Top of the big era

Zhou Buqi stayed in New York for a day.

I mainly studied the first version of the plan and found it unreliable. I found two consulting companies to conduct a comprehensive social survey.

Go deep into Queens to have a look at the local customs, and then go to Long Island City’s council, labor unions, and various civil associations to see what’s going on there.

In the package deal offered by New York with a total value of US$1.65 billion, a large part of the resources will be provided by Long Island City, such as land.

New York does this for the good of Long Island City and to develop the local economy.

I'm afraid that poor people will cause more mischief. If you take the initiative to help, they won't be happy!

It's right to be careful.

Zhou Buqi didn't take advantage of his foresight this time because he didn't know, but his cautious style helped him avoid disaster.

In the past life, technology companies launched a vigorous plan to move eastward, aiming to create a second Silicon Valley in New York. The most typical business case is Amazon, which was in talks with New York for more than half a year. Finally came up with a super plan, New York will fund Amazon US$3 billion to set aside a piece of land in Queens to build Amazon's second headquarters.

It was a good thing.

Beneficial to all parties.

Unexpectedly, it received strong opposition and unanimous criticism from the local area, especially the black people who are protected by political correctness. They were very angry and believed that white people had invaded their homeland. Even Amazon's brand image has been damaged. Later, when there was no other way, the project was urgently stopped.

A super real estate project that had the potential to become a landmark in Queens was aborted.

New York is the largest city in the world, but Brooklyn and Queens in New York are poverty-stricken areas with the worst living conditions in the United States. They are even worse than many fourth- and fifth-tier small cities, and their per capita income is far lower than the national average.

The main reason is that the proportion of black people in New York is too high, and these are the main areas where black people live.

This is very helpless.

There are some people who you can't help even if you want to help them.

China has also provided a lot of assistance to Africa in recent years, such as giving them food seeds and teaching them how to farm and be self-reliant, so that they can at least survive without starving to death.

When the team of experts sent from China finished their hard training, they went to see it a few months later. They were all dumbfounded. How could anyone farm the land? The seeds that were distributed were not planted at all. Some were eaten, some were made into wine, and some were simply resold.

Zhou Buqi only stayed in New York for one day.

Mainly because the financiers who got wind of it were a little irritated.

Changyou's stock price has been falling all the way, and now it is only 7.57 US dollars, which is half of the issue price. This is simply the biggest junk stock IPO this year.

Zhou Buqi was also helpless.

Changyou cannot be blamed for this at all.

The entire industry is like this. I don’t know what happened during this period. U.S. stocks are falling collectively, and game stocks are one of the worst-performing sectors. The market values ​​of EA and Blizzard are also plummeting.

The wind direction in the capital market is really coming in waves, sometimes the east wind blows, sometimes the west wind blows.

However, this is a good thing for Zhou Buqi personally.

If Changyou's stock price plummets, the capital market will be dissatisfied. Under this general situation, it is natural for him to take action to reorganize Changyou's board of directors and management.

For Ziweixing, this is even better.

The financial system in the United States is very developed, and the richer people are, the more dependent they are on this system. For example, a very important shareholder of EA will not cash out if he is optimistic about EA. But this kind of company doesn't pay any dividends, so how can it make money from EA's stocks? The most common way is to pledge and use the stock to get a loan.

If the face value of the stock is $100, the maximum loan you can make is $60.

But here comes the problem. Once the stock plummets, it will be very dangerous. If the stock price trends below 60 US dollars, the bank will force the position to be liquidated.

In order to avoid the loss of forced liquidation, there are only two options.

1. Supplementary margin;

Second, find ways to increase the stock price.

Therefore, in the U.S. stock market, if a company's stock price plummets, the company's board of directors and management will face unimaginable pressure.

Because the stocks of many important shareholders have been pledged, this is related to their wealth and life.

If the current board of directors or CEO cannot solve this problem quickly, then you can't be polite. Both the chairman of the board of directors and the CEO may be removed as soon as the shareholders' meeting is convened.

The most typical example is Disney.

Everyone in the Disney family has mortgaged their stocks, but Disney's stock price continues to slump, and there is nothing they can do. Mr. Disney secretly contacted a large number of people to remove the meritorious leader Michael Eisner, and then the current CEO Robert Iger took office.

Now, gaming stocks are plunging en masse.

The decline is severe.

In less than a month, and just over half a month after Changyou went public, Changyou's market value has dropped by 40%. Other major game companies are also in misery.

Such as EA!

Under such huge market pressure, they must find ways to increase their stock prices!

How to pull it up?

