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Chapter 600 Good News Arrives One After Another

Monday, December 24, 1998.

The Nasdaq Stock Exchange opened its first trading day of the new week, which also happened to be Christmas Eve, a traditional Western holiday.

According to exchange regulations, today's trading session will be significantly shorter than usual. The U.S. stock market will officially close at 13:00 p.m. Eastern Time, and the exchange will be closed on Christmas Day.

At this time of year, Wall Street traders should be enjoying a moment of relaxation as they wrap up their busy year-end work.

But this year's Christmas is destined to be anything but peaceful.

In the early morning, the front pages of major financial media outlets and online news portals were almost simultaneously dominated by a single news item.

That is, Ernst was invited to attend a private party hosted by Citigroup CEO Sandy Weir, which sparked widespread speculation and heated discussion in the market.

Given the current situation within Citigroup, and the massive short-selling operation previously spearheaded by John Reed against YueDong Games, the company is facing unprecedented huge losses.

As YueDong Games' stock price continues to rise against the trend, John Reid's short positions are facing ever-increasing unrealized losses, leading many to speculate that his influence and position within the group are thus in jeopardy.

It's practically an open secret that Sandy Weir and John Reid have long had many disagreements over the group's strategic direction and power distribution.

Does this mean that the balance of power in Citibank's internal struggle has completely tipped in Sandy Weir's favor, and John Reed will be ousted as a loser? Sandy Weir's invitation to Ernst was likely an attempt to negotiate and help Citibank quickly liquidate its positions, stabilize internally, and have a good year ahead.

In addition to this news, media outlets also captured images of Wall Street investors visiting the headquarters of YueDong Games during the two-day market closure and holding closed-door meetings with the company's core management team.

Although neither party has disclosed any information about the content of the talks, the act itself is enough to spark endless speculation in the market.

Since Leap Games is willing to talk, it means that both sides have the desire to end this battle between bulls and bears.

In his mansion in Central Park, Ernst sat at the dining table, with the latest editions of mainstream financial media such as The Wall Street Journal and the Financial Times at his side.

The breakfast on the table was exquisite and plentiful, the silver cutlery reflecting a soft luster in the sunlight, but Ernst's attention was clearly more focused on the newspaper in his hands.

He flipped through the reports about Leap Games, page by page, as well as the various positive interpretations and comments from market analysts, and a meaningful smile involuntarily crept onto his lips.

"Are they trying to stabilize the stock price and induce retail investors to sell?" Ernst tossed the newspaper he was holding onto the table and muttered under his breath, his tone carrying a hint of barely perceptible sarcasm.

The tricks of those Wall Street institutions are really too clumsy. They actually tried to influence market sentiment by releasing ambiguous information, so as to cause retail investors to panic sell and institutions to take the opportunity to close their positions.

"That's just wishful thinking, pure fantasy." Ernst slowly shook his head, picked up his knife and fork again, and put the sausage from the plate into his mouth.

So what if retail investors sell off their shares? What use are those shares to them anyway?

The number of shares shorted on Wall Street has been determined, to be around 6000 million. Retail investors, on the other hand, hold less than 12% of the shares, less than 2000 million.

Some institutions might be able to liquidate their positions, but over 90% of institutions will not be able to buy enough stocks to liquidate their positions.

He chewed a few times, then looked up at Daphne Barnes, who was standing on one side of the restaurant.

"Make arrangements immediately. Have someone release two messages to the market. Say that I will not agree to close out Citigroup's short positions at a low price, and that negotiations between some Wall Street institutions and YueDong Games are not going smoothly, with the two sides having an unacceptable and huge disagreement on the price."

"Okay, I'll take care of it right away," Daphne Barnes replied respectfully, without any further words, and quickly turned and left the restaurant.

Nasdaq pre-market auction.

Influenced by the media, market funds showed a brief hesitation, and the stock price increase of YueDong Games slowed down significantly compared to the previous few trading days.

Just as market sentiment was becoming slightly cautious, MGM's CBS News channel suddenly broadcast an emergency news report, providing a comprehensive coverage of the two announcements made by Ernst.

The effect was immediate; market funds instantly poured into YueDong Games' stock.

The bidding curve, which had been slowing down, suddenly surged almost vertically, forming a powerful bullish candlestick, as if injected with a shot of adrenaline.

Then, just like the opening scene of the previous two trading days, the sharp fluctuations in stock price triggered the Nasdaq exchange's automatic suspension mechanism, and trading was forced to be temporarily suspended.

Before anyone could react, YueDong Games suddenly released a major announcement simultaneously through the NASDAQ Stock Exchange's announcement system and the company's official website, pushing market sentiment to a new climax. The announcement stated that YueDong Games officially announced that it would hold the first Global Electronic Sports Championship (EC) in May 1999.

It encompasses eight top global game IPs, including Counter-Strike, StarCraft, The Legend of Zelda, and NBA 1998, aiming to create a truly global esports extravaganza for gamers.

