America: My Time

Chapter 378 The Enemy's Retreat

Chapter 378 The Enemy's Retreat

The profits made the Japanese lower their guard against John, making them feel that such cooperation was beneficial and harmless. They could not only gain experience through the construction of John's refinery, but also obtain the profits they wanted and increase the output of Japanese products. It was because of this series of benefits that those guys were so crazy about building John's refinery with all their might, even though the construction period was very tight, they had no complaints.

In the eyes of these Japanese guys, this is a model. As long as this oil refinery is successful, all of John's projects in Asia will fall into their hands. That's why they are so determined to accelerate the construction of the oil refinery in Chiba Prefecture. Profit determines and drives everything.

John was fully aware of the schemes of the Japanese and was willing to accept them, because in the end they would realize that while the Japanese might benefit, John would never lose out. As long as he timed things right, the Japanese would be insignificant. After the Plaza Accord, they would understand how much John had gained in this cooperation.

While the United States was frantically discussing how to deal with John's rapid expansion, John had already arrived in Taiwan to thoroughly understand all the plans there. Although someone was watching, this was related to the next steps, and John dared not be careless. Whether it was the oil refinery or ASUS's expansion, everything had to be done flawlessly.

How can we get more loans from those guys in Japan? The construction of the oil refinery is the best excuse, but the think tank has not yet given a satisfactory answer, and the investigation is still ongoing.

During his trip to Taiwan, John met with Angela, the CEO of Mandarin Oriental Group, to learn about the group's current situation. While the previous rapid expansion had boosted Mandarin Oriental Group's strength, its debt was also increasing, raising questions about whether it could continue to sustain itself.

"Boss, the Mandarin Oriental Group's debt has reached its limit. It's very difficult to increase it further unless you can invest more funds. If we rely solely on Mandarin Oriental's current capabilities, we can barely sustain ourselves for five years. We've expanded too fast in Japan, and the pressure is too great. If the shopping mall in Roppongi, Tokyo, hadn't been completed, our pressure would be even greater. However, we can't guarantee that it will operate normally and bring substantial returns to the company!"

"Five years is enough. It may seem like a crazy expansion to us, but behind it is our control over real estate. We are not a local Japanese company, so the resources we can get are limited. If we hadn't cooperated with companies like Sony and Sanwa, we wouldn't have been able to complete our expansion in major Japanese cities and our shopping mall plan. As long as we can complete everything by the end of next year, it's not a problem. As long as we have enough profits to repay the loans, that's enough."

John paused here, then continued, “However, you have a point. We can’t put all our hopes on shopping malls. While they can certainly bring us substantial returns, there are risks if the overall environment changes. What we need is a strategic layout. The hotel sector is almost fully integrated, and the pressure on shopping malls isn’t too great right now. We need to accelerate our pace. Japan can no longer be the focus. We need to expand in the US. Real estate expansion carries certain risks, and we need to avoid those risks. Restaurants are a good option. From now on, we’ll shift our focus, temporarily leaving shopping malls and turning to restaurants. Inform Morgan and let them help us make the choice! We can’t put all the Mandarin Oriental Group’s development on hotels and shopping malls. It’s time to make a change!”

John didn't see anything wrong with making this change. It was his way of retaliating against those old guys like Rockefeller. John wanted to see if they would continue to follow suit, continue to block his acquisition, or even participate in it. If so, John would be very happy, because it would mean that some of the old guys' funds would be depleted, and his chances would be even greater.

John is currently engaged in a war of attrition with those old guys. The question is whether they will follow John's initial expansion. If they do, John can gradually lure them into a trap and deliver a fatal blow.

After communicating with Taiwan, Far Eastern Air Transport quickly completed the acquisition and entered the integration process. As for Lion Air, they finally couldn't hold on any longer. With the establishment of Ryanair, they realized that their plan to demand a high price was impossible and had no choice but to agree to the acquisition.

