pjbooks Chapter 267 Ready
Chapter 267 Ready
Chapter 267 Ready
This is an extremely secluded private club in the San Francisco Bay Area. Without an introduction from an acquaintance, even if you are extremely wealthy, it is difficult to step through its doors.
The oil paintings hanging on the walls are all by renowned artists, each brushstroke exuding an artistic aura. The marble floor is so smooth that it reflects one's shadow, like a frozen moonlight.
If representatives from Wall Street investment firms were here, they would probably be furious and cursing the heavens the next second: "Damn Ernst, we've been tricked by this kid again!"
At this moment, a VIP room in the club was bustling with activity. A dozen beautiful girls in exquisite dresses flitted about like butterflies among flowers, their faces beaming with sweet smiles. Their playful voices were clear and melodious, adding a touch of vibrancy and charm to the room.
Among the group of girls sat two men, none other than Massim and Ernst, who had been at each other's throats in the conference room during the day, seemingly ready to fight at any moment.
At this moment, they were completely different from their daytime rivalry. They had their arms around each other's shoulders, their heads close together, talking in hushed tones, and their intimate smiles made them seem like one big friend. An unsuspecting person would have thought they were longtime sworn brothers.
"This time, I've really done the bad guy for you, taking the blame for such a big mistake. You'd better remember this favor and don't forget me if you ever get anything good in the future." Massim held up his wine glass and gently touched Ernst's glass, his tone carrying a hint of self-praise, but his eyes were full of cunning.
There was no real confrontation; it was all a carefully orchestrated play by Ernst, with Massim being the best actor he had brought in.
Who is Ernst? He is a shrewd capitalist to the core. In his world, every penny must be spent wisely, and every profit must be firmly held in his own hands.
How could he possibly be willing to give up more shares to his employees?
However, with the rise of the internet age, technology companies have sprung up like mushrooms after rain, and talent has become the focus of competition among various companies. In order to attract and retain outstanding employees, the proportion of employee incentive pool shares has been increasing, which has become an indisputable fact.
To ensure that these employees would work wholeheartedly for him, Ernst had to make them grateful to him.
After much thought, he finally came up with this self-inflicted injury scheme.
During the day in the conference room, Massim played the villain, taking all the blame on himself and the institutional shareholders.
Ernst, on the other hand, transformed into the savior of the employees. For the sake of their interests, he did not hesitate to argue with the evil capitalists. Although he was ultimately forced to succumb to the evil due to his weak position, he still managed to secure what the employees considered to be substantial benefits.
Ernst could almost imagine that what happened in the conference room during the day had probably spread to every corner of the company by now.
In the hearts of the employees, Massim and those institutional shareholders had become synonymous with greed and ruthlessness, while he himself was the embodiment of justice, a generous messenger, and even a representative sent by God to save them.
He believes that his future businesses will definitely focus more on manufacturing than finance, so reputation is very important to him.
Thinking of this, Ernst couldn't help but raise the corners of his mouth slightly, revealing a smug smile.
Faced with Massim's boasting, Ernst raised his glass, gestured to the girls present, and said casually, "Isn't that enough? You can take all these girls with you tonight, and I'll pay for everything."
Upon hearing this, Massim was stunned for a moment, then his expression changed drastically.
He glared at Ernst. "What do you mean by this? Are you trying to fob me off like a beggar? Do you think I need that kind of money?"
Ernst, however, didn't seem to care. He curled his lip and said slowly, "The employees' shares have been reduced, and correspondingly, your shares have been diluted even more, as if you haven't gained anything."
"Don't play dumb with me!" Massim said, his face flushed with anger, pointing at Ernst's nose. "That's not what I'm talking about. I'm referring to those guys on Wall Street."
"They're not stupid. They might realize tonight that this was all a trap we set. Then, they can't do anything to you, and all their anger will be directed at me. Wouldn't I be taking the blame for you?"
Just as Massim said, they can't do anything to Ernst; they'll hold everything against Massim.
Because by the time those Wall Street investors realized what was happening, there was nothing they could do. They had already signed a contract in black and white, and no matter how many objections they had, they couldn't raise them in front of Ernst. They could only swallow their anger.
Sure enough, when everyone gathered in the conference room again the next day, Massim sensed something was wrong as soon as he entered.
The representatives of those Wall Street investment firms all had faces as gloomy as a sky filled with dark clouds, their eyes filled with anger, resentment, and helplessness, looking as if a family member had died.
Whether Henry Paulson had urgent business to attend to or simply didn't want to see him and Ernst again, he flew back to New York overnight.
He was represented at the meeting by a representative from Goldman Sachs.
Massim thought to himself: It seems these guys have figured it out, otherwise they wouldn't be acting like their mothers have died.
Ernst looked at everyone present, cleared his throat, and said, "Now that everyone is here, let's continue our conversation from yesterday."
Going public is both an exciting event and a challenging process for a company.
It's simple because every step is systematic; you just need to follow the process step by step.
However, it is no exaggeration to say that it is tedious, because there are so many decisions to be made in this process, from the company's future development strategy to the wording of a document, all of which need to be discussed and deliberated repeatedly.
The path to listing for YueDong Games also followed this pattern.
The first step is to optimize and streamline the company's internal operations, which covers a wide range of areas, including asset restructuring and optimization.
This includes multiple aspects such as financial compliance optimization, equity restructuring, and internal management optimization.
