Hollywood Hunter
Chapter 229 Gucci and Latu
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"Gucci's current value is seriously undervalued, and it's hard to get any worse. Buying this company, even if I really can't do it well, it's still profitable if you replace it with someone else," Sophia said. , hesitated for a while, and said again: "If you don't want to, there is actually another plan. I use the money you gave me to buy 10% of Gucci's shares. As long as you can support me, the Gucci family should be willing to let go. Take control and let me run it. In a few years, if Gucci gets better, you can consider buying more shares.”
Simon was noncommittal and said, "What about the red wine business you originally planned?"
"The backup plan just now was originally intended to be used in the wine business," Sophia said: "My target is Latour, which is one of the five traditional Bordeaux chateaux, and is the only one for sale. Another Lafite is Chateau Mouton and Chateau Mouton are in the hands of the Rothschild family, Chateau Obiang is in the hands of the Dillon family, Chateau Margaux is owned by Felix Potting \u0026 Co. There are two original controllers of Chateau Latour, They are the Pearson Group, which holds 75% of the shares, and Harvey \u0026 Sons, which holds 25% of the shares. They are both British companies. The Pearson Group's main business is education and publishing. Harvey \u0026 Sons, which is engaged in the wine trade, is in charge. Some time ago, Harvey \u0026 Sons began to seek to sell their shares due to the company’s operational difficulties. My initial idea was to take over the 25% of the shares and the operating rights of Latour.”
Simon listened carefully, and finally understood why the woman suddenly told herself that she wanted to do something last time, and offered such 'attractive' conditions.
"and after?"
Sophia looked a little disappointed and said, "I almost made a deal with Harvey \u0026 Sons, but another British company, United Leon Group, suddenly stepped in and took the business."
Simon looked at Sophia's expression and said, "You were robbed so easily, why didn't you fight for it?"
“Union Lyon Group is a comprehensive liquor, food and fast food company with strong strength. Moreover, Union Lyon is asking a very high price, they not only bought the shares of Harvey \u0026 Sons, they are also looking to buy Pearson The group’s shares, it is said that the offer for 75% of the Pearson Group’s shares has reached 100 million pounds, and if it can be sold, it may be even higher.” Sophia said, and explained: “Château Latour is very precious. But it's not worth the high price. In 1976, Felix Potting Company bought Chateau Margaux, one of the five famous chateaux, for only $16 million. In my opinion, Chateau Latour's current The actual price should be around $100 million, and the price I negotiated with Harvey \u0026 Sons was roughly $25 million.”
100 million pounds, according to the current exchange rate of about 1:1.6 between the US dollar and the British pound, is 160 million US dollars.
Sofia's ex-husband's family is a wine merchant, and Simon does not doubt the woman's judgment in this regard.
Just hearing the name of Chateau Latour, Simon was actually very interested.
Latour, an old-fashioned winery with a national treasure in France, is definitely better than those antique calligraphy and paintings even if it is not profitable to buy it.
However, since Sophia said that Chateau Latour is not worth such a high price, Simon does not intend to take this swindle with United Lyon, and he really does not have the strength to spend one or two billion dollars to make a swindle. Still have to spend on the blade.
Jennifer stood quietly by the bedroom door with a few clothes in her arms.
Simon noticed the figure of the female assistant, glanced at his watch, and said, "It's almost time, we'll talk after having dinner with the representative of the Gucci family."
After speaking, he got up, took the clothes from Jennifer, and turned to the bathroom.
In order to entertain representatives of the Gucci family, dinner was specially chosen at an Italian restaurant near the Kendall Hotel.
Gucci's founder, Guccio Gucci, has a total of three sons, and the inheritance is now the third generation, and the family is very large.
After the death of Guccio Gucci, the shares of Gucci company were not managed in a unified way by means of a fund trust, but were evenly distributed to all family members, resulting in a situation of infighting within the family that lasted for many years.
Up to now, most of the Gucci family members have realized that continuing to fight will only lead to the collapse of the Gucci company. So, when Sofia began to intervene, the three confirmed that Simon Westeros, a young, rising tycoon, was standing behind the woman, and an agreement was quickly reached.
In fact, Sophia's ability to convince the three troubled companies to send representatives to Melbourne to negotiate the acquisition at the same time has made Simon look at her differently.
