America: My Time

Chapter 174 Morgan's Concerns

Chapter 174 Morgan's Concerns
“Boss, John is really insane. Maybe he’s gone completely off the rails. Putting aside his investments in China and how outrageous his promises were, now that he’s taken over Lanai Island, he’s done something even more insane. The entire island has turned into a huge construction site in just a few days. His Jaguar Security Company has taken over the whole island. They’re not only building an airport, but also a hospital, a golf course, and even extremely luxurious villas. Even the Chinese designers in Hawaii are shocked. I really don’t understand what he’s trying to do. If I keep watching like this, I’m afraid I’ll go crazy first. Can you find someone else to take care of him?”

“Jimmy, replacing him won’t work. You have a good relationship with John, and replacing him would affect Morgan’s interests. Don’t worry, after Nvidia and Dreamworld raise funds, I’ll arrange a long vacation for you so you can completely relax! In your opinion, what is John trying to do? Those old guys’ move to release Sikorsky makes me a little confused about John. I always feel like there’s something wrong, but I can’t figure it out!”

“Boss, I really can’t figure out what he’s thinking. In terms of scale, Lanai Island is almost completely being transformed. The security personnel say that Lanai Island will be turned into a resort, but what resort has such a powerful security force? His security company will have a small number of personnel stationed there, not only Black Hawks, but also armored vehicles. If it weren’t so luxurious, I would have thought it was a security base! The investment alone is astronomical. If it’s a resort, when will it recoup its costs? As for his changes, they are indeed a bit strange. He just had a turmoil with the British, and now he wants to acquire Princess Yachts from England!”

"Cars, yachts, airplanes, what's this kid up to? Does he really have a knack for manufacturing?"

"I'm not sure, but I have a feeling this kid has a big plan in mind. He definitely won't give up on manufacturing easily. Not only is he building production centers in Europe, but he's also investing heavily in China. The production lines are all state-of-the-art, and the cars are designed with the latest technology. He's not trying to fool China with outdated technology. It's hard to believe he doesn't have faith in car manufacturing. If we look at his plans for the automotive industry, his plans for aviation might be a crazy one. Perhaps we should prepare in advance, learn about airlines, and recommend them to him when the time is right!"

“That’s a good idea. It’s necessary to prepare in advance. The Sikorsky incident put us in a very passive position this time. But I don’t understand why this kid is so optimistic about Japan and has such an amazing investment there. Japan’s economy is good, but he couldn’t possibly be unaware of the trade issues between Japan and the United States!”

"Boss, I always feel that this kid's plans are a bit too crazy. He borrowed such a large amount from Japan, isn't he afraid of having problems with his cash flow? Building three major properties in Japan, this is too crazy, and he's still investing continuously. Building a resort hotel in Japan, I just don't understand, does Japan really have such a big market? And Bentley also acquired Mitsuoka Motors, a luxury car sales company in Japan. It seems that his perception of Japan is really extraordinary!"

"Do you think he might be planning to enter the real estate industry? You know how much he's investing in Japan and his presence in New York. He owns almost all the buildings around Times Square and is even planning to acquire the Empire State Building and the Corlesler Building. It's clear he's aiming to enter the real estate market."

"Boss, I think it's unlikely, at least not in the short term. He doesn't have that much capital. Even if the Japanese bank can provide him with enough support, there will still be pressure even with a low loan interest rate. His companies have limited repayment capacity. Unless he is willing to give up control of the game world, dream world, and Nvidia, there is no way he can have enough funds to support such a crazy expansion."

The Southern Company in the retail sector is expanding rapidly, with the phenomenal growth of 7-Eleven convenience stores. Moreover, a new voice within the Southern Company is advocating for the creation of a new brand, Dollar Tree, targeting the poor – this requires substantial financial support. Then there's the automotive sector, which also demands significant investment. The Mandarin Oriental Group, along with hotels, shopping malls, and large amounts of real estate, all require substantial capital. Now there's Lanai Island, yachts, and aviation, not to mention the capital-intensive Bell Labs. According to our calculations of his cash flow, this has already reached its limit. Further expansion could lead to a break in the cash flow, because neither his Phoenix Group nor Legendary Entertainment can provide financial support to the other industries!

“Jimmy, are you sure Legendary Entertainment and Phoenix Group can’t provide John with financial assistance in other businesses? This is no small matter. Given the profitability of Phoenix Group and Legendary Entertainment, this shouldn’t be the case!”

