Chapter 504： Market value of fireflies

The media that are interested in the firefly's revenue situation in North America have not received the firefly's public annual financial report, and the invitation to the firefly's high-level executives has been rejected. In order to gain attention, they have begun to follow the data collected from other roads. Conduct an autonomous analysis.

The data given by the professional financial media is still reliable. The non-professional entertainment is basically not based on the media. It is completely in accordance with the pattern of how to attract the eye to write, and it is a time for the firefly movie. The speculations on business conditions are spread across large and small media, most of which are unreasonably exaggerated in order to attract attention, and the sales of these magazines tend to rise. In just a few days, the annual profit of Firefly's film in the media even soared to a maximum of 2.6 billion US dollars, even Eric himself did not know how the magazines were calculated.

Jeffrey pushed open the door of Eric’s office and saw Eric’s entire body stuck in a leather chair with his legs on a dark red desk and a thick print file in his hand was taking a leisurely I flipped through it, so I knocked on the door again.

Eric put away his sitting position and put the documents in his hand on the table before he reached out to Jeffrey: "Jeffrey, is there anything?"

Jeffrey walked across to Eric, pulled the chair down, and glanced at the document Eric had just read, curiously: "New script?"

"No," Eric smiled and pushed the document over: "Look, Chris sent it."

Hearing what his son had sent, Jeffrey took it curiously and found out that it was a contract for the equity incentive plan for the management of IE, which turned a few pages. Jeffrey didn't look at it any more, just a contract, there were more than one hundred and ten pages. Like a thick book, the rules and regulations were more complicated than the contracts signed by Hollywood stars and studios. .

"I was discussing with Chris on Thanksgiving Day. I intend to give 20% equity awards to the management of IE, Yahoo and Hotmail in 1995 according to the performance. This is the draft contract that Chris sent me." Rick saw Jeffrey quickly put down the print in his hand and proactively explained one.

With the market expansion speed demonstrated by IE and Yahoo, the valuations of the two companies that have withdrawn from the product have exceeded 100 million US dollars in the valuation of the capital market. Twenty percent of the equity incentive plan is not a trivial matter. Chris and the management of the three companies have been negotiating for a month before they are settled, and the contract has various requirements on various possibilities. There are more than one hundred pages, and even Eric saw it for the first time. However, after I started reading, I felt that there were no provisions in it that were unfounded and untargeted. It can be seen that Chris spent a lot of energy on this matter.

"I don't know much about the things you guys made," Jeffrey said with a smile and shook his head. "Carolyn has already made the annual financial report. Let's take a look." Fry handed the documents he had brought in when he came in to Eric.

"Oh, it’s so fast. I thought it would be another week," Eric took over and said that the New Year had just passed. After spending the holidays and less than a week after work, Eric did not expect the finance department to work so efficiently.

"I deliberately urged Caroline several times," Jeffrey looked at Eric and looked at the file and said: "The outside is so bad, I always feel that I have made it earlier, Eric, is it? Let Caroline hold a press conference. Slightly reveal a little news to the outside world, otherwise the media will not stop."

Eric looked down at the Firefly's 1992 financial report. Said: "They have touted the annual profit of fireflies to 2.6 billion. People with a little bit of brain know that this is nonsense. So let them guess, we have no obligation to satisfy their curiosity. ”

Jeffrey smiled and satisfied with his face. "Although the figure of $2.6 billion is indeed outrageous, if the film and television entertainment market in North America and overseas expands according to the current situation, it may not take a few years for fireflies. This can be achieved."

"Of course, this is a matter of time," Eric said.

Firefly's current major profitable businesses include film and television entertainment, peripheral products, theme parks and TV business. After more than a decade, the profits of film and television entertainment account for only a small proportion of the media group's revenue. Currently, the film of the seven major Hollywood film companies. Entertainment revenue is still the most important profit point.

In the 1992 Firefly Financial Report, the total revenue of the three major sectors, including North American box office receipts, overseas box office receipts and video distribution, was $4.2 billion, although overseas box office revenues accounted for the highest share, reaching $1.8 billion. The overseas box office has the lowest profit margin. Excluding the cost of overseas theater companies and the issuance budget, the overseas profit margin is only 14%, the profit is about 250 million US dollars, and the North American box office income has a higher profit margin, 1.5 billion. The US dollar's North American box office revenue, deducting the declaration and production costs, fireflies can get a total of 520 million US dollars. The final videotape release margin is the highest, because it is self-issued, and the fireflies in the $900 million videotape revenue are deducted from the issue cost, with a profit of $580 million. This figure is almost the same as the box office income, even more than the North American local income, but this is not too strange, as early as the late 1980s, the film company's videotape income has been equal to the box office income.

The next peripheral product revenue was mainly based on the Disney product store. After the acquisition of Disney, the fireflies handed over the development rights of the Toys Story around the box office last year to the relevant departments of Disney, so this year's Disney store Store sales were $1.6 billion and total profit was $330 million. The theme parks and resorts have revenues of $3.7 billion, but because of the high operating costs, the profit margin is only about 10% and the revenue is $360 million.

In addition, the finance department has assigned the TV drama license revenue of the Firefly film to the TV business. The total profits of the TV programs "Friends", "X Files" and "Who will become a millionaire" and the 10% stake in Firefly's Fox TV network totaled $720 million.

If you do not consider operating expenses at all, all of the above profits add up to a total of 2.76 billion US dollars, which is exactly the same as the annual profit of 2.6 billion US dollars advocated in the media.

