Heads Up Hollywood

The box office market is booming and overwhelming.

Prada's cross-border marketing has also played well, and has become a classic case of textbooks.

However, for New Universal, the biggest event this summer is undoubtedly the launch!

Generally speaking, the second quarter report of the enterprise will be released in August or September, because the statistics in the second quarter are the data from April 1 to June 30.

The larger the company, the longer the statistical time.

Many large multinational companies will not even release their financial statements for the second quarter until November.

New Universal is different, everything is ready for listing!

On July 16, New Global's financial statements for the second quarter will be released!

The total revenue is 24.16 billion US dollars!

Among them, the revenue of the film and television entertainment department was US$5.44 billion, the income of the interactive entertainment department was US$8.75 billion, the income of the TV media department was US$4.34 billion, and the income of the consumer goods department was US$5.63 billion.

It is worth mentioning that in the interactive entertainment department, the global sales of Dolby DVD players reached 3.28 million units, generating revenue of 4.26 billion US dollars and gross profit of 3 billion US dollars! Even Blizzard Entertainment generated $1.84 billion in revenue and nearly $200 million in gross profit.

Among them, the film and television entertainment department spent 3.87 billion U.S. dollars, the interactive entertainment department spent 4.45 billion U.S. dollars (research and development expenses were 2.5 billion U.S. dollars), the television media department spent 2.28 billion U.S. dollars, and the consumer goods department spent 3.87 billion U.S. dollars...Single-quarter expenditures were 14.47 billion U.S. dollars.

Coupled with debt interest and corporate income tax totaling US$5.65 billion, New Global's total expenses in the second quarter were US$20.12 billion!

Net profit in a single quarter exceeded $4 billion!

As soon as this data came out, it directly shocked the entire Wall Street!

too exaggerated!

For a company with positive earnings, the net profit multiplied by the price-earnings ratio is the market value.

The P/E ratio of the film and television entertainment industry is not high, averaging around 25.

The price-to-earnings ratio of the hardware industry is relatively low, averaging around 18.

The price-earnings ratio of the Internet industry is extremely high, generally exceeding 80. For potential stocks like Netflix and Facebook, it is normal for the P/E ratio to exceed 100, which means that if you earn 1 yuan, you can leverage 100 yuan of capital, and the bubble is very big.

The price-earnings ratio of the TV media business is not high, which is around 20.

The price-to-earnings ratio of the consumer goods industry is uneven. Luxury brands like Prada are relatively high, while mass brands like Victoria’s Secret are relatively low. In the case of New Global...about 40-50.

New Global is a diversified company, and the market recognition of its various departments is not uniform.

New Global and Wall Street are discussing the listing price. The most fundamental discussion is to combine so many industries and come up with a unified price-earnings ratio plan.

As far as the current situation is concerned, the price-earnings ratio of New Global can be between 30-35.

New Global's single-quarter net profit was 4 billion U.S. dollars. Isn't the annual net profit 12 billion U.S. dollars? Multiply that by the lowest P/E ratio of 30 times...that's a market cap of $360 billion?

What a joke!

Even if the second quarter is the peak season, sales are booming and profits are higher, other quarters may not have such profits. But with New Global's current momentum, it will be no problem to make a net profit of 4 billion U.S. dollars in the second quarter and 10 billion U.S. dollars for the whole year, right?

Multiply that by 30 times earnings... that's a $300 billion market cap!

Oh, God!

crazy!

Now, the world's most valuable company is Exxon Mobil Corporation, with a market capitalization of $420 billion.

In second place is General Electric with a market capitalization of $350 billion.

In third place is Gazprom, with a market capitalization of $280 billion.

Next, there is Microsoft at $250 billion, Citigroup at $235 billion, Bank of America at $220 billion, Royal Dutch Shell at $220 billion, BP at $210 billion and PetroChina at $200 billion.

It can be said that apart from Microsoft, other global giants are banks and oil groups. (GE's biggest moneymaker is also financial services, like banks)

With a market capitalization of US$300 billion, New Global can be ranked third in the world after Exxon Mobil and General Electric!

Wait a few more years?

The subprime mortgage crisis led to the collapse of the financial market, and banks all over the world fell into a collective bankruptcy crisis.

The price of oil plummeted, and the market value of the global oil giants collectively plummeted.

At that time... maybe New Universal can really aspire to the top of the global market capitalization list!

