Chapter 879: Chapter 664 Capital Restructuring_2
Similarly.
For Tengying Entertainnt, once this rger is completed, it ans that all the celebrities who previously obtained stock options can successfully cash out.
Given the current market conditions, without major capital stepping in for acquisition, once the celebrities start selling their stock options, it would imdiately cause Tengying Entertainnt’s stock price to collapse.
The stock market is just that fragile right now. Consequently, not a single major celebrity opposes this rger plan.
After all, Tengyou dia is also under Chen Pingsheng’s control. This left-hand-to-right-hand maneuver not only allows the celebrities holding stock options to cash out smoothly,
but also drives Tengyou dia’s stock price upward. This is truly a multi-benefit operation.
By the ti Chen Pingsheng landed at Baiyun Headquarters in Guangzhou, it was already three o’clock in the afternoon.
His secretary Zhang Wanyi and a large group of senior executives from the company had been waiting there for a while. Additionally, a host of major celebrities from Tengying Entertainnt, including Liu Yifei, Yang Mi, Zhao Liying, were also present.
This wasn’t just a small deal; it concerned the cash-out of tens of billions in equity, naturally making them more proactive than anyone else.
Currently, Tengyou dia’s market valuation is as high as 320 billion, while Tengying Entertainnt’s has already fallen below 80 billion.
Chen Pingsheng had formulated the rger plan before he arrived; this visit was rely to inform everyone and ntally prepare them.
The first step was to release an announcent externally, issuing 20% additional shares of Tengyou dia.
What does this an?
Consider the past scenario when Tengyou dia owned 100% of shares. Through this issuance, it would increase to 120%.
Shareholders who don’t contribute money will see their equity sowhat diluted.
However, once the acquisition deal is finalized, the little dilution in equity pales into insignificance.
Because after this rger, Tengyou dia’s market value will rise to at least 400 billion.
The issuance of shares is purely intended to raise funds, and the purpose is crystal clear.
Tengyou dia plans to leverage this share issuance to raise nearly 60 billion in one go.
Of this, 45 billion will be used to purchase absolute controlling interest in Tengying Entertainnt—51%.
This money will flow into the hands of the stakeholders of Tengying Entertainnt.
For example, Chen Pingsheng himself owns 10%, which will bring him 8.5 billion.
Zhao Liying owns 4.5%, and she will similarly cash out approximately 4 billion.
Yang Mi holds 5%, and Liu Yifei, along with later entrants Shen Teng and Wu Jing, will receive a little less.
But even at minimum, they can cash out 1.5–1.6 billion.
The impetus for this rger cos as the 10-year equity period concludes. The options held by everyone cannot remain rely numbers on paper, and Chen Pingsheng must find the most suitable cash-out avenues for them.
Once this cashing-out is complete, everyone will achieve financial freedom, but that doesn’t co without conditions.
They would need to sign a new 15-year work agreent with Tengyou dia, almost identical to the previous contracts.
If they cash out and imdiately leave Tengying Entertainnt,
it would an Tengyou dia rely acquired an empty shell.
Of course, it wouldn’t do anything that foolish.
The biggest advantage of accomplishing this rger is providing everyone with the best cash-out thod.
From there, when Tengying Entertainnt’s major shareholder becos Tengyou dia, they can quickly stop its previous decline.
This is its ultimate significance.
The capital market has always operated this way—alliances and acquisitions—buying and expanding is consistently the fastest business model.
When Tengyou dia becos Tengying Entertainnt’s major shareholder, it transforms into more than just an influencer economy company.
Add in its existing publicly traded departnt store company as well as a publicly traded clothing company,
and Chen Pingsheng plans to carve out Wanda Business Managent’s cinema operating rights, selling them to Tengyou dia for no less than 3 billion.
This move instantly achieves entertainnt expansion along with physical cinema expansion.
