Hollywood Hunter

Chapter 365 The Problem of Oracle Bone Inscriptions

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Following Simon's trot step by step, Larry Ellison followed what he said just now: "Simon, since you are optimistic about Oracle, why don't you give me the voting rights of Westeros Corporation like Microsoft?"

Simon said bluntly: "Larry, I'm bullish on Oracle, but that doesn't mean I'm bullish on you. If Oracle's stock price continues to fall, I think it's necessary to change a person in charge."

Larry Ellison wanted to climb up the pole, but he didn't expect to dig a hole for himself, laughed twice, and said, "Simon, you must be joking, right?"

The two turned another corner together, and in front of them was Simon's mansion in the mountains.

Simon didn't mean to invite Ellison to have breakfast with him. He stopped jogging and said, "Larry, since Westeros has begun to buy in, this should be a great benefit for Oracle. Moreover, since a few years ago, Since Westeros first bought Oracle, I have never interfered with Oracle's operations. You should understand my attitude. Since you are here today, you are starting to worry about your control over Oracle. Well, you Can you tell me what happened to Oracle?"

Larry Ellison didn't expect what Simon said, and for a while he didn't know how to speak.

Seeing that Ellison was silent, Simon asked a more specific question: "The third-quarter earnings report will be released next month. What is Oracle's loss figure?"

"Probably, $30 million," Larry Ellison hesitated before giving a vague number, and immediately added: "Simon, this is only temporary, Oracle's single-quarter revenue this quarter It can exceed US$200 million, an increase of 26% month-on-month, and at this growth rate, Oracle's revenue in this fiscal year can exceed US$1 billion."

Simon didn't listen to Ellison's argument, and couldn't help but confirm: "A quarter, a loss of $30 million?"

In the past few years, Oracle's revenue has doubled continuously. This year, it has begun to expand its business to Latin America and Europe. The development speed is very strong, which is why it was able to reach a market value of 3.6 billion US dollars last year.

However, Oracle's net profit for the whole year last year was only more than 41 million US dollars. Now it has lost 30 million in a quarter. Without major investment and acquisition projects, the sudden huge loss can only mean that there is a very serious internal Oracle. serious problem.

Although Simon does not interfere with Oracle's operations, he is not completely ignorant of the company.

Since the first half of this year, some media have been questioning Oracle's financial data for exaggeration and falsehood, and Oracle's profits have also been shrinking in the first two quarters of this year, which has led to a continuous decline in the stock price. Unexpectedly, in the third quarter, a huge loss of 30 million US dollars suddenly appeared.

Larry Ellison was stared at by Simon's sharp eyes and had to nod again.

Simon simply stopped and asked, "So what?"

Larry Ellison knew what Simon meant and stopped hiding it, saying: "Simon, this is just a strategic mistake. In order to get more bonuses, some salespeople count the customers who just signed the software purchase intention as their own. In the past few months, these customers did not use Oracle software, and I have been dealing with this problem in recent months..."

Larry Ellison did not continue here, but Simon understood.

So far, it's still not finished.

Earnings for the new quarter are coming soon, and a gross sales strategy blunder, inflated revenue numbers, and a massive $30 million loss are enough angry shareholders to oust Larry Ellison. This guy came to block Simon today, and he should have wanted him to help endorse it.

Not to mention Simon's personal reputation for creating a miracle of wealth in just a few years, only 15% of Oracle's shares in Westeros Corporation, plus Ellison's own 33%, can basically ensure absolute control of Oracle. control.

Early technology companies such as Apple, Microsoft, and Oracle did not have a multi-shareholding structure that guaranteed founder control.

If Simon and other shareholders want to oust Ellison, even if he is the largest shareholder holding 33% of Oracle's shares, he will probably have to pack up and leave, which is how Jobs was expelled from Apple.

After thinking for a moment, Simon said: "You and Jim, first write a report to me with the details of this matter and the follow-up plan."

Larry Ellison didn't want to go around James Raybould's place again and said: "Simon, why don't we go to have breakfast together, my car is over there. Or, you can come to Oracle headquarters in the morning. , let's talk carefully."

