Top of the Great Era

Chapter 1883 Hurry up, the sooner the better

Zhou Buqi stayed in New York for a day.

Mainly study the first version of the plan, I think it is not very reliable.I found two consulting companies to conduct a comprehensive social survey.

Go deep into Queens, visit the local customs, and then visit the council, trade unions, and various civil associations in Long Island City to see the situation there.

In the package agreement with a total value of 16.5 billion US dollars offered by New York, a large part of the resources will be provided by Long Island City, such as land.

New York is for the good of Long Island City and for the development of the local economy.

I'm afraid that the poor will make more troubles. If you take the initiative to help, they will not be happy!

You are right to be careful.

Zhou Buqi didn't use his foresight this time, because he didn't know it, but his cautious style helped him escape.

In the previous life, technology companies launched a vigorous eastward relocation plan to create a second Silicon Valley in New York.The most typical business case is Amazon. At that time, we talked with New York for more than half a year.Finally came up with a super plan, New York will fund Amazon with 30 billion US dollars, and set aside a piece of land in Queens to build Amazon's second headquarters.

It was a good thing.

It is beneficial for all parties.

Unexpectedly, it received strong opposition and unanimous criticism from the local area, especially the black group, which is deeply protected by political correctness, seemed very angry, thinking that it was white people who had invaded their homes.Even Amazon's brand image has been damaged.Later, there was no way, and the project was urgently stopped.

The super real estate project that might have become the landmark of Queens was aborted.

New York is the largest metropolis in the world, but Brooklyn and Queens in New York are poor areas with the worst living conditions in the United States, even worse than many small cities in the fourth and fifth tiers, and their per capita income is far lower than the national average.

The main reason is that the proportion of blacks in New York is too high, and here are the main settlements of blacks.

This is very helpless.

There are some people you can't help even if you try to help them.

China has also provided a lot of assistance to Africa in recent years, such as giving them food seeds, teaching them how to farm, self-reliance, at least they can survive without starving to death.

After the hard training of the expert team sent in the past, I will go to see it a few months later. They are all stupid. How can anyone plant land?The seeds that were handed out were never planted at all, some were eaten up, some were made into wine, and some were simply resold.

Zhou Buqi only stayed in New York for one day.

Mainly, the financiers who heard the news were a little irritable.

The stock price of Changyou has been falling all the way, and now it is only 7.57 US dollars, which seems to be cut in half compared to the issue price.This is simply the biggest junk stock in this year's IPO.

Zhou Buqi is also very helpless.

Changyou can't be blamed for this at all.

The whole industry is like this. During this time, I don’t know what happened. The US stock market is in a collective decline. Game stocks are one of the worst performers. The market value of EA and Blizzard have also plummeted all the way.

The wind direction of the capital market really fluctuates, with east wind blowing for a while and west wind blowing for a while.

However, this is a good thing for Zhou Buqi personally.

If Changyou's stock price plummets, it will be dissatisfied by the capital market.Under such a general situation, it was logical for him to take action to reorganize Changyou's board of directors and management.

For Ziweixing, it is even better.

The financial system in the United States is very developed, and the richer people are, the more they will rely on this system.For example, a very important shareholder of EA, if he is optimistic about the company EA, he will not cash out.But this kind of company doesn't pay any dividends, how can it make money from EA stocks?The most common way is to pledge, holding stocks to borrow money.

If the stock has a face value of $100, you can lend up to $60.

But here comes the problem. Once the stock plummets all the way, it is very dangerous. If the stock price has a trend below 60 US dollars, the bank will force liquidation.

In order to avoid the loss of forced liquidation, there are only two options.

[-]. Supplementary margin;

Second, find ways to increase the stock price.

Therefore, in the US stock market, if a company's stock price plummets, the company's board of directors and management will face unimaginable pressure.

Because the stocks of many important shareholders have been pledged, which is related to their wealth and life.

If the current board of directors or CEO cannot solve this problem quickly, then it is not polite. As soon as the general meeting of shareholders is held, both the chairman of the board and the CEO may be removed.

The most typical example is Disney.

Everyone in the Disney family has mortgaged their stocks, but Disney's stock price continues to slump, and there is no other way.Mr. Disney secretly contacted a large number of people and dismissed the meritorious leader Michael Eisner. Only then did the current CEO Robert Iger take office.

Now, game stocks are plummeting collectively.

The decline was severe.

It has only been less than a month, and only half a month since Changyou went public, the market value of Changyou has dropped by 40%, and other major game companies are also miserable.

Such as EA!

Under such huge market pressure, they must find a way to raise the stock price!

How to pull up?

