Chapter 823

In East Hampton at the end of New York's Long Island, a black Mercedes Benz car drove into Linhai manor. When the driver opened the door, Warren Buffett put the company's prospectus, which he had been reading all the way, into his briefcase.

After getting off the bus, a girl in black ol suit has been waiting. She politely said hello to Buffett and made a please gesture.

They entered the villa and came to a reception room on the east side of the villa.

As soon as he entered the house, even though it was a little far away from the French window, Buffett immediately heard the women's frolic. He looked up and saw that not far away from the villa, there was a pool full of fragrance. At a glance, he couldn't count how many young women filled an open swimming pool 20 meters long and 10 meters wide and all around it.

Even if he has never had such a preference, looking at the situation not far away, it is inevitable that there are some fluctuations in Buffett's mood, and he can't help sighing. It's ridiculous that a young man who is obviously just climbing out of the pool and being surrounded by a group of girls is cleaning his body attentively.

Simon, who left the pool, did not come directly to the reception room, but turned to the next room.

A moment later, when a girl brings coffee to Buffett, Simon has put on a slightly formal shirt and trousers and walks into the door. If it's not for her wet hair and slippers on her feet, it's hard to see that she's coming from the pool.

He shook hands with Warren Buffett and signaled the old man not to get up. Simon sat down on the sofa beside him and asked with a smile, "Warren, how are you doing?"

Buffy nodded: "not bad."

I didn't ask you how westrow is doing. Do you still need to ask if you look outside?

Moreover, in fact, it's not good for Buffett.

According to the Convention, Berkshire Hathaway held another annual shareholders' meeting in early May. Compared with the situation that was once very popular, this shareholders' meeting has faced more and more questions from investors, which basically focused on his neglect of new technology investment.

Warren Buffett is a man with a firm mind, and will not easily change his decision because of external pressure. However, as years of painstaking efforts, he can not ignore the changes in Berkshire Hathaway's share price. Because at the general meeting of shareholders last month, he once again said that he would not venture to invest in technology stocks when he looked down upon the situation. For more than a month, the stock price of Berkshire Hathaway, which had been somewhat depressed compared with the market in recent years, even fell.

Over the years, Berkshire Hathaway's share price has experienced many ups and downs. However, the previous downward trend is basically due to the depression of the market. Now the situation is that the whole market is in a good state, but Berkshire Hathaway is going down against the trend. If this situation is allowed to develop, Mr. Buffett is worried that it will cause unexpected accidents.

On his way from Manhattan to Long Island, Mr. Buffett was obsessed with this.

Simon actually noticed the expression of Warren Buffett's worry. He took a sip of the coffee from girl a and said, "well, Warren, let's talk about ABC directly."

Today is June 17, Saturday.

Just yesterday, danilisi Entertainment's acquisition team once again held a three hour secret negotiation with the executives of metropolitan ABC Group, and basically reached an intention on the Department adjustment, executive change, debt integration and other aspects after the merger.

Even though danielis Entertainment's acquisition mode for Metro ABC Group, both sides have preliminarily decided to adopt the payment method of cash plus stock. Danielis entertainment also provides quite relaxed conditions. Shareholders of Metro ABC Group are free to choose the proportion of cash or stock, including all cash payment or all stock payment.

The only difference is the transaction price.

According to yesterday's closing price, the current share price of Metro ABC Group is about 145 US dollars, and the total share capital of the company is about 122 million shares, with a market value of 17.6 billion US dollars.

Metro ABC hopes to get a deal price of $180 per share, equivalent to a valuation of $21.9 billion.

However, the highest price danilisi entertainment is willing to offer is $172, equivalent to a valuation of $20.9 billion.

The difference between the two offers is just $1 billion.

The price of $172 is 18% higher than the current share price, which seems to be a little low, but the main reason is that the share price has risen after the news that danilisi Entertainment Group is about to buy a TV network is released recently.

Danielis Entertainment Group's quotation is mainly based on the stock price of metropolitan ABC Group at about $130 when the merger and acquisition plan was just launched. By this calculation, the premium of $172 has reached 32%, which is already a very generous offer.

