Chapter 884 Talent
‘X-Mines’ represents a special elite group in French higher education, a small aristocratic circle, similar to the ‘Skull and Bones Society’ of Yale University in the United States.
This group is composed of the top 20 students from Ecole Polytechnique and Ecole Nationale Supérieure des Mines each year.
They are oligarchs under the French republican system.
For more than two hundred years, they have controlled the most important companies in France and influenced the French economy.
Alstom CEO Baccoron and Schneider Electric CEO Jean Pascal Tricova are among the representatives.
Although Vivendi has changed its CEO, few outsiders are optimistic about Vivendi’s future.
They all want to eat the corpse of this giant to strengthen themselves after it falls.
But Jean Foch was worthy of his talent.
As soon as he took office, he restarted the accounts, controlled costs and compressed expenses bit by bit.
The sale of Vivendi Games and Universal Entertainment reduced Vivendi's debt to less than 10 billion euros.
And it has retained the energy to grow again.
Xu Liang has personally experienced how difficult this guy is.
Vivendi Games, which was originally planned to be acquired for US$2.5 billion, suddenly negotiated US$3.3 billion, and also added part of Hongmeng's equity in 2002, before finally acquiring it.
In 2003, through constant maneuvering, the assets of Universal Entertainment were sold at a high price of US$14 billion.
These two transactions alone have reduced Vivendi's debt by 13.95 billion euros (the euro-to-dollar exchange rate in 2003 was about 1.24).
Plus some scattered businesses, such as 10% equity of Echo Star Company and so on.
Directly reduced Vivendi's debt to less than 10 billion euros, and also reserved a sum of cash in the account.
After bringing Vivendi back to life, Jean Foch’s second step was to divest Vivendi’s public utility part.
Public utility assets require large investments, low returns, and long return cycles.
And there is limited room for growth.
Severely affected by administrative restrictions.
It has little to do with Vivendi’s main businesses of telecommunications and new media after its transformation.
Splitting the public utilities part can also reduce expenditures and reduce costs.
It supports tens of thousands of people, and its monthly salary expenses alone are as high as hundreds of millions of euros.
Plus equipment depreciation, debt repayments, etc.
It is almost difficult to make much money.
After completing the reduction in business, Jean Foch began to lay off employees again.
After three years of continuous adjustments, Vivendi finally came back to life.
The business has completely stabilized.
This series of operations by Jean Foch showed the characteristics of an excellent business manager, but it was not enough.
Just cutting costs and dividing business to turn the tide is only a general talent. A talented person can lead the company to success, similar to Jack Welch who led IBM out of trouble and fully recovered.
"Jean, we have known each other for more than three years. In the past three years, I have personally watched you bring Vivendi back from the brink of bankruptcy, and you have made outstanding contributions. Even China's financial media has praised you highly. "
Jean Foch had a smile on his face.
Human nature always makes everyone like to hear good things, and no one is exception.
What's more, Vivendi's resurrection is his most proud masterpiece.
Xu Liang changed the subject.
“But I believe that with your talent, Vivendi will not stop at its current scale. So I would like to know, what are your considerations for the future of Vivendi?”
Jean Foch was also a smart man and understood Xu Liang’s purpose instantly.
Obviously, this is a test for myself.
If he can pass, he can still be in charge of this huge new media and telecommunications giant after Vivendi is acquired.
If it fails, Xu Liang will definitely give himself huge benefits in order to successfully acquire Vivendi.
But it is impossible to take charge of Vivendi again.
Although he likes money, if possible, he still wants to control Vivendi, the huge world new media and telecommunications giant.
Moaned for a while.
"I personally agree very much with Mr. Xu's industrial conclusion on pan-entertainment. Hongmeng's layout over the years has been very effective, so I plan to make Vivendi a giant in the pan-entertainment field.
At the same time, I also have deep feelings for Mr. Xu The conclusion that the future belongs to the Internet is very popular, so Vivendi’s future strategy also includes the Internet.
But the foundation of the Internet is telecommunications.
Especially with the involvement of the Internet and hardware. With the continuous growth of equipment, telecommunications services focusing on broadband access will develop rapidly. This is a rapidly growing gold market
And as network speeds become faster and faster
The 3G application market will also become more and more mature. Maybe in ten years, maybe eight years, the mobile Internet mentioned by Mr. Xu will become a reality.
By then, telecommunications services including broadband access and mobile phones will become the basis of the mobile Internet.
In order to ensure that the company is not threatened by telecommunications companies in the future, and in order not to miss this rapidly developing market, telecommunications must be one of Vivendi's main businesses.
Even the first business.
In addition, I plan to sell the news, impurities and publishing businesses of the Havas Group and only retain the advertising media business.
