Reborn Action Star: Starting in Hollywood

Chapter 434 The largest sum of funds

Lin Yuan's film and television company is considered a very high-quality company. Its net profit last year was as high as $23 billion, making it a cash cow. (See Chapter 410 for details)
Just like the previous example, his company can be likened to a young girl waiting to be married, who will definitely have no trouble finding a husband.

But what if the bride price required is the girl’s total salary income for 30 years?
Will it scare away most grooms-to-be?

The 30 times PE proposed by Betty is equivalent to this meaning.

This means that Lin Yuan's film and television company, which has an annual profit of US$23 billion, will be valued at 30 times its annual profit, which is nearly US$700 billion!
If investors accept this offer, it means that Lin Yuan's film and television company must earn $23 billion every year and continue to do so for 30 years before they can make a profit.

It is obvious how great the uncertainty here is.

Thirty years in the east, thirty years in the west, how many things will time change?
Will Lin Yuan’s film and television company still exist by then?

Is Lin Yuan even still alive?

These are all uncertainties. If any one of them does not go as expected, the investment will result in a loss.

Betty’s PE ratio of 30 is too exaggerated!

Lin Yuan really couldn't believe that there would be an investor who would accept such an offer.

If you take a casual look at the capital market, you may feel that a PE ratio of 30 is not an exaggeration. There are also companies with "core technologies" that have a PE ratio of more than 100 times or even 200 times.

However, super-high PE is generally given to companies with smaller market capitalization and whose performance is in a period of rapid growth.

For example, if your performance can double this year and double again next year, then the PE of 100 times will only be 25 times in two years, and the current high valuation will be "digested".

Or maybe your market value is not large and is growing rapidly, so it is not a big problem to give a higher price. After all, you don’t have much money, so just treat it as a gamble, and you won’t be too heartbroken if you lose.

But these two points do not exist in Lin Yuan’s film company.

Because the valuation of his film company has reached as high as 700 billion US dollars!

This is definitely a behemoth level company. Once it is successfully listed, the market value of Lin Yuan’s film and television company will surpass the current eight giants and directly reach the top!

This means that Lin Yuan created a giant film and television company from scratch.

Secondly, it is unlikely that Lin Yuan’s film and television company will see a significant increase in performance.

Last year's profit of $23 billion was based on the premise that Lin Yuan shot three films alone and achieved a profit of $20 billion.

It is still unknown whether the films shot by Lin Yuan in 2004 can achieve the same performance as last year. Therefore, it is impossible for him to "digest" the high valuation with high performance growth like those start-up companies.

Finally, this model in which revenue is highly concentrated on Lin Yuan alone is also the risk that the capital market is most worried about.

What if one day Lin Yuan can’t make a good movie?

What if Lin Yuan has an accident while filming?

The more dispersed the revenue is, the healthier it is. No one likes a revenue model that puts all their eggs in one basket.

Therefore, based on the above three reasons, Lin Yuan felt that Betty's 30 times PE was extremely exaggerated.

What is exaggerated is not just the 30 times PE, the scale of the IPO funds also surprised Lin Yuan.

Generally, the proportion of shares in an IPO of a listed company accounts for about 15% to 20% of the total share capital.

This is very easy to understand. It means that during the first round of public fundraising, a listed company can only use 15% to 20% of its shares for fundraising.

After all, investors are only here to be shareholders, not bosses.

You can't use all your shares to raise funds, right?
The $140 billion IPO size promised by Betty means that it is based on the maximum limit of 20%.

too exaggerated!

30 times PE, 20% ratio, both are top levels.

"Can you really meet this condition? Will it cause you any trouble?" Lin Yuan asked. "If you use improper means to achieve it, I would rather not take the money."

Betty smiled and said, "I know you're worried about me. Thank you for your concern. But please believe me, this is done using completely legal means. I'm a professional in this area."

"Even if the procedures are completely legitimate, if those investors feel cheated, won't you be under tremendous pressure?" Lin Yuan asked worriedly.

Betty shook her head and said, "Lin Yuan, you don't know how attractive you are. Your company will never lack buyers. Those investors will only beg me to give them a larger share."

"Huh? I smell so good?" Lin Yuan couldn't believe it.

"Yes, your company has reached the stage of going public without any investment. This is a huge advantage and is enough to show how high-quality this company is." Betty explained to Lin Yuan seriously.

Normally, a company’s road to listing will go through several rounds of investment, including angel round, A round, B round, C round, Pre-IPO round, etc., before it can gradually grow and reach the stage of listing.

Each round of investment will be accompanied by the coming and going of investors, which also means that the equity of the founding team is constantly being diluted.

By the time of listing, many founding teams held less than 40% of the shares.

There is no way, more and more people are sharing the cake.

The game of passing the flower continues to play, and the latecomers need more benefits to fill their stomachs.

All the shares of Lin Yuan's film and television company are in the hands of him and Mr. Eisen, and there are no third-party investors!
This is simply outrageous, which shows that this film and television company has achieved its current level without any external help, but has relied on its own hard power to fight for it.

