MTL - America’s Road To Wealth-Chapter 58 bloomberg

  Chapter 58 Bloomberg

  Come on board the "Ovitz".

  Abel's purpose is not for "X days and X banquets".

  Although this kind of thing, he is quite curious.

  His main purpose is to come for the shares of CAA.

  According to Ovitz, these guests on board today.

  The CAA shares in their hands can be sold to Abel if they are willing.

   Then Abel will be able to become the first shareholder of CAA immediately, which is still much more than the second place.

   Absolute holding is unrealistic, CAA's shares are too scattered at present.

  Having experienced internal strife, CAA now seems to be declining to the second place.

   But the foundation is still there, and the development trend of the entertainment industry looks so good now.

   Investors are more optimistic about CAA.

   So this is the case unless you buy at a big premium.

   Otherwise, there is little hope of absolute holding.

  Moreover, for a company like CAA, having more shareholders also has the advantage of having more shareholders.

  The more shareholders there are, the stronger its connections are.

  People and various resources are sometimes more important than profits for a company like CAA.

  In addition, the guests who came to the yacht today were all screened by Ovitz.

  Guests know that today is mainly about the transfer of shares.

   Followed by communication, and enjoyment.

   What to enjoy?

   Just look around at these Hollywood beauties.

   It's just other guests, maybe they are more reserved, or they may be at a price.

   are waiting for Abel to go to find them.

  Bloomberg didn’t know what was going on, so he found it by himself first.

   Seeing this, Ovitz took advantage of the opportunity and said the main thing in advance.

   Faced with Ovitz's directness, Bloomberg doesn't seem to mind.

  The Bloomberg founder smiled: "I know, and that's why I'm here. I'm here for Mr. Smith."

   "Hmm." Abel smiled and said, "So, what do you mean?"

   "What do I mean? Of course I want to sell it. As long as Mr. Smith wants it." Bloomberg said casually.

  Bloomberg now holds about 3.1% of CAA's shares.

   This is the share he bought earlier.

  I have been in my hand all the time, neither sold nor increased my holdings.

  When he bought these shares, the market value of CAA was only about $500 million.

   It cost $15 million at the time.

   Nearly a decade has passed.

   CAA's market capitalization. Well, not much.

  Don't look at CAA's power and influence in Hollywood.

  But in fact, companies like CAA, even if they are giants, actually have the same profits.

  CAA had 550 employees in the mid-1990s and signed about 1,400 top Hollywood talents.

  But the company's annual revenue has just exceeded 150 million US dollars.

   Now that it has developed to 2000, CAA is stronger.

  Employees have exceeded 600 people.

   But last year's annual report revenue just exceeded 300 million US dollars.

   This is revenue, not profit

   Calculating the profit, it is estimated to be less than 100 million US dollars.

  So now, the valuation of CAA by many investment banks is probably around 1.2-1.5 billion US dollars.

   Abel previously acquired 11% of the shares at a premium, including the premium, which is about 190 million US dollars.

   Let alone comparing with financial companies, even comparing with medium and large companies in other industries.

  CAA's annual report and market value are not very good.

  But in this era, to achieve such a CAA is already a giant in the entertainment brokerage industry.

  Because of this,

  CAA is seeking transformation.

   It's just that CAA is timid and dare not develop into other fields.

  For the time being, I only think about transitioning to other commercial brokerage fields.

  Don't dare to invest indiscriminately. At present, they are starting to focus on the field of commercial sports.

  Such as commercial sports leagues such as NBA, NFL, and NHL.

  At the same time, we are still preparing to go global and start to build overseas branches.

   But. That's it.

  Even after going public in the future, when the market value of CAA was the highest, it did not exceed 10 billion US dollars.

  The market value has hovered around US$4-6 billion for a long time.

  So from an investment point of view, CAA’s rate of return is really not that good.

  If Abel’s goal is not for the media industry, CAA is a very suitable springboard.

  If you don't consider this, he will never be so serious about a company of CAA's size.

   No matter how you say it, no matter how nice it is.

  Companies like UTA, WME, and CAA, to put it bluntly, are actually intermediary industries.

  The intermediary industry can only make money by commission.

  Commissions also require a large amount of share for employees, and the rest is the profit.

  This model, no matter how large the scale is, it will be the same.

  Probably because of this.

  Bloomberg will appear so casual when he sells CAA shares.

  The difficulty of controlling CAA does not lie in funds.

  Its shares are too dispersed, and such a dispersion of shares is beneficial to its own operations to a certain extent.

  Even Abel didn’t want to privatize CAA.

  If it is really privatized, it will definitely affect its operation.

  His idea is that relative holding is enough, about %51 will do.

  If you can get control of the board of directors, around 33% is acceptable.

   No matter how many shares there are, privatization is not a good choice.

  The industry attributes are like this.

   Unless he himself can provide enough resources.

  For example, the Texas consortium, which has absolute control later, can provide support systematically.

  The current Abel is still unable to achieve this level.

   Seeing Bloomberg being so easy-going, Abel immediately smiled and said, "The price will definitely satisfy you."

  Bloomberg is not short of money, and Abel is not short of this money.

  He is so talkative, but Abel owes him favors.

  So Abel would rather buy more expensive and spend more money.

  It's better than being in debt.

  But Bloomberg shook his head with a smile, "Just follow the market price. Bloomberg's valuation of CAA is 1.3 billion US dollars. Just follow this."

  Abel raised his eyebrows, so generous?

  This is not like a capitalist.

  He is not familiar with Bloomberg, and the other party has no reason to be so generous.

  These capitalists are not even willing to pay tens of thousands more in taxes.

  This opportunity to earn millions more is so easily given up.

   It is only possible that I want more.

   But it is clear that Bloomberg does not want to continue talking about these now.

  CAA is just an investment for him.

   Nearly a decade of investment has earned two or three times.

  Looks like a lot, but that's about it for Bloomberg.

   Just obviously, discussions related to CAA.

   The Hollywood actresses next to her are obviously very interested.

   It’s just that their interests are not considered by Bloomberg and others.

  Bloomberg looked at several Hollywood female stars around him, and then at Ovitz.

   "Mr. Ovitz. I have something to say to Mr. Smith. Can you provide us with a private venue?"

   Ovitz was startled, and immediately realized: "No problem."

   "What about the back of the yacht? There's a small deck over there with a great view of the Atlantic Ocean. Also no one can hear what you're saying."

   "Yes." Bloomberg said.

  Abel shrugged, and he didn't object.

   Now he is even more curious about what Bloomberg wants to say to himself.

  (end of this chapter)