Hollywood Hunter

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In July and August, most of Simon's energies were placed on the financial reports of the Westeros system for the second quarter of 1991.

Because the size of the company has doubled and it is still in the early stage of the merger, it was not until August 21 that the first quarterly financial report after the merger of Daenerys Entertainment and mca was finally released.

In the three months from April to June 1991, the new Daenerys Entertainment Group had a total quarterly revenue of US$1.93 billion, which was second only to Time Warner Group, which has an annual revenue of 10 billion. , ranked second in the Hollywood Seven.

However, compared with the huge profits in the same period last year, this time, because of the employee layoffs, debt settlement, asset write-down and other behaviors in the merger process of the two companies, a large amount of money was consumed. Daenerys Entertainment's after-tax net profit in the second quarter The profit scale is a paltry $28 million.

Large corporate mergers and acquisitions often mean huge losses for one or two years after completion, as has been the case with Time Warner in the past two years.

Steve Ross is struggling to deal with Time Warner's massive debt from its last acquisition.

Therefore, Simon is generally satisfied with the results of such financial reports.

After the successful AOL IPO, Cisco's IPO followed.

As the Internet industry has taken off in the past year or so, Cisco's revenue has grown rapidly.

In the second quarter just past, Cisco's revenue was $298 million, an increase of 26% compared to the first quarter. At the current rate of revenue growth, the company's 1991 full-year revenue is expected to reach $1.2 billion.

With most of the revenue going into corporate expansion, Cisco's quarterly net profit was still $16.79 million.

Because the entire Westeros system almost monopolizes the core patents of the World Wide Web platform, Cisco's market share of network equipment products such as routers and switches has reached more than 95%. Because of this obvious monopoly, management predicts that in the next few years, as long as Cisco can maintain its advantage in the Internet equipment market as much as possible, the company's net profit margin is expected to reach around 25%.

Unlike AOL, which is limited to the three major carrier regions on the east and west coasts of the United States, Cisco is targeting the entire North American and overseas Internet equipment market. Coupled with the monopoly on the basic patents of the World Wide Web, the capital market is more looking forward to the company's IPO prospects.

Before AOL was officially listed on the Nasdaq exchange, Cisco had already filed a prospectus with the Securities and Exchange Commission (sec).

The same is about 15% of the new share issuance ratio. According to the adjusted total share capital of 271 million shares before Cisco IPO, the number of new shares issued this time is 40 million shares.

In addition, this IPO, Cisco's stock will also be adjusted to a dual-class share structure.

Westeros' 156 million stake in Cisco dropped from 57.5 percent to 50.1 percent after the IPO. Class A shares, which hold 10 times the voting rights of the outstanding shares, still guarantee Westeros' 56.7% absolute majority of voting rights.

Naturally, other Westeros shareholders have also objected to Westeros' aggressive demands to maintain absolute control of Cisco. The 57.5% shareholding of Westeros is not as high as the 75% before the AOL IPO, which once almost triggered a change in the progress of the IPO.

However, after Simon unrelentingly stated his tough attitude to either the dual-class share structure or the cancellation of the IPO, the other unwilling shareholders subsided.

Different from the calculation method of 35 times the expected price-earnings ratio used in the AOL IPO process because the company's net profit was negative, Cisco maintained a relatively considerable net profit in the first two quarters of 1991, and the net profit for the whole year of 1991 is expected to be The scale will be around $65 million.

Morgan Stanley did not calculate the price-earnings ratio and estimate it according to Cisco's net profit margin of only 5% in the second quarter. The equivalent of a $3 billion valuation.

Simon is not satisfied with such a valuation.

In my memory, at the peak of the Internet bubble in 2000, Cisco's market value once exceeded 600 billion US dollars, and AOL did not reach 200 billion at the highest.

That's a total threefold difference.

Even now, although the revenue volume of the two companies is comparable, the gap is obvious.

AOL only operates in a few states on the east and west coasts of the federal government. Cisco not only has almost monopolized the Internet equipment market in North America, but also has no competitors even overseas.

Therefore, Simon insists that Cisco is more expensive than AOL, and it is very high.

