Chapter 609 (1/2)

PS: VIP chapter is sealed, this is a free chapter, delete tomorrow

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The situation of public opinion is about to come, but there is no fear in the westero system.

At the beginning of March, Denise Entertainment Group officially launched the internal employee stock subscription plan. According to the position level and employment years, Denise entertainment employees will be able to subscribe for the corresponding amount of shares at the expected IPO price of 30%, 50% or 70%.

Amy Pascal and other management equity awards also began to cash.

After the stock subscription and the award, Denise Entertainment's employees will hold a total of about 8% of the group's shares, and plan to issue about 12% of the new shares in the IPO. At that time, Simon will still hold about 80% of Denise Entertainment's shares.

Not only that, Denise entertainment will also adopt a dual ownership structure this time.

Whether it's this employee subscription or the next IPO, what the outside world can get is class A shares with only one tenth of the voting rights of common shares. Correspondingly, westero company under Simon's name will hold class B shares with ten times the voting rights.

After the IPO, Simon, whose shareholding ratio has been reduced to 80%, will still retain more than 97% of the voting rights. Even after several expansions in the future, the Westeros family's shareholding in danielis Entertainment Group will drop to less than 50%, and the absolute control will not change.

Denise Entertainment Group's 1993 financial report was officially released in the middle of March, ignoring the ups and downs of the outside world. In order to build momentum for the upcoming IPO, the company continued to publish specific data on the igritte portal on March 15.

In 1993, compared with 12.7 billion US dollars in 1992, Denise Entertainment Group's total revenue increased by 35% to 17.1 billion US dollars, and its annual net profit was 2.27 billion US dollars, up 219% year on year.

Among them, the film business is still the core of danielis entertainment group, contributing more than half of the profits.

Driven by the strong film business, danilisi Entertainment's cinema line, theme park, consumer peripheral business have achieved excellent growth.

Robert egger's TV business also performed well. Reality shows and TV dramas on the public TV network worked together. The programs such as survivors and the story of Seinfeld have long been among the top ratings on the TV network. Fashion TV, a professional fashion TV station launched last year, has been launched in many countries around the world. At the same time, it has successfully won all the shares of USA basic cable network, further completing the layout of Denise entertainment in the field of cable TV business.

In addition, Denise Entertainment Group's total liabilities increased slightly from $7.1 billion last year to $7.9 billion. However, even according to the IPO valuation of $40 billion, the debt ratio of $7.9 billion is only 19%, which is far lower than the average level of the same industry.

Even though it has been expected, danelis Entertainment Group's financial report in 1993 is still beyond many people's expectations.

Especially profits.

The annual net profit of $2.27 billion is almost equal to the total profits of the other six major Hollywood studios.

Of course, there are doubts.

Many professional media and Wall Street analysts believe that this financial report of danielis entertainment is specially ”tailored” for this year's IPO, and it may not be able to achieve such excellent profits after listing.

It's just that there's not much market for similar questions.

Compared with Denise Entertainment's $17.1 billion revenue, the net profit margin is only 13.2%, which is not high in the 10% to 15% net profit range of Hollywood entertainment industry. As long as the future revenue scale of Denise entertainment will not shrink significantly, it is not difficult to maintain the profit level of 1993.

Will Denise Entertainment's revenue shrink?

Just look at the popular projects in the hands of this company, such as DC movie universe series, Pixar Animation Studio, Jurassic Park series and so on. This is unlikely to happen in the next three to five years at least.

However, another argument also began to rise. Some Wall Street analysts believe that the performance of danielis entertainment has peaked. Although it will not decline in the short term, it is not easy to improve it too much. Therefore, they are not optimistic about the long-term development prospects of this entertainment industry giant after it goes public.

After the release of similar views, it is inevitable to get a lot of recognition.

Then the spearhead also pointed to Denise Entertainment's expected IPO P / E ratio of about 20 times, which was obviously on the high side. Considering that the future performance growth of Denise entertainment group may slow down significantly, the real suitable IPO P / E ratio is about 10 to 15 times.

Simon's underwriting bottom line for Morgan Stanley and Goldman Sachs is the lowest IPO P / E ratio, no less than 20 times.

After the official financial report is released, according to the net profit scale of $2.27 billion, the revised accurate IPO valuation bottom line should be $45.4 billion.Simmons has no intention of making a concession to the high valuation of the club, which has exceeded the total scale of most of the world's corporate giants and can enter the market value of $50 billion with a slight rise after listing. This inevitably makes the capital from all walks of life who intend to subscribe feel unhappy. After all, the subscribers certainly hope that the lower the issue price of Denise Entertainment's shares, the better, so as to achieve profits Maximize.

This is the reason for the corresponding declamation.

Simon is not worried about that.

Most companies are IPO to raise the company's next development funds, so they are generally worried about failure, but Denise entertainment has no such worry. If it wasn't for the next expansion, Simon didn't need to put Denise entertainment on the market at all.

Therefore, even if the worst happens, the IPO failure will not cause too much damage to danielis entertainment. At most, it will only cause a loss of investment banking service fee.

What's more, although it is said that the valuation is on the high side, it is clear in the hearts of discerning people that among the IPO companies in recent years, there are not many companies with better quality than danielis entertainment stock. If there are, they are still Cisco, AOL and other new technology companies of westero system.

Moreover, even Cisco and AOL are still in the growth period of enterprises with variable development prospects. Both revenue and profit of danilisi entertainment have been very solid.

Malibu, daenerys studios.

It's Friday, March 18.

For the more sensitive employees within the westero system, the outside world is in turmoil, and there is no change around them.

Danielis studio recently upgraded its security again, with a significant increase in security personnel and monitoring facilities in the park. Similar to the terrace layout of the three story studio, the lowest floor is also the busiest studio area on weekdays, which has not changed much. Further up, the access control process of the office area on the second floor and the administrative area on the third floor has been strengthened, and visitors without appointment are not allowed to enter.

As for the reason, most people who feel this point think that it is the instinctive reaction of their boss under the pressure of external public opinion.