Almost simultaneously with the release of the official announcement from YueDong Games, CNBS Finance Channel quickly followed up, not only broadcasting the full text of the announcement but also reporting on the specific details of the event arrangements.

This includes core information such as the competition schedule, eligibility criteria, and competition rules.

Of all the details disclosed, the most eye-catching and market-shaking is undoubtedly the total prize money of the event, which is as high as $100 million.

As a flagship title from Yuedong Games and a phenomenal game with the largest global player base, Counter-Strike has become the core project of this tournament due to its highly competitive and entertaining nature.

The total prize money exceeds $30, with the champion team taking home a massive $20 prize, while the runner-up and third-place teams will receive $5 and $3 respectively.

"My God!" Whether in the trading floor of Wall Street or in gamer communities around the world, almost everyone who saw this news and announcement couldn't help but gasp and exclaim in disbelief.

In the current mainstream societal perception, games are considered a pastime for young people, something that is not considered refined or elegant.

To those who don't understand, Leap Games' decision to spend $100 million to host a gaming competition is undoubtedly crazy and incomprehensible.

However, for gamers worldwide, this news was nothing short of a nuclear bomb that ignited their passion.

Playing games is considered a waste of time? Who dares to say now that playing games can't make you rich?

What were game competitions like in the past?

Spontaneous organization, small in scale.

The vast majority of competitions are organized by game developers or small gaming communities, and the prizes are often just simple game merchandise, limited edition game discs, or a certificate of honor, with almost no substantial cash rewards.

Esports competitions with real cash prizes have only started to emerge in the last two years, but their scale and prize levels are worlds apart from those of the EC tournaments hosted by Jump Games.

Previously, the highest prize money tournament in the industry was the StarCraft competition in the third quarter of PL, which just ended in November.

The total prize money is only $4.5, with the champion receiving only $1.3.

However, the global esports championship launched by YueDong Games has directly increased the total prize money to $100 million.

Fueled by this major positive news, after trading resumed on the Nasdaq Stock Exchange, YueDong Games' stock price soared like a runaway horse, with buy orders heading straight for the $540 mark.

But that's not all.

At 11 a.m., one piece of good news after another arrived.

First, Sony announced that its PlayStation series game consoles would come pre-installed with the pre-registration portal for the DynaGames Global Esports Championship. Following closely behind Sony, Blizzard quickly followed suit with a major collaboration announcement.

The announcement stated that Battle.net, Blizzard's global gaming platform, will add a dedicated section for the Blizzard Global Esports Championship.

At noon, YueDong Games released another major announcement, declaring a deep strategic partnership with MGM.

According to the cooperation agreement, YueDong Games sold the exclusive broadcasting rights of the Global Esports Championship to MGM for $300 million per year.

MGM will broadcast the entire event live through its cable television network.

Everyone was stunned. They thought that YueDong Games was throwing money at this competition for publicity, and then you turn around and tell me you've already made your money back?

However, there are also doubts in the market, with some questioning whether MGM is helping YueDong Games gain popularity, since the two companies are owned by the same person.

But the tables turned quickly. Less than half an hour after YueDong Games and MGM reached a cooperation agreement, a message from PepsiCo once again made the market boil.

PepsiCo suddenly announced through official channels that it has officially become the main sponsor of the Leap Games Global Esports Championship for $120 million.

According to the sponsorship agreement, Pepsi will acquire a series of rights, including the official naming rights of the event, GG display at the venue, and sponsorship of player apparel.

At the same time, Pepsi also announced a partnership with MGM, becoming the exclusive beverage brand GG during MGM's gaming event broadcasts for $180 million.

This means that no other beverage brand's GG will appear during any of the broadcasts of the games by MGM; Pepsi will exclusively enjoy the GG exposure brought by the broadcasts. Pepsi's entry into the market acted like a shot in the arm, instantly shattering all market skepticism.

Almost immediately after PepsiCo announced the partnership, YueDong Games' stock price surged again, breaking through the $600 mark and continuing its unstoppable upward climb.

Although there were some scattered orders in the market, they were far from enough to satisfy the short-selling institutions at this time.

Nasdaq closes at 1 p.m.

Yuedong Games has issued another announcement, joining forces with eight major game companies including Sony, Nintendo, Blizzard, and EA to create a game industry awards ceremony.

The gala will be held concurrently with the Global Esports Championship, aiming to recognize outstanding games, exceptional game developers, and top gamers of the year, creating an Oscars-like event for the gaming industry.

Upon hearing the news, retail investors who held shares in YueDong Games were filled with regret and despair, realizing for the first time how much they hated Christmas Eve and Christmas Day.

If the market hadn't closed early today, YueDong Games' stock price would definitely have broken through $700.

If the market opens tomorrow, it would not be surprising if YueDong Games' stock price breaks through $800.

Just as retail investors were lamenting the missed opportunity to rise in stock prices due to the market closure, at 3 pm, YueDong Games presented an unexpected Christmas gift to all game fans around the world, reigniting the enthusiasm across the internet.