Under the impact of the Internet, the sales of paper media have become increasingly weak, and the rapid development of Bing Books, Google Books and Amazon are also constantly impacting the offline publishing market.
Although the impact is not obvious yet, as the Internet continues to develop and e-readers are updated, the sluggishness of the publishing market will become more and more obvious.
While the situation has not worsened yet, sell it at a high price and use the funds to strengthen Vivendi’s main business. ”
Looking at Jean Foch talking eloquently, Xu Liang was a little impressed by him.
He shouted every day that the future is the era of the Internet, and web2.0 belongs to the mobile Internet, but what can really Not much was heard. Looking at Jean Foch, he was obviously ready to do it.
Of course, it does not rule out that he is simply trying to please himself.
But I never said that the publishing market would decline, at least not publicly.
Obviously, this is his own judgment.
From this aspect, Jean Foch is worthy of his status as ‘X-Mines’.
He is a true elite.
However, his vision was not enough and he did not see the decline of the portal website.
But there are only a few people in the world who can see this layer.
Had he not had the memory of his previous life, he would not have believed that the famous Yahoo would decline and that the four major portals representing China's Internet industry would be replaced by BAT.
“In addition to selling the Havas publishing business, I also plan to acquire Ubisoft, the world’s fourth largest game developer.”
Subconsciously looked at Xu Liang.
"Dear Xu, what I regret most now is selling Vivendi games to Hongmeng. "World of Warcraft" can at least make Hongmeng 5 billion US dollars."
Looking Xu Liang couldn't help but smile at Jean Foch's envious look.
$5 billion? Who do you look down on?
Not to mention the copyrights of famous games such as "Counter-Strike", "Half-Life", "King's Quest", and "Diablo".
The "Warcraft" series alone can earn several US$5 billion.
“Ubisoft is indeed a good company. If it were not for fear of antitrust laws, I would be prepared to acquire it.”
“Rayman”, “Assassin’s Creed” series, “Far Cry” series, "Prince of Persia" and other well-known games, I am drooling just watching them.
It’s a pity that Hongmeng is now the world’s largest gaming company and can only acquire small companies.
If it is a game giant like Ubisoft, it will definitely be blocked.
"I think so too. Now we have acquired 5.4% of Ubisoft's shares and obtained a board seat. If nothing changes, I plan to increase Vivendi's stake in Ubisoft to 29% in three years. and get two to three board seats.
Then the formal acquisition begins.”
The securities laws in France are different from those in the United States.
Once an external company holds 30% of the equity of the target company, it will automatically trigger a compulsory acquisition invitation.
As long as the shareholders of the target company are willing to sell, you must acquire it in accordance with the acquisition agreement.
"It's a good strategy, and the probability of success is also very high."
In this life, Blizzard was acquired by itself, so Vivendi's reputation in the gaming industry was not as bad as it was later.
As both French companies, Vivendi still has great hopes of acquiring Ubisoft.
"What about after the game? Are there any other goals?" Xu Liangxiao asked.
"EMI Music Company.
Music is an indispensable part of pan-entertainment.
It’s a pity that I understood it too late. I wish I could have listened to your judgment and analysis on the pan-entertainment industry earlier.
I will definitely not sell Universal Music and Vivendi Games. "
Xu Liang smiled and said: "There is no if in the world. ”
“That’s why I regret it. ”
"The global music market is currently in a slump, Warner is selling Warner Music, and EMI's operations are deteriorating. Acquiring EMI with Vivendi's current financial level may not be a good thing."
"It is precisely because everyone is not optimistic about it. , to facilitate the acquisition. Just like when you acquired Universal Music Group from Vivendi.
If the music industry comes out of the trough and develops completely,
Vivendi wants to acquire it again. I’m afraid it won’t be that easy for EMI.
With competition, it will cost more.”
Xu Liang nodded and smiled: "You are so sure that the music market will develop."
"I don't believe it, but I believe you."
"Haha, this trust is really Heavy."
After the laughter subsided, Xu Liang looked at the man in front of him seriously.
“Dear Jean, you are a talented professional manager. If I acquire Vivendi, you will still be the CEO of this company.”
Jean Foch felt relieved.
After opening my heart and talking so much, I finally got a good promise, although it was just a promise.
“That’s my honor!”
Xu Liang smiled.
“After you return to Paris, you can discuss it with the management of Vidy Wang and ask them how much share of the Pacific Fund they can take?
In addition, you need to emphasize this point with them.
Don’t think about selling more shares to others, or investing through loans.
The cap limit for each of them is $50 million.
But you are different.
I will give you a share of 100 million US dollars, and I don’t care how you collect the money. ”
Jean Foch's eyes lit up.
(End of this chapter)