"Breakfast is enough, and I'm going to New York soon," Simon refused. Although he didn't want to replace Larry Ellison, he didn't intend to make himself seem too talkative, so he said, "That's it for now, Go back and contact Jim as soon as possible, I don't want Oracle to hide anything from our major shareholders."

After saying this, ignoring Ellison, Simon walked to the door of his mansion in the mountains.

Leaving Woodside after breakfast, and after the private jet took off, Simon contacted James Raybould to discuss Oracle.

James has also been paying attention to the dynamics of Oracle recently. If Oracle was not one of the companies that Westeros had promised not to reduce its holdings for three years, he would have proposed to Simon to sell Oracle's stock instead of continuing to buy it.

Oracle's problems should be much worse than Larry Ellison described to Simon, overextended

This will lead to tight cash flow, the collapse of the stock price will cause financing difficulties, and it may even face a class action lawsuit from shareholders because of the previous exaggerated performance. If this hurdle is not overcome, the company may never recover, even if it does not go bankrupt.

The advent of the Internet era will greatly increase the market demand for database software. Simon is not as pessimistic as James, but only requires Westeros to continue to increase its holdings while Oracle's stock price is sluggish until its shareholding ratio reaches 20%.

Although it is not clear whether the original time and space Oracle has experienced such a catastrophe, but even if the business really loses all, Simon can fully bear it now.

There is a four-hour flight between the east and west coasts.

Hanging up the phone with James, Simon sat in the front cabin by the window of the living room, opened his laptop, and began to study the "Dune" video game that Nancy had handed him the other day.

I don't know how long it took, the faint fragrance in the air came, Simon looked up, and the girl A, Allison Norris, appeared next to him, and also changed into a sky blue flight attendant uniform. Rolled up, the delicate neck looks white and slender.

I have to say that the four vases selected by Janet can all score more than 80 points.

Seeing Simon look up, Alison said, "Boss, let me ask if you want to have some lunch on the plane?"

Having said that, the girl couldn't help but glanced at the video game on the screen of Simon's laptop, and felt a faint sense of frustration in her heart. Are you and Becky less attractive than video games?

Simon raised his wrist and looked at his watch. The time was eleven o'clock in the morning, which is West Coast time. It should be two o'clock in the afternoon on the East Coast. Even in New York, he could only wait for dinner with Janet, so he said, "Whatever you want. Get some ready, I'll wait for the restaurant."

Alison nodded, but didn't leave immediately, walked along the spiral staircase to the cloakroom on the lower floor, opened the safe in the cloakroom, picked out a box of watches and came to the living room again, bowed and handed it to Simon, saying: "Boss , do you want to change a watch, these are all adjusted to East Coast time."

The girl was bending over to Simon, and the unbuttoned neckline revealed a greasy white.

The distance between the two is pulled closer, and the seductive female body fragrance is also more intense.

Simon picked out a silver Rolex, took off the Patek Philippe in his hand and handed it to Alison, smiling: "Okay, let's prepare lunch, don't seduce me here."

His mind was broken, and Alison's face was slightly red, but his eyes were looking at Simon more boldly, standing in the same place as if he was picking it up.

It wasn't until Simon turned his attention back to the computer screen, obviously ignoring her, that Alison had to give up, put the box of watches worth more than one million dollars back in the safe, and left the front cabin to help Simon prepare lunch .

The beauty is in front of him, of course Simon will not be indifferent, he just has his own self-control.

Moreover, in Simon's current position, because it is too easy to obtain, women are indeed not particularly attractive to him.

For example, in Hollywood, there are many lechers, but as far as Simon knows, the top studio bosses don't care much about women.

In a private chat, Robert Redford told him a joke that a studio head in the early 1980s wanted to throw a swimsuit party.

More than any other Hollywood star party, studio mogul parties attract men and women who are desperate to get the upper hand.

When the hot bikini girls filled the swimming pool of the mansion, the boss temporarily received a very important script. After reading the script, he noticed that it was late at night, so he casually ordered the housekeeper to end the party, picked up the phone and continued to discuss the script revision with the screenwriter.

Arrived in New York on Thursday afternoon.

The next day, Simon convened James Raybold, president of Westeros, and Leon Black, president of Apollo Management, a subsidiary of Cersei Capital, to formally discuss the acquisition of Bell Atlantic.

