"Announcement on major changes in the equity of Wang'an Computer Company: On November 11, Tiankun Entertainment Company and Gu Ao (natural person) purchased more than 10% of the equity of Wang'an Computer Company.

From now on, Gu Ao initiates a privatization offer for Wang An Computer. Any natural person or legal person holding the company's equity can sell the Wang An Computer shares held by Gu Ao (natural person) the average price of the highest transaction price in the first 90 trading days, plus the conditions for a 50% privatization premium.

The duration of the privatization offer period is 90 days. Within 90 days, if the proportion of market circulating shares is reduced to less than 5%, the privatization process will be declared successful. Wang'an Computer will delist on schedule, and the equity of the circulating shares holders will automatically be converted into non-circulating shares.

Within 90 days, if the proportion of outstanding shares in the market is still higher than 5%, the privatization process will also be terminated, but the company will continue to maintain its listing status, and the previous equity transactions will still be valid..."

On November 11, 1987, relevant Nasdaq agencies finally released this public announcement worth a thousand gold. This indicates that Citibank finally decided to cut off its position and escape with a broken life.

Gu Ao made the decision not only to acquire shares in Citibank, but also to delist Wang'an Computer Company from Nasdaq, that is, to privatize it.

From then on, I won’t play with investors anymore. With such high-quality assets, you can just make a lot of money by silently speaking, and you don’t need to rely on stock market financing. Anyway, you can’t use up cash flow profits.

If the stock dog wants to play, I will sell out some junk stocks such as Tiankun Music in the future and rob the stock dogs.

It is impossible to have meat, it is good to give bones.

In the case of privatization, it is necessary to induce circulating stock investors to sell their shares and exit, so it is necessary to give a premium higher than the current stock price, otherwise why should you sell it if you don’t have any benefits?

Generally speaking, this premium is at least 20%.

If the privatization initiator is in a hurry to demand and the stock price has fallen significantly and has been underestimated before, then 30% is normal.

The premium given by Gu Ao this time is 50%, which is an absolute conscience price. Moreover, this 50% is not added by the lowest level. It must be the average price of the 30 trading days with a higher stock price in the previous 90 trading days, so it is absolutely reproachable. Even if Wang'an Computer Company is at a very low stock market crash in the past 90 trading days, it is enough to make up for the injured minds of retail investors.

Many people who don’t know much about the privatization process may think that privatization must be achieved successfully by all shareholders of outstanding stocks who are willing to sell their stocks at this premium.

There are actually some misunderstandings here, because there will always be hard-working businesses who are unwilling to sell their stocks. If you really pursue 100% recovery, it will inevitably lead to the inability to achieve all privatization processes.

Therefore, the US stock market has set a red line, that is, 95% privatization.

If the shareholding ratio of nail owners who refuse to sell no matter how the offeror bids, the shareholding ratio of these nail owners will not be able to prevent delisting.

They can only trade stocks and become long-term shareholders. After privatization, they no longer have the opportunity to cash out through the circulation market. When they want to cash out, they can only sell it to other shareholders of the company first, otherwise they will not cash out for the rest of their lives, keep shares and other dividends.

...

A few days later, in New York, Blackstone Fund trader Peterson reported the latest progress in privatization to Gu Ao-chan:

"According to the average price of the 30 trading days with the highest share price in the past 90 trading days, Citibank's 45% equity was final benchmark value of US$440 million. After a weighted 50% privatization premium, the final repurchase price was US$660 million. The transaction was delivered last week.

After the privatization offer was issued, within the five trading days of the first week, 4% of the remaining 11% of retail circulating shares chose to accept the offer to withdraw, and 3% of the second week accepted the offer to withdraw. Therefore, as of November 21, the current circulating shares on the market have fallen to 4%, which is already below the statutory nail account lower limit.

In addition, Wang'an Computer's traditional management also sells internal restricted shares at a privatized offer price, but the proportion is relatively low, accounting for only about 3% of the total share capital.

So far, you own a total of 45% of Citi, plus the original 9% of outstanding shares, the newly acquired 7% of outstanding shares after privatization, and the 3% restricted shares absorbed internally, totaling 64%.

In terms of the remaining equity structure, Wang An holds 21%, circulating shareholders hold 4%, and the remaining senior management and internal shareholders have a total of 11%. So far, all the equity acquisition expenses you have made in this privatization are 9.5 billion US dollars in cash.

Now, you can immediately declare the privatization successful and the privatization process is over according to law. You can also wait a little longer - if you want to absorb more than 4% of the shareholders of the outstanding shares and 11% of other internal restricted shareholders."

"64% is enough. You can't be too greedy. If it exceeds 70%, others don't even retain a veto, it will not be like a technology company and the public will distrust it. We can't act like we want to eat and harm the interests of small shareholders." Gu Ao made a statement very consciously, signaling Peterson to help him stop when he sees it.

Peterson told him that "This privatization cost a total of US$950 million to acquire all equity." This price includes all the expenses that Gu Ao had spent in the circulation market before the privatization process was initiated, as well as capital taxes and fees.

