Chapter 295: AC Capital

In New York, at the headquarters of The Huffington Post, Charles Capet, who had just arrived from Los Angeles, looked at Arianna Huffington's face filled with helplessness.

"What happened?" Charles felt there was no good news.

"The investigation committee has approved News Corp's acquisition of Dow Jones Group," Arianna Huffington said, shaking her head. "Rupert Murdoch and the board members of Dow Jones have made significant progress in their negotiations. It seems News Corp is going to spend 5.6 billion dollars to acquire Dow Jones Group!"

"So quickly, it's only April!" Charles frowned. The Wall Street Journal was now America's largest newspaper, both in credibility and circulation.

"Rupert Murdoch's move was really decisive," Charles stood up. Although print media was indeed declining, the political discourse represented by The Wall Street Journal was very useful.

Weren't they supposed to hold on until the second half of the year or the end of the year when our funds were back? It's just April, and you've almost sealed the deal?

News Corp, originally a media company founded on newspapers, always intended to acquire Dow Jones Group by waiting for its own funds to recover before seizing the opportunity.

"Our nearly 10% of the shares are useless. The Bancroft family, who holds more than 60%, agreed, and no one else can object," Now, Dow Jones Group's stock price was already inflated, and you couldn't buy shares from the market since they were all in the shareholders' hands.

Of course, it was also because Charles didn't have that much capital. Arianna Huffington, a liberal, wanted Capet Entertainment to acquire The Wall Street Journal to increase the media power of the liberal side.

News Corp represented the conservatives, Arianna Huffington said, glancing at Charles.

Charles shook his head, "Capet Entertainment does have some liquid assets, but producing and distributing movies every year requires a lot of money. We've already put out all available capital worth hundreds of millions for this acquisition."

Charles knew Arianna Huffington's intention was to ask if Charles had more funds.

For 10% of Dow Jones's shares, Capet Entertainment put out 150 million dollars, Hearst Corporation put out 100 million dollars, and Arianna Huffington's partners invested 50 million dollars!

"Doesn't Hearst Corporation have any interest in The Wall Street Journal?" Charles asked.

Arianna Huffington shook her head, "Hearst Corporation is seeking electronic transformation for their own paper newspapers. Their business, such as the San Francisco Chronicle, is declining, and they aren't determined to get The Wall Street Journal.

I also approached Bloomberg. Since they are also in business information, but Bloomberg thinks Dow Jones Newswires overlap heavily with their business, and they believe Dow Jones's asking price is too high!

As for other investment funds and banks, while they support, the intensity won't be that strong."

"My funds are all in the stock market," Charles initially planned to use the money earned from the stock market as a base and then collaborate with other companies and banks to acquire Dow Jones Group.

At this time, where would one find five or six billion dollars?

"Forget it, News Corp has been rooted in the US for over 20 years, and their political connections in America are deep. The Wall Street Journal is a crucial part of News Corp's newspaper supplement," Arianna Huffington also felt helpless. After all, that was the boss of a national TV station.

"Let's just sell the shares we have to News Corp. At least, we made some money in these past months," Arianna Huffington smiled again.

"In fact, I am increasingly optimistic about new media news. The development of internet information will definitely be the grave digger of print media!"

Charles nodded. Since April, The Huffington Post broke new ground by initiating an online debate for the 2008 US presidential election.

Now, The Huffington Post's website saw an increase in independent users daily, becoming America's most famous political blog site and one of the most popular news websites.

Founded in 2005, The Huffington Post was dubbed the "first internet newspaper," setting an industry benchmark. Arianna Huffington was thus listed among Time Magazine's 100 most influential people globally in 2006.

"This year, I will also invest $20 million to support The Huffington Post's business expansion. With this momentum, it will only get better," Charles was here today to discuss The Huffington Post's financing.

"Thank you for your support. The Huffington Post will not disappoint you," Arianna Huffington, along with her partners, also needed to raise funds. Otherwise, Capet Entertainment would dilute their shares.

After leaving The Huffington Post headquarters, Charles got into the car, and Dona Williams, sitting beside him, noticed he seemed unhappy. "Is there a problem with acquiring The Wall Street Journal?"

"Forget it. I was too naive. Rupert Murdoch's News Corp isn't even sweating over spending five or six billion dollars. Let's start preparing to sell the shares we hold," Charles said with a helpless smile. "At least, we made a little money! It can support you in setting up an investment company. Have you thought of a name?"

"Yes, Angel City Capital, abbreviated as AC Capital!"

"Angel City?" Charles smiled, nodding in approval, "AC Capital, the name is good.

Most of our clients are from Hollywood, so the name Angel City is just right. Lululemon is currently conducting an IPO roadshow across the country, so you might want to pay more attention. This company is worth investing in," Charles had a different positioning for Dona's AC Investment Company. External investors wouldn't all be long-term like himself.

AC Capital would definitely have most of its business focused on short-term investments.

"Got it!" Dona said, then offered a kiss.

At that moment, in Capet Fund, laughter suddenly came from Lily Ying's office. Sitting in her chair, Lily Ying watched the news on CNBC about New Century Financial's bankruptcy.

Facing $17.4 billion in debts from various Wall Street banks and investment institutions, New Century Financial, the second-largest subprime mortgage company in the US, announced profit warnings in February. Finally, unable to hold on, it filed for bankruptcy protection and laid off 54% of its employees.

"Ah, it's really starting. This is the first domino to fall," Lily Ying rubbed her face. Finally, she could take a good rest.

*****

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