Chapter 493

The NBA's annual draft has attracted hundreds of millions of people around the world. At the same time, in the face of such a grand event, a variety of different voices and performances have attracted people's attention. The situation of the players to be selected, the goals of the teams, some fringe news off the field, everything seems to be going around the world.

This is a high-profile business. It's all about business.

In addition to the development of sports, what is the driving force for the development of sports? Honor? Inspiring stories?

Well, that's where they succeed. Trade, pay, conflict, confrontation, are all around the business all the time. The main reason for the success of NBA is that it has been commercialized for so many years.

From the perspective of economics, this sentence is quite reasonable and classic.

In essence, man and the outside world are a process of exchanging what he has with his own.

Even if the human reproduction, old and young, young to support the elderly.

Marriage, although the love is beautiful, but the fusion of two people, or with the internal essence of their own needs.

Not to mention the process of interpersonal communication, in fact, it is a kind of potential exchange with purpose.

So, isn't this kind of exchange a kind of business? It's just that sometimes it's not money, but all kinds of "business.".

Profit seeking is business, and maximizing interest is the first attribute of capital.

Arthur tried, after the novelty disappeared, he did not continue to participate in the boring joint trial, his time is not so worthless!

After the successful acquisition of New Jersey Nets, AMC's actual controller, five holding fund companies once again invited Arthur to restart the acquisition negotiations on AMC cinema.

As Arthur thought before, one monk was carrying water to eat, five monks had no water to eat. With the IPO in the long run, some people have no patience to continue to adhere to it, especially in the face of AMC Cinema Management's repeated reports and requests for capital injection. In the past, the five institutions that have been squeezing cash out profits and dug out a huge hole will naturally not pay to fill the hole.

In fact, the operating cost of AMC cinema has been high. According to the explanation of loss disclosed by AMC cinema line, the company's profit is facing difficulties due to the decrease of rent, ticket price and interest. It is because of poor profits, high operating costs and huge liabilities that it has not been favored by the market and the progress of listing has been stuck.

In the face of such internal and external troubles, the five institutions have come together to discuss. Unless they all contribute money to alleviate AMC's operational difficulties and make the balance sheet look better, they can only restart the negotiation, hoping to throw the black pot to the British who are not poor in money and earn a lot more.

For this period of time, Arthur's large-scale consumption in New York City, they are looking at it, but also really anxious in their hearts, worried that Arthur so bad money, no money to buy AMC, then really play a bad.

“。。。 Seven hundred million dollars and all the debt. "

In Arthur's mansion study, AMC CEO Gary Lopez handed a document to Arthur sitting in the boss's chair with both hands. The head of the negotiation team on the side also said: "this price is almost their psychological bottom line. We have made further price reduction, but they directly refused."

Taking over the folder, Arthur smiles and asks Gary Lopez, the CEO who has turned over to be his man, "what do you think?"

"This price is actually acceptable. In terms of theater operation, it is actually very cheap to acquire AMC. AMC operates 346 cinemas in major cities in North America, with 5034 movie screens, including 2336 3D screens and 128 I screens.

It covers 24 of the 25 largest markets in the United States, and has seven of the top ten theaters in the United States. In particular, AMC ranks first or second in the market share of New York, Los Angeles, Chicago and other ten major markets in the United States.

In fact, in terms of each screen, it is actually quite affordable, far lower than the average of $711000 per screen of cinemark and $595000 per screen of Regal cinema. Most of them are in the center of North American urban circle, which is a good choice for the expansion of North American market and capital internationalization.

Of course, the key is the debt. It's really stressful Naturally, Gary Lopez hopes that the new boss can take over AMC, so that they can get rid of the fate of being sucked in and become puppets. Therefore, he should give the new boss more confidence.

"However, Mr. bollin, I can assure you that, after the acquisition, if you can make a continuous capital investment, this amount of money will not be more than $300 million, and we will be able to improve the debt structure of AMC. In addition, it has implemented a new and efficient incentive mechanism for the management, and vigorously supports the management to carry out a series of business innovation centered on enhancing customer experience.I can assure you that in one year, we only need one year to turn losses into profits, let AMC make money, and pay off all debts in ten years! "

"Ten years..." Arthur narrowed his eyes and whispered a word, lost in thought.

To tell you the truth, this price is not expensive. The key is that the debt pit is too deep. It is difficult to turn over in a short time, even if it is to promote the listing of AMC.

It's just a drop in the bucket to pay off the debt by making profits every year. Despite the scale of AMC, it will make a profit of 100 million US dollars every year!

This is mainly because of the unique cinema system in the United States, which makes the cinema industry not rich in profits. Only by constantly developing new technology can we generate income for enterprises. Only every film technology innovation will usher in a leap in revenue growth. For example, IMAX and 3D applications have given the cinema industry hope for a short time, but enterprises will quickly encounter business bottlenecks and even losses.

Therefore, for AMC, the road to revenue generation is too long, even out of sight. However, the United States is a fully saturated, highly competitive market with slow or even no growth, with low average profit margin.

At present, the only advantage is that the new 3D revolution triggered by Avatar has just begun. In the next few years, it can make a lot of money.

However, in the long run, there is little room for AMC to rise in the future, with little prospect of institutional expansion and few acquisition opportunities that can arouse interest. Maybe it's a good choice to sell at the right price after the acquisition.

Thinking of this, Arthur is really excited. He knows that it will not be long before the local tyrants of China will start to buy the whole world. Moreover, the richest person in China, Yida, is ambitious for the cinema market.

If you buy AMC, merge and integrate with European cinema lines, package and sell... I believe we can definitely sell a considerable number.

He is not worried that the local tyrants of China have no money at all. He is well aware of the crazy overseas expansion ambitions of Chinese enterprises in the next few years.

With the drive of a number of large enterprises, the upsurge of overseas expansion of Chinese enterprises is gradually heating up, especially the offer is too generous.

As for whether they are highly leveraged, no one cares, because they bet that the overseas companies can quickly create enough cash flow, otherwise they will face more and more severe debt burden.

Of course, this is also strongly supported by many financial organizations. During this period, there was no lack of support from ZC. These commercial banks were also willing to provide a lot of foreign currency loans for these mergers and acquisitions, which also had the commercial purpose of expanding outward with the help of Chinese companies.

This can't help but recall the past history of the overseas expansion of the company's chequebooks in the 1980s. After the "Plaza Agreement" in 1985, under the background of the sharp appreciation of the Japanese yen, overseas buying off about the footstock company is very "affordable". During this period, Mitsubishi real estate bought 80% of the shares of Rockefeller base, a landmark building in New York City of the United States with 1.4 billion US dollars, which is regarded as the main symbol of the overseas investment frenzy.

and the frenzy of the fund of the foot basin went down gradually after the bubble economy collapsed in 90s. Many capital contributions were proved to be blind after that. What's more, although many companies in the overseas buying process completed the regional globalization, they still seem to be out of line with the western society in terms of culture.

As for whether the Chinese company will repeat the mistakes of the footstock company, no one can say clearly now. However, after the economy and the company have developed to a certain extent, it is the natural demand "extensive" expansion to deal with many internal problems

thinking of this, Arthur's eyes suddenly lit up, made a decision, reached out and patted the negotiation summary on his desk and said: "that's it. Tell them AMC I've acquired it!"

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