Reaching the age of thirty, my income randomly doubled-Chapter 879 - 664 Capital Restructuring_2

Similarly.

For Tengying Entertainment, once this merger is completed, it means that all the celebrities who previously obtained stock options can successfully cash out.

Given the current market conditions, without major capital stepping in for acquisition, once the celebrities start selling their stock options, it would immediately cause Tengying Entertainment’s stock price to collapse.

The stock market is just that fragile right now. Consequently, not a single major celebrity opposes this merger plan.

After all, Tengyou Media is also under Chen Pingsheng’s control. This left-hand-to-right-hand maneuver not only allows the celebrities holding stock options to cash out smoothly,

but also drives Tengyou Media’s stock price upward. This is truly a multi-benefit operation.

By the time Chen Pingsheng landed at Baiyun Headquarters in Guangzhou, it was already three o’clock in the afternoon.

His secretary Zhang Wanyi and a large group of senior executives from the company had been waiting there for a while. Additionally, a host of major celebrities from Tengying Entertainment, including Liu Yifei, Yang Mi, Zhao Liying, were also present.

This wasn’t just a small deal; it concerned the cash-out of tens of billions in equity, naturally making them more proactive than anyone else.

Currently, Tengyou Media’s market valuation is as high as 320 billion, while Tengying Entertainment’s has already fallen below 80 billion.

Chen Pingsheng had formulated the merger plan before he arrived; this visit was merely to inform everyone and mentally prepare them.

The first step was to release an announcement externally, issuing 20% additional shares of Tengyou Media.

What does this mean?

Consider the past scenario when Tengyou Media owned 100% of shares. Through this issuance, it would increase to 120%.

Shareholders who don’t contribute money will see their equity somewhat diluted.

However, once the acquisition deal is finalized, the little dilution in equity pales into insignificance.

Because after this merger, Tengyou Media’s market value will rise to at least 400 billion.

The issuance of shares is purely intended to raise funds, and the purpose is crystal clear.

Tengyou Media plans to leverage this share issuance to raise nearly 60 billion in one go.

Of this, 45 billion will be used to purchase absolute controlling interest in Tengying Entertainment—51%.

This money will flow into the hands of the stakeholders of Tengying Entertainment.

For example, Chen Pingsheng himself owns 10%, which will bring him 8.5 billion.

Zhao Liying owns 4.5%, and she will similarly cash out approximately 4 billion.

Yang Mi holds 5%, and Liu Yifei, along with later entrants Shen Teng and Wu Jing, will receive a little less.

But even at minimum, they can cash out 1.5–1.6 billion.

The impetus for this merger comes as the 10-year equity period concludes. The options held by everyone cannot remain merely numbers on paper, and Chen Pingsheng must find the most suitable cash-out avenues for them.

Once this cashing-out is complete, everyone will achieve financial freedom, but that doesn’t come without conditions.

They would need to sign a new 15-year work agreement with Tengyou Media, almost identical to the previous contracts.

If they cash out and immediately leave Tengying Entertainment,

it would mean Tengyou Media merely acquired an empty shell.

Of course, it wouldn’t do anything that foolish.

The biggest advantage of accomplishing this merger is providing everyone with the best cash-out method.

From there, when Tengying Entertainment’s major shareholder becomes Tengyou Media, they can quickly stop its previous decline.

This is its ultimate significance.

The capital market has always operated this way—alliances and acquisitions—buying and expanding is consistently the fastest business model.

When Tengyou Media becomes Tengying Entertainment’s major shareholder, it transforms into more than just an influencer economy company.

Add in its existing publicly traded department store company as well as a publicly traded clothing company,

and Chen Pingsheng plans to carve out Wanda Business Management’s cinema operating rights, selling them to Tengyou Media for no less than 3 billion.

This move instantly achieves entertainment expansion along with physical cinema expansion.

