pjbooks Chapter 254 Transformation
Chapter 254 Transformation
Chapter 254 Transformation
New York, Wall Street.
Just as Sequoia Capital had predicted, Henry Paulson was furious.
This influential figure in the financial industry was currently yelling into the phone on his desk, "I really don't understand what kind of backdoor you used to get into Goldman Sachs? Didn't anyone teach you that you should agree to things in this situation?"
"Whether or not to proceed with the transaction is our business, but we must firmly hold the initiative in our hands."
Paulson's anger seemed to burn the Goldman Sachs representative's ears red through the receiver.
"And what about your brain? Is it filled with mush? Your way of thinking is absolutely absurd. Did your toothless great-grandmother, who has to walk with a cane, teach you that?"
Like a machine gun, the tirade went on and on, lasting a full ten minutes.
The office was eerily quiet. Even the secretary standing to the side held her breath, afraid to even breathe, lest she inadvertently become Paulson's punching bag.
Finally, Paulson seemed to have run out of steam and slammed down the phone.
He then slammed his fist on the desk, making the coffee cup on the table jump and spill a few drops of coffee, leaving a messy mark.
Seeing this, the secretary quickly and quietly made a new cup of coffee and carefully placed it in front of Paulson.
After setting down his cup, he carefully considered his words, trying to ease the tense atmosphere: "Do you think it's possible that Ernst was behind this?"
News reports about Leap Games were everywhere, and it seemed like everyone in America knew about the cash-out scandal. However, Paulson immediately determined that Sequoia Capital was behind it.
"Impossible." His tone was firm and decisive, without the slightest hesitation. "Cashing out at this time would be eroding market trust. Ernst isn't that stupid; he wouldn't break the rules and do something that investors would find taboo."
"Although this time it's just our three institutions that got scammed, the entire investment community is watching. If he does this again, will his company ever want to raise funds again?"
After calming down a bit, Paulson took a sip of coffee and a mocking smile appeared on his lips. "But then again, Sequoia Capital was clearly outmaneuvered by Ernst this time, yet those guys acted like complete fools, rushing forward recklessly, acting as his shield, getting sold out and still counting the money for him."
The secretary, still somewhat skeptical, reasoned that Ernst was young and didn't seem like the type to orchestrate such a complex scheme. She couldn't help but ask, "Could it be—just a coincidence?"
"Coincidence?" Paulson glanced at his secretary and snorted coldly. "Why would he postpone the time by one night? It's obviously to buy those guys in Silicon Valley time so they can come in and raise the price."
"Once the news spreads today, those poor guys in Silicon Valley will be gathered together tomorrow to discuss it. One night of deliberation will be just enough for them to make a decision the next morning."
He paused, his tone carrying a hint of undeniable admiration: "This time arrangement can be described as meticulously planned."
"While it was rushed, it did give them a chance to react. But it wasn't ample either; it didn't give them much time to think things through carefully, forcing them to make a choice as soon as possible."
"Given the current favorable situation of YueDong Games, under these circumstances, anyone who isn't out of their mind or overly rational would want to get involved and get a piece of the pie."
Paulson found it increasingly unbelievable as he spoke: "The timing was perfect. If it were too early, institutions would hesitate, their minds filled with questions, and they wouldn't dare to make a decision easily. If too much time was given, those Silicon Valley investors who had calmed down would feel that the valuation was too high and the risk too great. Even if they knew that YueDong Games had investment value, they would back out."
"And now is the perfect time to allow Silicon Valley investment funds to raise the maximum amount of capital, which will result in the valuation of YueDong Games being raised again."
After saying all this, Paulson's anger had subsided considerably.
What he really cared about wasn't whether he could buy shares in YueDong Games. What angered him was the Goldman Sachs representative's foolish way of handling things, and the frustration of being made a fool of by that young upstart Ernst.
Just when the secretary thought the matter was over, Paulson suddenly chuckled, the laughter coming out of nowhere and leaving the secretary completely bewildered.
Paulson didn't intend to keep them in suspense. Seeing his secretary's puzzled expression, his mood suddenly improved. "Someone's going to be in trouble."
