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After the New Year's Day holiday, it's the new year.

From a capital perspective, it is also a new fiscal year. The dividends, options, bonuses, etc. for the past year have all been settled, and a new round of statistics is about to begin.

A lot of important news was released.

For example, the authorities officially announced that they approved Google’s $20 billion acquisition of Twitter.

In fact, Zhou Buqi knew about this matter half a month ago.

Google has made a notice.

However, Google worked hard and put such good news in the new year.

The overall performance of technology stocks last year was not impressive enough. Google was a little better. For the whole year, its stock price increased by 9.4%. However, there is still a big gap from the expected target of 22%.

The average growth rate of listed companies in the Internet industry last year was only 1.5%. Companies like Yahoo, which fared badly, saw a decline of more than 20% in a single year.

Google's operation is actually related to the management's option income.

The regulatory authorities have approved Google’s acquisition of Twitter. It is conceivable that this will benefit the capital market and Google’s stock price will definitely rise.

If this news had been released last year, the increase would have been included in last year's accounts. However, in 2011, it was almost impossible for Google to achieve the 22% growth target estimated by the board of directors at the beginning of the year, so it simply gave up.

It's not up to standard anyway, it's a broken jar.

Put all your hope in 2012.

On January 4, the good news was released that Google’s acquisition of Twitter was approved. The increase in stock price can be recorded in this year’s account, which will be more in line with the interests of management.

During Zhou Buqi's time in the United States, he saw a variety of capital operation routines, which was an eye-opener. Of course, he's not bad either.

Senior Sister Zhen Yu has come to deliver the good news.

Jieyu Media and Taizun Real Estate both owe money to the Zhou family, US$500 million and US$400 million respectively. It was supposed to be last year, but the two companies had just gone public last year, and they wanted to keep their stock prices stable, so they didn't move.

As we enter the new year, we can pay back the money.

A total of US$1.02 billion in principal and interest was recovered.

Including the management fees returned by Pluto Capital and Neptune Capital, although no dividends were received, the management fees were considerable, leaving a balance of US$220 million.

In addition to the US$1.5 billion in short-term debt borrowed last year, it cost US$1 billion to buy 65% ​​of the Giants' shares and US$60 million to buy 10% of the Warriors' shares, leaving a balance of US$430 million.

And the family fund had a balance of US$260 million last year.

Now, Zhou Buqi’s available funds have reached US$1.93 billion.

Such a huge amount of cash flow would be terrifying to anyone, but for Zhou Buqi, it was still not enough. Because next, he wants to help Boss Ma and help him take over the Alibaba shares repurchased from Yahoo.

The current overall situation in the technology industry has not yet recovered, and stock prices have remained generally depressed, making it uneconomical to cash out stocks. If it doesn't work, you can only continue to borrow money.

Not only is the Zhou family short of money, Changyou is also short of money.

On his first business trip in the new year, Zhou Buqi went to New York, where he met Zhang Chaoyang and went to see the planned Changyou headquarters campus together.

Lao Zhang is responsible for the planning, supervision, construction and construction of the park.

This time he came to ask for money.

Changyou will allocate US$520 million to do this.

In this winter, there is not much to see at the construction site. The main thing is to communicate with the New York authorities, construction parties, guarantee parties, and labor unions to understand the progress of this year's project, whether it is appropriate to start construction, appropriate finishing, etc.

It is also related to the surrounding water, electricity, fiber optics, transportation, housing renovation, etc. Many of them are hundreds of years old and must go through layers of approval before they can be demolished.

However, the decision has been made. The demolition approval of two buildings has not been passed. The main body of the building must be retained for reconstruction.

Renovating an old house like this costs a lot of money.

Renovating an antique-quality old house is more expensive than tearing it down and building a new one.

Fortunately, you can apply for subsidies from the authorities for antique houses like this.

Zhou Buqi and Lao Zhang put on formal attire at night and took their female companions with them to attend a charity dinner hosted by a congressman at his home on Long Island.

By donating US$1 million, it is estimated that US$30 million in old house renovation subsidies can be obtained. If I donate 2 million, I don’t know if I can get back 60 million US dollars.

It is worth mentioning that Lao Zhang’s female companion is very powerful.

Very high.

She is an American country singer, Taylor Swift.

At the charity party, she also took the stage to sing a song, singing the Grammy Award-winning song "Mean".

This is almost the best live version of the song Zhou Buqi has ever heard. It is much better than the singers who were invited to sing at previous events.

Well, it probably has something to do with the tall girl's sweet appearance.

Anyway, I admire it very much.

Lao Zhang is indeed Lao Zhang.

Extraordinary shot!

However, there is also a disadvantage, that is, this little Taylor is too famous. At the reception, everyone, male and female, young and old, rushed to chat with her and behaved very intimately.

Zhou Buqi was accompanied by Yang Mi, who was much more powerful. She always followed him obediently, and even refused when anyone came to talk to him shamelessly.

"Lao Zhang," Zhou Buqi glanced in Taylor's direction, "Can you handle this?"

Zhang Chaoyang waved his hand and said indifferently, "The process is more important than the result. Why do you think so much? I'm not in a relationship with her."