Simon would not accept the Metro ABC's offer of $180, with a premium of nearly 40%.

It's not that danielis entertainment can't afford such a price, but everything has to be limited. The TV network is no longer a growth industry, and this transaction is not a malicious acquisition. The maximum premium will only be about 30%. If Simon gets rich this time, the whole westrow system will be slaughtered again and again.Simon went straight to the subject, and Buffett didn't beat around the Bush and said, "Simon, I think the offer of $180 is very reasonable, just a 24% premium. What's more, in terms of the price earnings ratio of danielis entertainment, the cash plus stock trading mode, you are very cheap. "

Ignoring Buffett's other premium calculation method, Simon leaned on the sofa, rubbed the cup in his hand and said, "Warren, why don't we first assume that if Denise entertainment abandons the acquisition of ABC, what will happen?"

What happens?

It's obvious.

In the past, Disney's acquisition of metropolitan ABC Group was only 19 billion US dollars, of which there were about 3 billion US dollars in debt, so the valuation of the TV network itself was only 16 billion US dollars. Now, even according to danilisi Entertainment's offer, the valuation has reached $20.9 billion, including debt, and the total transaction value has risen to $24 billion.

It's five billion dollars off each other.

The development of metropolitan ABC Group is not much different from that of the same period in the original time and space. In other words, Simon's previous arrangement of handing over popular dramas such as friends and the story of the emergency room to the other two companies was even worse. Only TV network ratings data, do not consider fox, ABC in the old three big TV network is even the bottom..

If the deal fails, the share price of Metro ABC is bound to plummet.

Because the field of television network is also a trade-off industry, the current four major television networks compete for the audience in North America, but also encounter the impact of emerging cable TV and Internet.

At that time, not to mention the market value of $16 billion before the acquisition, it is not impossible for metropolitan ABC Group to fall back to the market value threshold of $10 billion, because Denise entertainment has proved a certain balance in Hollywood. A series of popular TV programs produced by Denise entertainment in the past few years are also enough to prove that this company has the strength to change the pattern of the TV field.

According to Simon's hypothesis, Buffett has already thought of these results in a second. It's just the current negotiation occasion. This veteran investor who has been in the capital market for many years will not speak out frankly.

After a moment's consideration, Buffett looked up at the young man opposite and said, "well, Simon, let's step back and compromise. How about $176?"

Simon shook his head without hesitation and said, "Warren, I'm not going to raise my offer by a penny. It's only $172. I think you also know that today is our final negotiation and there must be a result. Speaking of all, I received a call from Welch in Europe a few days ago. He is very happy to talk about NBC with me again. However, you can see it at the beginning, so I don't hide it. I'm still more interested in ABC. I just won't give more than I can accept. "

"Simon, I don't think $176 is too much for Denise," Mr. Buffett retorted

Simon said: "I know you've always thought Denise entertainment was on the high side, Warren. If I want to pursue profits, it's not difficult for Denise entertainment to achieve a net profit of $4 billion in the current fiscal year. Based on yesterday's closing market value of $156.2 billion, it's actually only 39 times the P / E ratio. What's the P / E ratio of metropolitan ABC now? 41 times. If we exchange shares, we are actually at a loss. "

"Simon, you're comparing assumptions with reality."

Simon shrugged: "if not hypothetically, Denise's net profit in the first two quarters of fiscal 1995 was $1.73 billion, and the current public P / E ratio is only 45 times. What's more, Denise is still maintaining high growth, and metropolitan ABC has no growth potential. "

Mr. Buffett was speechless.

Business negotiation, after all, is also based on strength.

Warren Buffett used to be able to give others an ultimatum. This time, both metropolitan ABC Group and Berkshire Hathaway are in a weak position.

Now it's even hard to ride a tiger.

Giving up this business will be a Waterloo like disaster for both Metro ABC Group and Berkshire Hathaway, and the result is unbearable.

Never like to haggle with people, Warren Buffett was silent for a moment and said again: "175 dollars, Simon, I can't let it go any more."

