nyslfriends #375 - Financing
#375 - Financing
"Mr. Richardson, if our survey data is correct, the number of television sets in North America in 1949 was only a mere 1 million, but in just a few years, we have reached over 20 million. We anticipate breaking through 40 million by the end of the 1950s without any suspense. Expanding to the global market, the incremental increase in television sets reaches 10 million units annually without a problem. In the next 8 years of the 1950s alone, this incremental increase will be at least 80 million units or more.
Calculating each television set at $800, that's a $64 billion market, correct? In fact, with the improvement of people's living standards and the development and improvement of television technology, the price of television sets will further increase in the future. A few years ago, black and white television sets started at a price of $200, but today our color television sets can already sell for over $1000. As technology develops, television sets will become larger and larger, the effects will become better and better, and the price will steadily increase on the current basis.
This is the terminal market. The main development of television sets in North America is cable television. Currently, the initial installation fee for each household is $125. This area won't be less than $5 billion, right? Adding a monthly viewing fee of $5, that's $60 a year. In the next ten years, each household will pay $600. Just in North America, this market of 40 million users is $24 billion. This doesn't even include the European continent, which has at least 20 million users or more, with a scale of at least $10 billion."
"These are just a few rigid demand incomes, and the income exceeds the trillion-dollar level. In the television industry, there is also the content service sector. In the future, this will be the real major part of the television industry. The television industry is the mainstream of the media industry in the future.
With the popularity of television sets, our video recorder business will also become popular along with television sets. In this aspect, we also have absolute technical advantages, at least 10 years ahead. In a few years, this business can at least reach the level of tens of billions in scale."
In the historical timeline of the main world, from 1950 to 1970 and 1980, the rogue eagle's television stations expanded from 106 to 876 and 1020. Television sets increased from 1 million in 1949 to 40 million in 1960, 86 million in 1970, 150 million in 1980, and 280 million in the 1990s.
Others may not be clear about this development history, but Ren Zhong can find their development data.
In this timeline, the development of technology is a little faster than before. Due to Ren Zhong's interference, color television sets also appeared in advance. Then the development of the television industry is even more rapid than in the original timeline. If Ma Zhiyuan can use the tricks Ren Zhong gave him in the content service sector, then the development speed of this industry will be even faster than in the original timeline.
"Can accounts be calculated like this?" After listening, Richardson felt a little difficult to understand, but he also felt it made sense. This illusion gave him a strong sense of division, but he also saw Ma Zhiyuan's ambition.
"Mr. Ma, are you planning to fully develop the television industry chain?"
This is a very important question, and Richardson needs to get a definite answer.
"No, I only do hardware." Ma Zhiyuan shook his head. Although he wanted to do the entire industry chain, he knew that it was impossible, at least in North America. The sensitivity of media is much stronger than hardware.
It is impossible to be controlled in one person's hands.
But as a leader in hardware, supporting a media company should be normal, right?
"Vision Company will be committed to the innovative development of the television media hardware industry chain. We want to be the leader in television media hardware."
"However, these are all empty words. Back to reality, we are very confident that our annual sales will reach or even exceed $10 billion in the next 5 years. Therefore, in terms of valuation, our expected valuation for Series A is $10 billion."
Ma Zhiyuan quoted his price.
If he had quoted this price before, Richardson would have turned around and left.
But now, after listening to Ma Zhiyuan's plans and intentions, Richardson only felt that it was high. Vision's sales naturally can't support a billion-dollar valuation, but the development of this industry is indeed very fierce. As Ma Zhiyuan said, the growth rate is developing at triple digits or more. It is the golden period to enter this industry.
Although Richardson's psychological price before coming was between 3 billion and 5 billion dollars, now it has more than doubled, which seems a bit expensive.
However, in terms of technology, Richardson has conducted detailed research on Philips and other television industry giants, confirming that they are still in the exploration stage of color television sets. Although there are other companies researching color television sets and have some samples, whether it is the picture quality or the sound quality, appearance, size, etc., they are not as mature as Vision Company.
Being able to sell 500,000 units at a high price in just over a year, Vision's television sets rely on its unique technical advantages, and have truly opened up all hardware equipment from the content end to the terminal, achieving the complete realization of the color television industry chain in North America.
Although the amount of back-end equipment is not large, only a few dozen sets, these devices have a very large impact on the terminal. Now, even in areas dominated by black and white television sets, the back-end service is also beginning to be updated to color television playback equipment.
Richardson knew that this technology was very remarkable in this era.
He didn't even know why Ma Zhiyuan developed such complete technology in a short period of time, like a person with a cheat.
However, the rogue eagle is not lacking in inventing geniuses. There was Edison in the front, and Ma Zhiyuan in the back, which is not surprising.
"Mr. Ma, can the price be negotiated? We are very sincere, and as the lead investor, we also have a great promoting effect on the company's listing. We have extraordinary influence on Wall Street," Richardson said.
It is normal to ask for the sky-high price and bargain on the spot.
Moreover, what Richardson said is not unreasonable. To be listed on Wall Street with the help of Wall Street, the resources of Trend Fund are indeed very strong.
"Mr. Richardson, this is a very sincere offer from us. If we go public in another year, I think the valuation will increase," Ma Zhiyuan said without any panic, "In terms of equity design, we will implement the AB share system. The shares held by the original shareholders have 3 votes per share. Now, if we lead the investment, we will give A shares and a director's position, with complete voting rights and dividend rights. From the B round of financing, we will only release B shares, and each share will only have 1 vote. Moreover, all of our financing amount will be attributed to the company's capital increase and share expansion, and the founding shareholders will not cash out."
The latest ⊥ novel ⊥ is ⊥ at ⊥ six ⊥ 9 ⊥ ⊥ book ⊥ ⊥ bar ⊥ ⊥ first ⊥ release!
"We will release a maximum of 10% in Series A financing, and it will be similar in Series B. We will release 30% in the IPO for public listing. In this way, by the time of listing, we will release more than 36% of the public shares. My personal shareholding will be reduced to about 51%, and the shareholding of the other founding shareholder will be reduced to about 13%, which meets the regulatory requirements of public companies."
Hearing Ma Zhiyuan's plan, Richardson frowned. Not only was the price high, but in this way, he and the capital behind him could not get many original chips.
The design of AB shares also shows that Ma Zhiyuan is not a financial rookie. Even if less than 51% of the shares are left in the end, the voting rights in his hand are still in the vast majority of 63.6%, and the control of the future company is firmly grasped.
"Mr. Ma, you have too many restrictions," Richardson said, "We have too few opportunities to participate."
"Mr. Richardson, Vision is my hard work. I think you can understand this," Ma Zhiyuan smiled and said, "We can only release so much in Vision. However, in terms of television sales, we will set up a separate sales company. If Mr. Richardson is interested, we can closely cooperate with Trend Fund in this area, and I believe that Mr. Richardson will be satisfied with the profit sharing."
After this period of commercial polishing, Ma Zhiyuan knows that building a global channel is not an easy task. In fact, a large part of the financing funds will be put into channel construction and branch construction.
At this stage, at least two major markets, North America and Europe, must be covered, and then expanded to other parts of the world as needed. (End of this chapter)