Reborn in Hong Kong: The Tycoon Grows Up
Chapter 1502 Crazy Valuation
In fact, Bao Zixuan just wanted to make more friends, and with 200,000 US dollars; to win the support and support of Paul Allen, he would not suffer any loss no matter what. The other party's own wealth and super brain are one thing; the most important thing is that he will enter Hollywood in the future, so it's better to make arrangements in advance. In addition, he rarely comes to the United States and does not participate in any management matters at Microsoft. Although Paul Allen is not involved in Microsoft management, as a major shareholder and company director, he will definitely pay attention.
So once Microsoft has any trouble, it will definitely talk to itself as soon as possible. Even if you don't say it, given the other party's character, he will never add insult to injury. And when the time comes, if Paul Allen is asked to help Fucaira stand, he will never refuse. As long as you can do this, you won't suffer any loss no matter what.
After lunch, it was time to negotiate with the underwriters. However, no one else needs to participate in this matter. Bao Zixuan and Steve Ballmer will attend. Bill Gates is quite relieved about this; at least these two people are definitely better than him negotiating.
Although the family has some strength, compared with Wall Street financial giants, it is still far behind. Since you can't suppress people with power, you must rely on true ability. Bao Zixuan and Ballmer are indeed much better than him in this regard, so why make themselves so tired!
Stocks in the computer field are listed on Wall Street, which is basically monopolized by Goldman Sachs and Morgan Stanley. It seems that without these two families, no one can handle it, and this time is no exception.
Seeing Bao Zixuan coming in person, the two of them knew something was wrong. The last time Apple went public, Bao Zixuan was not involved in the entire process, but he only missed a moment at the final celebration party. What does this mean? Could it be that he wants to negotiate personally?
In fact, at Apple, Steve Jobs was a very stubborn person. I feel that I am strong in everything, so I handle all the listing matters by myself. I don’t say I suffered a loss, but I can’t say I took advantage either. However, being able to start from a garage and become a billionaire in just a few years is not a big miracle, and no one would blame him at the moment.
Goldman Sachs and Morgan Stanley are still acquaintances, so there is still a lot of trouble left. At least the mutual introduction link can be cancelled.
Bruce Bowles has now become the president of Goldman Sachs Group and is definitely a shaker on Wall Street. But in front of Bao Zixuan, there really is no advantage at all. As for William Morgan of Morgan Stanley, he does belong to a branch of the Morgan family; but the richest man Bao is not even afraid of old Morgan Bao Zixuan, let alone him.
The two exchanged glances and knew that things were not that simple. After all, Bao Zixuan came forward in person, and if he couldn't satisfy the other party, he would probably be able to take back all the issued shares. Microsoft seems to have a lot of market capitalization, but that's only relative. In front of the Heiyun Group, it really is nothing.
Bruce Bowles smiled and said: "Mr. Bao, long time no see. I came to New York without saying a word in advance, so that we can do our best as landlords."
Hearing the other party speak so politely to Bao Zixuan, before thinking about it, the tone of his conversation with him was completely different. Maybe this is the gap; the huge gap in identity, status, and wealth.
Bao Zixuan said with a smile: "Mr. Bowles is joking. I just came here yesterday and haven't had time to visit you yet. I didn't expect to meet you here. It seems like a kind of fate."
Both parties spoke politely. After all, the relationship was not that familiar yet; visiting and showing friendship to the landlord could be said to be very empty.
After a brief exchange, we started to get down to business. After all, we are all busy people, so there is no need to waste time here.
Bao Zixuan said with a smile: "I have not participated in the IPO process before, but I am not very satisfied with the valuation given to Microsoft by the two companies. If the valuation is just this small, there is no need for you two to step in; I will do it myself You can pay to buy all the stocks.”
Hearing this, the two looked at each other again; what they were worried about happened.
As an underwriter, of course you want to put as much pressure on the stock price as possible. In this way, when the stock goes public, they will earn more after the stock rises sharply. However, once the valuation is too high, the profit margin will be limited, which is very inconsistent with the interests of the underwriters. But everything must have a degree, and both parties need to be able to balance it.
