Return to 1958 and build a century-old giant

Chapter 899 Acquiring the Lakers

In the following time, Yang Wendong and Peter chatted about some international events.
His guess was correct. This person had unique insights on many issues and was very rich in political resources. If he could bring him into his camp or have a deep cooperative relationship in the future, it would be of great help to his career in the United States.
However, we'll have to wait until the Olympics are over to discuss everything.

The next day, Yang Wendong arrived at a luxurious coffee shop in the heart of Los Angeles, where an old friend was already waiting.

"Barney," Yang Wendong greeted him with a smile as he approached. This man was the vice president of Goldman Sachs.

Barney stood up, shook hands, and smiled, "Please sit down. It's been a long time since I've been to Los Angeles. I even had a story with a Hollywood actress back then."

"Really? Which one?" Yang Wendong also became interested in this gossip.

Barney shook his head and said, "Let's not talk about that. But she wasn't a top star, more like a second-rate one. Now that we've all started our own families, there's no need to reminisce about the past."

"Hmm, that makes sense." Yang Wendong didn't press further, and said, "Goldman Sachs was also interested in Hollywood?"

Barney said, "Yes, in the 70s we intended to invest in Hollywood film production, but we were unlucky and often lost money. Films are more complicated than financial stocks and are completely uncontrollable, so we stopped participating later."

Yang Wendong laughed and said, "Yes, whether a movie succeeds or not depends entirely on luck."

Barney added, "You're much smarter. You control the cinema chains in Hong Kong and Asia, and with the returns from real estate, you're guaranteed to make a profit."

“If Goldman Sachs wanted to, it could do the same thing in the United States,” Yang Wendong said.

Barney shook his head and said, "Theoretically it's possible, but it would require too much money and the return would be very low. Most importantly, there's not much room for further increases in US real estate prices, plus there's the property tax, so it's not very meaningful."

"Yes, that's true." Yang Wendong nodded and said;
His cinema chain dominates in Asia, but has almost no presence in the European and American markets, which is also due to this reason.

Of course, it's difficult for Hong Kong films to enter these markets, but if they could achieve reverse cultural invasion, then it would be worth a try.

Barney took a sip of coffee and then said, "Let's get down to business. You asked us to acquire an NBA basketball team before, and now there's progress. The Detroit Pistons, the Denver Nuggets, and the Los Angeles Lakers have all indicated that they are open to discussion."

"Three teams, you guys are pretty efficient!" Yang Wendong said happily.

Barney handed over some materials and said, "There are dozens of teams in the NBA. As long as the money is right, someone will always be willing to sell. Which team do you think is the best fit? These are all materials."

"Okay, let me take a look." Yang Wendong took the information and looked at it carefully. After a while, he said, "Let's talk to all three teams, but the focus should still be on the Lakers."

Of the three teams, he naturally favored the Lakers. Although the current Lakers had little to do with the future Lakers that would become famous in mainland China, the other two teams were even less well-known.

From his perspective, one of his core businesses in the United States is in Los Angeles, and buying more properties in Los Angeles would make management much easier in the future.

Once he gets the team, no matter what level the Lakers are at now, he can use his money to build a powerful team.

In addition, there is the future superstar Jordan, who can also be invited in advance. With his strength, coupled with strong teammates, that will definitely become the strongest team in the NBA.
Such teams may require large investments, but they are inherently very profitable. Especially starting in the late 80s, when the NBA's influence began to extend from the United States to many other countries, the star effect increased significantly.

His businesses span the globe and have significant ties to sports. Building a strong basketball team with a group of world-renowned basketball superstars would greatly benefit his career.
“As I expected, I would also choose the Lakers if I were you,” Barney said with a smile. “Then I’ll get ready to contact the Lakers’ owner and get back to you when things progress.”

"Okay, thank you." Yang Wendong nodded and said.

If some acquisitions are handled by investment banks, then he doesn't need to worry about them anymore; he can just wait for the results.
Although these investment banks may engage in some shady practices during this process, they generally have a rough idea of ​​the final price of the most basic products, so it usually won't be too outrageous; furthermore, this is their main business, so they generally won't be too shady in their dealings.

The resources that investment banks possess are exactly what Yang Wendong needs;

For him, achieving the ultimate strategic objective is the most important thing.

