RPAGF Chapter 79 Hyena's Gluttony and 5 Dragons
Chapter 79 Hyena's Gluttony and 5 Dragons
A bird in the hand is worth two in the bush.
Zou Wenhuai immediately approved, "Okay! $650 million it is."
Forget about television broadcasting rights and derivative value; Golden Harvest's most important thing right now is to survive, and they are genuinely afraid of Chen Guanjiang collaborating with Shaw Brothers.
Shaw Yi-fu's focus is no longer on Shaw Brothers, but he has never given up on the film industry, especially on how to bring down this traitor and how to defeat Bruce Lee's undefeated myth.
To suppress Jiahe, and to suppress Li Xiaolong.
This year, Shaw Brothers released "The House of 72 Tenants," directed by Chu Yuan and featuring a cast of Shaw Brothers stars, which will go head-to-head with Bruce Lee's "Enter the Dragon" in the Hong Kong market.
"The Big Boss" is set to launch in the North American market this year, while Shaw Brothers' "The Fist Within Four Walls" will launch first at the end of March, both of which are targeting Golden Harvest.
Chow Wen-huai needs to rally more forces against Shaw Brothers, rather than pushing his partners into hostility for unseen benefits.
"Well then... it'll be a pleasure doing business with you!"
“…………”
The moment he signed the contract, Zou Wenhuai felt both melancholy and joy, finally seeing a possibility of breaking the deadlock while sacrificing his future.
Chen Guanjiang smiled mysteriously and said, "We raised HK$6750 million, spent HK$650 million to acquire five films, and still have US$545 million in the accounts of the Hong Kong News."
"Yanxun News won't need that much money in a short time. Could you please act as an intermediary and ask... if the other people who hold shares in these five films are willing to sell? The offer is the same as Golden Harvest's."
Zou Wenhuai hadn't expected Chen Guanjiang to be so greedy, wanting to buy all five of Li Xiaolong's films. He hesitated slightly and asked, "Ah Jiang, do you still have money?"
"Does Uncle Zou think the stock price of the Koo News will rise tomorrow?"
"I've been promoted!" Zou Wenhuai answered firmly.
The newspaper company had virtually no fixed assets; its market value was entirely inflated by stock market speculation through its three newspapers.
Now, not only do they possess assets, but these are also betting assets aligned with the stock market, which will inevitably attract the attention of the stock market.
"Issuing 2500 million shares, each with a par value of HK$2, would amount to HK$5000 million in share capital. However, my authorized share capital is HK$1 million, which means I can still issue 2500 million shares."
Chen Guanjiang laughed heartily and said, "At the close of trading, each share is HK$5.2. If we issue another 2500 million shares, that's HK$1.3 million, which is more than the previous fundraising price of HK$4.5 per share."
"I think the share price can break HK$8 tomorrow. If we issue another 2500 million shares, that's HK$2 million. Do you think I have the money?"
“…………”
HK$2 million and US$3539 million—making money faster than printing paper! Zou Wenhuai was so shocked he couldn't speak, while Miao Kexiu, standing beside him, was flushed and trembling like a leaf.
Little did they know, this was just Chen Guanjiang flexing his muscles.
Issuing another 2500 million shares would dilute the original less than 35% stake to below 17.5%... which would be quite dangerous.
Turning oneself into a target is tantamount to enticing others to seize control with a small amount of capital, thereby gaining control of the massive cash flow of the newspaper.
Of course, it was perfect for fooling Zou Wenhuai, who was so easily fooled that all he could think about was going public and making money.
Based on the price previously given to Jiahe:
The estimated box office of "The Big Boss" is $200 million, and it is estimated that Liu Jinghua can get $100 million. With a 30% stake, that is $30.
"Fist of Fury" is projected to gross $350 million, and Golden Harvest, which owns 100% of the company, has already bought the entire film.
"Enter the Dragon" is projected to gross $500 million. Although Golden Harvest holds a 55% stake, it will enjoy 60% of the box office revenue, which is $150 million.
"Enter the Dragon" is projected to gross $700 million, with an external 75% stake worth $262.5 million.
"Game of Death" also grossed $700 million at the box office, with an outside 50% equity stake worth $175 million;
They bought all four films for a total of $587.5 million. Even with a 10% premium, the total would only be $660 million.
With $545 million still in the account, there's no need to issue all the authorized share capital. Moreover, the 2500 million unissued shares have other uses. This feast has only just begun.
The next morning!
"Financial Dog Express" published a full-page news article: Yangxun News Agency has acquired the rights to five Bruce Lee films from Golden Harvest, with the first film, "The Big Boss," set to be released in North America.
Although "The Big Boss" was a low-budget film with many technical flaws, Bruce Lee's performance in it caused a sensation in Southeast Asia.
Especially in Hong Kong, "The Big Boss" broke box office records with HK$350 million, becoming the first film in Hong Kong to gross over HK$300 million.
The past glory is still vivid in my mind.
This film, which broke Hong Kong's box office records and sparked a kung fu craze in Southeast Asia, is now viewed favorably by many investors in the North American market, who firmly believe it can conquer America.
Meanwhile, the share price of Koxin Media, which owns the rights to "The Big Boss," surged to HK$7 per share at the opening bell and continued to climb rapidly after the opening.
Based on the acquisition of five films for HK$3672 million, the share price increased by HK$1.8 per share after the opening, resulting in a market value surge of HK$4500 million. The stock price response has already exceeded the actual price.
But it still didn't meet expectations!
When the market opened in the afternoon, the share price of NYK Media jumped to HK$8.4 per share, with a total market value of HK$2.1 million, a truly astonishing achievement.
The news broke that the "Financial Dog Express" newspaper had once again published a full-page "GG" (Gone) report at noon, and that the news agency was negotiating with the other shareholders of the five films in an attempt to acquire all the shares of the five films.
That's the allure of the capital market!
With minimal leverage, a massive amount of capital can be mobilized, which has allowed Hong Kong capital and international speculative funds watching the Hong Kong stock market to see an alternative risk hedging agreement.
Last year, the news that Hang Lung Properties raised HK$2 million through its IPO and spent HK$1.15 million to acquire the Shaw Building and Xinhua Theatre in Mong Kok caused a sensation.
Dah Chong Hong Properties raised HK$5000 million through its IPO to acquire a 25% stake in Hutchison House and a 40% stake in the Leighton Road shopping mall office building.
After its listing, Sun Hung Kai Properties raised HK$1 million to acquire land parcels in Pok Fu Lam Road, Tsuen Wan, Fuk Wing Street, Kwai Lin Street, Lung Chu Island, and Tsing Yi.
Therefore, whether it's purchasing land, owning properties, holding building rights, or holding shares in other companies, all of these are ways to grow by raising funds.
The acquisition of film equity by the Koo News is not only a way for the newspaper to expand its assets, but also an alternative way to accumulate funds.
Although other companies may consider this approach rudimentary, Hong Kong's core asset has always been its land.
However, in the eyes of stock market investors, this novel approach is far more interesting and has greater gambling value than the unchanging practice of real estate developers buying land and building skyscrapers.
While "The Fist Within" stole the title of the first martial arts film to land in North America, it also served as a stepping stone for "The Big Boss".
The box office performance of "The Fist Within Four Walls," released in March, can directly indicate the sales performance of "The Big Boss" in North America, as well as the sales of the four subsequent Bruce Lee films.
Every movie release affects stock price fluctuations, which has become the most necessary condition for stock trading. It's all about the thrill!