It's very simple, move closer to new game trends, step into the capital market, and capture opportunities in social games!

Zhou Buqi received such good news on his way to London by plane.

Ziweixing International wants to sell a friend's studio.

EA is also very eager to buy it!

The two sides hit it off immediately!

On the phone, Lu Qi made this analysis, "This will be a big deal, and it is impossible for EA to spend so much cash."

Although Don Mattrick is the president of the game division, he must avoid suspicion appropriately.

Transactions with EA will be led by Lu Qi and reviewed by executive director Zhen Yu.

Lu Qi said: "If it is a merger and acquisition, there will be a new problem. EA's stock price has fallen very seriously, much worse than Changyou. It has been falling for more than a year, and its current market value is no longer as good as Changyou."

"That's pretty miserable."

"Yes, Changyou has also stepped on the trend of online games, which was the trend of games in the previous era. EA has not even caught up with the trend of online games. Its main business is still large-scale software games, and it makes money by selling genuine games."

Zhou Buqi frowned slightly, "What does this have to do with us?"

Zhou Shaoning said: "If we acquire a friend's studio based on the current stock price standards, the deal will be difficult to achieve. Everyone knows that EA is fine, their performance has not declined, and the stock price has fallen only because of the wind direction of the capital market."

"What's the reason for this?" Zhou Buqi was not very satisfied. "The stock price is a reflection of the real-time value of a company. Don't tell me this. Winning over a friend's studio will help EA get into the spotlight of social games. We can help them complete their strategic transformation!”

"Uh..." Lu Qi felt a little helpless, "The game industry is changing so fast now."

"Um?"

Zhou Buqi heard the hidden meaning in his words.

Lu Qi said: "The industry is in a slump. Last time, Mattrick said that Zynga would prepare to apply for an IPO in July. Just now he came to me again and said that the situation has changed and they may have to advance the IPO time. May.”

"Ah?" Zhou Buqi was a little surprised, "Is this too late? There is more than a month left, and today is... Today is April Fool's Day, are you kidding me?"

Lu Qi couldn't laugh or cry, "How is that possible? I'm very serious. This is serious."

"That is how the matter?"

"It should be due to the influence of the general environment. The U.S. financial market has been severely hit, and they cannot afford to delay it."

"Financial market?" Zhou Buqi thought of something immediately and was stunned, "Don't tell me it's the European debt crisis!"

Lu Ji said: "Yes, it is the European debt crisis. This may be another global financial crisis that has spread to the United States. Once the financial market is hit, the entire stock market will suffer a severe setback. Zynga should be I can’t wait any longer, I want to go public in advance, and before the impact of the European debt crisis has spread, I can quickly IPO and get the money.”

"It's complicated enough."

Zhou Buqi quickly understood the meaning of these words.

Now, Zynga is the leader in social gaming. If Zynga is doing well, then all social game companies will do well; if Zynga is doing poorly, then they all have to take a break.

Zynga's listing plan has encountered some troubles. It was affected by the European debt crisis and even planned an IPO ahead of schedule...can it still get a PE of 45 times?

In order to successfully go public as soon as possible, Zynga will definitely take the initiative to lower its price.

Once Zynga lowers its PE, it means that its friend's studio will also lower its PE, and the valuation will shrink significantly...

Lu Qi said: "We have two options now. Take a look. First, like Zynga, take advantage of the impact of the European debt crisis to sell off the friend's studio as soon as possible; second, wait first. Wait for this After the impact of the European debt crisis has passed and the market has recovered, I will sell my friend's studio. I believe it won't be long before the Federal Reserve will introduce stimulus policies to save the financial market."

Obviously, Lu Qi is a very good professional manager.

He dissected complex problems and then gave the simplest results.

Two roads, how to choose?

Emergency price reduction?

Or should we keep calm and wait for the market to recover before taking action?

The chairman makes decisions and the president executes them.

Zhou Buqi didn't know much about the situation in the game industry. Anyway, after listening to Lu Qi and Don Mattrick talk about it, he felt it was very complicated.

If you think about it carefully, this is normal.

Because I don’t understand it, it feels complicated; if you understand the game industry like you understand the Internet industry, it will be very simple.

It just so happens that social games actually do not belong to the gaming industry, but to the Internet industry!

Zhou Buqi knew very well what was going on.

"Take action! Take action now!" Zhou Buqi made a decisive decision, "I am not optimistic about the social game market at all. The era of mobile Internet has arrived, and mobile games are the way out for the game industry! The social game industry may collapse at any time. , take action quickly, the sooner the better!"