Sony wants to acquire MGM. This is the most important investment for Sony this year, or the most important investment in the past decade.
If Sony succeeds, MGM and Sony Pictures will combine their strengths and become more competitive. Sony's goal is to become the world's number one film company.
Everything had been going smoothly, and MGM's shareholders and creditors had agreed to Sony and other companies to acquire MGM through a leveraged buyout.
But at this time, a competitor appeared. A competitor no one had expected.
Feng Yu. Why did he join the competition? Why did he want to buy MGM? Feng Yu had never invested in the film industry before.
Wind and Rain Holdings said that they want to create a pan-entertainment industry and cooperate with Taihua Holdings to revive MGM. At the same time, Hua Xia's film and entertainment industry will be developed.
Hua Xia's film industry had started to rise in the past two years, and the box office records kept being broken. There were even many domestic films that had a certain influence on the international scene.
Hua Xia has so many people, and even if only 5% of the people watch the movies in the cinemas, the box office sales will be astronomical. In Europe and the US, the number of people watching the movies is much higher than 5%.
Now, Hua Xia's number of people watching the movies is less than 1%! The potential of the film industry is huge.
Could it be that Feng Yu is interested in the film industry and wants to invest in it?
But it is hard for outsiders to get involved in the film industry. In the past, Sony had lost a lot of money for many years when they tried to enter the film industry.
If it weren't for the rise of VCD and DVD players, Sony might still be suffering losses.
Feng Yu has an advantage in the VCD and DVD players. His company's standards are being implemented by many companies, and his company is the pioneer in this industry.
But to the investors, even if Feng Yu wants to enter the film industry, he should invest in a well-developed film company and not acquire this heavily indebted MGM, especially when Sony had expressed its intention to acquire MGM.
This will be giving MGM's shareholders the chance to raise the price.
However, when they thought about the legend of Feng Yu, they understood.
It was said that Feng Yu was a person who would buy anything he fancied. It didn't matter how much he spent, because he didn't lack money. None of the founders of the subsidiaries controlled by Feng Yu said anything bad about Feng Yu.
When someone invested in a company that you established expanded in scale and handed over management rights to you, no one would dare to speak ill of the other party.
Moreover, there are many people who are eager for Feng Yu to buy a majority of their shares.
Look at those companies that Feng Yu had acquired most of their shares, and they were doing very well.
Amazon, the world's top online shopping mall.
Google, the world's number one search engine.
Nvidia's graphics card orders had skyrocketed, and they were already on par with ATI. They might even surpass them this year.
Kingston's RAM orders had skyrocketed and had become the world's number one.
AMD was slightly behind, but during the dual-core technology competition, AMD had given Intel a slap in their faces. Their orders had skyrocketed, and their profits and sales had increased.
Last month, Amazon was listed on Nasdaq, and their share prices had increased by 8% on the first day of trading. After that, Amazon's market value soared.
Of course, this also means that Feng Yu's assets had increased. But Feng Yu controlled Amazon's assets through Wind and Rain Holdings. No one knows how many shares Feng Yu owns in Wind and Rain Holdings. That's why they can't estimate how much Feng Yu's assets had increased. But many people said that Feng Yu's assets had increased by at least a few billion USD.
Also, Amazon's share prices are still increasing. It might not be fast, but it is not slow either.
Amazon's share prices will double this year. Amazon had only been listed for a while, and its IPO price had increased from 18 USD to 23 USD!
Many people thought it's a good thing that Amazon's share prices increased after getting listed. But that means they had set the IPO price too low.
This is because the IPO price is the price you used to raise funds. Although the company's market value is increasing, and the shareholders had made money. But this also means that if the amount you raised for the same number of shares is too low, you will suffer losses.
That's why a mature listed company's share prices should be rising steadily and will not fluctuate too much in the short term.
Even Feng Yu is satisfied with Amazon's share prices now. The company had raised more funds and did not let the other investors suffer losses.
Amazon's market value is not high now. It's only around 20 billion USD.
Also, how much did Feng Yu invest in this company? Less than 1 billion USD, and he is still Amazon's major shareholder. Even after Amazon was listed, Wind and Rain Holdings still owns more than 50% of Amazon's shares.
As e-commerce becomes more popular, this portion of Amazon's shares will continue to rise. Feng Yu estimates Amazon's market value will reach more than 50 billion USD by the end of 2007!
Last week, Google also got listed, and its market value increased by leaps and bounds.
Listing on Nasdaq is much easier than listing A shares in China. The higher the IPO price, the higher the company's market value.
A company that originally only had a few billion in assets could go public and increase the value of the shares, and the market value of the company would skyrocket.
Just like Lenovo Kingsoft. Lenovo Kingsoft does not have much assets. But as one of the world's top software companies, < Forbes > estimated it to be worth 50 billion USD.
Google's share prices did not increase after being listed is because Google's profit structure is too simple. They only have advertising revenue and nothing else.
But soon, everything will change. Lenovo Kingsoft cannot develop the HOS system for smartphones alone. Lenovo Kingsoft's focus is on the PC version of the XOS system.
When Google announced that they will be developing the HOS system, Google's market value will increase.
As for other companies, Feng Yu is not in a hurry. As long as he wants to, he can speculate on a company's shares. He does not need to use any illegal methods. All he needs to do is to reveal the potential of the company, and investors will rush to it.
After these two companies are listed, Feng Yu's assets will increase.
< Forbes > had updated the list of the richest people's assets. For example, Feng Yu's, Masao Kameda's, Ralph, Fu Guangzheng's, Li Zekai's, etc. They are the beneficiaries of these two companies' shares.
Feng Yu's personal assets are estimated at 79 billion USD, and he is more than 20 billion USD ahead of Bill Gates!
Many people say there are two types of tycoons in the world. One is Feng Yu, and the other is the rest!
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