Chapter 376

March 1, 2000.

AOL, the largest Internet new media in the new era, and Time Warner Group, the largest traditional media, have formally merged.

The acquisition is a case initiated by AOL, with a total price of 181 billion US dollars in the form of cash plus shares.

This is the largest merger in the history of the United States and even the world!

All forms of media are integrated into the world's largest media company.

Both the media industry and the Internet industry are generally optimistic about the combination of new and old media.

It is generally believed that Internet companies need attractive content, while traditional media need the Internet, the most potential new media platform in the 21st century. The merger of AOL and Time Warner represents the future development direction of the media industry: the combination of channel service providers and content providers means the possibility of the integration of traditional and modern industries.

However, the seemingly bright future has been replaced by the tortuous road of merger.

Before the announcement of the merger in February 2000, AOL's stock price was $73 A share and Time Warner's was $64.

A month later.......

As of March 1, Time Warner's share price rose to $81, while AOL's share price fell to $58.

Many people are shocked by this differentiated performance.

"How is that possible?"

"Yes, the stock market performance of the two companies is far lower than the market expectation."

"I don't know if you found out? In February, Internet stocks, technology stocks and new media stocks were hard to find. But now? There are a lot of circulating stocks, but the number of buyers is far lower than that in February. "

"Why is the difference so great?"

Many people have found something unusual.

Yes, this is a lot of Wall Street investment institutions have the choice to sell stocks!

Zhuke is waiting for the financial reports of major listed companies to come out. In fact, the major investment banks on Wall Street are also waiting.

Compared with individual investors and small investment banks, Lehman Brothers, Goldman Sachs, Morgan Stanley, Bear Stearns and Merrill Lynch, which are the top five investment banks on Wall Street, have a wide range of information sources and can get inside information that many people can't know.

"To suffer ~"

"The profit and loss performance of many listed companies of nasnak is far from their current market value."

"That is to say, the water injection volume is too high, many times higher than the critical line~

As the top five investment banks on Wall Street, they are acutely aware of the danger of NASDAQ and begin to sell a number of stocks first. As a result, the number of circulating shares in the market is much higher than the purchase volume.

Gale capital.

"Boss, do you see that?"

"AOL's share price has fallen a lot recently."

"Even the share price of AOL Time Warner, the world's largest media company newly established after the merger, is hovering between $39 and $45, far below market expectations."

Andi cherope plays with the taste.

Zhuke nodded with a dignified face.

Andi continued: "perhaps the combination of the two new and old media is a failure in itself."

Smell speech, Zhuke dignified face also showed a smile: "you are right, I also think the merger of the two companies, is the biggest failure case."

That's right.

According to Zucker's foresight as a traverser, he knows how miserable the two companies will be in the future.

On March 3, 2002, AOL Time Warner announced its financial annual report, which showed a huge loss of 54.2 billion US dollars, setting the highest quarterly loss record in the history of the United States;

At the end of 2002, the loss amounted to US $98.7 billion, equivalent to the GDP of Chile and Vietnam.

"Tut tut ~"

Zhuke can't help but wonder in his heart: "I've taken away Harry Potter now. It's estimated that Warner's life will be more difficult."

In the early years of 2000, Warner was in a mess from top to bottom because of its failed merger and acquisition, almost relying on Harry Potter.

.......

It's March.

AOL shares fell;

Microsoft, Cisco, Oracle, IBM and other Internet giants are affected by the anti-monopoly investigation and are in danger of being split;

The five major Wall Street investment banks began to sell a number of stocks selectively;

The number of circulating shares in the market is much higher than that in January and February;

All of the above led to the Nasdaq stock market, showing a small shock after entering March. However, even if the number of negative reports increased, it failed to stop the rising of the NASDAQ index and set a new record again and again.

On March 1, the NASDAQ index reached 4810 points;

On March 2, the NASDAQ index reached 4852 points;

On March 3, the NASDAQ index reached 4879;

Time and again to refresh the history, so that countless investors more crazy.

"Making money", "getting rich", "buying Internet stocks" and so on have become the daily topics of American citizens.

But!

But on March 4, a little bit changed.

——The company, e-toys, reported its results for the previous quarter.

It is a famous online toy sales company, founded in 1997, the main business is to sell all kinds of toys through its own website.

In the Internet boom in 1999, the company's stock was listed on Nasdaq, with a total market value of US $8 billion at the beginning of trading, which greatly exceeded the market value of US $6 billion of r-toys, a time-honored toy company, and shocked the whole industry.

However

In fact, the business performance of r-tois is much higher than that of the former.

In 1998, the sales volume of the former was only US $30 million, while that of the latter was as high as US $11.2 billion, almost 400 times that of the former. In terms of profitability, the former made a loss of $28.6 million in 1998, while the latter made a profit of $376 million.

There is such a big gap between the two fundamentals, but the stock price is upside down

On this day, e-toys, as a NASDAQ listed company, has the obligation to disclose the financial report data of the last quarter to all American shareholders.

The turnover in the last quarter was US $10.1 million;

Did you make any money?

Make a fart!

In the last quarter, e-tois lost $88 million, several times more than the loss of $28.6 million in 1998.

"This, this, this... This performance is also too bad!"

The poor performance of e-tois company has shocked many people.

"In terms of this performance, let alone the market value of nearly 10 billion US dollars, it is not even worth 100 million US dollars!" An investor who has invested heavily in e-tois shares is desperate.

Everyone has made it clear that e-tois is going to be ruined!

Sure enough, the shares of e-tois company on that day suffered a large-scale sell-off by investment institutions and shareholders.

Stock price avalanche!

On the contrary, the NASDAQ index has not been greatly affected.

However, with one company after another listed on Nasdaq, many people are immediately confused after publishing the financial reports of the last quarter.

Loss!

Loss!

Or loss!

Even Yahoo, the top Internet portal company, has a much lower than expected profit performance, with a profit of only $14 million in the last quarter.

This profit seems to be OK, but don't forget, the market value of Yahoo is more than 43 billion dollars!

Its profitability is far below its market value of $43 billion.

"Too high market value?"

All of a sudden, many people have this word in their mind.

On March 9, the NASDAQ index broke through the 5000 point mark;

On March 11, a record of 5048.6 points was set.

"Hoo ~"

Many people breathed a sigh of relief and said with a smile: "although the performance of many listed companies is far lower than the market expectation, NASDAQ is still relatively strong on the whole. It's all over the 5000 point index. "

However, the major investment institutions on Wall Street are not as happy as those investors who have lost their minds. On the contrary, they call for their lives one by one!

"No, the stock market is going to collapse!"

"Today is Friday, and the market will open again until Monday. I hope there will be good news in these two days, otherwise... Otherwise... There will be a large number of people and investment companies, and this is the end of it! "

Many senior executives of investment institutions are in cold sweat.

The severity of the situation is totally beyond their expectation.

A company's real market value should be only about 100 million US dollars, but it has been hyped into billions or tens of billions of US dollars by the times;

In just a few years, the NASDAQ index broke through the 5000 mark;

In 1999 alone, the number of Internet companies listed on NASDAQ exceeded the total of the previous decade.

All sorts of things, plus the recent financial reports of major companies, bad information, let NASDAQ become a huge, ready to detonate powder keg.

"I hope everything goes well when Monday, March 13 comes, otherwise... It will surely lead to a big event that will shock the whole world."

Bad premonition is like a huge dark cloud, covering the hearts of many people.

The second watch is on.