Chapter 58

Chapter 58 Bloomberg

Board the train "Ovitz".

Abel's goal is not "X days and X parties".

Even though it's this kind of thing, it's still quite curious.

Its main objective is to pursue CAA stock.

According to Ovitz, these guests were on board today. The CAA shares they hold in their hands can be sold to Abel if they want.

Abel would then be able to immediately become CAA's largest shareholder, still well ahead of second place.

Absolute ownership is impractical because CAA's shares are currently too dispersed.

After experiencing internal conflicts, CAA now appears to be slipping into second place.

But the foundation is still there and the current development trend of the entertainment industry looks very good. Investors are more optimistic about CAA.

Yes, unless you buy at a very high price.

Otherwise, there is little hope of absolute maintenance.

Additionally, for a company like CAA, there is also the advantage of having more shareholders.

The more shareholders it has, the stronger its bond. People and diverse resources are sometimes more important than profits for a company like CAA.

Furthermore, guests arriving on the cruise ship today were all screened by Ovitz.

Guests know that today it is mainly about transferring shares.

Keep track of communications and have fun.

What benefits? Take a look around at these Hollywood beauties.

They are just other guests, maybe they are more reserved or maybe they have prices.

wait for Abel to go get them.

Bloomberg didn't know what was going on, so he took it upon himself to find out first.

Seeing that, Ovitz took the opportunity to tell the main story first. Faced with Ovitz's frankness, Bloomberg seemed unconcerned.

The Bloomberg founder smiled: "I know, and that's why I'm here. I'm here for Mr. Smith."

"Um." Abel smiled and said: "So what do you mean?"

"What do I mean? Of course I want to sell it. As long as Mr. Smith wants it, that's fine." Bloomberg said calmly. Bloomberg currently owns about 3.1% of CAA shares.

This is the stock he bought before.

I am always in my hands, I do not sell nor increase my holdings.

When he bought these shares, CAA's market value was only about 500 million USD.

At the time, it cost $15 million. It's been almost a decade.

CAA market capitalization. Well, not much.

Don't look at the power and influence of CAA in Hollywood.

But in reality, companies like CAA, despite being huge, actually make the same profits. CAA had 550 employees in the mid-1990s and employed approximately 1,400 top Hollywood talent.

But the company's annual revenue just exceeded $150 million.

Now that it has progressed to 2000, the CAA is stronger.

The employees exceed 600 people.

But revenue in last year's annual report only reached 300 million USD. It's income, not profit

Calculating profits is estimated at less than 100 million USD.

Today, many investment banks' valuation of CAA is probably around $1.2 billion to $1.5 billion.

Abel previously acquired an 11% stake at a premium, including premium, worth approximately $190 million.

Not to mention comparisons with financial companies, or even comparisons with medium and large companies in other fields.

CAA's annual report and market value are not very good. But at this point, achieving such a CAA is already a giant in the entertainment brokerage industry.

Because of that,

CAA seeks to transform itself.

It's just that CAA is timid and does not dare to expand into other fields.

Right now, I'm just thinking about switching to another commercial brokerage field.

Don't dare to invest indiscriminately. Currently, they are starting to focus on the commercial sports sector.

Such as commercial sports leagues such as the NBA, NFL and NHL.

At the same time, we are still preparing to go global and start building overseas branches.

But. That's it.

Even after going public in the future, when the market value of CAA was the highest, it did not exceed 10 billion US dollars.

The market value has hovered around US$4-6 billion for a long time.

So from an investment point of view, CAA's rate of return is really not that good.

If Abel's goal is not for the media industry, CAA is a very suitable springboard.

If you don't consider this, he will never be so serious about a company of CAA's size. It doesn't matter how you say it, it doesn't matter how beautiful it is.

To put it bluntly, companies like UTA, WME and CAA are essentially midstream industries.

The middle-class sector can only make money through commissions.

Commissions also require a significant portion for employees, the rest being profit.

This model, whatever its size, will be the same. Perhaps because of this.

Bloomberg will appear very comfortable selling CAA shares.

The difficulty in controlling CAA does not lie in capital.

Its shares are too dispersed, and such dispersion of shares is beneficial to its own performance to a certain extent.

Even Abel doesn't want to privatize the CAA. If it is truly privatized, it will certainly affect its operations.

What you mean is that holding relatively is enough, about Q is enough.

If you can gain control of the board then about 33% is acceptable.

Regardless of the number of shares, privatization is not a good option.

The attributes of the industry are like this. Unless he himself can provide enough resources.

For example, the Texas corporation, which would then have absolute control, could systematically provide support.

Abel is currently unable to reach this level.

Seeing Bloomberg being so easy-going, Abel immediately smiled and said: "This price will definitely satisfy you."

Bloomberg doesn't lack money and Abel doesn't lack it either.

He talked a lot, but Abel owed him a favor. So Abel likes to buy more and spend more money.

It's better than being in debt.

But Bloomberg shook his head and smiled: "Just follow the market price." Bloomberg's CAA valuation is $1.3 billion.

Abel raised his eyebrows, so generous? It's not like a capitalist.

He doesn't know Bloomberg, and the other side has no reason to be so generous.

These capitalists are not even willing to pay tens of thousands more in taxes.

This opportunity to make millions more is easy to give up.

It's just that I want more. But clearly Bloomberg does not want to continue talking about this issue at this time.

CAA is just an investment for him.

Nearly a decade of investment has yielded two or three times the results.

It sounds like a lot, but that's it for Bloomberg.

Obviously, the discussions are about CAA. The Hollywood actresses beside her are clearly very concerned.

It's just that their interests are not taken into account by Bloomberg and others.

Bloomberg observed a number of Hollywood female stars, then Ovitz.

"Mr. Ovitz. I have something to say to Mr. Smith. Can you give us a private location? »

Ovitz was surprised and immediately realized: "No problem.

"And at the back of the yacht? There's a little deck there with a great view of the Atlantic Ocean. Plus, no one can hear what you're saying."

"Correct." » Bloomberg said.

Abel shrugged, not objecting.

Now people are even more curious about what Bloomberg wants to tell himself. (end of this chapter)