"It's only $172," Simon continued, rubbing his coffee cup. "But Warren, I can add another chip, or a kind of support. As for Berkshire, you know, I've quietly bought 4.9% of Berkshire's shares in recent years, which can meet the 5% reporting standard at any time."

"I remember your wife, but she is not optimistic about my company," he said

Said also showed a little smile.

It's an old grudge.

Jeanette was not only speechless in a speech delivered by Warren Buffett when she was in college, but also teased the old man in front of him at a party of the hursts a few years ago that his investment model was "grantair saves gold coins". Born in 1930, Warren Buffett is now 65 years old. He has been accumulating every penny in his life since he delivered newspapers in primary school I wish I could use it for investment. That's why I have my family now. It's said that Grantaire saved gold coins. It's very impressive.Simon also bent his mouth and said with a smile, "Jennie is just a bit unforgiving. In fact, we both appreciate Warren's investment ability, so we have been quietly buying in recent years. As long as we conclude this deal, I can increase my stake in Berkshire Hathaway to more than 5% at the right time. I think this will greatly enhance the confidence of Berkshire Hathaway shareholders in this company, and will not force you to invest in technology stocks. "

Even though he had just understood Simon's intention, Buffett said quickly, "but it's unfair to the shareholders of metropolitan ABC Group. Simon, I can't do it."

Simon ignored the old man's reserve and said: "or, this time node will be set at the beginning of next year. By that time, the dust will have settled on the acquisition of Metro ABC, and no one will connect the two things. And, Warren, it's just my support for Berkshire Hathaway, not an exchange. As I said, it's only $172. Of course, if the deal fails, I may sell my shares, because Berkshire Hathaway has too many shares in Metro ABC. I don't want to suffer losses when the shares of Metro ABC plummet. "

It's just

Some of the young people with black bellies in front of him are speechless.

172 dollars, obviously, there is really no turning point.

After a final moment of deliberation, Mr. Buffett said, "it's better to be in April next year."

Simon said, "no problem."

Berkshire Hathaway's annual meeting has always been held in May. If westero suddenly becomes a major shareholder of Berkshire Hathaway with more than 5% of shares in April next year, and the public opinion hypes it up, coupled with a wave of stock price growth, the pressure on Buffett's annual meeting next year will be much less.

See Simon agreed, Buffett stood up and reached out to Simon: "well, we have a deal."

Simon also put down his coffee cup and got up to shake hands with Buffett symbolically. He said with a smile, "deal."

There's a bunch of hot goblins waiting in the pool outside.

Now that the matter is settled, Simon wants to serve tea, but Buffett sat down again with no eyes: "Simon, on the way here, I read igritte's prospectus yesterday, and some of the details make me very confused."

Simon had to sit down again and ask, "Warren, have you changed your mind and are you going to buy igritte?"

"I'm not going to buy it, I just want to know more," he said

All right.

Simon can only be patient, continue to chat with Buffett for half an hour, and finally send each other away.

Then he called Robert egger in Manhattan and told him that the negotiation had been completed and that both sides could go further. Simon walked through the glass door of the reception room to the outdoor swimming pool.

The sunshine at 4:00 p.m. is no longer blazing, and the pool party is still hot.

During this time, the new WIMI show began to look for candidates, Simon has been the final decision of the angel Legion list in his hands.

For the super model group with fierce competition in the fashion circle, this power is just life and death.

Last Friday, I left for Italy to see Sophia. Afterwards, I went around Ukraine, Russia and Finland. I just returned yesterday. I noticed the documents from Vimy and decided to relax. So I had this party.

At present, there are more than 60 models in the manor pool, all of them are selected from the list provided by the major agencies, and they are all new people who have never been on the stage of Vimy.

Men like freshness after all.

Simon is no exception.

After lunch today, two Navy-1 customized Black Hawk helicopters on the West Coast went back and forth twice to transport a large group of goblins. At the end of the meeting with Warren Buffett, until late at night, the waterfront manor in East China Sea was in a carnival.