Asset restructuring and optimization require a comprehensive inventory and evaluation of the company's existing assets, disposal of idle and inefficient assets, integration of high-quality assets, and improvement of asset utilization efficiency.
Financial compliance optimization requires that the company's financial system and financial statements comply with relevant laws and regulations and listing requirements, and be truthful, accurate and complete.
The purpose of optimizing and adjusting the equity structure is to clarify the company's equity structure, avoid equity disputes, and also take into account the interests of shareholders and the company's long-term development.
Internal management optimization involves multiple aspects such as the company's organizational structure, management system, and staffing, with the aim of improving the company's management efficiency and operational level.
After completing the internal optimization and restructuring of the company, the next step is equity restructuring.
The main contents include determining the company's business model, transparency of management information, financial data, financial forecasts for the next three to five years, financing plans, market analysis, and third-party evaluation reports.
Then comes the writing of the business plan. The business plan is like a business card for a company going public. It needs to comprehensively and in detail introduce the company's situation to attract investors' attention.
This typically includes the organizational structure, equity structure, bank account details in various locations, whether to choose an offshore company for controlling stake, and information on major assets.
Although YueDong Games had done a very good job in these three aspects, and much of the work had already been done on a certain basis, it still took half a month to complete these three tasks.
When Ernst brought together Jobs, Larry Ellison, James Hamilton, and Robert Iger in San Jose, it was already late November.
The reason for inviting these individuals is that the fourth step in the listing process is to establish a board of directors.
The Nasdaq Stock Exchange has clear regulations regarding the board of directors of listed companies, one of which is that independent directors must make up more than half of the board.
So he specifically brought in his subordinates and friends to serve as independent directors of the company.
Unlike when Ernst was selecting directors for MGM, where he struggled due to limited connections, now that his influence in the business world has grown and his network has expanded, finding suitable independent directors is no longer a difficult task.
The board of directors of YueDong Games consists of seven members, with Ernst rightfully serving as chairman.
Jobs, Larry Ellison, James Hamilton, and Robert Iger serve as independent directors.
Ernst allocated the remaining two spots to Silicon Valley Investment Fund and Boston Consortium, which can be seen as a way to balance the interests of all parties and strengthen cooperation between the company and investment institutions.
When Michael Moritz, representing a Silicon Valley investment fund, saw everyone in the room staring at him with predatory eyes, he felt a pang of unease and a bitter taste welled up inside him.
He cursed Ernst inwardly, thinking, "It would have been better if I hadn't been a director at all. What's the difference between me and someone who's invisible? I don't even have a say."
Even the last remaining representative of the investment institution betrayed them at this moment.
Isn't it crowded for a group of you to sit on the other side of the table?
I'm sitting here on this side of the table by myself. Don't you think I'm very lonely?
However, to Michael Moritz's utter surprise, before he could even say anything, Ernst and his team started fighting amongst themselves.
The main issue was the conflict between Ernst, Larry Ellison, and Massim, and the reason for the conflict was nothing more than a monthly salary of $1.
Ernst meant that everyone symbolically takes one dollar, and that's what many influential directors in large companies do, because they don't care about that amount of money.
Larry Ellison and Massim were firmly opposed, stating that they wouldn't do it for less than $1 a month, not even a penny less.
"Are you two fucking desperate for money? You want ten thousand dollars? Are you short of money?" Ernst got angry when he saw how determined the two were and retorted directly.
Larry Ellison was no pushover either. He abruptly stood up from his seat, his eyes wide, and roared like a raging lion, "I don't care if I don't get paid to be a director of someone else's company. But if your company doesn't pay me ten thousand dollars a month, I'll come here every day and curse you!"
He still can't forget a legend about him circulating in Silicon Valley: Ernst caught a big fish and, in a moment of excitement, he paid for a group of hot girls to party on a yacht.
Without even thinking, he knew how the news had gotten out.
Massim objected because of his involvement in Ernst's play two weeks prior.
He felt he had taken such a huge blame for Ernst, but Ernst kept avoiding the topic, which made him very uncomfortable.
And Ernst? If anyone else wanted a salary of $10,000, he wouldn't even consider it, but not these two. It's a matter of principle.
Then the remaining four directors were dumbfounded. These three had been arguing all day about this little bit of money, but they had a peaceful lunch together as a kind break.
If Steve Jobs hadn't finally snapped, the three of them probably would have worked overtime that night.
The final result was that both sides compromised, with a monthly salary of five thousand US dollars.
After the board of directors was established, all that was left was to wait.
Next, the company needs to hire third-party agencies, legal teams, financial advisors, auditing firms, and securities companies to conduct due diligence.
These institutions will conduct a comprehensive and in-depth investigation into the company's financial condition, operations, and legal risks, providing professional advice and support for the company's listing.
After completing due diligence, the company can begin drafting its prospectus.
Key information such as market capitalization, share capital, and issue price needs to be determined.
Once all preparations are complete, the prospectus can be submitted to the SEC, the U.S. Securities and Exchange Commission.
The SEC will review the prospectus. If the review is approved, the company can begin roadshows to introduce the company to potential investors and attract them to subscribe to the company's shares.
On the last day of November, as the first rays of sunlight touched the land of Silicon Valley, a bombshell announcement spread like wildfire throughout Silicon Valley and the investment community, and then at an astonishing speed across the United States.
YueDong Games has officially received approval from the SEC to conduct roadshows and prepare for its IPO.