Many overseas acquisitions also need to be handled by local investment banks; otherwise, the obstacles from the government and other financial groups will be enormous.
“You’re welcome. We’ve been long-term partners,” Barney said. “KFC’s first round of financing went very smoothly. I hope that Goldman Sachs can be an underwriter again when it goes public.”
"Don't worry, I will give it serious consideration," Yang Wendong replied.
KFC had previously completed its first round of financing, raising $2.5 million in cash, which will be used for expansion in the US and European markets;
About six months later, there will be a second round of financing, and then we will consider going public.

This is his second largest asset-heavy business in the United States. Perhaps its IPO is not as large as Best Buy's, but it can definitely be one of the largest IPOs in the last decade, so it is naturally very popular with Wall Street investment banks.

Barney said, "Okay, I'll go see the Lakers' owner this afternoon and negotiate the price with him. If things go smoothly, it should be done in the next few days."

"That would be great. I also hope to settle things as soon as possible, otherwise I don't know when I'll be able to come to the United States again," Yang Wendong said, nodding.
Over the next few days, Yang Wendong mainly sightseeed in Los Angeles, and also visited Hollywood and met with Li Xiaolong.
"You don't look well. What's wrong?" Yang Wendong asked.

Li Xiaolong sighed and said, "High blood pressure has caused some kidney problems. I had leg swelling a while ago and went to the hospital to get checked out. Fortunately, my kidneys aren't in a very serious condition."

"High blood pressure is indeed a troublesome problem. What about your blood lipids and blood sugar?" Yang Wendong asked.

The "three highs" (high blood pressure, high blood sugar, and high cholesterol) are a top-tier silent killer. Many people may not experience symptoms for several years or even more than a decade after they get them, but once complications appear, it can be a living hell.

According to statistics from the previous life, the number of deaths from cardiovascular diseases caused by hypertension, hyperlipidemia, and hyperglycemia is higher than that from cancer, and a large number of people are disabled or suffer from chronic complications as a result.

Yang Wendong has been paying close attention to this aspect of his data since he was very young, and has always maintained it very well;

After all, cancer is difficult to prevent, but high blood pressure, high cholesterol, and high blood sugar are relatively easy to manage.

Li Xiaolong said, "It's not very good, but it's not serious either."

"You should take a good rest from now on. Stop making movies and focus on raising the next generation," Yang Wendong suggested.
Historically, Li Xiaolong's death was suspected to be caused by cardiovascular disease, since sudden death is most likely due to this cause, either heart or brain. Because of his own strong intervention and early intervention, he escaped that calamity, but his excessive hard work in his early years and the hardships he has endured in recent years have still caused physical damage, which is unavoidable.

Li Xiaolong agreed, "I understand. I knew I had a problem before, but I didn't pay attention to it. Now that I have kidney problems, I realize my mistake. Don't worry, I won't push myself so hard anymore."

"Then this minor illness might actually be a good thing," Yang Wendong smiled.
That's how people are. When they're healthy, they have too many desires and want to work hard to make money. Only when their bodies have problems do they realize that health is the most important thing.
Many people understand this principle, but very few actually put it into practice. There are very few young people in the world who, when they are healthy, strictly pay attention to their daily routine and control their eating and walking habits.
Ultimately, an illness made it all clear;

If you're lucky, it's a minor illness that you can recover from; if you're unlucky, then...
“Well, I certainly didn’t listen to your advice back then.” Li Xiaolong shook his head helplessly, then asked, “Mr. Yang, did you come to Hollywood for some big investment?”

"Not for now. You can decide for yourselves," Yang Wendong shook his head and said, "However, I'm planning to invest in a film in the United States, but I don't know if there will be an opportunity."

Hollywood has gradually accepted martial arts action films, and many of the supporting roles have been played by Chinese actors, which has brought a considerable market to Hong Kong Chinese actors.
This aspect was handled by Li Xiaolong, as he was the kingpin in this field and had excellent relationships with several major Hollywood companies.

"What movie?" Li Xiaolong asked curiously;

Yang Wendong smiled and said, "I can't tell you for now. I'll tell you when we succeed."

His investments in multiple sectors have been very successful, so many of them need to be kept secret until they are successful.