After several hagglings, the company's IPO valuation was confirmed at $5 billion, with a revised offering price range of $17 to $19 for filing sec.

Despite the success of America Online, because of Simon's high valuation strategy, Cisco's IPO this time had to start the green shoe mechanism in order to deal with the possible fluctuations in the stock price after listing.

However, this time the green shoe plan is not to issue new shares, but to provide 6 million shares as a backup by other Cisco shareholders.

Cisco's shareholders have held shares for up to seven years since the company was founded in 1984.

For example, the famous Sequoia Capital, these companies

All have a relatively strong desire to cash out, and start the green shoe mechanism to just meet their needs.

Westeros and other Cisco shareholders have agreed that once the stock price rises after the listing, other shareholders will provide investors with an additional 6 million shares. Once the stock price falls after going public, Westeros will buy about 6 million shares of its own capital to stabilize Cisco's stock price.

In fact, Simon wouldn't even mind buying all of Cisco's outstanding shares and taking the company private if necessary.

Simon, however, is confident that the Westeros Company will need to invest in the stock.

Through this period of operation, the final date of the Cisco ipo was confirmed to be September 6, which was also a Friday, which was about 2 months later than the AOL ipo.

The two consecutive IPOs also made Simon realize that he has opened the Internet era in advance.

You know, the World Wide Web standard in memory only began to take shape in 1993, and then, in 1995, the Internet industry began to explode.

Now, Simon put forward a complete technical solution for the World Wide Web in 1990 in advance, and the Internet era has arrived ahead of schedule.

The Internet has sprouted in the 1960s, and computers began to appear in the 1970s. After decades of accumulation, the Internet industry already has a very fertile 'soil'. The World Wide Web is like a seed that was planted three years in advance. On the soil that is already fertile enough, the seed quickly takes root and germinates and spreads with the wind.

What's more, there is Simon, a "farmer" from the future with decades of farming experience.

The roadshow of the Cisco IPO starts on August 26, and Simon himself naturally does not need to follow up in person.

After the European trip in early July, Simon has basically stayed in Los Angeles for more than a month, while working and accompanying Janet, who is five months pregnant.

After several pregnancy tests, the sex of the little guy has been confirmed and it is a boy.

This makes Janet very happy.

Because women feel that they can't imagine a girl named 'Melbourne', and even have a plan to take away the female assistant's alternate name of 'Seattle' once it is a girl, everyone thinks that 'Seattle' seems more suitable for a girl 's masterpiece.

Of course, being able to give birth to the eldest son of the Westeros family is actually one of the reasons why Janet is happy.

After careful genetic testing, it was confirmed that the little guy was very healthy, and some of Simon's worries were completely dissipated.

Certain marriage relationships have lasted for thousands of years and still exist in most countries of modern society, and naturally have their rationale for their existence. Simon's concerns are more influenced by the educational environment of his previous life.

Daenerys Studios.

The time is already August 28.

In the projection room of the office building No. 1 in the administrative district, the internal preview of "Toy Story" ended at 4 o'clock in the afternoon.

The 3D-animated film that the Pixar team worked on for more than two years ended up costing $35 million, $5 million more than the original time-and-space version.

Moreover, this does not include some technology research and development and infrastructure investment.

In order to support the production of "Toy Story" and the development of CG technology for Daenerys' special effects, Simon built a rendering farm composed of 1,000 top-level graphics workstations in Daenerys Studios.

In fact, there is no concept of 'render farm' in this era. Many studios producing computer animation-related businesses often just pile up a large number of workstations of different brands and types in one room for graphics processing. Therefore, this is obviously the world's On the first render farm, that alone cost $20 million.

With the success of blockbuster films such as "Batman: Hour of War", "Batman: The Dark Knight" and "Terminator 2" that used a lot of CG special effects, Daenerys Entertainment invested in the construction of a 'render farm' It also gradually attracted the attention of many people.

However, there are not many people who are willing to spend such a sum of money to build a rendering farm.

20 million US dollars, for a small animation special effect company, is a huge sum of money that is out of reach. The seven Hollywood companies that have the ability to invest this money, but there is no Daenerys Entertainment after several years of investment in research and development of a series of products. Professional software.