Of course, the market value of 300 billion US dollars is only Tang En's most conservative estimate.

Such a good momentum, once it is frantically pursued by the market... Exxon Mobil, the world's most valuable company, only has a market value of 420 billion US dollars.

In the face of high leverage with a high price-earnings ratio, the gap is really not that big!

Outside, "The Avengers" is still in theaters with great fanfare.

In the second week of its release, the North American box office of the film was 150 million US dollars, the overseas box office was 320 million US dollars, and the next week's box office was 470 million US dollars!

Counting the box office of 510 million US dollars in the first week, "The Avengers" was released for two weeks, and the global box office was 980 million US dollars!

It surpassed "Daredevil 2", which was released for more than two months, and became the runner-up of the summer box office, second only to "Pirate League 3: At World's End" with US$1.06 billion!

This summer, New Universal is really crazy!

Not only financial statements exploded, bombarding Wall Street. The movie market also exploded continuously, turning Hollywood upside down!

Internally, New Universal's executives did not pay much attention to Hollywood.

Listing is the top priority!

On this day, Tang En convened the nine executive directors and two independent directors of the New Global Group, as well as most of the executives, and held a financial meeting of the highest standard. Even Jobs rushed over from Silicon Valley.

To determine the listing price of New Global.

The level of the issue price is related to the interests of every shareholder of New Global.

Generally speaking, there are two ways to determine the issue price: fixed price and bidding.

To put it simply, a fixed price means that Party A determines a price, and then all buyers must buy at this price.

Bidding is arranged by investment banks and related financial institutions, allowing buyers to bid. If most are bought at $10, then price it at $10. If most are bought at $20, then price it at $20. Listed companies have no right to speak, and the initiative is in the hands of investment banks and subscribers.

For strong companies, most of them are issued at a fixed price!

I said how much money it takes!

Fuck off anyone who wants to lower the price!

Love to buy or not!

This type of strong company generally has great potential and excellent financial statements. Because it is profitable, it will still be favored by capital and actively subscribed.

of course there are exceptions.

Such as Google.

At the beginning, the price was too high, and investors were discouraged and unwilling to subscribe. As a result, Google's IPO failed very much, and a large part of the stock was not sold. Google had no choice but to call an emergency stop. After a year, there was a second public offering, which raised enough money to develop the company.

Tang En's character is very strong.

The potential of New Universal is also extremely huge. Its Facebook, Blizzard, Netflix, Dolby Laboratories, Pixar, Marvel Pictures, imax, Prada, Discovery Channel, Dunn Pictures, Starz, and Universal Studios are all extremely high-quality asset. In particular, several major Internet companies, even the IT elites in Silicon Valley, are all optimistic.

Not to mention the performance, the revenue in the second quarter was 24 billion U.S. dollars and the net profit was 4 billion U.S. dollars! The ability to make money is so strong that it is completely comparable to those oil giants.

As for the composition of the management team... there is no problem at all, the replacement of the old and the new is going on in an orderly manner, and there are few conflicts among the executives. In the board of directors, there are also elites from the political circle, fashion circle, IT circle, Hollywood and Wall Street, and the composition of the members is very healthy.

The only criticism... is that Tang En holds too many shares, a total of 830 million shares.

Absolute control is absolute power, which will make Tang En lack of constraints. Once he gets dizzy, there is nothing anyone can do if he wants to lead New Universal into a place where there will be no end. Just like Wang An Computer 20 years ago, it was going to a dead end, which caused sighs.

Fortunately, Tang En is smart enough. From the current point of view, none of the strategic decisions he has made have failed, and all of them have been great successes.

With so many advantages, New Global must issue shares at a fixed price. The major investment banks only provide some advisory, consulting and underwriting roles.

As for the price...

controversial.

Prior to this, New Global has announced that it will be listed on the New York Stock Exchange under the stock code "UNI" and plans to issue 188 million shares. In addition, New Global also grants listed underwriters the right to oversubscribe up to 32 million shares.

A total of about 200 million shares will be issued.

The total share capital will be expanded to 1.2 billion shares.

According to the fixed price standard, issue price = net profit per share X price-earnings ratio.

According to New Global's self-assessment, the net profit for this year will be between US$12 billion and US$14 billion; according to the guidance given by major investment banks, the price-earnings ratio is between 30-35.

In other words, the initial estimate of the issue price will be between 300-408 US dollars!

This is too exaggerated!

