Chapter 876 Blockbuster's Second Financing (Two-in-One)

After talking about Zhonghe Game Company's preparations for listing, Lin Baicheng did not leave immediately.

Phil Smith said to Lin Baicheng: "Alan, if you come here this time, if you have time, you are welcome to visit my house. My son has been born. He is so cute."

"I'll definitely go take a look when I have time."

Lin Baicheng smiled and agreed, saying that he could go and have a look if he had time. After all, the two of them had a good personal relationship.

Phil Smith said with some regret: "It's a pity that Alan you don't want to be little Smith's godfather. It would be great if you were willing to be the godfather."

"Forget it Godfather, I'm only so old."

Lin Baicheng immediately shook his head. When Anna Nord Smith was still pregnant, Phil Smith mentioned this matter, but Lin Baicheng rejected it for the same reason.

Although Lin Baicheng was not an American, he later learned from other people that the godfather here in the United States was different from the godfather he recognized decades later. The godfather was the godson's guardian and protector and had certain responsibilities, and he didn't want to cause trouble.

"It's little Smith who doesn't have this blessing."

Phil Smith shook his head, stopped talking about this, and said instead: "Alan, you came here this time, but what do you have to deal with? It seems that every time you come here, you always have something to deal with."

"So be it."

Lin Baicheng nodded and did not hide anything: "Blockbuster, a subsidiary of Morningstar Pictures, is preparing to start a second round of financing. This time I am planning to make Blockbuster independent from Morningstar Pictures, so I need to handle this matter. one time."

"I also know about this. I am also following up with Goldman Sachs on Blockbuster's financing."

After hearing this, Wade Thomas said that Lin Baicheng first cooperated with Goldman Sachs through him, so he has always been responsible for the cooperation with Lin Baicheng, which can be regarded as his human resources.

"Blockbuster is raising money again?"

Phil Smith was a little surprised: "This company seemed to have been established only the year before last, right? There was also a financing round last year. Am I remembering it correctly?"

"You remembered correctly."

Lin Baicheng nodded and said to Phil Smith: "This financing is likely to be the last financing for Blockbuster before it goes public. In terms of financing share, I can make some decisions. Smith, if you are interested, then You can also invest some money.”

"Ellen, the property under your name is definitely not bad. I am definitely interested. Thank you for helping me make a fortune."

Phil Smith immediately expressed his willingness to invest, knowing that this was an opportunity for Lin Baicheng to make money. No matter how Blockbuster develops in the future, as long as Blockbuster can successfully go public, this will be the last round of financing before going public, and there is basically no possibility of losses from participating in the financing.

"Everyone is a friend."

Lin Baicheng smiled and said: "But I have to say one thing first. For this round of financing, Blockbuster also wants to find a strong partner, so the investment share you will give to Smith will not be large, and it will also be necessary." Share it with Claure and the others, if they also want to invest.”

"I believe Mr. Claure and the others will not refuse. Thank you no matter what, Alan."

Although Phil Smith felt a little regretful when he heard this, he also knew that people cannot be greedy, and this time it was Lin Baicheng who helped him make money, so he should be grateful no matter what.

"I'll ask them again then."

In Blockbuster's financing this time, participating in the investment is basically making money. Lin Baicheng gave a small share to Phil Smith, Claude Rockefeller and others in order to maintain their cooperative relationship.

Anyway, it is impossible for Lin Baicheng to invest in the financing shares. It is given to other institutions, including Phil Smith and others. In this case, it is better to give some shares as a favor.

Wade Thomas couldn't help but feel envious when he heard this, but he had some personal relationship with Lin Baicheng, but that was it. He also wanted to participate in Blockbuster's investment in a private capacity and make a fortune, but it was a pity that the two Without good relationships, he could only think about such good things in his heart.

Wade Thomas knew that he and Lin Baicheng had known each other for a long time, but his net worth was not much, and his status as vice president of Goldman Sachs was of little help to Lin Baicheng. After all, Lin Baicheng was the one who could talk to the president of Goldman Sachs, so the relationship between the two There is basically no cooperation between them in private.

The investment in Zhonghe Game Company was the one he made shamelessly. They didn't lack his small amount of funds, and he didn't provide much help in terms of resources. He basically made money on his own.

Lin Baicheng said: "There is a Blockbuster financing party tonight. Smith, if you have time, you can go and see it."