"You're awesome." Zhou Buqi gave a thumbs up, "But she's so famous, I'm afraid you'll be on the headlines of tabloids again tomorrow, with scandals flying everywhere."

Zhang Chaoyang glanced at him and hummed: "I have already resigned as the chairman of Changyou. Scandals are just scandals. Can they still affect the stock price?"

Zhou Buqi smiled and said, "It's so sour."

Zhang Chaoyang said: "Is Changyou's acquisition over? It's just Talking Cat, that game company in Cyprus."

Zhou Buqi nodded, "Outfit7, it's settled. We have US$520 million in cash and 22 million Changyou shares, with a total value of approximately US$720 million."

Zhang Chaoyang was stunned for a moment and was surprised, "I remember the material Mattrick gave to the board of directors, saying that it only costs 200 million US dollars in cash?"

Zhou Buqi said: "Yes, that was the previous version of the plan, and I didn't agree with it. You can have more cash and less stocks."

"What?"

Zhang Chaoyang looked at him blankly.

Very baffling.

This kid is really doing it the other way around!

In normal M\u0026A transactions of this kind, stock M\u0026A is more preferred, with more stock payments and as little cash as possible. For example, Google acquired Twitter for US$20 billion, almost all of which was stock. Using too much cash will affect the company's cash flow.

Especially taking a dip.

The cash flow has already encountered a potential crisis. This time, we have to spend US$520 million to plan the New York headquarters campus as a whole... What are we doing? Instead of using more stocks, you actually get more cash?

Zhou Buqi said with emotion: "There is no way. I am a responsible and missionary chairman, unlike those managers who only care about their own convenience and do not care about the interests of shareholders. The current stock price of Changyou is only US$8.3, which is seriously undervalued. At this time, using stocks to trade will virtually increase the transaction volume. The fewer stocks and more cash, the better it is in the interests of shareholders."

Zhang Chaoyang said angrily: "Is this the key point? Cash flow! How to solve Changyou's cash flow? Unless you shrink your business, don't engage in any barbaric growth."

Zhou Buqi said: "Lao Zhang, don't educate me with your old and conservative corporate ideas. If Sohu had seized the opportunity to grow wildly in the early years, maybe it would still be an Internet giant now."

Zhang Chaoyang said angrily: "Stop doing this, how do you deal with the cash flow crisis?"

Zhou Buqi said: "I have negotiated with SoftBank and will start a round of financing. It is also a matter of giving stocks. Giving the stocks to the Outfit7 group is not as good as giving them to SoftBank. SoftBank also has certain strategic value and can help Changyou grow in the market. Japan will launch a few more mergers and acquisitions. Then, it will issue corporate bonds."

"Issuing bonds?" Zhang Chaoyang frowned slightly, "Is it possible? Does anyone want it?"

Zhou Buqi pointed to his chest and said amusedly: "Old Zhang, who am I? If you were still the chairman of the board of directors of Changyou, then in this financial environment, it might be really difficult for Changyou to get a loan. Can I talk to you? Are you the same? Issuing a wave of corporate bonds and promising the conditions for debt-for-equity swaps, and that’s it.”

Generally, as long as the conditions for debt-for-equity swap are added, it will be easier to achieve.

For example, Changyou issued US$2 billion in bonds this year, with a four-year term and an annual interest of 5.5%. Various investment banks and private equity institutions can come to subscribe.

It doesn’t matter if Changyou has no money in its account and can’t pay off its debts after four years.

Based on the 2012 stock price, all the US$2 billion would be exchanged for Changyou stock.

In other words, for buyers of Changyou corporate bonds, they have two potential gains. First, the interest rate is 5.5% per year; second, if Changyou does not pay off its debt, it will be equivalent to equity financing in 2012, and it will also receive a capital premium income of up to 4 years.

Of course, Zhou Buqi would not allow the second scenario to happen.

His judgment is infallible.

Changyou's future development will get better and better, and it will be impossible to accumulate so much debt that it will not be able to pay off its debts.

Zhang Chaoyang's character is very cautious, and he is a little worried, "A debt of 2 billion US dollars...do you want to slow down? Is such a move too big? When you make a strategy, do you only look forward and don't pay attention to the hidden dangers behind you?"

Zhou Buqi smiled and said, "Lao Zhang, just feel at ease!"

"Alas." Zhang Chaoyang sighed and hesitated, "Well... SoftBank wants to participate in the financing of Changyou."

"Um."

"I plan to sell a piece of Changyou stock. If this is the case, then I can sell it to SoftBank."

"Real or fake?" Zhou Buqi frowned slightly and looked at him strangely, "Really want to sell it? Lao Zhang, it would be a huge loss to sell it now."

Zhang Chaoyang was helpless, "What should we do? It will cost a lot of money to start Sohu Video's business."

Zhou Buqi whispered, "Can't you hold on for half a year?"

"Um?"

Zhang Chaoyang raised his eyebrows.

Zhou Buqi whispered: "In half a year, Changyou's stock price will definitely improve a lot. The gaming industry can't continue to be so sluggish, at least Changyou's stock price will definitely rise. If the performance can't rise, I won't be able to do capital operations. Get started!"