In other words, find a moderate price that is acceptable to both parties. After all, underwriters will not work in vain and cannot just earn handling fees; otherwise no one will work hard to help you.
Currently, Microsoft's total share capital is 150 million shares, of which 30 million shares, or 20%, will be listed and circulated. The previously agreed price was US$10 per share, which meant that Microsoft was valued at US$1.5 billion. This price is definitely not low, after all, there are not many people in Microsoft currently.
If calculated based on this stock price, then Bill Gates, Paul Allen, and Steve Ballmer will immediately become billionaires; Charles Simonyi will become a multimillionaire. It can be said that they will definitely be very satisfied at this time.
But Bao Zixuan didn't think so. He didn't want to take advantage of the Wall Street people in vain. At the same time, personal interests are also at stake here, so we cannot retreat.
But asking him to increase his stake in Microsoft is not something he can do. After all, he already owns 22% of Microsoft shares, making him the third largest shareholder. If it were more, Bill Gates would definitely have objections.
William Morgan said with a smile: "We all know Mr. Bao's strength. And with your addition, Microsoft's stock price will naturally rise sharply. But we must also proceed from reality. After all, Microsoft does not yet have its own core technology. . If Heiyun software is launched, then it is multiplied by 10, and we can accept it."
Hearing this, Steve Ballmer was a little unhappy. Is there really such a big gap? But think about it; Wall Street is a group of vampires, and they will not deliberately raise the stock price because of who they are; everything is based on profit. In other words, Black Cloud Software alone is much better than Microsoft. No wonder people say that Bao Zixuan is a contender for the world's richest man. It seems that he does have that ability.
Perhaps seeing that Steve Ballmer was a little unhappy, Bao Zixuan said directly: "We are talking about Microsoft now, don't involve other things."
Then there was a gesture, and Steve Ballmer immediately understood what it meant. Just take out the documents to buy out Heiyun Software. This is a huge price increase.
Although the two of them are engaged in the financial industry, as underwriters for the listing of companies in the computer field, they certainly understand what this document represents. I used to feel that Microsoft did not have its own core technology. Once it broke up with Heiyun Group, it would eventually decline, so there was a lot of risk here.
But with this document, all worries disappear. Microsoft can make any improvements and upgrades in software technology, and the legal issues have been resolved.
Although there are competitors, Heiyun Group is a closed-loop system and is only used internally. So that means that only Microsoft systems on the market can be loaded onto other computers.
Bruce Powers said with a smile: "I didn't expect that Mr. Bao would spare no effort in supporting Microsoft. With this document, Microsoft's valuation can be increased by 30%."
Hearing this, Steve Ballmer became even more uneasy. Because he himself is a relatively impulsive person, not to mention that he is still young. Why did it suddenly rise by 30%? I really need to learn from others.
Bao Zixuan said with a smile: "We are all businessmen, and there will be many opportunities for cooperation in the future."
"Don't ask for 30%, just double it. If necessary, Blackstone can mobilize funds to raise the stock price. For Microsoft, US$3 billion is just the beginning. It will not be difficult to exceed US$100 billion in the future."
When they heard that Bao Zixuan had directly doubled the stock price, the three people nearby felt incredible. However, as the other party's identity, he must be responsible for what he said.
The two exchanged glances, and William Morgan said with a smile: "Just follow what Mr. Bao said, and the issue price will be set at $20 per share."
They knew Bao Zixuan's character very well, and if they didn't agree, they might have raised their own funds to raise the stock price. So whether it is Morgan Stanley or Goldman Sachs, do they still have face on Wall Street?
They asked you to be the underwriter, but now they actually need to spend their own money to raise the stock price. There is no such truth in the world. I might as well do it myself from now on.
Therefore, this is no longer an ordinary business issue, but a testament to the credibility and strength of the two companies. Now, they can only follow Bao Zixuan's requirements, and the investors are much stronger than the underwriters like them. In the face of absolute strength, there is no shame in compromising occasionally.
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