Three days later, Barney brought news that the Los Angeles Lakers' owner and management needed to meet with Yang Wendong.
Yang Wendong agreed, which is normal. This kind of investment isn't something you can just buy blindly with money. As the acquirer, he also needs to communicate with relevant personnel about how the team will develop in the future.

So Yang Wendong also came to 1111 Figueroa Street, which is the Lakers' headquarters in Los Angeles, where there is also a huge training facility;

"Eric, this is Jerry Buss, the Lakers' owner." Upon entering the building lobby, Barney introduced Yang Wendong to several people: "This is team general manager Ted, and this is..."

"Hello." Yang Wendong shook hands with each person in turn.

Afterwards, the group toured the Lakers headquarters, and Yang Wendong saw the Lakers players of this era, but he didn't recognize any of them.
Before this, although he also liked basketball and would occasionally play in Hong Kong, it was not the Internet era, and NBA games were not broadcast in Hong Kong, so he could not watch them even if he wanted to.

Even after VCR technology became widespread, all you could see were replays, which was meaningless for matches where the outcome was already known.

The Lakers players seemed to have caught wind of the situation, and many of them noticed their group. Later, a coach stopped them and allowed them to continue their training as normal.

Jerry Bass laughed and said, "Mr. Yang, as you know, I am just a real estate businessman. My investment in basketball is just a hobby. However, hobbies are obviously no match for money. As long as your price is right, I am very happy to sell."

"Don't worry, the price will definitely satisfy you." Yang Wendong glanced at Barney, who stepped forward and said, "Our offer is $8000 million."

Jerribas frowned and said, "Isn't this price a bit too low?"

Barney said, "Compared to the acquisition price you paid three years ago, this is $1200 million more. You can earn $1200 million in three years, Mr. Bass, are you still not satisfied?"

Three years ago, Jerry Buss took over the Lakers for $6800 million.

Jerry Bass shook his head and said, "If it were three years ago, this return would be acceptable, but don't forget how high the federal interest rates have been in recent years. If the return rate is only 20% over three years, then it would be too low."

"Mr. Barney, you work for Goldman Sachs, you should know more about this than I do."

Barney remained calm and asked, "So, what's your target price?"

“$9000 million, actually, even after accounting for bank interest, I wouldn’t make much,” Jerry Bass replied.

Barney didn't answer, but looked at Yang Wendong. Yang Wendong thought for a moment and said, "Inflation has indeed been a bit high these past few years. How about this, let's first establish a memorandum of understanding. I need to check the Lakers' operations over the past three years. Once those results are out, we can discuss the price. How about that?"

“Alright,” Jerribas agreed. “I’m only concerned about the price. You can discuss the rest with the management team. I’ll take my leave now.”

After saying this, he shook hands with the group of people again and then left.
“He’s truly a pure businessman.” Barney smiled.

Yang Wendong said, "A pure businessman would be more beneficial to us. Otherwise, if he likes basketball, no matter how much money we offer, he might not sell, which would be troublesome."

“Haha, that’s right,” Barney said. “I’ll arrange for someone to conduct a financial investigation into the Lakers immediately. You should send a few people with you too.”

"Okay," Yang Wendong nodded in agreement.
Goldman Sachs facilitated this acquisition, so they are responsible for it to the end, including the financial situation of the acquired company and whether there are any hidden risks. Otherwise, if problems arise, they will also be held responsible, and it will also affect their reputation in the industry.
Of course, this cost will definitely be borne by the acquiring party.

Barney said, "Okay, I'll be going now. You should talk to the Lakers' management. This is necessary before the acquisition."

Acquiring a company requires not only persuading the shareholders, but also communicating with the management. Although the management may not legally affect the acquisition, they are still responsible for the operation after the acquisition. If there is no prior communication, it will only lead to a lot of trouble later.

After everyone else left, Yang Wendong and Lakers general manager Ted went to the balcony above, where they could see the basketball court below and had a great view.

“This is the best place for us to watch the boys perform,” Ted said with a smile, his face covered in a full beard.

"It is indeed a good location," Yang Wendong agreed.
Ted handed him a Coke and asked, "Mr. Yang, I'd like to know, if you acquire the Lakers, what changes will we face?"

PS: Ask for monthly ticket

(End of this chapter)