Chapter 106: A Little Expansion
"Boss, besides the major TV networks, can you consider other broadcasting companies?"
"Other broadcasters? HBO?" Milo spread his hands. "If we're just going to acquire them, we might as well just form a new one."
HBO is a cable TV station, and cable TV stations have inherent weaknesses in terms of broadcasting.
If what you want is a large media group.
Then cable TV stations can have it.
But they can only serve as accessories to television broadcasts, pieces that complete the map, and cannot serve as the main body.
If we really want to expand our influence, we must have a wireless television network.
"Boss," said Chris, a media expert on the advisory panel, "maybe you can consider acquiring TBS."
“TBS?” Milo blinked. “I think… I need an American broadcaster?”
"Am I not talking about the American broadcaster?" Chris Carey was a little confused.
"Isn't TBS the abbreviation of Tokyo Broadcasting System?" Milo was also confused.
"Tokyo Broadcasting Company? Boss, you misunderstood."
Chris Carey wanted to laugh but held it back. He chose his words carefully, "Boss, do you remember which news channel was the most popular during the Gulf War a few years ago?"
"Of course..." Milo stroked his chin. He didn't know. Because his predecessor didn't pay attention to such things, the Gulf War was over when he came. "You mean..."
"Yes, it's Turner Broadcasting System's channel," Chris Carey nodded. "TBS for short."
Milo waved his hand and asked Chris to continue, "Do you think it's appropriate to acquire TBS?"
"Of course," Chris Carey nodded. "TBS's TV network is not as good as those major TV networks. It doesn't have as many channels as they do, but it is still pretty good in the US."
"After all, although TBS is not as good as ABC and other TV networks in terms of entertainment, their NEWS channel has a solid position in the White House news corps."
"More importantly, TBS is much cheaper than those major TV networks. With your current funds, you can buy it by issuing acquisition bonds."
This is actually very crucial.
Those large television networks often start at tens of billions of dollars.
If you really want to buy them, forget it at least $20 billion.
In comparison, TBS is much cheaper.
Its current market value is around US$5 to US$6 billion.
Even taking into account the premium paid at the time of the acquisition, the total would not exceed US$8 billion.
Milo's current liquidity is less than $2 billion.
It would not be enough if he wanted to acquire TBS in full.
This money can only be used as start-up capital, and the remaining funds can be obtained by loaning or issuing bonds.
After buying the company, let the company make money to pay off the debt.
Many people on Wall Street are good at this.
Liu Luanxiong from Hong Kong Island has used this tactic to perfection.
To put it in a metaphor, it is like a landlord who falls in love with a beautiful woman.
What if you want to marry her but don’t have enough money? In the stock market, suppose this beauty is worth one hundred taels of silver.
The rich landlord had only ten taels of silver on him.
The rich landlord could use the ten taels of silver as start-up capital, then sell the future use rights and income of the beauty, and borrow back ninety taels of silver from the market.
After successfully buying the beauty, he would let her sell herself to pay off the debt...
If the money a beautiful woman earns is not enough to pay off her debts.
The beauty and the landlord's ten taels of starting capital would both become creditors.
The advantage of doing this is that you can buy the company you want with very little money.
The downside is that the risk is very high and if you make a mistake you may lose control and start-up capital.
Seeing that his boss seemed a little moved, Chief Consultant Shabotei immediately added: "It is rumored that Warner is also interested in TBS. Because ABC and CBS already have new owners, they can only choose TBS."
"Also, Warner is in talks with HBO. Whether we want HBO or TBS, we may have to go up against Warner."
"We can approach both companies at the same time. Whether it's TBS or HBO, we can try it."
Milo said this at last, and in his heart he had actually begun to lean towards TBS.
Milo knew his shortcomings. To put it bluntly, his foundation in the media industry was still too shallow! Although he believed that if he could make up his mind to be shameless, he would consume a wave of connections and resources.
I should be able to get support from the Boston Consortium or Rockefeller.
Skill activation——【Grandpa, I want that company, American version!】
With this big move, we can be 100% successful even if we really confront Warner head-on.
But these supports are costly and few and far between.
Especially now, the relationship between the Boston Consortium and Rockefeller and himself is a bit strange.
Therefore, this support should be used where it is more needed.
In addition, if we can buy TBS and develop it into one of the Big Four broadcasting companies, the sense of accomplishment we will get will definitely be no less than if we acquired ABC.
"Let's stop here. We'll contact TBS and HBO later. Mainly TBS, and HBO as a means of harassment if Warner really wants it."
The latest novel is published first on Liu9shuba!
All members of the advisory group should be.
"Oh, there's one more thing." Milo thought of something else. "Since the acquisition of the TV network has already been determined, we can expand a little further."
"A small expansion step?" Shabotay raised his eyebrows and looked at the boss. "Boss, what do you mean?"
"Paladin Films, a subsidiary of Paladin Media, is developing very well. We are very attractive to many actors and directors. We still have many movies to shoot. In this case, why don't we set up an agency and make money ourselves? Isn't that good?" Milo said with a smile.
There are three major brokerage firms in the United States.
They are William Morris Agency, Artists Agency, and International Innovation Management.
There are hundreds of other smaller brokerage firms.
The threshold for setting up a brokerage company in the United States is very low, and you only need to obtain a labor law license.
It usually only costs a few thousand dollars.
Therefore, the more than 100 brokerage firms and film companies in the San Fernando Valley are also legal and protected by relevant US laws.
“It’s totally doable, it’s not difficult.”
Media expert Chris said, "It's easy to build a shell in the short term. But if you want to develop well in the future, the film company needs to have great appeal or be able to attract a group of excellent agents to join."
"Another thing is, I want to buy a record company," Milo said again, "and get into the record industry."
"The record industry?"
"I told you, since we want to work in the media, of course we should be involved in these industries." Milo spread his hands.
"Okay, boss, you're right."
Chief consultant Shabotei did not refuse, but he made a request, "We need more manpower. With so many things to do, the consultant team is not enough. And after the company is established, we will also need corresponding CEOs and senior management talents."
"No problem, I'll let the headhunting company continue to search."
Milo responded affirmatively.
He is rich now, with $1.8 billion in liquid funds.
And when he left New York, he left Nelson $1 billion.
Used for long-term short selling of international crude oil in the next three months.
With Venezuela announcing an increase in production last month.
Milo knew that the international crude oil depreciation period lasting more than two years was coming.
For that billion dollars, Nelson just had to do as he was told.
Then within three months, the value can increase by at least 80%.
If that doesn't work, he'll just go back to New York.
In terms of funding, if we were not afraid of arousing Wall Street's fear and ban, they would still attack us in unison.
Milo felt that it would not be a problem to raise another $10 billion within three months.
If he did that, he would probably become the public enemy of Wall Street.
(End of this chapter)