"I'll be there on time."

Phil Smith immediately said that it would be unreasonable for him not to be more active with the money he made coming to his door.

At noon, Lin Baicheng, Phil Smith, and Wade Thomas had lunch together.

After lunch, Lin Baicheng said goodbye and left to find Demi Moore. He had agreed to go shopping with Demi Moore last night.

In the afternoon, I went shopping with Demi Moore and bought a lot of things for Demi Moore.

In the evening, Lin Baicheng went to the hotel where the party was held to attend tonight's financing party. Of course he wouldn't bring Demi Moore to such a party.

"Chairman!"

As soon as Lin Baicheng arrived at the party, Shirley Lansing came to greet him immediately.

"President Lansing."

Lin Baicheng nodded to Shirley Lansing, walked inside, and asked, "Is everyone else here?"

"Everyone has arrived."

Shirley Lansing said: "But Chairman, you came just in time, the party hasn't officially started yet."

"What are your plans for this financing?"

Lin Baicheng asked aloud. He directly handed over the financing of Blockbuster to the Secretariat, Shirley Lansing and Errol Kilman, the manager of Blockbuster. He did not ask about the specific details, as long as the people below him As long as it does not harm the interests of the company and his major shareholder.

Shirley Lansing replied: "Blockbuster is a video rental company and has close ties with Hollywood. If we can have the support of the Hollywood Seven, it will be greatly beneficial to the company's development. Therefore, after discussion, we decided to cooperate with the Hollywood Seven. However, because Morningstar Pictures is a major shareholder of Blockbuster, except for MGM, the other six companies have made it clear that they are not willing to invest in Blockbuster.”

Lin Baicheng asked: "Has MGM already agreed?"

"At the moment, I just have this intention."

Shirley Lansing shook her head and said: "But if MGM also refuses, then we will look for other institutions to cooperate. When the company has money, it can then spend money to purchase licenses from the Big Seven Hollywood and other film companies. ”

"It's good to be prepared."

Lin Baicheng nodded approvingly and said: "No matter whether Blockbuster's financing goes smoothly this time, I am ready to separate Blockbuster from Morningstar Pictures and let Blockbuster operate independently. What do you think of this?"

"Chairman, Blockbuster is a subsidiary supported by Morningstar Pictures. Why should it be made independent? With the addition of Blockbuster, the company's movies will have one more channel to promote and distribute, and it will also bring benefits to the company. Bigger gains.”

Shirley Lansing was shocked when she heard this. Lin Baicheng had never told her about this before. If possible, Shirley Lansing certainly does not want Blockbuster to become independent. After all, if Blockbuster is a subsidiary of Morningstar Pictures, as the president of Morningstar Pictures, she can legitimately intervene in Blockbuster's affairs.

But once Blockbuster becomes independent, even if Morningstar Pictures is still Blockbuster's largest shareholder, Shirley Lansing will no longer be able to meddle in Blockbuster's affairs as freely as before.

In other words, Shirley Lansing's rights have been affected, she doesn't have as much control as before, and she doesn't have as much power as before.

"As you said, Blockbuster is an impact rental company and cannot be separated from Hollywood. If Blockbuster had always been a subsidiary of Morningstar Pictures, the seven major Hollywood and other film companies would have to cooperate with Blockbuster. Sometimes, there will be concerns, which is not conducive to the development of Blockbuster.”

Lin Baicheng explained the reason, and then said: "However, although Blockbuster has become independent, Morningstar Pictures is still Blockbuster's largest shareholder. You can make preparations in advance and let Morningstar Pictures retain its control over Blockbuster. The impact is not to say that after Blockbuster becomes independent, Morningstar Pictures will no longer be able to control Blockbuster.”

"Chairman, I understand what you mean. I will cooperate with Manager Kilman to complete Blockbuster's independence."

Shirley Lansing couldn't help but breathed a sigh of relief after hearing this. Morningstar Pictures just didn't have to ignore Blockbuster at all, and since Lin Baicheng, the big boss, had made a decision on this matter, she couldn't refuse and could only cooperate. After all, Lin Baicheng He is the boss of the company.

While talking, the two walked inside.

Errol Kilman, who was chatting with others, saw Lin Baicheng come in and immediately went to greet him.

"Manager Kilman, you are doing a great job, keep it up."