“That is indeed the case under normal circumstances, but these two groups are also expanding at a frenzied pace, as is his Forever Group, which is consuming an astonishing amount of funds and is expanding almost across the board. Phoenix Group did not stop after entering the United States, acquiring DC Comics and expanding its retail business, leaving it with no funds available. Legendary Entertainment is in a similar situation.”

"In other words, this round of financing from Nvidia and Dreamworld was to alleviate the pressure on their cash flow. So why is he still insisting on acquiring Sikorsky, continuing the frenzied construction on Lanai Island, and forcing the Forever Group to go on a buying spree of luxury brands in Europe? Does he really believe in the entertainment and luxury goods industries? If he invested all these funds in one area, he could have built a huge and powerful business. There's no need for such diversification. His investment in hotels is truly incomprehensible." Not only Morgan couldn't understand it, but even the bigwigs in Japan couldn't understand why John was expanding in this area. They saw no possibility of profitability; Japan simply didn't have such a large consumer market for resort hotels.

Although it's 83, Japan hasn't yet entered the frenzy of the bubble economy. People are still consuming rationally. Naturally, no one can understand John, nor could they know how crazy Japan would become after the Plaza Accord, or how luxury goods would flourish there. Not only would resort hotel consumption be booming, but yacht clubs and golf courses would also become incredibly popular, deeply loved by the Japanese people, making those businesses extremely wealthy.

During the bubble economy era, luxury cars were everywhere in Japan. If you told Japanese people this, they wouldn't believe it themselves, at least not yet. But after the Plaza Accord, everything will change dramatically.

"John's investment is indeed puzzling, especially his involvement in Japan. It's as if he has an inexplicable confidence in the Japanese economy, a confidence that even the Japanese themselves don't possess."

“Perhaps we should have a good talk with John and find out his true thoughts. If we let this kid continue to expand so recklessly, no one knows what will happen. If his cash flow dries up, we'll be in big trouble. I don't want to lose such a valuable client. It's very important for us to figure out what he's thinking and what his plans are! Jimmy, pack your things and go to Tokyo yourself to meet John and find out his ideas!”

Jimmy was extremely distressed about his boss's demands. To be honest, he really didn't want to see John. It was too much of a blow, and it was incredibly painful and torturous for him, both physically and mentally. In his mind, it was a miserable job!

What John is doing in Japan is making great strides in entertainment. He's in talks with the Recording Industry Association of Japan and the Music Copyright Society of Japan to create the Japan Gold Disc Awards and the JASRAC Awards, all to be organized by TV Tokyo. TV Tokyo is making great strides in entertainment these days, but it lacks its own prestigious music awards!
The rapid growth of TV Tokyo caused headaches for Japan's other four major commercial broadcasters. They initially thought that even with more time, TV Tokyo wouldn't threaten their viewership. However, everything changed after TV Tokyo changed hands and shifted its focus entirely to entertainment. After a brief period of turmoil, TV Tokyo quickly got back on track. Instead of investing heavily in news, it concentrated its funds on entertainment, resulting in a rapid increase in the quality of its programming.

With high-quality programs, TV stations naturally attract more viewers, making it easier to attract talent. In a short period of time, TV Tokyo underwent a dramatic transformation, no longer the poorest, least popular, and most dilapidated of the five major private broadcasters. The development of the TV station also brought huge benefits to elite agencies, at least in terms of publicity.

Just as John was helping to plan the entertainment strategy, Mitsui Bank finally brought good news: the acquisition of 7-Eleven in Japan was successful. From now on, the 7-Eleven brand was completely under their control. With 7-Eleven convenience stores in hand, they received strong support in both the weekly distribution of Phoenix Comics and the release of records.

Compared to record stores and comic book stores, 7-Eleven has more than ten times the number of them, making them incomparable. With 7-Eleven, the last weakness in Japanese entertainment has been addressed, and even if Japan were to become enemies with Sony in the future, there would be no need to worry about sales issues.

Today, 7-Eleven convenience stores are inconspicuous and no one pays attention to them. After all, the Japanese economy is growing rapidly, and convenience stores are naturally not valued. But when the bubble economy ends, everything will be completely different! The successful acquisition of 7-Eleven has made up for its last deficiency in Japan, and the retail layout has been improved with the help of 7-Eleven.

(End of this chapter)