Chapter 860 Debt
“I mainly believe in you.”
For so many years, he has never seen Xu Liang make a mistake in investment.
Since the big boss is optimistic about Penguin and even divests Hongmeng’s business to strengthen it, Penguin’s future will definitely be brilliant, not to mention surpassing Hongmeng, but it will definitely be a small giant.
For such a company that is on the rise, it is definitely more cost-effective to take shares than money.
"How much cash reserves does the company have?"
"$6.7 billion."
"That much?"
"The balance of the Series B financing, plus the sale Kunlun Company’s money and Hongmeng Netcom’s dividends add up to this.
However, at the end of this year, we will have to repay the US$1.5 billion debt owed by the acquisition of Vivendi Games in 2003.
And Universal's $900 million in debt. ”
Hongmeng has developed to the present, and has three main debts.
The first one was issued in 2003 in order to acquire Vivendi Games from Vivendi, guaranteed by the old Gates. A US$1.5 billion ABS bond
The second tranche was the nearly 60 million dollars taken over from Vivendi when it acquired the three major assets of Universal Pictures, Universal Music Group and Universal Studios. A huge foreign debt of US$5 billion.
The third tranche was US$5 billion of corporate debt raised from the capital market with Morgan Stanley and Goldman Sachs as guarantees during Hongmeng’s Series B financing.
Plus some odds and ends debt.
The entire Hongmeng debt is as high as 13 billion US dollars.
Except that the first loan was only for three years and will be repaid at the end of this year.
Although the second debt can be collectively referred to as ‘global debt’, this group of debts includes a total of 23 global debts.
There are ABS bonds, convertible bonds, and corporate bonds.
Repayment terms also vary.
Over the years, Hongmeng has repaid five debts worth approximately US$1.7 billion.
There is only one corporate bond this year, about US$900 million.
The third tranche of US$5 billion debt is a five-year debt that will not be repaid until the end of 2008.
“After repaying US$2.4 billion in debt, Hongmeng’s cash reserves are only US$4.3 billion, which is a bit too little. So Penguin will just exchange cash.” Xu Liangdao.
After two rounds of financing, he only holds 64% of the shares of Hongmeng Entertainment.
The combined revenue of the divested Hongmeng music, film and television and other businesses is similar to Penguin’s current revenue. If the two are merged,
Hongmeng can obtain at least half of Penguin’s equity.
In other words, investment institutions such as Morgan Stanley, Goldman Sachs, and SoftBank will obtain 19% of Penguin’s equity.
If Penguin aims to be global, Xu Liang doesn’t mind sharing the benefits.
But in his plan, Penguin's future will be limited to the Asian market, and at most, it will enter Africa and South America.
The entire Western market is Facebook’s territory.
So there is no need to share the benefits with Damo.
“Mr. industry and Universal Music Group
Although Universal Music Group has been deteriorating in the past two years, Universal Pictures has achieved continuous success under your guidance, which is enough to repay its debts. "
"The Da Vinci Code" has a global box office of nearly 800 million U.S. dollars.
"Paranormal Activity" has a production cost of 1 million U.S. dollars, creating a global box office of 250 million U.S. dollars.
In the first half of the year alone, Universal's global box office has exceeded US$2.1 billion.
In the second half of the year, there is also the blockbuster "King Kong" produced by Universal.
As long as it's not a bad movie like "Van Helsing," it's almost certain that Universal's global box office will exceed $3 billion.
Coupled with the income from TV series, DVDs, and peripheral copyrights.
Universal Pictures’ total revenue this year can exceed US$5 billion.
With a gross profit of 55%, there is no problem even if the entire US$900 million is repaid.
“Lao Xie, how much debt will be allocated to Universal Music Group this year?”
"About US$300 million."
"Can Universal Music repay it?"
"Yes. Although Universal Music Group's business has become increasingly difficult in the past two years, with its huge copyright library, music There is no problem with the rapid development of the download business and the economic business."
"That's good."
Xu Liang looked at the time, "Lao Xie, let's talk about this for today. Well, my parents are returning to Beijing today, and I have to pick them up at the airport.”
Before Xie Wen could speak, he had already stood up and left.
Lao Xie looked at the big boss who was "escaped" and was stunned, quite dumbfounded.
"If you don't give it, don't give it. Why are you running?
But looking at it like this, Penguin's potential is indeed extraordinary."
Having worked with Xu Liang for a long time, We already know each other well.
Companies that Boss Xu can cling to are top-notch companies.
Touching his chin, Xie Wen was thoughtful.
“It would be better to get some equity in Penguin.”
Although Boss Xu holds the majority of Hongmeng Entertainment’s equity, as Hongmeng COO, he also has 1.2% equity in Hongmeng Entertainment. .
If Hongmeng Entertainment’s assets are used to replace Penguin’s equity, he will also be able to share in Penguin’s future earnings.
After leaving Wangjing Building, Xu Liang breathed a sigh of relief, but quickly patted his head with regret on his face.
"It's a mistake, it's a mistake. Care will lead to chaos."
"Mr. Xu, what are you...?"
Lu Hui said in surprise.
