America's No. 1 financial conglomerate

Chapter 674 Are you kidding me?

With Google's IPO approaching, it seems like everyone, good or bad, wants to get involved and make a profit.

The Wall Street giants who wanted to discuss underwriting issues with Ernst were all brushed off by him with the excuse that James Hamilton was in full charge.

Now, Madoff and his group have also set their sights on Google, something he hadn't anticipated before he arrived.

It seems they chose the wrong target, or perhaps they were scared off by Ernst.

"My principle regarding Google shareholders has always been that the more the merrier."

This market is big enough that it can handle any investment that comes its way.

"But the problem is, this timing, whether before or after the IPO, doesn't seem like a good choice, does it?"

In accordance with Nasdaq's listing regulations, with less than a week remaining before Google's official listing, Google has now entered a strict IP quiet period.

During this special phase, while financing activities are not completely prohibited, targeted financing is permitted, which is commonly referred to in the capital market as the "final push."

However, the company, underwriters and related parties are not allowed to release any publicity, roadshow or non-public information related to financing, and can only connect with relevant institutions and investors through private one-on-one communication.

That's not the key point. The key point is that there's a Nasdaq 20% rule for financing now. That means if the shares issued in the IPO account for more than 20% of the total share capital before the issuance, the final price must be higher than the issue price or valuation.

Otherwise, they will face an investigation by the SEC and a vote by all shareholders.

Neither of these two options can be approved.

If the SEC starts investigating, Google's IPO will be delayed, which Ernst simply cannot allow.

Even if the other party has great power and manages to get through the SEC, enabling Google to successfully go public, it's impossible to secure support from all shareholders.

Those hyenas on Wall Street won't let you in to pick up bargains, even if your son is sitting in the White House.

After listing, financing typically takes place after the 180-day lock-up period ends.

There is no mandatory requirement that targeted financing cannot be carried out before the lock-up period ends.

However, liquidity is low at this time, and if financing is required, it will lead to weak investor confidence and high discounts.

It's impossible for investors to secure targeted financing from you unless they offer a premium that's significantly higher than the stock price.

Therefore, whether before or after the IPO, Ernst believes that buying Google stock is not a good option for these people.

Bryce said calmly and casually, "It's okay, we can raise funds at a premium. We'll handle the SEC. I don't think any of the shareholders will refuse." Raising funds at a premium without affecting the IPO, of course, the shareholders wouldn't refuse.

But you haven't even asked about the price, and you're already asking for funding? Isn't that a bit too... overconfident?

Did the ease with which you used to eat make you think that doing business was too easy and that you were a god of commerce?

Don't you have any idea how you got all those businesses?

"But Google's IPO price is very high." Ernst suppressed a laugh.

He understood the other party's thinking: they believed that Google's stock price would rise significantly after its IPO, and even if they acquired shares now at a price higher than the IPO price, they could still make a profit.

Thinking of this, he looked at the other people in the room.

Ron Berkel, CEO of private equity giant Yucapa, is deeply connected to the Laugh Tale family.

After leaving office, Laughlin worked as a senior consultant at Yukapa, earning $15 million over five years.

Berkel also provided Richardson with private jets and high-end social resources, while also connecting him with global capital and government resources to expand investments in retail, real estate, and other fields.

Doug Becker.

This man is not well-known, but Ernst knows him. His Laureate Education Group, founded last year, will become one of the world's largest higher education giants.

This is a typical political and business alliance. Through the Lackey family, it has obtained hundreds of millions of dollars in investment from the World Bank on multiple occasions. After Lackey stepped down, he served as the honorary principal of Laureate University and took away $1750 million over five years.

Aside from these two, Ernst wasn't very familiar with the others, but he figured they were, like the two of them, the closest and most deeply intertwined business partners of the Ralphton family.

He remembered, there was also the Hearst family, a key ally and financial backer of the other side.

I just don't know why it's not here.

"As I said, we are here with the utmost sincerity to participate in Google's funding round. We are confident and capable of offering a satisfactory price to all Google shareholders," Bryce said, still looking confident and even somewhat excited.

Ernst looked at the gleam in his eyes and wondered to himself if this was his first time participating in such a large-scale business negotiation.

Ernst slowly adjusted his posture, leaning back completely into the soft leather sofa, his hands resting naturally on the armrests. He looked calmly at Bryce and asked with a hint of amusement, "Are you sure?"

"Of course." Bryce nodded without hesitation and said firmly, "We are fully prepared. In terms of both financial strength and the resources we can provide to Google in the future, I think we are qualified to become a strategic shareholder of Google."

Ernst chuckled inwardly, but maintained a calm demeanor on the surface.

Without knowing Google's true offering price, all confidence and sincerity are just castles in the air. I wonder what their expressions will be like later.

He didn't answer the other person, but instead turned his gaze to Madoff on the other side. "Mr. Madoff, let's talk about the acquisition of Madoff Securities first." As for Ernst Asset Management, he didn't need to worry about the asset management and private equity sectors. Once the financial report was released, a lot of people would entrust their money to Ernst Asset Management for management and operation.

In the hedge fund sector, Ernst Asset Management's acquisition of Long-Term Capital Management made it one of the world's largest hedge fund companies, giving it significant influence in global financial market hedging transactions.

The weakest point is market makers.

In the financial market, market makers are an important bridge connecting the capital market and listed companies. For a company that wants to become a financial giant, lacking strong market maker business support is like missing a crucial leg.

Madoff Securities has deep experience in the market maker field, a mature trading team, and extensive market channels. Once the acquisition is completed, Ernst Asset Management will not only be able to quickly make up for its shortcomings in the market maker business, but also leverage Madoff Securities' resources to become one of the top players in the US market maker field.

With its previous status as a primary dealer at the Federal Reserve, Ernst Asset Management has officially entered the ranks of financial giants.

"No rush, this is something we've already decided on, there won't be any changes," Madoff said softly.

What a hypocrite! If Wall Street hadn't abandoned Bill and PayPal hadn't become the dominant player, would you have been so eager to come to us?

However, seeing how diligently Christy served him, Ernst still gave her some face.

"Alright then." Ernst's gaze returned to Bryce, a smile playing on his lips. He slowly said, "If all goes well, Google's offering price will be set at $385 per share. How much are you all planning to bid for this funding?"

It has to be said that Americans' math skills are a real weakness.

Even these elites had to mentally calculate for a while. A minute later, Ron Burke was the first to react. He looked up abruptly, his eyes filled with disbelief, and exclaimed, "$385 per share, a market capitalization of over $5000 billion?"

"What? $5000 billion?"

"How is this possible? This is higher than Microsoft's market value."

Upon hearing Ron Burke's exclamation, the others looked up, their faces also showing shock, and they all turned their gazes to Ernst, as if to confirm the truth of the number.

Ernst, meeting the shocked gazes of the crowd, slowly nodded. "That's right, everyone, you haven't miscalculated, that's the price."

These weren't the only people eyeing Google. Back in Boston, Massim had the same idea: to use Google's IPO to make some extra money for the Boston consortium.

However, upon hearing the issue price Ernst quoted him, he immediately looked constipated, just like the people in front of him now.

Even with estimates of $5000 billion, few truly believe that Google can surpass Microsoft to become the world's largest company, at least for now.

At this price, they wouldn't dare to finance at a premium, let alone at par.

Given Google's size, even the billions of dollars they raised would only be a tiny fraction of their total equity.

A single downturn could result in heavy losses for them.

"Are you kidding me?" Bryce asked, not believing it was true. "Do you think I would?" Ernst said with a laugh.