Chapter 471: Private placement
Dunn could have predicted that Jobs would make up his mind to break with Michael Eisner completely.
But he really did not expect that Jobs would break the boat and sell Pixar to Dunn Pictures!
For Pixar, Dunn has been coveting it for a long time, and has long wanted to take it in. This is the top animation studio in the world today!
Not only that, Pixar also has a strong software development department. Many applications of Pixar animation are independently developed. Even the current mac computer interface and the usdz format in the future AR experience are all products of cooperation between Apple and Pixar.
Pixar is especially good at post-processing of videos and beautification of visual effects. When streaming video is launched in the future, it will be a valuable asset. Combined with Netflix, it will complement each other.
"Steve, to be honest, your decision is shocking!" Dunn said sincerely.
Jobs looked at Dunn lightly, "I'm still saying that, buying out the contract is not good for me, but I don't want to make Michael Eisner feel better, so... only you can do it for me."
Dunn is funny and angry.
A unilateral buyout of a contract, even if it complies with legal procedures, will have a bad reputation in a Western culture that values integrity.
Jobs had a bad reputation at Apple and was kicked out of the board by a shareholder meeting controlled by Wall Street. Now, he was bitten by a snake a little bit, and he has been afraid of the rope for ten years.
Not only wanting to fight back against Michael Eisner, but also not wanting to ruin his reputation, Jobs sold Pixar to Dunn, which was indeed a wishful thinking.
If Pixar is in Dunn's hands, will the distribution agreement between Pixar and Disney still exist?
Jobs wanted to borrow Dunn's hand to teach Michael Eisner a lesson!
Dunn was of course happy, "Okay, I understand what you mean. I am the second largest shareholder of Pixar, owning 15% of the shares. To be honest, one day, I will buy Pixar, but I didn't expect this day. It came so fast."
Jobs said: "In the past few days, I have communicated with shareholders, and I told them that I will no longer have any dealings with Disney! Pixar's cartoons will be removed from Disney's list! But they objected my decision."
Dunn smiled and said: "But you are a major shareholder of Pixar, with more than 50% of the shares, and you are absolutely controlling. Their opposition is useless, right? In order to cash in before Pixar's stock price plummets, they will definitely agree with you to sell Pixar. Thoughts. But in my opinion... Steve, your means are too weak, you have absolute control, you can do whatever you want in Pixar, they have no right to interfere!"
Jobs shook his head, "I don't want the relationship with investors to become so tense, but I have made up my mind to sell Pixar to Dunn Films."
Dunn nodded and smiled, "No problem, with the current share price of Pixar, at a premium of 10%, the full purchase!"
Now Pixar, with a market value of more than 1.8 billion US dollars, is acquired at a premium, and Dunn Pictures has to pay at least 2 billion US dollars!
Fortunately, Dunn Pictures is now rich, with a book capital of more than 8 billion US dollars!
Spend 2 billion to acquire Pixar, and the remaining 6 billion US dollars, want to buy Universal Pictures... There is a certain degree of difficulty, but it doesn't matter, Dunn Pictures now has almost no debt, and can acquire it with debt.
John Rust sat quietly aside. This kind of topic was not something he could participate in. He only had less than 3% of the shares in Pixar, and everything followed Jobs' lead.
Looking at Tang En sitting in the front right, this young man whose face has not even faded away is about to become his own boss?
John Rust shook his head, feeling that this world is really magical.
Jobs said solemnly: "About the acquisition... Dunn, you can't acquire it in cash. This method is a huge obstacle and is not conducive to the stability of the new company."
"Huh?" Tang En raised his eyebrows slightly, "You mean... stocks?"
Jobs said: "The model of cash plus share exchange is the most appropriate. Shareholders who want to cash out can take the money and leave, and shareholders who have expectations for the new company can continue to hold shares. Of course, I have high expectations for you, I Not even a penny in cash."
Cash transactions are not the main means of large mergers and acquisitions, because shareholders who cash out are subject to capital gains tax.
Stock exchange, you can exempt this part of the tax.
Holding stocks is the largest and safest way to avoid taxes in the United States!
For example, Buffett, who is the second richest man in the United States, pays only a few million dollars in taxes every year. The most fundamental reason is that his property is all stocks.
No matter how high or much the stock rises, as long as you don’t cash out, you don’t need to pay capital gains tax. You only need to pay 20%-30% dividend tax when the holding company distributes dividends.
According to Jobs, if Pixar's shareholders are not optimistic about the prospects of the new company, they can choose to cash out; if shareholders are optimistic about Dunn's ability, they can choose to hold shares in the new company. (Unlisted companies can also have shares, but they are not freely traded on exchanges.)
Dunn's face was a little ugly.