Simply put, his traditional publicly traded companies would face step-by-step crises under current market conditions if kept separate.
But integrating them in the best way would consolidate ten minor assets into three major giants.
The capital integration here is undoubtedly complex, but the results are exceptionally optimistic.
The news of Tengying Entertainnt’s acquisition alone propelled its stock price to seven consecutive days of gains.
Over the following period, it will sustain prolonged increases. Similarly, Tengyou dia’s stock has seen significant gains within re days.
Such is favorable news.
Capital integration is only the first step; the second step involves leveraging the short video advantage to address the entertainnt industry’s persistent decline over these recent years.
Truly rging these two giant companies takes several months at minimum.
Chen Pingsheng didn’t participate in the subsequent practical integration, only suggesting so rational proposals.
For instance, allowing Tengying Entertainnt to maintain independent operations while ensuring its resources and unconditional support when Tengyou dia establishes new project teams.
After all, the downturn in the entertainnt industry is an irrefutable fact, and short videos represent the youth-driven economy of today.
Additionally,
Wanda Business Managent’s resources are also beginning to connect here.
Once fully integrated, Tengyou dia is bound to beco a newly erging dostic giant, spanning entertainnt, short videos, retail, and investnt industries.
If feasible, Chen Pingsheng even hopes to package Fei Yangyang and sell it to Tengyou dia.
That 6 billion price tag isn’t much for Tengyou dia.
The key issue is whether selling it ensures Tengyou dia’s successful turnaround from loss-making to profitability.
Still, it’s worth a shot, as the influencer resources are ample enough to potentially turn Fei Yangyang into a top-tier influencer-based dining enterprise again.
Chen Pingsheng’s approach starts by releasing external news to gauge the capital market’s reaction.
If Fei Yangyang’s stock price surges following this news, it indicates feasibility; if it drops, it ans the capital market finds the acquisition undesirable.
Within three days of the announcent, Fei Yangyang saw its stock price soar significantly.
Evidently, the capital market is optimistic about the influencer economy paired with traditional dining.
Chen Pingsheng called Zhang Wanyi, instructing both teams to negotiate independently. Fei Yangyang’s stock price was already at rock-bottom, and given Tengyou dia’s scale, acquiring it would be effortless.
The valuation was even set at 8 billion.
Unlike acquiring a re 51% controlling interest in Tengying Entertainnt,
Tengyou dia planned to directly pay 8 billion for complete ownership of Fei Yangyang’s equity.
With these stock prices, they straightforwardly announced its delisting.
Once operations improve, they’ll apply for listing again.
Wanda had attempted this approach previously but failed; Tengyou dia replicating it now clearly reflects their belief that Fei Yangyang’s valuation was seriously underestimated.
They aim to reclaim all shares, finalize the integration of influencer economy and traditional dining, and then reapply for listing.
Admittedly, Zhang Wanyi exhibited significant confidence in taking this step.
At their current level, the restrictions no longer lie in ordinary improvent asures.
Instead, they revolve around larger capital gas, earning profits through capital maneuvers.
This far surpasses conventional thods of reaping standard profits.
Tengyou dia had executed this strategy twice before with undeniable success.
This is precisely why its valuation exceeds 300 billion and is on the cusp of reaching 400 billion.
With Fei Yangyang resolved, Chen Pingsheng felt a small weight lifted off his chest.
Otherwise, subsidizing it with 4–5 billion annually was indeed frustrating.
While this amount hardly affects him, as a successful businessman, there’s no logic in perpetually enduring losses.
Now, with the sale to Tengyou dia, he can leave it to them to figure out.
Zhang Wanyi proposed an interesting strategy: without changing Fei Yangyang’s traditional dining model, they could establish region-specific small-scale operations.
In these areas, introduce significant influencer partners as investors. These influencers carry traffic; if they open stores themselves, nine out of ten would likely fail.
But if they funnel traffic into the stores, it can prove vastly successful.
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