Heads Up Hollywood

Entertainment media can make money, but the style is very low. But the financial media is different, the ability to make money is not bad, and they are tall!

In order for New Global Group to have a higher structure, it is also necessary to have a financial media business.

After News Corporation owns TV satellites, TV stations, movies, publishing houses, newspapers, online media and other businesses, the last business that is lacking is financial media.

To this end, Murdoch did not hesitate to initiate an acquisition of Dow Jones at a super high premium.

Tang En was also very moved.

However, he has no intention of buying a newspaper like the Wall Street Journal.

Brandy Norris is the chief financial officer of New Universal, from Wall Street.

At the high-level meeting, after hearing Tang En mention that New Global's next new business exploration will be locked in the financial media, he immediately showed a strong interest.

After the meeting, Brandy Norris came to Tang En's office with great interest and took the initiative to report: "Boss, I have a copy of the Dow Jones Group's revenue statement for the past year, please take a look."

The annual report shows that in the past year, Dow Jones Group's "Wall Street Journal", "Barron's Weekly" and other media businesses for individual investors had a revenue of 950 million US dollars, a gross profit of only 28 million US dollars, and a gross profit rate of less than 3%.

However, smaller corporate media businesses, including Dow Jones News Network, Dow Jones, etc., have revenues of less than US$400 million, but gross profits have reached US$100 million! The gross profit margin is 27%!

Brandy Norris said: "As far as the current situation is concerned, the "Wall Street Journal" and the British "Financial Times" should be the only two newspapers in the world that can charge for their online editions. However, this is not commendable. The data shows that enterprise-level media business has more room for profit!"

Tang En held a pen in his hand, circled the data on the report, nodded and said: "That's true. When free financial information is flooding the Internet, timely and mature financial data with institutional traders as the main customers, It will increasingly become a lucrative market."

"So, we can abandon the financial media business for individual investors and focus on corporate customers."

"Brandy, it seems you have an idea?"

"indeed so."

Tang En stretched out his hand, "Tell me."

Brandy Norris said: "News Corporation's current market value is more than 70 billion US dollars, but the valuation of New Global has reached 170 billion US dollars! We are stronger and more ambitious under your leadership. I'm sure Well, Murdoch did not buy Dow Jones because of the sales volume of The Wall Street Journal, because that piece of business really doesn’t make much money, but because of Dow Jones’ corporate media business. Unfortunately, in the past few years, Dow Jones It has always been controlled by an excellent news family, not an excellent capital force. Murdoch will definitely bid for Dow Jones at a substantial premium because he is confident that the company's business will become as great as its content. However, we There is no need."

"oh?"

"We have abundant cash flow, rich promotion channels, and greater market potential. We can definitely start with an enterprise-oriented financial media! Murdoch can't eat it, but we can!"

Enterprise-level financial media?

Tang En had almost guessed his answer, narrowed his eyes, "You mean...Bloomberg?"

Brandy Norris said without hesitation: "It is said that the Associated Press, Reuters and Agence France-Presse are the three major news agencies in the world. However, in terms of influence in the financial field, these three combined are not as good as Bloomberg. !"

"Bloomberg..." Tang En twitched the corner of his mouth, "Can we move?"

Brandy Norris said firmly: "I think so!"

"Bloomberg is a private company."

"But during the development of Bloomberg, it has raised money twice. Mr. Bloomberg is now the mayor of New York. It seems that his interest is shifting from business to politics."

(Note: Very painful translation. "Bloomberg" and "Bloomberg" are actually the same word Bloomberg. Hong Kong and Taiwan's translation is very concise, and they are collectively called Bloomberg.)

"Bloomberg's valuation is not cheap."

"It's relatively high, but New Universal has the ability to eat it."

Tang En pondered for a long time and thought for a while, "Prepare me more materials, about Bloomberg and Bloomberg himself."

Brandy Norris looked overjoyed: "I'll get ready!"

He is very bullish on Bloomberg's potential.

Judging from the current situation, the strength of Bloomberg seems to be inferior to that of News Corporation. But it won't be long, let alone News Corporation, even Time Warner, I'm afraid it won't be the opponent of Bloomberg!

This is a true industry juggernaut.

Now, Michael Bloomberg himself is in politics, as mayor of New York.

Handed Bloomberg social media to deputy management.

However, his deputy was okay in execution, but not good in making decisions. As a result, Bloomberg's performance growth has slowed down sharply in the past two years.

