MTL - Heads Up Hollywood-Chapter 1152 Bloomberg
Entertainment media can make money, but the style is very low. But financial media is different. The ability to make money is not bad, and it is tall!
New Universal Group needs to have a higher structure, and it is necessary to have the business of financial media.
After News Corporation owns TV satellites, TV stations, movies, publishing houses, newspapers, online media and other businesses, the last missing piece of business is financial media.
To this end, Murdoch did not hesitate to buy Dow Jones at a very high premium.
Dunn was also very moved.
However, he has no plans to buy a newspaper like The Wall Street Journal.
Brandy Norris is the CFO of New Universal, from Wall Street.
At the high-level meeting, he immediately showed a strong interest after hearing Dunn mention that the next new business exploration of New Global will be locked in the financial media.
After the meeting, Brandy Norris came to Dunn's office with great interest and took the initiative to report: "Boss, I have a copy of the Dow Jones Group's revenue report for the past year, you can take a look."
The annual report shows that in the past year, the Dow Jones Group's "Wall Street Journal", "Barron's Weekly" and other media businesses for individual investors, the revenue reached 950 million US dollars, the gross profit was only 28 million US dollars, and the gross profit margin was less than 3%.
The smaller enterprise media business, including Dow Jones News Network, Dow, etc., has a revenue of less than 400 million US dollars, but its gross profit has reached 100 million US dollars! Gross profit margin of 27%!
Brandy Norris said: "In the current situation, the Wall Street Journal and the Financial Times should be the only two newspapers in the world that can charge for their online editions. However, this is not commendable, The data shows that the enterprise-level media business is more profitable!"
Tang En held a signature pen in his hand, circled the data on the report, and nodded: "Indeed. When free financial information floods the Internet, the timely and mature financial data with institutional traders as the main customers, It will increasingly become a lucrative market.”
"So, we can give up the financial media business for individual investors and focus on corporate customers."
"Brandy, it looks like you have an idea?"
"indeed so."
Tang En stretched out his hand, "Tell me about it."
Brandi Norris said: "News Corporation is now worth more than $70 billion, but New Universal is valued at $170 billion! We are stronger, and under your leadership, more ambitious. I'm sure , Murdoch's acquisition of Dow Jones is not because of the sales of the "Wall Street Journal", because that business really can't make much money, he is interested in Dow Jones' corporate media business. Unfortunately, in the past few years, Dow Jones has Has been dominated by good news families, not good capital. Murdoch will definitely bid for Dow Jones at a substantial premium because he is confident that the business of this company will become as great as its content. However, we You don't have to."
"Oh?"
"We have abundant cash flow, abundant promotion channels, and greater market potential. We can start with a financial media for enterprises! Murdoch can't eat it, but we can!"
Enterprise-level financial media?
Dunn had almost guessed his answer and narrowed his eyes, "You mean... Bloomberg?"
Brandy Norris said without hesitation: "It is said that the Associated Press, Reuters and AFP are the three major news agencies in the world. However, in terms of influence in the financial field, these three together are not as good as Bloomberg. !"
"Bloomberg..." Dunn twitched the corners of his mouth, "Can we eat and move?"
Brandi Norris said firmly: "I think so!"
"Bloomberg is a private company."
"But in the course of Bloomberg's development, there have been two financings. Mr. Bloomberg is now the mayor of New York, and it seems that his interests are shifting from business to politics."
(Note: Very painful translation. "Bloomberg" and "Bloomberg" are actually the same word Bloomberg. The translation of Hong Kong and Taiwan is very concise, and the unified name is Bloomberg.)
"Bloomberg's valuation is not cheap."
"It's relatively high, but New Global has the ability to eat it."
Dunn pondered for a long time and thought for a while, "Prepare me with more adequate materials, about Bloomberg and Bloomberg himself."
Brandi Norris looked overjoyed: "I'll prepare!"
He is very optimistic about the potential of Bloomberg.
Judging from the current situation, Bloomberg seems to be less powerful than News Corp. But it won't take long, let alone News Corp. Even Time Warner is probably no match for Bloomberg!
This is a true industry giant.
Now, Michael Bloomberg himself is in politics, as mayor of New York.
Put Bloomberg Social to deputy management.
However, his deputy was ok in execution, but was a little short on decision-making. This has led to a rapid slowdown in Bloomberg's performance growth in the past two years.