Otherwise, Sophia mentioned this on the phone, and Simon would directly refuse.
Although Simon gave Sofia a beating gesture during the private discussion, during the dinner, he began to formally discuss the specific acquisition details with representatives of the Gucci family.
Simon did some homework in advance, and a dinner was a delight for the guests.
At about ten o'clock in the evening, Melbourne time, the dinner was over. Although the deal had not been completely finalized, the dinner was over, and everyone knew that this matter was a certainty.
Back in the hotel suite, Sophia looked at Simon with a strange look.
The woman was not surprised that Simon had done some homework in advance, nor did he mind the change in Simon's attitude before and after the meal. What surprised her was Simon's fluent Italian.
The Gucci family is from Italy, and there are not many people who can speak English, but Sophia is able to use Italian proficiently. She grew up in Corsica.
The island is closer to Italy than mainland France.
Originally, I was thinking of helping Simon translate at the dining table, but unexpectedly found that the little man was even fluent in Italian than himself.
Moreover, it is obvious that Simon has won the great favor of the Gucci family at the dinner table.
Sophia knew that Simon could speak French, but Italian, which was beyond her expectations. Thinking about the other things that Simon showed, the woman's instinctive curiosity became stronger and stronger.
How did a 20-year-old man grow to be so dazzling now?
Entering the room, this time, instead of staying in the living room, I came to the study.
Simon motioned Sophia, who had a weird expression, to sit across from the desk, and took out a folder from the file cabinet next to it and opened it. Just as he was about to say something, the phone on the desk rang.
The American side would have some phone calls with him at this time of the day to discuss the company's affairs. Signaling Sophia to wait a moment, Simon picked up the handset, but the first call today was from Nancy Brill.
Simon chatted with Nancy in a low voice. Jennifer came in with a pot of coffee, poured a cup for Simon and Sophia, but did not leave, sitting quietly on the sofa next to him and flipping through a document.
Because of her habit of wearing a ponytail, the female assistant lowered her head to reveal a fair and attractive neck, like a tender white onion that pretended not to exist but was actually very eye-catching.
"Okay Nancy, you can mortgage, but up to 5%...don't bargain with me, Daenerys Entertainment is undervalued at $2 billion, don't think I agree with 10%...it's not about risk, if Citi Banks can’t accept it, so forget it.”
After discussing the loan and hanging up on Nancy, Amy called again to talk about firing Ron McMillan.
In all fairness, Ron Macmillan's ability as a producer is very mediocre. If there is no such opportunity as "Lola Run", he can only be a solo producer on the edge of Hollywood all his life.
Originally, he kept him in the company because of the friendship of the original "Lola Run". Since Ron McMillan deceived himself on the casting of "Scream" last year, Simon has no longer trusted each other.
With the continuous development and growth of Daenerys Entertainment, Simon has to value loyalty more than the ability of executives. He can allow executives to disagree with himself, but he will not tolerate them deliberately deceiving himself.
Coupled with Ron MacMillan's private life style that can easily cause trouble for Daenerys Entertainment, taking advantage of this audit to dismiss the other party, it is also a matter of Simon's mind.
Hanging up the phone, noticing that Jennifer was sitting quietly in the corner, Simon just bent his mouth, looked at Sophia across the desk, and joked: "I'm a little suspicious now, are you two French women colluding? pit me."
In the information I read, Nancy Brill immigrated to the United States after college. Brill is a standard French surname.
Sophia is naturally French too.
In the phone call just now, Nancy insisted that there was no risk in Simon's mortgage of Daenerys Entertainment's shares, but Simon still did not agree, what he needed was zero risk. Under Nancy's entanglement, he finally let go of the 5% mortgage, and Simon felt a little disadvantaged.
Of course, Simon actually understands that with the increase in personal debt, the bank can no longer blindly allow him to get funds through credit guarantees, and it is inevitable to provide mortgages.
Sophia listened to Simon's words, but her expression was a little dazed, and she defended: "Boss, I didn't cheat you."
Simon smiled and explained: "The company has recently joined a French female executive. I have time to introduce you. The two of you, um, are quite similar in some respects."
Sophia nodded, waiting for Simon to get to the point.
