Silicon Valley
Chapter 55 EA Company
In September, the weather in California is still very hot. But the city of San Jose is near the west coast, and there is a hint of coolness in the air.
Henry is looking at the development plan sent by Kaelina via e-mail. It is written in the plan that she is going to spend 100 million US dollars for seed investment in new Internet companies, and also recommends that the company invest in game companies! In recent years, game companies have sprung up, with rapid development and very high profitability.
Among them, she gave two examples. One is Japan's Nintendo, and the other is American EA!
Nintendo is a giant in the video game industry. After releasing the FC game console in 1983, it has become the world's No. 1 game company in a few years. In 1988 alone, the total sales volume was close to 2 billion US dollars, and the profit was more than 500 million US dollars. !
EA was founded in 1982. It is a company specializing in the production and distribution of computer games. Although the company is short-lived, it is developing rapidly. On October 1 this year, it is ready to be listed on the Nasdaq.
Henry was silent for a while after reading Kaelina's plan.
He is very familiar with these two companies, especially Nintendo!
Presumably many people have used red and white machines and played classic games such as Super Mario, Contra, Tetris and so on. And in this period, Nintendo has reached the level that no one knows no one knows it! Its games are sold all over the world, and the characters in the games are also popular all over the world. Of the 30 best-selling toys in the world, 25 of them are related to Nintendo!
By 1992, this year alone, Nintendo's profit will be equal to that of Hollywood as a whole, and the income of the three major American TV networks! ! !
Nintendo has replaced Honda and Toyota many times as the number one company in Japan! ! !
It can be seen how powerful Nintendo is!
As for EA, although not as legendary as Nintendo, it later developed into a dominant player in the computer game industry and became the world's largest developer and publisher of interactive entertainment software. And it also owns EA-Sports, EA-Games and three worldwide brands, which is really amazing!
Nintendo, Henry can't get his hands on it at all. So, Kaelina's suggestion to Henry was to buy EA!
Henry didn't think about it, and directly replied to an email: "Buy EA with all my strength!!!"
In order to emphasize this sentence, Henry deliberately added three exclamation marks behind it!
It didn't take long for Karina to email back: "Okay!"
Henry stood up, stretched his body, and did a set of aerobics. This set of aerobics was learned in high school, and he didn't know whether it would work or not! No way, sitting in an office chair for a long time makes it very easy to get tired. If you don't exercise every day, I'm afraid that you will get old and sick in the future. It's been through once, you can't be a tired ghost, right?
At first, I thought it could be cured. Who knows, things are not as simple as they think. If you really feel comfortable handing over everything to professional managers, then your company is not far from going bankrupt. Others will empty your company little by little, and eventually become an empty shelf there! Although the United States has many means of supervision, there are even more ways of exploiting loopholes!
Henry has to ask about the development of the company under his name every once in a while, and he has to decide important matters by himself. Many documents have to be signed by himself to take effect. In this way, the security of the company can be guaranteed as much as possible. Will be deceived by the company's management, or dove in the nest!
However, doing this would make Henry very tired, because his company is so many...
"It seems that you need to hire a personal doctor or a nutrition expert... Chinese health preservation has always been famous, and it has been passed down for a long time. I don't know if there are health care masters in the United States. If there are, it would be nice to invite them together! For the sake of life, what is it to spend some money!!!" Henry muttered to himself while lying on the chair after finishing a set of radio gymnastics.
After thinking for a while, Henry made a phone call, told his subordinates what he had just thought, ordered them to investigate, and then invited someone over!
The investigation may take a while, but Henry is still young and in no hurry. What he is most anxious about now is whether Prestige Capital can acquire EA. Three days later, Kaelina called Henry and said, "Henry, things are a little bad!"
"What's wrong?" Henry asked hastily.
"EA rejected our acquisition intention!"
"Are you not satisfied with the price?"
"no!"
"Mainly because their founders were determined not to sell the company!"
"Then we invest in EA, can we take the controlling stake?"
"I'm afraid not... The company's largest shareholders are very optimistic about EA's development prospects, unless we spend several times the price! Otherwise, they will not sell shares! Moreover, EA's listing is imminent, once the financing is successful, they will No more money! Back then, it would be even harder for us to buy it!!!”
"You estimate, if we must take the controlling stake in EA, how much will it cost at least?" Henry frowned and said.
