Chapter 841 (1/2)
The merger negotiation between GE and Time Warner is still in the process, and another merger of large media industry has been finalized again.
On September 11, Westinghouse Electric and CBS group held a joint press conference at CBS headquarters in Rockefeller Center, New York, announcing that Westinghouse Electric would acquire CBS group with a cash offer of $9 billion, and undertake a total debt of $1.9 billion of CBS group, with a total transaction amount of $10.9 billion.
Some time ago, when the news of danilisi Entertainment's intention to merge with CBS group spread wildly, the market value of CBS once peaked at $8.7 billion. If the deal comes true, danilisi entertainment will hardly win CBS within the $11 billion offer.
Danielis entertainment turned to Metro ABC Group with a bluff, and CBS's share price plummeted. In this transaction, Westinghouse only gave a 23% premium on the share price before the announcement of the acquisition, excluding debt. The acquisition amount of $9 billion was $2 billion less than CBS's expected offer.
This is taken for granted by many media.
How can Westinghouse, with a market value of just over $40 billion, compare with danielis entertainment?
Since we can't catch up with danielis, we can sell $9 billion, which is a high price compared with CBS, whose market value is still around $5 billion at the beginning of the year.
With the announcement of CBS's change of ownership, it is basically announced that the three old TV networks in the United States are all attached to the large enterprises, and it is unlikely to change again in the short term. People who have a keen sense of the media industry are more aware of another significance behind these changes.
The monopolistic division of public television network by large enterprises.
Although the market share of public TV networks is constantly eroded by cable TV, no one can deny that the three old TV networks play a crucial role in influencing and controlling American public opinion.
These are the three loudspeakers that can advertise all over the country. They are more powerful than any traditional paper media.
With the rise of the Internet, the decline of print media and the partition of public television networks, the media industry in the United States has returned to the era of oligopoly from the blooming of a hundred flowers for decades before the 1990s.
Monopoly means the loss of freedom.
Loss of press freedom.
However, this industry trend of long separation and integration can not be stopped by anyone.
On the other hand, Viacom group, another ”suitor” of CBS, lost in the merger dispute. When the merger of Westinghouse Electric and CBS group was announced, the share price fell by 6.1% on the same day. It missed the opportunity to transform CBS into a media giant. Viacom's future fate is likely to be the acquiree, and it is unlikely to make any big changes The expansion of the scope.
Angrily, samer leishidong said publicly that afternoon that he would file a lawsuit against Westinghouse Electric and CBS group, accusing the two companies of cheating Viacom in the process of merger and acquisition negotiations, and intended to prevent the final conclusion of the merger and acquisition at all costs.
The outside world is at a loss.
Simon got the news, but leishidong was tricked by Larry Tisch, the major shareholder of CBS, in the process of transaction negotiation. Tisch promised leishidong that as long as he raised the offer to US $9.2 billion, he could agree to the other party's share exchange and merger offer. The two sides reached a tacit agreement, and in a twinkling of an eye, they put the news to Westinghouse, forcing Westinghouse to raise the offer to US $9.9 billion at the last moment from the previously determined US $8.7 billion 100 million dollars.
It seems that it is still not as high as Viacom's $9.2 billion offer, but Westinghouse's all cash trading plan.
In the process of M & A, unless the two companies are very optimistic about the development prospects after the merger, otherwise, most of the shareholders of the acquired enterprises will tend to get more cash for security.
Viacom will raise its offer to US $9.2 billion. On the surface, it seems that it can let the original CBS shareholders get more shares of the new company after the merger. The problem is that no one can guarantee how the new Viacom will develop after the merger of the two companies, in case the share price plummets?
know that because the two companies are panic buying at the same time, CBS shares are seriously overestimated, and the bubble will probably be crushed after the merger.
Therefore, as long as it's not too stupid, we know how to choose between the stock exchange M & A of US $9.2 billion and the all cash acquisition of US $9 billion.
As for Lei Shidong's impatience, the result can only be impatience.
Being fooled is being fooled.
Even if the prosecution is true, it will only become meaningless entanglement.
After all, the two sides did not sign the contract.
In the final analysis, Viacom itself is unable to raise enough cash from Wall Street for the acquisition, which is also the result of the quiet development of the westero system. Simon didn't want to see Viacom acquire CBS from the beginning.
Westinghouse and CBS group reached a merger and acquisition agreement at the same time, another much smaller deal was officially finalized.
After more than two months of low-key negotiations, cersei capital's Apollo management company won IBM's battery R & D and production department at a price of US $1.25 billion. This part of the assets includes IBM's five battery R & D teams in North America and overseas, three battery factories in New York, Mexico and China, and, most importantly, A large number of battery related core patents.Simon through Apollo management company in the name of this transaction, mainly to facilitate the split.
At the present stage, IBM's battery R & D and production department mainly produces traditional washable nickel cadmium batteries for IBM's notebook computers and other electronic products. This is true of the two factories located in Mexico City and Guangdong, China. Only a battery factory just established in New York State last year is used to produce the latest lithium-ion batteries with large scale Far less than the two large battery factories in Mexico and China.
Simon won IBM's battery R & D and production department mainly for lithium batteries.
As an old electronics giant, IBM's foundation is no less than that of a group of cutting-edge electronics manufacturers in Europe and Asia. After Sony first launched commercial lithium-ion batteries in 1992, IBM also completed the development of related products last year, and established a lithium battery factory in Albany, New York.
After Louis Gerstner was appointed to take charge of IBM in 1992, he has been streamlining the huge and bloated IBM. IBM's battery department is not a burden to the old giant, but it is not a core business. The revenue and profit achieved by IBM are not high, and it is a part of the assets that can be stripped off and retained.
When the Westeros system offered an olive branch, Gerstner quickly agreed.
The head of IBM originally hoped to take advantage of the vistro aura. Just as Welch only wanted to sell half of NBC's shares at the beginning, he changed IBM's battery department from a sole proprietorship to a joint venture with vistro system, in which IBM only owned shares and the operation was handed over to vistro system.
In other cases, Simon would agree.
It's hard for independent battery suppliers to survive independently. They definitely need customers to keep IBM's shareholding. In the future, battery companies will naturally get a large number of orders from IBM.
However, since Simon only wants IBM's lithium battery R & D team, patented technology and product factory, and is not interested in the mainstream heavy pollution nickel cadmium batteries at this stage, it is not feasible to keep IBM's shareholding.