“You shouldn’t have left in a hurry just now. With Lao Xie’s cleverness, he must have known that I was interested in Penguin. If I divest Hongmeng Entertainment in the future and don’t take some of Penguin’s equity, I’m afraid this guy won’t let go.”
"If you have a tougher attitude, Mr. Xie will definitely not stand up to you."
Xu Liang smiled.
Although he has a tough attitude, Xie Wen will indeed agree.
But if you eat alone, it will be difficult to last long.
Especially when Penguin develops, this matter will become a problem between the two.
The bigger the penguin gets, the bigger the pimple will get.
The two of them were no longer as close as before.
This is what he doesn't want to see.
So, if Xie Wen is really interested, he will still share some equity. "What time is it?"
"11:05, there are still fifty minutes until uncle and aunt's plane lands." Lu Hui said.
"Gangzi, drive to the airport."
"Okay."
Huo Gang stepped on the accelerator and the car quickly drove towards the Capital Airport.
……
"I told you to hurry up, you're just dragging your feet, there's no quickness at all." Wang Lingxiang said dissatisfied.
"Come on, come on, don't I have to bring everything before I get off the plane? It's so easy to buy, what if I lose it?"
Xu Yongpei defended.
“This is my son’s private jet, can I lose something?”
“What if?”
"You damn old man, are you obsessed with me?"
"I'm only fifty-two, how can I become an old man?" Xu Yongpei said plausibly.
However, when he saw his wife’s eyebrows raised, her hands on her waist, and she was about to explode, Lao Xu responded quickly.
Raise your hand and point into the distance.
“Look, my son and daughter-in-law are here.”
Wang Lingxiang subconsciously looked in the direction of his finger, and sure enough she saw Xu Liang and Jiang Xiaoyang getting out of the car.
“I’ll deal with you when I get home.”
After leaving the harsh words, Comrade Wang turned around and got off the plane.
“Mom’s outfit is becoming more and more fashionable.”
Looking at her mother-in-law who came out, Jiang Xiaoyang smiled.
Xu Liang saw it and couldn't help but nodded.
My original short, ear-length hair has turned into flat-rolled curls.
The upper body is a light blue floral T-shirt, with a plain silk scarf tied around the neck. On the right hand is a Patek Philippe ladies watch given by Xu Liang; the lower body is wearing white cropped pants.
On her feet is a pair of white sneakers.
Wearing brown sunglasses is indeed very fashionable.
"So, no matter what age a woman is, there is no one who doesn't like to be pretty." Xu Liang said with a smile.
My mother has been flying around Beijing, Singapore, Hong Kong, South Korea, and the United States in the past few years. No matter where she goes, she receives a grand reception from her daughters-in-law. Shopping in shopping malls must be a must-have in her repertoire.
Having seen a lot opens your horizons, which will naturally be reflected in your clothing.
"Mom, you are so beautifully dressed. I didn't even dare to recognize you when I saw you from afar." Jiang Xiaoyang came up to you and said with a smile.
Wang Lingxiang felt very comfortable being flattered by her daughter-in-law.
"You are almost fifty, you can wear anything beautiful or not, as long as you are clean."
"You are not just clean, you are fashionable.
And you have such a figure If you look at it outside, others will definitely think you are less than forty. If we stand together, others will definitely think you are my sister. "
"Haha, you girl knows how to coax me."
“I mean what I said.”
Seeing the old lady smiling from ear to ear, Xu Liang shook his head secretly.
Sure enough, women understand women.
If you are afraid of farts, slap them on the spot.
He stepped forward and took the salute from his father's hand.
"Dad, you can do that. Mom and I have been playing together for a long time."
She rolled her eyes at him.
“You are so old, I am only 52.
According to the standards of the World Health Organization, people under 59 are considered middle-aged. They don’t know anything and they still open a company.”
Looking at the old man who walked straight into the car with his hands behind his back, Xu Liang was a little stunned.
“Is this because of my mother’s anger?”
He shook his head and followed.
Go home.
The maid has prepared lunch in advance.
“Where is Xiaomeng?”
Wang Lingxiang asked.
"I went on a graduation trip and I don't think I'll be back until next month." Xu Liang said.
“This girl knows how to run around.”
Wang Lingxiang also knew that her daughter graduated early.
With Xu Liang as her elder brother, she is not worried about her daughter’s future work.
After complaining about their daughter, watching the nanny pushing Xu Boyang out, the old couple immediately surrounded her with smiles on their faces.
Although there are already more than a dozen grandchildren, they can never seem to have enough.
After lunch.
Wang Lingxiang pulled Jiang Xiaoyang and carried the little guy to the baby room.
Xu Yongpei took his son to the study.
“You brat, let me ask you, does Xiaoyang really know about Fan Xiaopang?”
"I know. She also knows that Bingbing is pregnant and about to give birth."
"Aren't you angry at you?"
"No."
Xu Yongpei was instantly envious.
My son's ability to make his wife and concubines live in harmony is a bit ridiculous.
"Dad, I will take you and my mother to Yindian Bridge Courtyard tomorrow, and you will stay there in the morning and afternoon from now on."
Xu Yongpei nodded.
The main purpose of their return this time is to take care of their tenth daughter-in-law who is about to give birth, and their tenth grandson who is about to be born.
(End of this chapter)