Simply put, his traditional publicly traded companies would face step-by-step crises under current market conditions if kept separate.

But integrating them in the best way would consolidate ten minor assets into three major giants.

The capital integration here is undoubtedly complex, but the results are exceptionally optimistic.

The news of Tengying Entertainment’s acquisition alone propelled its stock price to seven consecutive days of gains.

Over the following period, it will sustain prolonged increases. Similarly, Tengyou Media’s stock has seen significant gains within mere days.

Such is favorable news.

Capital integration is only the first step; the second step involves leveraging the short video advantage to address the entertainment industry’s persistent decline over these recent years.

Truly merging these two giant companies takes several months at minimum.

Chen Pingsheng didn’t participate in the subsequent practical integration, only suggesting some rational proposals.

For instance, allowing Tengying Entertainment to maintain independent operations while ensuring its resources and unconditional support when Tengyou Media establishes new project teams.

After all, the downturn in the entertainment industry is an irrefutable fact, and short videos represent the youth-driven economy of today.

Additionally,

Wanda Business Management’s resources are also beginning to connect here.

Once fully integrated, Tengyou Media is bound to become a newly emerging domestic giant, spanning entertainment, short videos, retail, and investment industries.

If feasible, Chen Pingsheng even hopes to package Fei Yangyang and sell it to Tengyou Media.

That 6 billion price tag isn’t much for Tengyou Media.

The key issue is whether selling it ensures Tengyou Media’s successful turnaround from loss-making to profitability.

Still, it’s worth a shot, as the influencer resources are ample enough to potentially turn Fei Yangyang into a top-tier influencer-based dining enterprise again.

Chen Pingsheng’s approach starts by releasing external news to gauge the capital market’s reaction.

If Fei Yangyang’s stock price surges following this news, it indicates feasibility; if it drops, it means the capital market finds the acquisition undesirable.

Within three days of the announcement, Fei Yangyang saw its stock price soar significantly.

Evidently, the capital market is optimistic about the influencer economy paired with traditional dining.

Chen Pingsheng called Zhang Wanyi, instructing both teams to negotiate independently. Fei Yangyang’s stock price was already at rock-bottom, and given Tengyou Media’s scale, acquiring it would be effortless.

The valuation was even set at 8 billion.

Unlike acquiring a mere 51% controlling interest in Tengying Entertainment,

Tengyou Media planned to directly pay 8 billion for complete ownership of Fei Yangyang’s equity.

With these stock prices, they straightforwardly announced its delisting.

Once operations improve, they’ll apply for listing again.

Wanda had attempted this approach previously but failed; Tengyou Media replicating it now clearly reflects their belief that Fei Yangyang’s valuation was seriously underestimated.

They aim to reclaim all shares, finalize the integration of influencer economy and traditional dining, and then reapply for listing.

Admittedly, Zhang Wanyi exhibited significant confidence in taking this step.

At their current level, the restrictions no longer lie in ordinary improvement measures.

Instead, they revolve around larger capital games, earning profits through capital maneuvers.

This far surpasses conventional methods of reaping standard profits.

Tengyou Media had executed this strategy twice before with undeniable success.

This is precisely why its valuation exceeds 300 billion and is on the cusp of reaching 400 billion. ƒreewebɳovel.com

With Fei Yangyang resolved, Chen Pingsheng felt a small weight lifted off his chest.

Otherwise, subsidizing it with 4–5 billion annually was indeed frustrating.

While this amount hardly affects him, as a successful businessman, there’s no logic in perpetually enduring losses.

Now, with the sale to Tengyou Media, he can leave it to them to figure out.

Zhang Wanyi proposed an interesting strategy: without changing Fei Yangyang’s traditional dining model, they could establish region-specific small-scale operations.

In these areas, introduce significant influencer partners as investors. These influencers carry traffic; if they open stores themselves, nine out of ten would likely fail.

But if they funnel traffic into the stores, it can prove vastly successful.