However, although some costs have been deducted from this figure. However, the salary and other hardware and software expenses of thousands of employees in the firefly system are still quite large, and the firefly has to provide continuous technical research and development funds for its digital field and the technical department of Pixar Studio, plus the fireflies. The $2 billion in liabilities that were originally acquired by Disney were paid off part of the principal and interest, minus these expenses, and the profit of $2.76 billion was only about $1.5 billion.

This is not the profit that the fireflies will eventually fall into the bag, don't forget. The North American company's business tax ratio is 35% of the anger, and the annual net profit of fireflies is only 980 million.

"900 million!" In the end, Eric couldn't help but sigh, and there was an urge to fight with the US Internal Revenue Service.

"Yeah. 980 million!" Jeffrey's tone was quite exciting. At present, among the top seven Hollywood players, Warner's annual profit reached 950 million dollars because of the higher-profit TV stations such as Turner Broadcasting. Warner has been doing the hegemony of Hollywood for almost a decade, and Eric’s financial report has also announced that from the beginning of this year, Firefly has finally taken Warner out of the Hollywood boss and thought of it. Jeffrey couldn't help but ask: "Eric, what are you going to do next?"

Eric put down the financial report and shook his head. "I have no further plans at the moment. At least I will wait until next year."

Jeffrey accidentally said: "Why, we already have so much cash in our hands, it would be a pity if we don't invest."

"But we can't simply invest in investment, and the cash can't meet my needs," Eric said. According to the historical track, the investment scale of the film is getting higher and higher. This means that the profit of the business sector of film and television entertainment will be reduced rapidly, in contrast. The profit of the TV network has been rising, and even after more than a decade, it may reach more than half of the media group's revenue.

Therefore, the expansion plan of the next firefly must be developed to the TV business.

However, although the three major TV networks in North America have not yet fallen into the hands of the media group, the market value has not begun to skyrocket, but if they want to buy, the offer price will not be too low, and the oil crisis in the Gulf War is a big fortune. To meet the second time is not so easy, Eric does not want to borrow heavily from investment institutions, then the best way is to accumulate funds on your own strength.

Although the profitability of fireflies this year has already invigorated the company, as long as next year's "Jurassic Park" can achieve the sensational effect and the record-breaking box office in the original time and space, then the firefly's profit next year will skyrocket again, then only then With some other aspects of operation, Firefly will certainly be able to raise enough funds to spend on the acquisition of the TV network.

Eric is talking to Jeffrey about his future plans. Allen knocked on the office door a few times and got in and got in.

"Eric, there is an interview invitation here, it is for you, I think you need to see?" Allen nodded to Jeffrey and walked over.

Eric had some doubts. He had already told Allen that all the invitations from the media had been pushed away. Since Allen sent the invitation to himself, it would not be a simple invitation.

"Forbes magazine?" Eric saw the invitation to interview, and he picked up his eyebrows in amazement. There was a bad feeling in his heart.

Allen nodded, but his expression was quite happy: "This is an invitation from Forbes magazine editor Steve Forbes. I have some information below."

Eric snorted, but continued to read.

Since the early 1980s, Forbes has launched a sensational list of American riches. Since 1985, with the rapid rise of Wal-Mart supermarket chains, Wal-Mart's founder Sam Walton has occupied the rich list of the United States. Richest place.

However, unfortunately, Sam Walton died in April last year, and his more than two billion dollars in wealth was equally distributed to his wife and several children. In this case, Wall Although the family is still the richest family in the United States, but with regard to personal wealth, no one in the Walton family can ever be the richest man in North America.

At this time, in the information accompanying the interview invitation sent by Forbes magazine, the Firefly Film Group was given an overall valuation, and the final figure was $10.5 billion. Forbes magazine Also based on data collected from various sources, removing the liabilities of Firefly's film industry, plus Eric's assets owned by Firefly Investment Company, the valuation of Eric's worth is $9.5 billion, and this figure, Kankan is able to win the top position in the North American rich list.

In the original time and space, in 1995, Bill Gates succeeded in winning the big win of win95, and climbed to the top of the list of the richest people in North America with more than 12 billion US dollars. But now the North American economy has not yet begun to recover, plus creating business. The miraculous Sam Walton died, and Eric’s $9.5 billion valuation has already earned the top spot on the rich list.

Carefully calculated, Eric currently holds more than 98% of the firefly's assets. The firefly shares that Jeffrey and Michael Lynn originally held were also diluted after the acquisition of Disney. Jeffrey's shareholding ratio Only one percent left, and Michael Lynn’s is even less, while Pixar’s executives John Russett, Ed Carmoor, and Stan Winston, who is in charge of the digital realm, are just There are some shares in the corresponding branch, so it can be said that Eric has almost entirely fireflies.

If Firefly is a publicly traded company, with this year's performance, after the annual financial report is released, the market value easily breaks through the $10.5 billion valuation given by Forbes magazine, which is basically not a problem, but Forbes magazine obviously knows the strong investment in film and television. Uncertainty, so the valuation given is relatively accurate, and this figure minus the liabilities of Firefly's film industry is obviously the product that Eric has acquired with this company, but Eric is still high. The technology industry has other investments. After several expansions of Cisco's mergers and acquisitions, the number of shares held by Firefly has declined slightly, but it still maintains 36% of the shares. According to Cisco's current market value, it is also about one billion. Around the dollar, this is the most valuable business that Firefly Investments currently has.

For the one billion dollar cash reserve in the hands of fireflies, Forbes magazine is clearly not able to detect it.

This calculation, $9.5 billion, is indeed in line with Eric’s current position. (To be continued)