James Raybould, Leon Black, Amy Pascal and others have been preparing for the mca acquisition for several months, and they are very surprised by Simon's sudden two-line operation and the acquisition of Bell Atlantic, and Simon's decision is generally not optimistic.

After the at-t split in 1984, the federal government strongly encouraged competition in the telecommunications industry. Therefore, there have been hundreds of large and small telecommunications companies throughout the United States in recent years. Speaking of which, AOL can actually be regarded as one of them. family.

Therefore, if you want to acquire Bell Atlantic, the legal obstacles are not big, the key is funding.

The two acquisitions in Simon's plan, Daenerys Entertainment's acquisition of mca, and Westeros' acquisition of Bell Atlantic, need to prepare $7 billion and $8 billion respectively, adding up to $15 billion.

However, after Cersei Fund Management settled the return at the end of the year, Simon was able to repatriate funds from overseas, excluding 28% of the capital gains tax, about $6 billion. In other words, Simon needs to raise at least another $9 billion in cash to complete the two acquisitions.

9 billion US dollars, if all rely on loans, according to the 10-year repayment cycle, the entire Westeros system needs to bear the debt principal and interest repayment amount of more than 1 billion US dollars each year. In this era, even the top 500 corporate giants in the world cannot guarantee that they can earn 1 billion US dollars every year.

With such a heavy debt load, the business empire Simon has built over the years may fall apart if he is not careful.

Moreover, in terms of acquisition targets, Leon Blake, who relied on DeChong Securities in the leveraged buyout industry in the 1980s, also believes that Simon's choice to acquire a regional telecom operator is not a good choice.

By acquiring mca, Daenerys Entertainment can not only further consolidate its foundation in Hollywood, but also gain full complement in music, television, theaters and theme parks.

The acquisition of Bell Atlantic is not only a completely unfamiliar industry for Simon, but after the acquisition of this company, Bell Atlantic has limited development space.

You know, since the establishment of the Bell Telephone and Telegraph Company in 1887, the telecommunications industry in the United States has experienced a century of development. In terms of telephone business, the Bell system has developed to the extreme.

During the most prosperous period of leveraged buyouts in the 1980s, no company targeted the Seven Bells that were spun off from at-t, and that was roughly the reason.

The standard leveraged buyout, after the merger is completed, will quickly reduce its own debt by splitting the sale, but the regional telecommunications companies that have experienced the at-t split in 1984 are trying their best to preserve market share and avoid being swayed by countless small companies. Telecom companies eat their own territory. Once split up and sold, the value of these telecom companies will plummet, and they will not be able to increase their economies of scale by continuing to expand due to telecom regulations.

The goal of Simon's acquisition of Bell Atlantic is to operate, and it does not intend to adopt a leveraged buyout, so it is even more impossible to reduce debt through split sales.

And, even as Simon envisions, the federal government may re-deregulate the telecommunications industry in the next few years, allowing regional telecommunications companies to regain market share through mergers and forays beyond short-distance telephony, cable television, etc., But it also takes time.

Before that, if Bell Atlantic couldn't absorb the huge debt in the acquisition process of Westeros, it would be difficult for the company to invest too much capital for expansion in other fields after the opening of telecom regulations, and it would be more likely to become other telecom giants. annexation target.

Simon knew that the opinions of James Raybould, Leon Black and others were considered good words. He also knew that the planned acquisition of Bell Atlantic and the expansion after the acquisition was not what he imagined. So simple.

Now the seven little Bells, after many years, only Verizon, the second largest telecommunications company in the United States, evolved from Bell Atlantic, and the other six regional telecommunications companies have disappeared in the merger wave around the new century.

However, behind the challenge also lies a huge opportunity.

You must know that in the 1990s, not only the traditional telephone service and the cable TV service that was reopened to telecommunication companies, but also the two major industries of mobile communication and the Internet in the telecommunication field rose rapidly. It was these newly emerging fields that created the A comprehensive telecom industry giant with a market value of 100 billion such as Verizon.

Discussions in the Westeros system about launching two simultaneous acquisitions continued throughout the weekend.

In the new week, the discussion continues. Forbes magazine's new annual list of the 400 richest Americans was released, which instantly attracted the attention of countless people.

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