How to avoid attracting the attention of institutional investors?
And since no one has come in to share the cake, it means there are more benefits to be distributed.

How can we not make them eager to rush in and get a piece of the pie?

This is what Betty said, Lin Yuan has no idea how attractive he is.

In her opinion, there is no need to worry about the lack of cornerstone investors to subscribe to the shares.

"But after all, this is a PE ratio of 30 times. I myself cannot guarantee that I can achieve a net profit of 23 billion US dollars every year. I feel a little nervous when holding this money. I am worried that if those investors suffer losses, it will cause you a lot of trouble." Lin Yuan said.

Hearing his words, Betty reached out and gently touched Lin Yuan's face: "I'm very happy that you are so considerate of me. If it weren't for the lack of time, I would have wanted to push you onto the bed right now."

As he was speaking, Lin Yuan felt a pair of jade feet under the table, climbing up his trouser leg.

He grabbed the foot. Now was not the time for this.

But it didn't stop him from gently kneading this jade foot, which felt really good.

Betty blushed, but she didn't retract her foot. She continued, "Actually, your film and television company still has a lot of room for profit development. Currently, profit calculations primarily focus on box office and DVD sales. However, the film's IP revenue hasn't been reflected because it hasn't been developed yet."

"Do you know how much IP derivative income can be developed from the three films "King of Spy Wars," "Lin Yuan and His Wife," and "Hero"? How much IP value will the films you shoot in the future generate?"

"When these gains are taken into account, the actual PE is actually not that high, and the performance in the next few years is fully guaranteed."

"As the company's proprietary IP continues to grow, long-tail returns will become increasingly apparent. I've calculated that within five years of listing, the current PE ratio will be reduced to at least 20 times, which means there's a huge price gap."

"Those big investors are not stupid. They see this and are willing to pay up."

Betty spoke a lot in succession, explaining to Lin Yuan the practical feasibility of this seemingly exaggerated IPO.

"Okay, you convinced me. I'll listen to you on this matter." Lin Yuan replied.

"Then both the sponsorship and issuance will be handed over to me. For me, the performance of this project is also a great achievement. It is enough for me to take the next step forward in Morgan Stanley." Betty said with a smile.

"Go up further? You are a senior vice president now." Lin Yuan asked.

"That's right, after completing this deal, I can become one of the three executive presidents!" Betty said proudly.

Betty is only 25 years old this year. At this age, she has become the top executive of Morgan Stanley and is definitely the brightest star on Wall Street.

She is truly a super hexagonal warrior with no shortcomings in family background, talent, character, or appearance.

"It's a win-win situation for us. I got a promotion and you got a huge sum of $140 billion!" Betty said with a smile.

140 billion US dollars! This is the largest amount of funds Lin Yuan has obtained since his rebirth.

Although this money is not given to Lin Yuan, the funds raised from the IPO are not used to help the founder cash out, but can only be used for the company's operations and development.

However, the right to use and control these $140 billion is entirely in Lin Yuan's hands.

With the $140 billion, Lin Yuan will have plenty of ammunition whether for investment or shooting more movies.

He no longer has to worry about being restricted and unable to do his work freely.

At this moment, Lin Yuan deeply felt the meaning of "a woman three years older than her husband is a gold brick."
Betty brought her a mountain of gold.

"I would like to ask, how long will the listing cycle take?" Lin Yuan asked.

He was indeed not very familiar with this field, but he had the impression that the listing cycle in places like China, Hong Kong Island, and Japan was quite long.

Many companies have been successful in going public after two or three years of hard work, while some companies have even been unable to go public after four or five years.

"We're preparing to list on Nasdaq. The US uses a registration-based system, so the review process normally takes four to six months, and the overall process is completed within six to nine months," Betty said. "I'm confident we can complete it within five and a half months."

"If it's five and a half months, it will be around mid-to-late August." Lin Yuan calculated the time.

"Yes, it just happens to coincide with the release of 'The Legend of Tang Dynasty'. If the box office of the movie is a big hit then, then the stock price will surely soar as soon as it is listed on the stock market," said Betty.

"But what if the box office crashes?" Lin Yuan asked with a smile.

This question doesn't need to be answered at all.

The timing of the movie's release and the company's listing is definitely a double-edged sword.

If the box office is good, the stock price will soar; if the box office is bad, the stock price will definitely plummet.

"Is it possible that your movie will fail at the box office?" Betty asked with a smile.

"Of course not. If I'm not satisfied with my movie, I'd rather not let it be released," Lin Yuan replied.

"That's no use. If it's not released, the stock price will probably drop even more." Betty joked.

"No, it's not because of stock price considerations. I just really don't want to disappoint the audience who likes me." Lin Yuan replied.

His only purpose in making movies is to leave behind masterpieces that will be passed down through the ages. Lin Yuan will never allow a bad movie starring him to exist.

"Okay, then I'm looking forward to seeing what kind of box office miracle your movie, which has the highest investment in history, will eventually achieve," Betty said.

"How about making a bet?" Lin Yuan suddenly asked with a smile.

"What's the bet?" Betty was obviously interested.