You know, the evaluation price given by major investment banks last month was... $146!

Now New Global's internal valuation is twice as high as the investment bank's guide price!

Isn't this slapping the major investment banks in the face?

Citigroup, Goldman Sachs, Morgan Stanley, ****, Deutsche Bank...

When Tang En said the estimated price of "300 US dollars to 408 US dollars", the atmosphere in the meeting room was a little weird. Even Jobs, who was struggling with terminal cancer, seemed to cheer up at this moment, his eyes widened, and he looked at Tang En in disbelief.

Boy, are you serious?

No kidding!

Of course, there is also a faint expectation in his heart.

Jobs holds only 5.5 million shares of Apple, and 95% of his assets are in New Global's stock, and he holds 48 million shares.

At a $300 share price, the stock would be worth $14.4 billion! His net worth will exceed 15 billion US dollars!

According to this year's "Forbes Rich List", he will be second only to Theo Albrecht, the owner of the German Aldi supermarket with a net worth of 15.5 billion U.S. dollars, and ahead of the Russian oil tycoon Abramovich with a net worth of 13.3 billion U.S. dollars. Ranked 21st in the world!

If the price is US$407... that would be even more extraordinary, he would become the top ten super rich people in the world!

Jobs was a little excited and his heart was ups and downs.

He was once again convinced of the correctness of selling Pixar to Dun En.

It would be the greatest investment of his life.

However, the hot mood did not last long, and soon calmed down.

Release price of $407?

impossible!

Not to mention $407, even the issue price of $300 is impossible!

It is fully twice as high as the guidance price given by the investment bank. How can investors in those markets follow? In terms of credibility, the major investment banks must be higher.

Moreover, investment banks are underwriters, and they are responsible for selling stocks to shareholders. With such an outrageous price, the fighting spirit of the underwriters will not be too high.

Why did Google's IPO fail?

Because the investment bank gave a low price, Google disagreed and insisted on asking a high price, which was 50% higher than the investment bank's guide price.

As a result, it became unsalable.

The superficial reason is that the subscribers are afraid of investment failure and dare not buy.

The fundamental reason is that the two sides have too many differences, which leads to the indifference of the sales enthusiasm of these investment bank underwriters, and they are too lazy to sell. At the level of Wall Street stockbrokers, even worthless junk stocks can be fooled out, and the "Wolf of Wall Street" is not just blown out. Just like real estate subprime mortgages, they are actually some B-grade junk loans, but they can be marketed by Wall Street as the most perfect 3A-grade financial products. It is this kind of junk real estate product, and everyone still has to rush to buy it like a lottery. The whole world has been fooled by Wall Street to such an extent that it is not surprising that the subprime mortgage crisis occurred.

"Don't be nervous. This is just a rough range. I don't think everyone wants to get rich?" Seeing that everyone's expressions were a little strange, Tang En, who was sitting in the chair, made a small joke.

More than 30 people in the meeting room laughed out loud.

I don't know if it's a wry smile or a startled laugh.

Tang En naturally knew what they were thinking.

Before the meeting, he had communicated with several financial executives and knew something about it. He said seriously: "Everyone has seen the report for the second quarter, but Wall Street has not given back. If there is no accident, They will definitely make a new assessment of New Global’s expected issue price and corporate potential, and by then, it will definitely not be $146.”

From the news of the company's listing to the final listing, it has to go through more than ten rounds or even dozens of rounds of issue price evaluation.

Just announce the issue price the day before the IPO.

This is a bargaining process.

Several major investment banks on Wall Street are the underwriters of New Global. Underwriters can get a commission for helping listed companies sell stocks. The larger the financing scale, the lower the commission. Usually, for larger-scale IPOs, the commission is between 2% and 3%, and for smaller-scale IPOs, the commission is about 7%.

New Global's IPO is super-large, the largest in history, and the commission will naturally be reduced. According to the agreement, it is 0.8%. (Alibaba is 1%, Facebook is 1.1%, and Twitter is 3.2%.)

0.8% seems very low, but the IPO of Kexin Global will raise more than 40 billion US dollars!

0.8% is $320 million.

This amount is not small, but it is too inconspicuous for the big Wall Street investment banks of financial giants.

New Global took in 40 billion U.S. dollars, and they only took in 320 million U.S. dollars after a lot of work?

Too unbalanced!

This is not Wall Street style.

Obviously, investment banks have other tricks to make money in IPO underwriting.