Why did Dolby Laboratories not complete the acquisition?
It is because Dr. Dolby and his son are dissatisfied with the all-cash acquisition method, which pays too much tax, and they hope to sell the company in a "cash + stock" method.
But the problem is...Tang En Pictures is still a private company, with one shareholder, Tang En, and has not yet undergone a shareholding transformation.
Dunn's expectations for Dunn Pictures were so high that he invested almost all of his funds in it.
With the efforts of Tang En Pictures in film, television, animation, etc., the valuation of Tang En Pictures will be higher and higher!
That is to say, the earlier the shareholding transformation, the more Tang En will pay for taking out the same shares, which is why Tang En has not restructured the property rights structure for a long time.
But Tang En Pictures has grown to this scale. If it does not carry out share transformation, it has become more and more difficult to acquire more high-quality potential companies.
It used to be Dolby Laboratories, and now there is a Pixar Studio!
In many cases, equity acquisitions are more attractive than cash acquisitions!
Jobs seemed to see through Dunn's thoughts and said: "The business sector of Dunn Pictures is already huge. To manage such a large company well, it is necessary to have corporate cohesion, and it is not enough to have a slogan and a mission. It is true that , 'New order, new model, new power, new Hollywood', this is a great goal, but interests can unite everyone even more!"
Dunn shook his head and looked at him with a half-smile, "Steve, are you sure you want to kill me?"
"I do not understand what you mean."
Jobs looked calm.
Dunn said deeply: "I suddenly feel that you are setting a trap for me? On the surface, you were provoked by Michael Eisner and wanted to teach him a lesson and sell Pixar to Dunn Pictures. But I suddenly thought that ...Your real purpose is Dunn Pictures! You heard that I want to buy Universal Pictures and transfer all the funds to Dunn Pictures. You think the future of Dunn Pictures is greater than that of Pixar! So you want to take advantage of Dunn Pictures' absence. When it goes public, start as soon as possible and exchange shares of Pixar for shares of Dunn Pictures. This is an amazing investment!"
Jobs laughed, "Dawn, you are too confident!"
Dunn stared at him, "you just need to tell me, is this the truth?"
Jobs answered irrelevant questions and said to himself: "Whether it is fact or illusion, does it matter? Pixar's future must not be able to exist independently, and must rely on large film companies. All Pixar shareholders believe that Disney is the The best choice, and now... is the opportunity to hand Pixar to Dunn Pictures."
The two have known each other for a year. Jobs' knowledge and vision of Dunn is astounding. Even if he is young and has obvious shortcomings, he firmly believes that he can make a career in Hollywood.
If given a choice, Steve Jobs will give Pixar to Dunn Films, not Disney!
Now that Michael Eisner has publicly criticized Jobs, he has given him a chance to turn his face and persuade Pixar's shareholders to sell Pixar as Dunn Pictures.
Dunn pondered for a long time, and then laughed at himself, "Steve, did you agree to let me work for you!"
Jobs was instantly overjoyed.
Dunn's words are very simple, but they contain a lot of content - first, Dunn Films will carry out shareholding reform; secondly, Dunn Films agrees to acquire Pixar in the form of "cash + stock"; finally ~www.wuxiaspot.com~ Jobs will become Dunn Films Shareholders and directors of the industry!
"It's too exaggerated to work part-time! The size of Pixar is too far from that of Dunn Films. It is roughly estimated that my shares will not occupy 8% of the new company! When it comes to part-time work, I also work for you. You are here. Apple's shares are a full 16.5%!" Jobs was very happy.
Tang En also smiled, "In Apple, you help me make money; in Tang En Films, I help you make money, it's fair!"
...
March 8, 2002, International Women's Day.
On this day, Dunn Pictures announced a heavy news that it will cooperate with Citibank, a famous investment bank on Wall Street, to carry out the share transformation of Dunn Pictures and underwrite the subscription of original shares within the company.
According to Citibank statistics, Dunn has invested a total of 8.5 billion US dollars for the company, with a total share capital of 850 million shares. In this private placement, 50 million shares will be underwritten at $10 per share, limited to all employees of Dunn Films.
To raise a total of 500 million US dollars, which is obviously not the staff of Dunn Pictures can afford.
For example, Bill McNick, who subscribed the most, reached 6.5 million shares, but can he take out $65 million in cash to subscribe for 6.5 million shares? Search through the property, at most subscribe for half!
The same is true for other employees.
500 million US dollars may not be a big deal in Dunn Pictures, but in a period of economic downturn, it is a huge sum of money in any other company.
If you want to complete the underwriting of 50 million shares, it is impossible to complete the current number of employees of Dunn Films with less than 2,000 people.
What about the remaining stock?
Quite simply, today is Women's Day!
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