Because Michael Bloomberg has entered politics, he has to sever his management relationship with the company, otherwise there will be a risk of collusion between the government and the business, and he has been under very strict supervision.

He can't make decisions for Bloomberg.

In this case, if New Global successfully acquires Bloomberg, then the helm of Bloomberg... may not be him, Brandy Norris!

Compared with being the CFO of New Global Group, it is more attractive to be the CEO of Bloomberg.

The former’s upward channel has been blocked, and creative companies will hardly promote CFO to CEO.

The latter still has a bright room for improvement. Once Bloomberg is in charge, he may not be able to go further and become the CEO of New Global Group!

...

Soon, Tang En obtained a detailed material about Bloomberg.

Unlike the Wall Street Journal, which directly faces users, Bloomberg has no newspapers. Its media income is mainly from news subscriptions for governments, companies, and financial institutions, plus some news resale and financial TV stations.

In the past year, Bloomberg's revenue was $6.8 billion.

Among them, the revenue from Bloomberg terminals accounted for a full 84%!

The Bloomberg terminal is a machine similar to a computer. It is the general platform and auxiliary trading platform for all Bloomberg information output services. It is a computer system integrating software and hardware that allows professionals to access "Bloomberg Professional Services".

Through "Bloomberg Professional Services", users can view and analyze real-time financial market data and conduct financial transactions.

Bloomberg terminals are not for sale, only for rent!

Rent per annum...$20,000!

At present, there are 285,000 Bloomberg terminal users worldwide, and the rent alone will bring Bloomberg $5.7 billion!

Every investment bank and every financial institution on Wall Street must be a loyal user of the Bloomberg terminal.

In this market, Bloomberg terminals have no rivals, occupying 99% of the market share!

Monopoly!

Monopoly means wealth!

As the financial market becomes more and more open, especially the rise of the financial markets in countries with large populations such as China and India, the demand for Bloomberg terminals will only increase.

It can be seen that Bloomberg's future performance growth will be very gratifying.

However, if New Global wants to acquire Bloomberg, the trouble also lies in the Bloomberg terminal.

Last year, Bloomberg's net profit was $750 million.

According to the market in the United States, the average price-earnings ratio of media companies is 15.

By this standard, Bloomberg is valued at $11.2 billion.

But the media business only occupies a very small part of Bloomberg, and the main source of income is the Bloomberg terminal.

The Bloomberg terminal is a technology product, and the average price-earnings ratio of technology companies is 30!

According to this standard, Bloomberg's valuation will reach 22.5 billion US dollars!

Not only that.

The Bloomberg terminal is connected to global financial institutions through the Internet, which can facilitate the exchange of information between investment banks and financial institutions around the world, and learn about the latest financial trends.

The Bloomberg terminal is even paired with a chat software called "Bloomberg IB".

From this perspective, this is an Internet company.

The average price-to-earnings ratio of Internet companies... is as high as 50!

According to this standard, Bloomberg's valuation will reach 37.5 billion US dollars!

Of course, the core content of Bloomberg is still financial services and news dissemination, and the so-called Bloomberg terminal does not have much high-tech content.

The market valuation given by Business Week is between US$15 billion and US$18 billion.

Either way, it's a Big Mac.

Even if New Universal is rich and powerful, it is still difficult to eat it all.

Once it is not handled properly, it will cause indigestion.

Just like Twain's ambition to acquire 20th Century Fox.

To acquire such a large-scale company, New Global must go public. Before going public, there is no possibility of a successful acquisition.

However, after reading more materials about Bloomberg, Tang En became more and more interested in this company.

In particular, I have great admiration for Michael Bloomberg, the founder of Bloomberg.

This guy is really talented. He has mastered the four major fields of technology, communications, media, and finance. A few years ago, he even played politics and became the mayor of New York.

Such talents may not necessarily have the possibility of becoming president in the future.

If New Global acquires Bloomberg, Michael Bloomberg will become an important shareholder of New Global, and the chain of interests can be tied together.

Very excited!

Dunn called Brandy Norris again, "Do you have a terminal there?"

"I don't have one here. I don't need this machine for my work." Brandy Norris replied, and said immediately, "But Fernando has one, and he has been in charge of communicating with Wall Street investment banks."

The working platform of Wall Street financiers is not a personal computer, but a Bloomberg terminal, and the online chat software can only be IB. If others want to communicate with them on the Internet, they can only use the Bloomberg terminal, which is highly closed and confidential.

Tang En nodded, "Okay, I'll go over and see what this Bloomberg terminal is!"