Q
Seeing that his secretary still didn't understand, he explained, "Have you forgotten? Among the capital firms in Silicon Valley, there's one that has a history with Ernst."
The secretary then realized what was happening and blurted out, "You mean Carlyle Capital?"
When Ernst first took over MGM, board member Wilhelm Hahn led the opposition and even dismissed Robert Iger, the MGM CEO personally appointed by Ernst.
Although the biggest supporter behind this matter is Cochrane, Carlyle Capital also got involved, supporting Will Holman.
It was precisely because of this conflict that Carlyle Capital was absent from the Silicon Valley investment funds when YueDong Games raised funds last time. Carlyle Capital is one of the largest capital institutions in Silicon Valley.
Sequoia Capital was clearly aware of the feud between the two parties, and in order to avoid any unpleasantness caused by Carlyle Capital that might affect the fundraising process, they simply excluded it.
But now the situation is different. With the opportunity for a second entry into Leap Games, more institutions in Silicon Valley will definitely get involved.
If Carlyle Capital hadn't caught this wave by now, then Stephen Knox, the apparent controller of Carlyle Capital, would be in serious jeopardy.
Everyone knows that Carlyle Capital is essentially a front for the government, with countless officials involved in its interests.
Ernst is now a renowned wealth-generating machine in the United States. If even those who can't get on his wealth express train and are completely excluded, the officials behind him will definitely not let it go. Knox's position as his spokesperson will probably be in jeopardy.
Goldman Sachs understood this, and Stephen Knox was no fool either; he knew exactly what to do next.
The atmosphere inside the Carlyle Capital meeting room was equally tense, making it hard to breathe.
All the company's top executives were present, sitting upright, but each had their own thoughts hidden in their eyes.
Stephen Knox, sitting at the head of the table, knew very well that although the meeting was ostensibly about whether Carlyle Capital should get involved with Leap Games, it was actually a power struggle.
If he cannot make a decision that satisfies everyone today, then the next meeting will not be a high-level meeting, but a board meeting to discuss his future.
However, Knox was quite open-minded, after all, there was no deep-seated hatred between him and Ernst, and the two had never even officially interacted.
The reason I went against Ernst last time was partly to teach this inexperienced young man a lesson and let him know how powerful Carlyle Capital was.
On the other hand, it was also because they thought highly of Wilhelm and believed he was capable that they were willing to pay him to manage the business.
"How much money did we invest in CVGI before? How are the returns now?" Knox finally spoke, breaking the silence in the conference room, and turned his gaze to the CFO.
The CFO immediately stood up and took out a prepared report. "We invested a total of 20 million US dollars. Judging from the current situation, the returns are quite good, with a year-on-year increase of 9.13%."
This return is quite considerable in the industry, which at least proves that Wilhelm has some ability.
However, given the current popularity of YueDong Games, this amount of profit is simply insignificant, and certainly not enough to warrant Carlyle Capital's continued support for Wilholman.
After hearing this, Knox did not hesitate at all and decisively ordered, "Notify CVGI that we are withdrawing all funds, and all fees due will be paid in full."
"Also, contact Michael Moritz and Doug Leone of Sequoia Capital and tell them I'd like to invite them to dinner tonight to have a good chat."
As soon as Knox spoke, the executives in the conference room immediately showed expressions of relief, as if they were seeing their own child finally understand and make the right choice.
However, someone suggested, "Why don't we have Sequoia Capital act as an intermediary and invite Ernst? That would be a more direct way to express our sincerity."
Knox raised his hand to refuse the offer, his tone calm and firm: "No need."
"Our withdrawal of investment from CVGI was itself a gesture of goodwill. If YueDong Games accepts our involvement, it means that both sides are willing to put aside their past grievances. But if they don't accept, then inviting Ernst at this point would be like offering a warm welcome only to be met with a cold shoulder, which would only humiliate us and put us in an even more passive position."
After listening, the senior executives in the conference room all nodded in agreement.
In the capital market, while profit is the eternal theme, face is not unimportant either.
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