Chapter 492 Don't Panic! There Is a Local Tyrant From the Celestial Dynasty to Take Over!

The annual NBA draft has attracted the attention of hundreds of millions of people around the world. At the same time, in the face of such a grand event, various voices and performances have attracted people's attention. The situation of the players to be selected, the goals of each team, some lace news outside the field, everything seems to be revolving around this matter.

This is a high-profile business. It all revolves around business.

The development of competitive sports to this day, besides the original motivation, what else has it brought to people? Honor? Inspiring inspirational stories?

Well, this is where they succeed. Transactions, salaries, conflicts, and confrontations all revolve around business. The main reason for the success of the commercial operation of the NBA league for so many years.

"Everything is essentially a transaction, and all relationships are business"

From an economic point of view, this sentence makes sense and is very classic.

From the essence of everything, people and the outside world are a process of exchanging what they have for others.

Even in the reproduction of human beings, the old give birth to the young, and the young come to support the elderly.

Marriage, although love is beautiful, but the fusion of two people still uses the inner essence of what they need.

Not to mention the process of people-to-people communication, from the background, it is actually a potential exchange with purpose.

So, isn’t this kind of exchange a kind of business? It’s just that sometimes it’s not money transactions, but various forms of “business”.

Merchants are businessmen, and maximizing profits is the first attribute of capital.

Arthur tried it, and after the novelty wore off, he didn't continue to participate in the boring joint trial training. His time was not so worthless!

After the successful acquisition of the New Jersey Nets, the actual controllers of AMC, five holding fund companies, once again invited Arthur to restart the acquisition negotiations on AMC theaters.

As Arthur thought before, one monk carried water to eat, and five monks had no water to eat. With the IPO in the foreseeable future, some people have no patience to continue, especially in the face of repeated reports of worries from the management of AMC Theaters and requests for capital injection. An institution would naturally not spend money to fill this big hole.

In fact, the operating costs of AMC theaters have been high. According to the explanation of the losses disclosed by AMC theaters, the company’s profitability is facing difficulties due to the rental, ticket price reduction and interest factors of the theaters.

It is precisely because of poor profitability but high operating costs and huge debt factors that it has not been favored by the market and the progress of listing has been stuck.

Faced with such a situation of internal and external troubles, the five institutions got together to discuss. Unless everyone contributes money and injects capital together to alleviate AMC's operational difficulties and make the balance sheet look better, otherwise the negotiations can only be restarted. I hope this can be resolved. Throw the scapegoat to the British guy who is not short of money, and make a lot of money.

For this period of time, Arthur spent a lot of money in New York. They saw it, and they were really anxious. They were worried that Arthur would spend so much money that if he didn't have the money to buy AMC, it would really screw up.

"... $700 million, and assume all debts."

In the study room of Arthur’s mansion, Gary Lopez, CEO of AMC, handed a document in his hand to Arthur who was sitting on the boss chair, and the head of the negotiating team on the side also said: “This price, It’s almost their psychological bottom line, and we also tried to lower the price, but they directly refused.”

After taking the folder, Arthur smiled and asked Gary Lopez, the CEO who had turned his back on him, "What do you think?"

"This price is actually acceptable. As far as theater operations are concerned, it is actually very cheap to buy AMC at this price. AMC operates 346 theaters in major cities in North America, with 5,034 movie screens, including 2,336 3D screens and 128 I screens.

It is present in 24 of the top 25 U.S. markets and has seven of the top ten highest-grossing theaters in the U.S. In particular, AMC ranks first or second in market share in the top 10 U.S. markets including New York, Los Angeles, and Chicago.

In fact, on a per-screen basis, it's actually quite affordable, much lower than the other two large listed theater companies, Cinemark's average of $711,000 per screen and Regal's $595,000 per screen s level. And most of them are located in the center of the North American city circle, which is a good choice for the expansion of the North American market and capital internationalization.

Of course, the key is the debt aspect, which is indeed under great pressure. . . "Gary Lopez naturally very much hopes that the new boss can take over AMC, so that they can get rid of the fate of being constantly sucked blood and being puppets, so he wants to give the new boss more confidence.