It's very simple, move closer to the new game trend, step on the wind of the capital market, and capture the opportunities of social games!

On the way Zhou Buqi was flying to London, he received such good news.

Ziweixing International wants to sell the friend's studio.

EA's desire to buy is also very urgent!
The two sides hit it off!
During the phone call, Lu Qi made such an analysis, "This will be a big deal, and it is impossible for EA to spend so much cash."

Although Don Mattrick is the president of the game business department, he should properly avoid suspicion.

The transaction with EA will be led by Lu Qi and reviewed by the executive director Zhen Yu.

Lu Qi said: "If it is a merger and acquisition, there will be a new problem. EA's stock price has fallen severely, much worse than Changyou's. It has been falling for more than a year, and its current market value is no longer as good as Changyou's."

"That was pretty miserable."

"Yes, Changyou is still stepping on the trend of online games. This is the trend of games in the previous era. EA didn't even keep up with the trend of online games. Its main business is still large-scale software games, and it makes money by selling genuine games."

Zhou Buqi frowned slightly, "What does this have to do with us?"

Zhou Shaoning said: "If the current stock price standard is used to acquire Friends Studio, this deal will be difficult to achieve. Everyone knows that EA is fine, their performance has not declined, and the stock price has fallen only because of the wind direction of the capital market."

"What's the reason?" Zhou Buqi was not satisfied. "The stock price is a reflection of the real-time value of a company. Don't give me that. If you win the friend's studio, you can help EA step on the trend of social games. We can help them complete their strategic transformation!"

"Uh..." Lu Qi felt a little helpless, "The current game industry is really changing rapidly."

"Ok?"

Zhou Buqi heard that there was hidden deep meaning in his words.

Lu Qi said: "The industry is in a downturn. Last time, Mattrick said that Zynga was going to apply for an IPO in July. Just now, he came to me again and said that the situation has changed. They may have to advance the IPO time to May."

"Ah?" Zhou Buqi was a little surprised, "Is it too late? There is more than a month left, and today is... It's April Fool's Day, are you kidding me?"

Lu Qi didn't know whether to laugh or cry, "How is it possible? I'm very serious, this is serious."

"That is how the matter?"

"It should be the impact of the general environment. The financial market in the United States has been severely hit, and they can't afford it."

"Financial market?" Zhou Buqi immediately thought of something, and was taken aback, "Don't tell me it's the European debt crisis!"

Lu Qi said: "Yes, it's the European debt crisis. It might be another global financial crisis, which has already spread to the United States. Once the financial market is hit, the entire stock market will be severely setback. Zynga should be I can’t wait, I want to go public early, before the impact of the European debt crisis spreads, hurry up and get the money in IPO.”

"It's complicated enough."

Zhou Buqi quickly understood the meaning of these words.

Now, Zynga is the bellwether in the field of social gaming. If Zynga is doing well, all social gaming companies are doing well; if Zynga is doing badly, they'll shut down collectively.

Zynga's listing plan has encountered minor troubles. Affected by the European debt crisis, Zynga's IPO is ahead of schedule... Can it still get a PE of 45 times?
In order to successfully go public as soon as possible, Zynga will definitely take the initiative to lower the price.

Once Zynga lowers the PE, it means that Friends Studio will also lower it, and the valuation will shrink significantly...

Lu Qi said: "We have two choices now, you have a look. First, like Zynga, sell your friend's studio as soon as possible before the impact of the European debt crisis spreads; second, wait. Wait for this The shock of the European debt crisis has passed, the market has recovered, and then the friend’s studio will be sold. I believe that it will not be long before the Federal Reserve will introduce stimulus policies to rescue the financial market.”

Obviously, Lu Ji is a very good professional manager.

He dissected the complex issues one by one, and then gave the simplest result.

Two roads, how to choose?
Emergency price cuts?
Or keep calm and wait for the market to recover before making a move?

The chairman makes decisions and the president executes them.

Zhou Buqi didn't know much about the situation in the game industry. Anyway, after hearing Lu Qi and Don Mattrick talk about it, he found it very complicated.

Thinking about it carefully, this is also normal.

Because I don't understand, it feels complicated; if you understand the game industry like you understand the Internet industry, it will be very simple.

It just so happens that social games do not belong to the game industry, but to the Internet industry!

Zhou Buqi didn't quite understand what was going on.

"Shoot! Let's do it now!" Zhou Buqi made a decisive decision, "I am not optimistic about the social game market at all. The era of mobile Internet has come, and mobile games are the way out of the game industry! The social game industry may collapse at any time , Hurry up, the sooner the better!"

(End of this chapter)