Kaelina had already done the preparatory work before, and she opened her mouth and replied, "At least $350 million!"
"There are so many!!!"
"Yes, since its establishment, EA has released more than ten consecutive games, all of which are very popular, especially sports games are very popular in the United States. Last year, the game "Madden's Football" invited the Oakland Raid. The team's coach John Madden joined the game. Once the game was released, the sales were very hot, and there were long queues at many sales points in the United States. Even the "New York Times", "Washington Post" and other major American newspapers made special reports on it! !!"
350 million?
Henry touched his forehead, a little hesitant.
At this time, Karina said: "350 million is just a conservative price. If we really want to take control of EA, I am afraid we need more! Therefore, I suggest that we look for the target again!"
Looking for a new purpose? Henry shook his head, still not wanting to give up EA, after all, he was so famous in his previous life.
"Kelina, you asked the founder of EA to come out, I want to talk to him!"
"OK."
The phone hung up, Henry was silent, thinking quietly about the acquisition of EA.
The next day, Kelina replied to Henry, "Henry, EA founder Tripp Hawkins promised to meet you at three o'clock in the afternoon, at the headquarters of Prestige Capital!"
"Okay, I know!"
Henry immediately ordered someone to drive to Prestige Capital. It was only noon when he arrived there. Henry and Kaelina had lunch together, and Kaelina chatted with Henry about the situation of Tripp Hawkins, the founder of EA. Tripp Hawkins graduated from Harvard University and served as the head of the marketing department at Apple in his early years, and witnessed the rise of Apple himself. But in 1982, he resigned resolutely and created EA! Therefore, he has high hopes for EA and has no plans to sell the company at all, and he himself holds 45% of the company's shares! Prestige Capital wants to control EA, it is very difficult!
After Henry listened, his brows were deeply wrinkled, "If we can't agree, we will give up this acquisition!"
At three o'clock in the afternoon, Tripp Hawkins came to Prestige Capital on time. Henry exchanged a few words with him, and then invited him to meet in the conference room.
"Mr. Hawkins, I take the liberty to ask, do you want to make EA the number one game company in the world?"
"Of course!" Tripp Hawkins nodded, thinking to himself, he asked what this sentence meant, and what kind of medicine was sold in the gourd?
"In this case, EA should accept the investment of Prestige Capital!"
"EA can raise money just as well by going public!" Tripp Hawkins would definitely accept the investment if it were a normal venture capital institution, but Weifeng Capital had bad intentions and wanted to acquire EA, which he would never allow!
"Mr. Hawkins, if the company wants to grow and develop, it is not just about money, but also people and channels. We, Weifeng Capital, have a good relationship with Nicholas Group and Global Online. If EA accepts investment from Weifeng Capital, it will In terms of online publicity, we can get a lot of help! And technically, we can also get strong support!" Henry said earnestly.
Tripp Hawkins was slightly surprised, but did not expect that the connections of Prestige Capital Company would be so strong. Tripp Hawkins lowered his head, thought for a moment, and said, "If Prestige Capital promises to hold no more than 20% of EA, I will agree!"
My ultimate goal is to acquire EA. If the agreement stipulates that Weifeng Capital cannot hold more than 20% of its shares, what should it do? Just for investment income? !
No! ! !
Since its establishment, Prestige Capital has never been an ordinary venture capital firm, but a venture capital firm dedicated to serving companies under Henry's name!
If he can't control EA, how can Henry integrate the game industry into his Internet empire? This is a very serious problem! Therefore, instead of holding EA, it is better to support or establish a new game company. At least such a company is dominated by Henry, and it is easy to integrate it into his empire!
Obviously, this negotiation ended in failure!
After Tripp Hawkins left, Henry shook his head and said regretfully, "It's a pity for EA..."
"You're sighing for not buying EA?" Karina asked.
"No, I'm sighing for the future of EA."
"why?"
"Because of me, EA's future must be very difficult..." Henry said lightly as he looked into the distance.
EA has nothing to do with it. It also does well in sports games. As for other games, they are all made by acquiring other game companies. Henry said that in the future, he will take care of the well-known game companies that EA will acquire, such as Distinctive-Software Studio, which produced Need for Speed, Origin-Systems, which produced Genesis, and Dungeon Guardian. The British studio Bullfrog Company, the Maxis Studio that made "Sim City", and the Westwood Studio that made "Command and Conquer"... (The third update... New book for the top!!!)
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