The first thousand two hundred and thirty-six chapters of the opportunity to join NBC Universal
"NBC Global! I'm very interested!"
When he heard Andy's words coming from the phone, Buffett, who was originally frowning and unhappy, couldn't help but breathe a sigh of relief, stretched his eyebrows and smiled. The thing he had worried about before that did not appear. It turned out that it was just a matchmaking matter, which was not a difficult task for him. It was indeed a smart and sensible young man.
"Haha, you guy, it seems that you have a great obsession with the media empire. However, NBC Global is not cheap. Even under the current economic situation, it costs at least more than 20 billion US dollars. Can you eat it?"
Hearing Warren Buffett's teasing laughter, Andy couldn't help but raise his eyebrows and said, "Even if I can eat it, do you think General Motors will really sell all NBC Global to me?"
"No, that's their mouthpiece of public opinion. Even if they agree to the transaction, they will be a conditional transaction, and they will hold on to the shares and the board of directors.
Andy was mentally prepared for Warren's judgment, but if he wanted to quickly form a media empire of sufficient scale, he could only do it through capital operations. Although the rise of Amc TV station is very strong, he really can't compare with the three major radio and television networks of NBC, ABC, and CBS, and he can't even think about surpassing it.
The news brought by Warren this time undoubtedly gave him an opportunity to take advantage of. If it is operated, it may not be impossible to fulfill his dream of the media empire.
"I've helped me. I think General CEO, who is facing difficulties, will be very willing to meet you, an excellent genius. So when will you go back to New York? I can make an appointment to play golf together. It's the autumn weather now. You won't refuse it with the reason that the weather is too hot, right?"
"Haha, of course, and my current football skills have really improved a lot. Playing basketball is the sport I am best at!" Andy raised his eyebrows slightly, a smirk appeared on the corner of his mouth, and said in a pun.
Unfortunately, his words were no different from those for deaf people. The old hooligan did not hear Andy's pun. He just laughed at Andy's football skills and agreed on the time to contact him, and ended the fairly complete communication.
After hanging up the phone, Andy took out his mobile phone and sent a text message to Al in New York, asking the think tank Xunsu to sort out the detailed information of General Electric. He must have thought about NBC Global about things after hearing the news. Although this made the acquisition plan he had prepared a little disrupted, the opportunity was fleeting and he must not let it go.
If we can really take over NBC Global, then the acquisition of Amc Cinemas will be optional. At this moment, Andy's ambitions swelled up again, and a dazzling light radiated in his eyes.
Half an hour later, Andy opened the video link and started a video conference, listening to his subordinates report to him all the information collected from General Electric and his analysis and judgment.
“… Unlike banks, ge finance itself has limited deposit absorption and is currently in a very difficult situation.
The high leverage that Ge Finance had been using before was supported by the higher performance at the time. However, now, the profits of financial business have declined, Ge has fallen into a state of operational tension for a while, causing market panic and stock prices to plummet, and capital operations are in trouble.
In addition, the government has recently strengthened the supervision of "non-bank system-important financial institutions", so ge finance is unable to carry out various high-leverage financial operations, which has become a heavy burden for the parent company.
The reduction in company credit guarantee ratings has led to increased financing costs and further shrinking profits. The loopholes and risks exposed by ge finance have put more pressure on ge to return to specialization and reduce finance.
It can be said that the current GE CEO Jeff Immelt is slowly losing the trust of the board of directors and continuing external forces and good news to consolidate his position.”
Listening to the analysis of the think tank, Andy touched his chin and thought for a while, saying: "GM Electric once had a market value of more than 600 billion yuan. Are they really so short of money? Or do they just want to boost the stock price through this financing and dispel investors' panic?"
"Boss, they are not even worth a market value of 300 billion. It is precisely because of their large size that they are even short of money. Once the capital chain breaks, they may collapse instantly. This is not an exaggeration."
Alvetre explained the questions in his heart to Andy with a serious expression and continued to reveal the data to support it.
"As of July 17 this year, General Electric's second-quarter financial report showed that the company's net profit for the quarter was US$2.67 billion, far lower than the US$5.07 billion in the same period last year. The company's revenue also fell to US$39.08 billion from US$46.84 billion last year.
Based on all data analysis, $33 billion of the company's $45 billion in total pre-tax revenue last year was used to keep the business running, while the remaining $12 billion could not even pay off the interest on its $43 billion debt.
By July this year, General Electric's net tangible assets were only US$17 billion, but its debt-to-asset ratio was as high as 3,000% and it has been liable for more than US$500 billion. This means that once the asset base value drops by 3.3%, all its tangible assets will be zero!
Therefore, GE must find more sources of funds. When the capital market is unwilling to exert help, its way out may be to increase revenue and reduce expenditure and sell assets.
Since the first quarter of this year, news has been reported in the market that GE will sell or split its home appliance business, many Wall Street analysts have been urging GE CEO Jeff Immelt to divest both NBC Global and Consumer Finance businesses.
Because the former is the main reason for the decline in GE's profits, the latter is inconsistent with the development strategy of General Electric's parent company focusing on industry, finance and health care industries.
In my guess, Jeff Immelt is likely to have accepted the above suggestions. Even if they receive assistance from external forces this time, GE should start preparing to increase revenue and reduce expenditure and sell mismatched assets."
Andy's eyes lit up slightly, then he looked at the think tank members in the video window, focused on Al's face, and said seriously: "If I proposed to acquire NBC Global now, Jeff Immelt might be happy to see it, right?"
Al's face slightly condensed, and the members of the think tank in the conference room also looked at each other. They were speechless about the boss's sudden arrival. Although the funds were sufficient, they could also redeem NBC Global in one fell swoop, but what about the acquisition plan they had prepared before?
But after all, they are just working, so the big boss can naturally change their goals. What they do is to serve the big boss. Several data analysts from the think tank immediately got together and began to organize the data of NBC Global.
Al frowned slightly and pondered for a moment, then asked, "Boss, do you want to acquire it with full capital or just want to control NBC Global?"
"General Electric may not agree to the full acquisition, and I don't plan to spend too much cash on NBC Global. As long as I become the largest shareholder and control NBC Global, I can...
Although Andy didn't say it in full, Al, who knew his boss's urination, naturally knew what the boss hadn't finished saying, and slowly eroded it? Al pondered for a while and said, "Then let's complete the absolute holding of NBC Global by discounting amc TV, Tingfeng Entertainment, Weinstein Pictures in the form of discounting and cash. However, in this way, we will inevitably be suppressed in the negotiations, if Marvel Group is added... "
"That's definitely not possible. I won't miss the other. I won't use it for a deal with Marvel Group!" Andy directly rejected Al's proposal to Marvel without even blinking.
"Hulu video, I think this is definitely very attractive to NBC Global, so that we can gain some advantages in the negotiations. Of course, if we want to succeed in this matter, the most critical person is General Electric's eO Jeff Immelt."
Hearing Al's analysis, Andy couldn't help but nodded slightly, then chuckled confidently: "Don't worry, even if the acquisition is not successful, I will make a profit first on General Electric this time!"
"Boss, do you want to invest in GE preferred stocks?" Al asked with a little uncertainty, frowning. This is not like the idea of his own boss.
"Haha, how is that possible? I don't have so much patience and time to wait for their performance to gradually improve. Wouldn't they still cash out $12 billion in common stock? Haha, you said, if Warren Buffett, the stock god and me, a genius who was praised as the God of Wealth, invest in General Electric at the same time, would their stock price soar?"
Chapter completed!