Top of the big era

Although Manchester City has put a certain amount of pressure on Boss Zhou after the Middle Eastern tycoons took over, he feels generally good and it is not too late to make up for the situation.

Manchester United's foundation is very strong.

Although Manchester City spent 200 million pounds to renovate their training base, their foundation is too thin. Manchester United can do better than them if they just spend some money here.

Now Zhou Buqi is doing business, and he feels like he is pushing forward all the way.

All walks of life, everything is fine!

bring it on!

Just like Bill Gates, he retired from Microsoft and was able to lead the way in other fields, such as finance, charity, industry, food, and even developed the world's thinnest condom. It even includes investment in the agricultural industry. This guy seems to like being a farmer. He keeps buying land and has become the largest landowner in the world.

However, doing business is not a step-by-step plan, but must follow the changes in the market.

Many times, the force majeure of some major market changes makes people feel uncomfortable.

For example, the recent European debt crisis is spreading globally.

Zhou Buqi was about to fly back to China and go to the Hong Kong government to make the final arrangements before the IPO of Jieyu Media. He had just completed the listing of Taizun Real Estate a few months ago, and he was already familiar with the process.

On the plane, I heard a series of very bad news.

It's not from Senior Sister Zhen Yu, nor is it from Xu Baihui from Jieyu Media, but from Don Mattrick, who is in charge of the game business.

Mattrick's energy was obviously not as high as it was some time ago. Even if he knew the inside information that he was about to become the CEO of Changyou, he could not hide his depression at the moment, "Zhou, the economic crisis is coming again."

Zhou Buqi knew, "European debt crisis, right?"

"Yes, it has already affected the financial market in the United States." Mattrick was helpless. "Major banks, investment banks, and financial institutions in the United States have recently announced their first-quarter financial reports. They are shocking. Their profits have generally decreased year-on-year. About 30%.”

A 30% year-on-year decrease means a 30% decrease compared with the first quarter of 2010.

This is very tragic.

Financial institutions finally emerged from the subprime mortgage crisis, their performance began to recover, and the economic trend began to improve, but the European debt crisis came.

If the financial industry is affected, the entire financial market will suffer fluctuations.

This is the force majeure of the general environment, and it is very helpless. Even if Boss Zhou has three heads and six arms, he cannot survive alone in the context of this deteriorating global economy.

It is conceivable that Changyou’s stock price collapsed again!

Zhou Buqi secretly worried about Lao Zhang, and asked a little knowingly: "How is the stock market? Is it very turbulent?"

"It's huge!" Mattrick's expression was heavy. "All stocks are falling, all market indicators are plummeting, Changyou... Changyou's stock price has dropped another 13% in the past two days, and now only $6.20.”

Four weeks ago, Changyou went public.

The issue price was US$11.5, and now the stock price is only US$6.2...almost cut in half!

This wave of operations has really screwed up American investors.

Fortunately, the plummeting stock price is not Changyou's own problem. It is caused by the differences in the financial environment and the perception of the entire game industry. The stock prices of game companies around the world are plummeting.

If it were an individual matter involving Changyou, American investors would surely be anxious and begin to unite privately to launch a class action lawsuit.

Zhou Buqi is very lucky.

The European debt crisis is a force majeure that no one can resist.

The timing of Changyou's listing was chosen at the most perfect time!

If we listen to Lao Zhang's advice, or listen to the deceit of those Wall Street investors, modify the listing plan, and delay the IPO date for a few more months... If it doesn't take a few months, if it is delayed for another month, Changyou's IPO will completely collapse.

When Changyou went public, its financing scale reached US$2.6 billion.

If it had been delayed, it would have raised US$1.3 billion if it went public at this stage. For Changyou, the stock price and market value are all fictitious. These things are changing at any time, and the money you get is the real benefit.

For the same thing, a four-week time difference, Changyou earned an additional US$1.3 billion!

The capital market is so magical!

Of course, this is also due to the courage of Boss Zhou, whose prompt decision saved Changyou. If he hadn't acted decisively, paid for the remaining 70 million shares with his own money, and pushed forward the IPO process with force, causing Changyou to fall into complex and lengthy bargaining with those financial institutions, it might have been a bad thing.

With this powerful reason, he, the chairman of the board of directors of Changyou, is even more justified.

However, there is still some confusion that cannot be explained.

Changyou was launched on March 14th.

The first quarter is almost over.

Could it be that there was no unified understanding among American financial institutions at that time? Not feeling the impact of the European debt crisis? Outsiders don't know, but they have all kinds of data internally, so they must have known it for a long time.

Why did Changyou go public during that time and still gain unanimous recognition from the capital market? Even on the first day of listing, Changyou's stock price soared, and its market value soared to more than 25 billion US dollars.