Simon stopped talking nonsense, opened the folder in his hand and said: "I recently collected some information on LVMH, and I have to say that your thinking is very correct. However, you have not taken care of a company. , which is also something I am concerned about.”
Sophia looked at Simon and couldn't help but retort: "Boss, you have no experience in managing a company before, and Daenerys Entertainment is still developing very rapidly."
Simon glanced at Sophia and said, "Are you going to compete with me?"
Sophia subconsciously wanted to roll her eyes, thinking about whether to give up, she really couldn't compare with this little man. After thinking about it for a while, she added: "I majored in corporate administration as an undergraduate, and got my MBA three years ago. I helped my ex-husband run a family business and accumulated enough experience. I work in real estate brokerage. It's also very good. If it continues, I should be able to open my own real estate agency by now. Boss, doesn't this still prove that I have the strength to manage a company?"
Simon recalled the woman's information that he had specially asked the detective company to investigate after he hired Sophia, and finally nodded, saying, "Okay, I'll give you a year..."
"At least two years, boss. Gucci's current situation is very bad. Adjusting the management, sorting out the product line, reshaping the corporate image, etc., must be done, but it can't be rushed. If I want Gucci to recover, I need to… …”
Simon was interrupted in the middle of the conversation just now, and he couldn't help but feel a little unhappy. At this time, without waiting for Sophia to finish speaking, he subconsciously said: "Don't bargain with me."
Sophia was stunned for a moment, remembering that this was what Simon had just said on the phone with the female executive named Nancy. She felt a little funny, and she didn't back down. She raised her chin slightly and stared at the man and insisted: "Two years."
Simon rubbed his fingers lightly on the paper, silent for a moment, and finally nodded: "Okay, two years.
"
Sophia was a little surprised and didn't expect Simon to agree immediately. Thinking about the difference in treatment between myself and that Nancy, I couldn't help but feel a little proud.
Simon certainly did not mean to treat differently. He has never been a stubborn person. He calmed down from the emotions just now, and since he confirmed that Sophia's request was reasonable, he naturally nodded in agreement.
The two then began discussing the specifics of buying a Gucci stake and then running the company.
After buying Gucci, Simon's ultimate goal is to build a large luxury goods group similar to LVMH.
Many years later, as the world's largest comprehensive luxury group, LVMH's market value once broke through the $100 billion mark. Although it cannot be compared with giants such as Apple and Amazon, as a non-high-tech non-monopoly industrial group, it is very rare to be able to develop a market value of hundreds of billions of dollars.
According to the information in memory, in its heyday, LVMH owned more than 60 world-renowned top luxury brands such as Dior, Givenchy, Hermès, Louis Vuitton, etc. Even Gucci once became the acquisition target of LVMH. .
In the original time and space, with the great success of LVMH’s luxury portfolio operation model, other companies followed suit, eventually forming LVMH, kering, and richemont. The three-pronged luxury market structure.
Among the three companies, the Swiss-based Richemont Group is mainly engaged in the jewelry and watch business, and the competition relationship with the other two is not fierce.
The brand portfolio model of Kering Group is very similar to that of LVMH, and the two sides have been in a state of fierce competition for a long time. Moreover, the core luxury brand under Kering Group happens to be Gucci. Many years later, the Gucci brand that has supported half of the Kering Group can be worth at least 10 billion US dollars.
Now, LVMH, which was just integrated two years ago, is only the embryonic form of a luxury goods empire, and Bernard Arnault, the later head of LVMH, has not even been able to completely control the company. Moet's management and Bernard Arnault, the major shareholder, have been in a tense standoff.
Apart from Dior and Louis Vuitton, brands such as Givenchy, Hermès, Fendi, and Bulgari have not been captured by LVMH.
Kering Group and Richemont Group are even less formed.
LVMH was built by Bernard Arnault with Christian Dior as its foundation.
Simon has now won Gucci, a luxury brand with a complete product line of fashion, bags, cosmetics, etc., which means that he also has the foundation to build a comprehensive luxury group.
If it can expand according to the development model of LVMH in the original time and space, relying on the media resources of Daenerys Entertainment in Hollywood, as long as it operates properly, Simon may even build a top luxury empire that replaces the status of LVMH in the original time and space. .
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