Fortunately, Daenerys Entertainment's special effects studio and render farm do not reject external orders.

This is of course also a strategy of Simon. In the short term, he does not want a second studio with top-level special effects technology to appear in Hollywood.

Disney, the most prosperous period in the original time and space, was actually ahead of its peers in terms of special effects technology because it successively annexed Pixar Studio and Lucasfilm, which owns Industrial Light and Magic. The most obvious contrast is the Marvel Cinematic Universe and Differences between the dc movie universes.

"The Avengers" can make daytime special effects for dozens of minutes, and the superheroes smash all the way to make people's blood boil.

"Justice League", or most of the dc superhero series, gives people the feeling of "black", many special effects scenes take place at night, and some scenes even give people a sense of sight of Wumao online games. This is not accidental. One of the big reasons is that night special effects have lower requirements for CG technology and are more cost-effective.

Now, Daenerys Entertainment has led the industry in special effects for at least three years. Pixar's 3D animation software, randerman rendering software, and Daenerys' special effects Maya software are all existences that the industry cannot catch up with in the short term. Moreover, corresponding software patent barriers have been established in advance.

With Simon's technique for special effects on film

This advantage is destined to continue forever.

Although the new version of "Toy Story" was born four years ahead of schedule, because of the unremitting support and investment of Daenerys Entertainment, the technical details of the film are more mature than the version Simon remembered that it was finally completed after ups and downs, whether it is 3D. The screen and character movements are smoother.

Although everyone who participated in the test screening was not sure whether such a 3D animated film would be recognized by the market, they all said that they tried their best for a very interesting 90 minutes.

After the preview was over and the film's publicity strategy was discussed, Simon stopped John Lasseter after the meeting and praised the other party's work without hesitation.

"One more thing, John, didn't the production team of The Lion King want to go to Africa?"

The two walked together on the corridor of the Studio Park.

John Lasseter nodded and said: "Everyone hopes to see the scenery of the African savannah in person, and then invest in the production of some scenes in this film."

"It's a coincidence that Gaomen Pictures plans to invest in a documentary about the African savannah. You can contact Ella tomorrow and choose some people to follow."

The documentary about the African savannah was only created because of the very successful Antarctic documentary "The World of Ice and Snow" in this summer.

With a production budget of 3 million US dollars, it has been more than three months since its release, and "The World of Ice and Snow" is approaching the end of its release. As of last week, the cumulative box office of this documentary in North America has reached 51.69 million US dollars, which exceeds the summer period. A lot of big productions with more than $30 million investment.

Therefore, during this time, various Hollywood studios are looking for various documentary projects.

Now that she has tasted the sweetness, Daenerys Entertainment will of course not only make this documentary.

After "Frozen World", the original team has begun to prepare an Antarctic penguin documentary project similar to "Emperor Penguin Diary" in Simon's memory.

In addition, Simon has approved a documentary about the African savannah, and the team will rush to Africa next month, just in time to bring Pixar's "Lion King" team with them.

After a few chats, the two separated in the parking lot.

Back at Cape Dumay Manor, Janet has already started preparing dinner.

After pregnancy, although the woman put down the work of Cersei Capital, she still lived a full life every day.

Taking care of the Simon \u0026 Janet Westeros Foundation, preparing the Westeros Medical Center, taking regular pregnancy training classes, monitoring the progress of the Westeros Tower project, etc., I am very busy, so there is no Any pregnant woman who rests may develop tendencies like loneliness, depression, insecurity.

Simon was originally worried that his busy work and the occasional need to leave Los Angeles would trouble Janet. After a long time, he found that this worry was completely unnecessary.

After having dinner with the woman, Simon had to leave Los Angeles overnight.

This time in New York, because Time Warner's long-awaited stock increase is taking place in a natural way.

Steve Ross personally called Simon many times before, hoping that Simon would come forward, and Terry Semel also sent an invitation to Simon in person, so he couldn't shirk at all, and had to rush to New York to help out the platform for this additional issuance.

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