Mattrick was like a roundworm in Boss Zhou's stomach. He immediately cleared up the confusion and said with a sigh: "If it's just the European debt crisis, that's okay. The Federal Reserve has strengthened the policy of quantitative easing, which can form a Hedging against economic trends. The reason why the market is so bad is because Wall Street is making mistakes."

Zhou Buqi asked: "What happened to Wall Street?"

Mattrick said: “At the end of last month, the U.S. Consumer Financial Protection Bureau released a set of survey data, showing that a number of large financial institutions such as Bank of America, Wells Fargo, Morgan, Citigroup, and Goldman Sachs have used loans through loans since 2007. Various trickery was used in aspects such as repossession and foreclosure review to avoid more than 20 billion US dollars in costs, which is suspected of fraud. Last weekend, the supervisory authority made a penalty decision to impose punitive fines on 14 banks involved. The total fine is US$20 billion. The issuance of this fine really worsens the situation for Wall Street, which has finally emerged from the subprime mortgage crisis."

"FxxK!"

Zhou Buqi couldn't help but use an American curse.

I thought to myself that these Wall Street capitalists can’t do it either. Didn’t they agree that their methods are all-powerful? Wasn’t it agreed that Wall Street could control the Federal Reserve and the White House?

This is not okay. News of the violation was announced at the end of last month, and only two weeks later, the punishment results came out. The level of public relations, lobbying, and resistance is too poor!

It's almost like a Korean consortium. It looks very fierce and powerful. As soon as Cheong Wa Dae made a move, several chaebol family heads were all thrown into jail.

The life and death of financial institutions on Wall Street has nothing to do with Zhou Buqi.

However, Wall Street financial institutions influence financial markets around the world.

This is fucked up!

Changyou has completed its listing. I am very lucky and fortunate to have obtained the financing and can sit back and watch the financial market flourish.

However, Zhou Buqi also has other companies waiting in line to go public!

Jieyu Media will be listed on the Hong Kong Stock Exchange next week, and Yuanwei Group will also be listed on the Hong Kong Stock Exchange two months later. Both IPOs will be affected by this wave of huge fines of US$20 billion.

In addition, it also includes Ziweixing International.

Mattrick said helplessly: "I have been communicating with EA during this period. They are indeed interested in acquiring a friend's studio, and their intention is very strong. However, due to the impact of this general environment, the price may be higher. discount."

Zhou Buqi said "Yeah", "I understand."

Mattrick said: “My expected valuation of my friend’s studio is US$3 billion to US$4 billion. However, in the past two weeks, the game industry has been impacted by the new trend of social games and Zynga’s upcoming listing, and the stock prices have collectively fallen. . Now we have been hit by financial shocks, and they have generally suffered a decline of more than 30%. However, if the transaction is completed through stock exchange M\u0026A, the transaction volume will not be too high, but the stock share will not change much."

The stock exchange merger means that Ziweixing International converts 100% of the shares held by Friend Studio into EA shares.

Trading using this model is actually not greatly affected by market fluctuations.

For example, the previous valuation of Friend Studio was US$4 billion, and now it is US$2 billion, which has shrunk by 50%; the previous market value of EA was US$20 billion, and now it is US$10 billion, which has also shrunk by 50%.

This is equivalent.

Except that the transaction volume has increased from US$4 billion to US$2 billion, the EA shares obtained by Ziweixing will not change.

The small problem now is that EA's stock is meaningless to Ziweixing at this stage!

Ziweixing wants cash!

If it is a cash transaction, it will be a huge loss, and you will really lose 50%.

Zhou Buqi pondered for a while and then said slowly: "Ziweixing International has not yet been listed, which will greatly limit the company's financing ability in the capital market. This is the company's biggest hidden danger. The current economic situation is not good, it must be You have to keep cash in your hands. EA's stock has long-term value, but now we have to take into account Ziweixing's short-term risks, and cash is king."

Mattrick said with a smile: "EA will also prefer cash transactions. In this regard, both parties will quickly reach a consensus."

When financing, there are two options: equity financing and debt financing.

When the stock price is high, equity financing is used; when the stock price is low, bond financing is used.

Ziweixing International has not yet been listed on the market because Boss Zhou believes that the capital market’s understanding of mobile Internet is not accurate enough and will “disdain” the value of Ziweixing International, resulting in a reduction in financing.

So Ziweixing International now relies on debt issuance to make a living.

However, this is not a listed company after all.

When the financial environment is tense, it will not be easy for such an asset-light unlisted company to issue bonds. The top priority is to find ways to hoard more cash on its account.

For EA, the current stock price is very low. They definitely don't want to exchange cheap stocks for friend studios at this time. It is a more cost-effective transaction to issue bonds in exchange for money, and then use cash to buy friend studios.

In this regard, both parties have consistent interests and hope to use cash transactions.

That will make it easier to negotiate.

Zhou Buqi did not hesitate and was as decisive as ever, "That's it, follow this idea, the more cash, the better!"

Mattrick said: "There is another question..."