However, it was not calculated that Gu Ao had previously dug technical talents from Wang'an Computer Company and acquired technical patents. The money for those layouts was all sorts of pieces, and the indescribable costs of hiring lawyers and raising benefits to media such as the Wall Street Journal, totaling more than 200 million.

After all, Gu Ao spent a total of US$1.2 billion in order to seize 64% of Wang'an Computer's shares, let him delist safely, and transfer some technology and talents.

This almost spent all the cash flow that Gu Ao earned in recent years. After the Dezhou Instruments case that year, Gu Ao's remaining cash was only 40% of the amount, and he invested in Xiangji Electric's investment and construction. The remaining sixty percent were used as short-term investments, or some reserve funds were reserved.

Before the stock market crash before the New Year, Peterson also helped Gu Ao make a small profit in the technology stock bubble, with a profit of 200 million to 300 million US dollars.

Now, most of the remaining principal after investing in Xiangji Electric, plus the earned money from technology stocks in the first half of the year, has been completely releasing.

After spending 1.2 billion US dollars, Gu Ao's cash flow shrank sharply again. The cash that he could afford was only 200 million to 300 million US dollars, which could almost be said to be poor again.

The 200 million to 300 million US dollars is still earned by Tiankun’s gaming console business in 1985 and 1986. It is definitely not easy to make money.

It is not easy to do business. Don’t look at Gu Ao now holding Tiankun and Xiangji Electric, and indirectly controlling Xiawei Communications, which has been established for only one year, at present, the real stable profits of Gu Ao every year can only count on Tiankun.

The semiconductor chip industry has been a pure gold-eating beast in the first five years. Even if the revenue and revenue are increased, the money will be invested again in the expansion again, and it is impossible to feed back to Gu Ao.

The communications and electronics industry is better than the semiconductor chip industry, but it is necessary to lose money in the first year, barely guarantee capital in the second or third year. If you really get money by entering the industry in the first year, it is just a short, flat and fast business like games.

Oh, Gu Ao's business in Hollywood production and distribution companies, as well as his cinema supporting projects in the mainland, and Xiangjiang's entertainment layout, combined, can provide Gu Ao with a net profit of tens of millions of dollars a year.

It was 10 to 20 million a year in bleak times, and at best, it was less than 50 million - mainly depends on whether big artists like Cameron would give face and could not produce hits back then. Or whether Gu Ao's record company in Xiangjiang had new money-making stars and betrayed the record series that had been selling hits.

In total, Gu Ao's current net profit in one year is only 200 million, which are all from the pan-entertainment industry. The game console company has more than 150 million yuan, and the remaining pan-entertainment businesses have gathered tens of millions, which can only exceed 200 million yuan.

(The cost of donating money to do good deeds by the game console company has been removed, and Gu Ao, the dirty money of 20 to 30 million US dollars a year, was not included in Monaco, because the money will be donated to do good deeds sooner or later when the time is ripe in the future.)

Now that he has taken down Wang An's computer, Gu Ao has time to sit down and do it well.

Xiangji Electric was put into production at the end of 1985, and Xia Wei was put into production this year, which was in mid-1987. Based on the fact that semiconductors have no profits for five years and the communications industry has no profits within two or three years, these companies have to go through the blood transfusion period and enter the explosive period, and basically have to wait until after 1990.

In the next three years, to get rid of the dilemma of profit-generating profits in the pan-entertainment industry led by game console companies, the key is whether Gu Ao can transform Wang'an computers into regaining profitability as soon as possible.

The ability of the personal computer industry to generate profits quickly is much faster than that of the semiconductor chip industry and the communications and electronics industry.

In particular, Wang'an Computer originally had a market share of 700,800 business office machines across the United States, and has a market share of 10,000 or 2 million units in the European market. Its reputation and popularity in related circles have always been the industry's number one.

Wang An's previous decline was simply because Wang An himself was seriously ill, his new product development plan for nearly two years was stagnant and no one had the ability to coordinate and promote it.

Now that it is in Gu Ao's hands, Gu Ao wants money, resources, and can even coordinate with many outsourced partners. After filling in the replacement products, it is absolutely no problem to extend Wang'an's computer's life to the completion of transformation.

Gu Ao estimated that after Wang An's new generation of products was released, and before the emergence of Microsoft's WIN95 operating system in history, Wang An's past few years has been a good day for Wang An to make profits.

This is based on historical evidence, because in 1988, Apple lived a good life until the emergence of WIN95. Apple's first wave of recession after Jobs left was not completely exploded in 1996, and then continued until the beginning of the 21st century, when Jobs came back to get IPOD.

After all, the market competitiveness of MS-DOS is still completely incomparable to the later WINDOWS system.

Since Apple has made a lot of money in these six or seven years in history, Wang An, who has reorganized in Gu Ao, naturally has a chance.

Of course, the premise of doing this must be to block Apple's position in history. Otherwise, under the impact of the tide of open operating systems, how can one earth still accommodate two closed operating systems brands?

"Since the privatization has been completed, I will hold a meeting for all Wang An's executives in the past few days to discuss the R&D plan. Our goal is very clear-
Chapter completed!