Because Michael Bloomberg has entered politics, he has to cut off management relations with enterprises, otherwise there is a risk of collusion between officials and businessmen, and he has been subject to very strict supervision.
He couldn't make decisions for Bloomberg.
In this case, if New Universal successfully acquires Bloomberg, then the helm of Bloomberg... may not be Brandy Norris!
Compared with being the CFO of the New Universal Group, it is more attractive to be the CEO of Bloomberg.
The promotion channel of the former has been blocked, and creative enterprises will hardly be promoted.
The latter still has a bright room for growth. Once he is in charge of Bloomberg, he may not be able to go further and become the CEO of New Universal Group!
……
Soon, Dunn got a detailed material about Bloomberg.
Unlike the direct-to-user newspaper industry like The Wall Street Journal, Bloomberg does not own a newspaper, and its media revenue is mainly from news subscriptions for governments, corporations, and financial institutions, plus some news resale and financial TV stations.
In the past year, Bloomberg's revenue was $6.8 billion.
Among them, the revenue of Bloomberg terminals accounted for a full 84%!
The Bloomberg terminal is a computer-like machine that serves as the main platform and auxiliary trading platform for all output information services of Bloomberg.
Users can view and analyze real-time financial market data and conduct financial transactions through "Bloomberg Professional Services".
Bloomberg terminals are not sold, only rented!
Annual rent...$20,000!
At present, there are 285,000 Bloomberg terminal users worldwide, and the rent alone will generate $5.7 billion for Bloomberg!
Every investment bank and every financial institution on Wall Street must be a loyal user of Bloomberg terminals.
In this market, Bloomberg terminals have no rivals, occupying 99% of the market!
Monopoly!
Monopoly means wealth!
As the financial market becomes more and more open, especially the rise of financial markets in populous countries such as China and India, the demand for Bloomberg terminals will only increase.
It can be seen that Bloomberg's future performance growth will be very gratifying.
However, if New Universal wants to acquire Bloomberg, the trouble is also on the Bloomberg terminal.
Last year, Bloomberg's net profit was $750 million.
According to the US market, the average price-earnings ratio of media companies is 15.
By this standard, Bloomberg is valued at $11.2 billion.
The media business accounts for only a small part of Bloomberg, and the main source of income is the Bloomberg terminal.
The Bloomberg terminal is a technology product, and the average price-earnings ratio of technology companies is 30!
According to this standard, Bloomberg's valuation will reach 22.5 billion US dollars!
Not only that.
Bloomberg Terminal is a financial institution connected to the world through the Internet, which can facilitate the exchange of information between investment banks and financial institutions around the world, and learn the latest financial trends.
The Bloomberg terminal even comes with a chat software called "Bloomberg IB".
From this perspective, this is an Internet company.
The average price-earnings ratio of Internet companies is as high as 50!
According to this standard, Bloomberg's valuation will reach 37.5 billion US dollars!
Of course, the core content of Bloomberg is financial services and news dissemination, and the so-called Bloomberg terminal does not have much high-tech content.
The market valuation given by Business Week is between $15 billion and $18 billion.
Regardless, this is a giant.
Even if New Universal is rich and powerful, it would be difficult to eat it completely.
If it is not handled properly, it will cause indigestion.
Just like Dunn's ambitious attempt to acquire 20th Century Fox~www.novelbuddy.com~ To acquire such a large-scale company, New Universal must go public. Before going public, there was no chance of a successful acquisition at all.
However, after reading more materials about Bloomberg, Dunn became more and more interested in this company.
I especially admire Michael Bloomberg, the founder of Bloomberg.
This guy is really talented. He has killed the four fields of technology, communication, media, and finance. A few years ago, he even played politics and became the mayor of New York.
Such talents may not have the possibility of becoming president in the future.
If New World acquires Bloomberg, Michael Bloomberg will become an important shareholder of New World, and the chain of interests can be tied together.
Very excited!
Dunn called Brandy Norris again, "Do you have a terminal there?"
"I don't have it here. I don't need this machine for my work." Brandi Norris replied, and immediately said with satisfaction, "But Fernando has one, and he has been in charge of communication with Wall Street investment banks."
The working platform of Wall Street financial professionals is not a personal computer, but a Bloomberg terminal, and the online chat software can only be IB. If others want to communicate with them on the Internet, they can only use the Bloomberg terminal, which is highly closed and confidential.
Dunn nodded, "Okay, I'll go over there and see what this Bloomberg terminal is!"
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