"However, Mr. Bolling, I can assure you that after the completion of the acquisition, if you can make continuous capital investment, the money does not need to be much, 300 million US dollars is enough, and we can improve AMC's debt structure. Then In addition, a new and efficient management incentive mechanism has been implemented, and a series of business innovations centered on enhancing customer experience have been strongly supported by the management.

I can assure you that in one year, we only need one year to turn losses into profits, let AMC make money, and pay off all debts within ten years! "

"Ten years..." Arthur narrowed his eyes slightly, murmured softly, and fell into deep thought.

To be honest, the price is really not expensive. The key is the debt pit, which is too deep. It is difficult to turn around in a short time, even if it is to promote the listing of AMC.

Relying on annual profits to repay debts is really a drop in the bucket. Regardless of the scale of AMC, it can make a profit of 100 million U.S. dollars a year, and it will be very popular!

This is mainly because of the unique theater chain system in the United States, which makes the theater chain industry not very profitable. Only by continuously developing new technologies can companies generate income. Only every innovation in film technology will usher in a leap in revenue growth. For example, the application of IMAX and 3D has given hope to the theater industry for a short time, but the company will quickly encounter operational bottlenecks and even lose money.

Therefore, for AMC, the road to revenue generation is too long, and it can even be seen at a glance. The United States is a completely saturated, highly competitive market with slow or no growth, and the average profit margin is low.

The only advantage at present is that the new 3D revolution triggered by "Avatar" has just begun, and it can make a lot of money in the next few years.

However, in the long run, AMC's future upside is very small, there is almost no prospect of institutional expansion, and there are only a handful of acquisition opportunities that can arouse interest. Perhaps after the acquisition is completed, it may be a good choice to sell it at a suitable price.

Thinking of this, Arthur was really moved. He knew that before long, the local tyrants of the Chinese Dynasty would start buying the whole world. Moreover, the richest man in Yida of the Chinese Dynasty had great ambitions for the cinema market.

If you buy AMC by yourself, after merging and integrating with European theaters, you can sell it as a package. . . I believe it can definitely sell a considerable number.

He is not worried at all that the local tyrants of the Chinese Dynasty have no money. He is well aware of the crazy ambitions of Chinese enterprises to expand overseas in the next few years.

Driven by a group of large enterprises, the enthusiasm for overseas expansion of Tianchao enterprises is gradually heating up, especially the bids are too generous.

As for whether it is high leverage or not, for these companies, no one cares, because they are betting that the acquired overseas company can quickly create sufficient cash flow, otherwise they will face a more severe debt burden.

Of course, this is also strongly supported by many financial organizations. There is no lack of ZC's support during this period. These commercial banks are also willing to provide a lot of foreign currency loans for these mergers and acquisitions, and they also have the commercial purpose of expanding outward with the help of Tianchao Company.

This can't help but remind people of the history of foot basin companies holding high their checkbooks to expand overseas in the 1980s. Under the background of the substantial appreciation of the yen after the "Plaza Accord" in 1985, overseas acquisitions are very "affordable" for footbath companies, the most famous of which is Mitsubishi Estate's acquisition of the Rockefeller Base, a landmark building in New York City, USA for US$1.4 billion Eighty percent of the equity is seen as an important symbol of the overseas investment frenzy of Adeba.

However, the investment frenzy of foot basin companies gradually ebbed after the collapse of the bubble economy in the 1990s, and a large number of investments were later proved to be blind. More importantly, although many footbath companies have achieved regional globalization in the process of overseas acquisitions, they still appear to be culturally incompatible with Western society.

As for whether the Tianchao Company will repeat the mistakes of the Footbath Company, no one can say clearly now. However, then again, after the economy and the company have developed to a certain level, it is natural to need "extensive" expansion to solve many internal problems

Thinking of this, Arthur's eyes lit up suddenly, and he made a decision. He reached out and patted the negotiation minutes on the desk and said, "That's it, tell them, I bought AMC!"

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