Lin Baicheng patted Errol Kilman on the shoulder and affirmed Errol Kilman's work ability.

"Yes, Chairman."

Errol Kilman was overjoyed, this was the big boss's approval.

After tapping Errol Kilman on the shoulder, Lin Baicheng went to greet others, such as Wade Thomas, Vice President of Goldman Sachs, Derren Lawrence, Vice President of Citigroup, and Buffett.

Buffett will definitely come to Blockbuster's financing this time, because he is very optimistic about Blockbuster. He also led the investment in Blockbuster's last financing and now holds 10% of Blockbuster's shares.

It has been about a year since Blockbuster's last financing. Compared with when Buffett first invested, Blockbuster's valuation has more than doubled. On the books, Buffett's investment has already made a profit. .

Buffett believes that Blockbuster is still expanding rapidly. It has not yet reached a bottleneck and still has great potential.

"President Thomas!" "President Lawrence!" "Mr. Buffett!"

Lin Baicheng greeted several old acquaintances and shook hands.

"Long time no see, Mr. Allen."

Buffett shook hands with Lin Baicheng with a smile on his face, a little closer than before. Who knows that Lin Baicheng is now a shareholder of his company, even though he is only a small shareholder holding 5% of the shares.

After the party started, everyone first talked about the business, which was the financing of Blockbuster.

Everyone approved of Blockbuster's financing this time, and all parties agreed. No one objected to Blockbuster's financing again.

As for the financing ratio, Secretariat, Shirley Lansing, Errol Kilman and others have already communicated with Buffett and other shareholders. This time Blockbuster will give up a total of 15% of its shares, which will be shared equally by all shareholders, but everyone Shareholders can subscribe back 5% of the shares, and the 5% investment ratio will be taken over by the shareholders. Of course, if shareholders are unwilling to continue to invest, that's fine. The additional shares will be taken over by new financing parties.

Before this round of financing, Blockbuster's shareholding ratio was as follows. Morningstar Pictures held 55.5%, Lin Baicheng held 19.5% privately, Buffett's company held 10%, Goldman Sachs and Citi each held 5%, and the remaining 5% was placed in the option pool as equity incentives for executives and outstanding employees.

If 15% of the shares are given up in this round of financing, then Morningstar Pictures will only have 47.175% of the shares, Lin Baicheng will have 16.575% privately, Buffett will have 8.5% of the shares, and Goldman Sachs and Citi will each have 4.25% of the shares.

There are still 5% of the shares left in the option pool, and the option pool has not been diluted. This is because this is financing rather than additional issuance, and when the 5% of shares were put into the option pool, a contract had been signed that the company would not be diluted before listing, ensuring that the shares in the option pool will not decrease, and the interests of executives and outstanding employees will not be reduced.

In this round of financing, Morningstar Pictures' shares were diluted by 8.325%, and Lin Baicheng's shares were diluted by 2.925%, which added up to 11.25% of the shares.

Shareholders whose shares were diluted can subscribe to one-third of the shares, that is, if Lin Baicheng is willing, he and Morningstar Pictures can subscribe to 3.375% of the shares.

However, Lin Baicheng and Morningstar Pictures already have a lot of shares, so he is not prepared to subscribe for them, and is ready to give these shares to Phil Smith and others as a favor.

During the exchange, Lin Baicheng learned that Buffett, Citi and Goldman Sachs are all ready to subscribe to some of the shares, and the subscription ratio is the maximum, that is, one-third.

At the same time, the three companies also said that even if they want to find a partner for Blockbuster, there is no need to give the partner too many shares this time, 10% of the shares will be enough, and they can subscribe for the remaining 5%.

After hearing this, Lin Baicheng asked Shirley Lansing and Errol Kilman for their opinions. They both agreed that if they cooperated with MGM this time, in order to avoid MGM's pressure, it would be best not to give up too many shares to MGM. As for not cooperating with MGM, since they were looking for an institution, there was no reason to only look for one, and it was acceptable to give some shares to Buffett and the other three.

Lin Baicheng thought it made sense, and he agreed in principle, and would talk about the details later.

In any case, as long as Morningstar Pictures held no less than 30% of Blockbuster's shares, and most of the executives were from Morningstar Pictures, Lin Baicheng believed that Blockbuster would not be out of his control.