When John heard the news from Carroll, he was taken aback. He had thought these guys could hold out longer and drag those old guys into a larger expansion. Now it seemed that he had overestimated the old guys' perseverance. John's plan was to use the expansion of aviation to bring Rockefeller and other old guys into the game, since they controlled most of the airlines in the United States.

Unfortunately, the old fogies like Rockefeller backed down at the crucial moment, choosing not to continue the fight against Pan Am. This left John slightly disappointed, as their retreat at this juncture meant many of his calculations were thwarted. However, this wasn't a major problem. The aviation market was intensifying, and those old fogies wouldn't be in a good position. As long as the American conglomerates hadn't completed their takeover of Japan, his plans wouldn't be significantly affected. John was now racing against time; as long as he could outrun time, everything would be fine. Just like his arrangements for the Mandarin Oriental Group, as long as he could outrun time, he could achieve a qualitative leap.

As long as he can get out of the neon bubble before it bursts, everything is fine. So even though the Mandarin Oriental Group is now heavily indebted, John doesn't think there's anything wrong with it. In many people's eyes, John is just teetering on the edge of death. But they only see the surface and don't see the deeper calculations hidden there.

Mandarin Oriental Group's cash flow is indeed tight, but Japanese real estate is constantly rising. The Roppongi shopping center alone has appreciated significantly. Such large shopping centers are good at preserving value, at least for now. It is precisely because of this favorable situation that more Japanese companies are investing in real estate, accelerating the changes in Japan.

"Xizhao, how is the television station in Taiwan developing these days? You don't have much time left. Once the communications satellite is successfully launched, we will establish our own satellite television station, and the heavy responsibility of the Chinese-language television station will fall on your shoulders. Hong Kong alone cannot bear this burden. Moreover, the television station will be renamed 'Asia Television' at that time. We absolutely cannot relax in Taiwan. We must increase our efforts and ensure the quality of both actors and other staff!"

"Boss, we've already signed some actors from various schools in Taiwan. Although we can't compare to the three major TV stations in Taiwan yet, our strength isn't too far behind theirs!"

"That's good. Phoenix Group is also completing its integration. You will host the Chinese-language television station. In the United States, we will have our own Chinese-language satellite television station to enter the market and seize market share. We will make the same arrangements in Europe, and the whole of Asia will also be part of our expansion."

Upon hearing this, Huang Xizhao gasped. It was too unexpected; his boss's plan was insane—to completely dominate the Chinese-language television market. While Hong Kong dramas were highly valued in Southeast Asia and could fetch substantial prices, they were insignificant compared to the advertising revenue of television stations. If television stations were to fully transform into satellite television stations, covering all of Asia, the value would be immense. With expansion into North America and Europe, the market value would skyrocket.

Of course, listing the TV station on the stock exchange is impossible. John won't make such a decision, at least not now. It's one of his most important assets, so how could he easily let others have a chance to get their hands on it?

"Boss, there's one more thing. Paramount now owns ABC Records, and they want to enter the Chinese music scene. They've asked for our help. What should we do about this? We've always worked with Universal Music before."

"We should do our best to help them develop. Phoenix Group also needs to get involved in the record industry. However, Paramount shouldn't control the Asian record sector. The television station should take over, and we can merge them once we've both developed to a certain extent." After thinking for a moment, John decided to continue expanding in the record industry to accumulate more copyright power for the future.

Relying solely on Legendary Entertainment will make it difficult to overwhelm all competitors in future expansions. When MP3s emerge, Sony will likely become restless, and it will be impossible to rely on Sony's strength at that time. Therefore, having another record company would benefit Phoenix Group's development and its semiconductor strategy.

John has made numerous arrangements and preparations in the semiconductor and communications sectors, precisely to avoid being held hostage or controlled by others at crucial moments. Now is the best time. Many believe that Phoenix Media's acquisition of film and television rights is merely for expansion in the VCD market, and it has indeed made a considerable profit. However, John has a deeper strategy in mind; this is just the beginning. Phoenix Media has also acquired the rights to some older records and those from smaller record companies. It can be said that Phoenix Media now possesses an astonishing number of copyrights, though at a great cost!

(End of this chapter)