"Let's bet on whether the global box office of "The Legend of Tang Dynasty" can exceed 30 billion US dollars. I bet it can, but you can't?" Lin Yuan said.

Betty smiled and said, "Actually, I want to bet that you can do it. But it doesn't matter, I'll bet that you can't. If you do, just consider this bet a reward for you. So what do you want to bet on, my man?"

"If I win, will you and others accompany me?" Lin Yuan asked with a smile.

Betty rolled her eyes. "Is that what you men like?"

"Betting?"

"Okay! But if I win, you are not allowed to touch Taylor for half a year, okay?" Betty asked with a smile.

Who says rational beauties don’t hold grudges?

It seems that Betty still holds a grudge against Taylor Swift for the fight over the dance partner at Adams Manor.

Lin Yuan suddenly felt that if he let these two people accompany him... then...

It’s a bit exciting to think about.

"Let's go, it's almost time, I'll take you to the airport." Betty stood up and said.

"Don't bother, I can drive there myself." Lin Yuan said.

"You are a person who sometimes understands women's hearts very well, and sometimes acts like a blockhead. Am I afraid of this little trouble? I just want to spend more time with you." Betty looked at Lin Yuan and said.

"Then I won't say thank you, let's go." Lin Yuan replied.

"That's how it should be. There's no need for us to be polite."

……

……

Lin Yuan boarded a plane to Nanyue City at 4 pm Los Angeles time.

After a 14-hour flight, when the plane arrived in Nanyue City, it was still pm Yanjing time.

This jet lag made him feel quite uncomfortable. Even with his physical condition, he couldn't help feeling dizzy and weak.

Lin Yuan walked out of the airport's VIP channel and came to the underground parking lot.

He saw a black Bentley sedan at a glance, so he walked up quickly, opened the passenger door and got in.

Liu Yufei, who looked exceptionally elegant in a white dress, smiled and said from the driver's seat, "Welcome back our youngest film emperor in history."

"He's just an actor. There are dozens of them in Hollywood. Although I'm the youngest one, it's nothing special." Lin Yuan's answer was quite Versailles.

"Hahaha, just say this in front of me. If you say this outside, you will get beaten. Don't you know how jealous everyone is of you winning the Best Actor award?" Liu Yufei laughed, covering her mouth.

"Is it really worth it? Once I win a few more Best Actor awards, everyone will get used to it. Do you want a Best Actress award? I'll get one for you later." Lin Yuan asked.

Hearing this, Liu Yufei rolled her eyes.

She is fully aware of the strengths and weaknesses of her acting skills.

Lin Yuan can become a Chinese-American film emperor with his risk-taking performance and extraordinary acting skills.

Her acting skills are not good enough, and she is not capable of risking her life in action scenes, so why did she win the Best Actress award?
Do you really think that the Oscars are awarded by themselves?
"A few years ago, would you have believed that I would have reached this point? Maybe in the future I could really help you win a Best Actress award?" Lin Yuan asked with a smile.

Liu Yufei understood Lin Yuan best among all the women. She could tell at a glance that Lin Yuan was not joking, he was serious.

Although she didn't know how Lin Yuan would do it, since he said it, it must be possible.

So Liu Yufei smiled and replied, "Then I will look forward to that day."

After saying that, she started the car and drove Lin Yuan to Fanyu Film and Television City.

During the few days that Lin Yuan was away, the crew continued filming in an orderly manner.

Under the direction of director Nolan, a large number of plot segments were completed excellently.

Now most of the remaining scenes are related to Lin Yuanqiang.

As the car drove into the filming location, Director Nolan immediately came up to hug Lin Yuan and said, "Welcome to the youngest film actor in history."

"Okay, I'm tired of hearing this name in the past few days. I'm going to feel sick if I hear it again." Lin Yuan shook his head and said.

"Okay, let's talk about the next shooting plan." Director Nolan paused and continued, "Do you need to take a break to adjust to the time difference?"

"No need, let's hurry up and shoot." Lin Yuan replied.

"Okay, the weather has been very good these days, so let's shoot the Lantern Festival scene in Chang'an tonight," said Director Nolan.

"No problem." Lin Yuan said.

"Next, we are going to shoot the two most dangerous action scenes for you in this movie. Meng Tao has already made a plan, but he is still a little hesitant and needs your confirmation." Director Nolan continued.

"It's okay, he's just too cautious and too worried about my safety. In fact, he must have the best plan. I will confirm it with him carefully." Lin Yuan said.

"Well, you take a short rest, and we will start shooting when it gets dark," said director Nolan.

"Okay, no problem. I can't wait." Lin Yuan replied.

Indeed, there is simply not enough time.

After finishing filming "The Legend of Tang Dynasty", the second largest Kendo Tournament in the world will be held immediately. Then his second movie of the year will start shooting soon, and then the film company will be listed.

This year, Lin Yuan will be much busier than last year.

But Lin Yuan's heart is full of anticipation: by this time next year, his career should have taken several steps forward and reached a new position.

At that time, he would really be not far from the top of the pyramid of the powerful class, right?

(End of this chapter)