be lower.

In addition, it is also because it is to be broadcast on the basic cable network USA. The production team also strictly restricted the rating of the new version of "Sex and the City" to the TV-14 standard, that is, "not suitable for children under 14 years of age", not HBO. An R-level release level.

With the introduction of "Desperate Housewives" with a rating of 10 million, as a guide, it will air at 9 o'clock on the evening of September 28. The first episode of the first season of "Sex and the City" finally received an average audience of 7.5 million. This score is more than a few years. The former "Desperate Housewives" was even stronger when it was first aired.

Moreover, compared to the popcorn-style "American Idol", the critics clearly prefer "Sex and the City".

Many famous film critics published the drama reviews of "Sex and the City" on the first day of the next morning, and they generally gave very good reviews. The comprehensive media score reached about 8.2 points.

A female film critic from the Boston Globe commented with praise on "The City of Desire", although it has a very inspiring name, but it is actually discussing the problems encountered by urban women with a very keen insight. All aspects of the problem, the plot of the episode seems to be loose and lacks the main line, but it is full of a wonderful charm, people are immersed in it unconsciously, and they are reluctant to change channels.

This is actually the result that Simon most wants to see.

In the first episode, 7.5 million viewers, according to Nielsen statistics, within an hour of the broadcast, the viewing curve was very stable, there was no boom like "American Idol", and there were not many new dramas that opened high and low. This shows that as long as you see The audience of this TV series is basically immersed in it.

The broadcast will attract 7.5 million viewers. It is expected that after the first season is over, it will not be a problem for the peak ratings data to break through tens of millions. In the next few years, "Sex and the City" will be enough to become another flagship of the United States together with "Desperate Housewives".

The second day of "Sex and the City" starts on Friday.

Stimulated by consecutive "Happy Ranch" and "American Idol", Daenerys Entertainment's stock price was finally locked at $83,375 at this Friday's close, with a market value of $176.1 billion.The share price of the Metropolitan ABC Group ended the same day at $18,325 with a market value of $23.3 billion.

The total market value of the two companies is $199.4 billion, which is only a small gap from the 200 billion threshold.

This Friday, after SEC approval, the two companies officially announced the suspension of trading for a period of one month. It is expected to open again in early November, and there will only be brand new Daenerys Entertainment Group stocks left in the market.

At the same time, Eaglet successfully completed a two-week IPO global roadshow.

September 29, the last trading day of the US stock market in September.

It is estimated that the largest IPO in history with a market value of 150 billion US dollars and more than 18 billion US dollars of capital raised, the total amount of stock subscriptions during the road show still reached more than six times the size of the issuance.On the afternoon of the same day, Eaglet and a underwriter held a press conference in New York, and officially announced that Eaglet’s shares will be listed on the NASDAQ market on October 6.