How can you become a star without money?

Chapter 206 Spring has passed.
Chivalry.

It is a product born from the combination of feudal system and religious culture, and its core is an ethical system of 'honor, loyalty, courage, compassion and generosity'.

Although it lost its military attributes with the decline of the chivalric system, the 'sense of responsibility', 'moral courage', and 'care for the weak' it embodied have become core stereotypes representing universal Western values.

But the essence hidden behind chivalry is still the bestowal and plunder of the inferior by the superior.

In the cold and rational capital market, there have been several well-known white knight incidents.

One is Warren Buffett, the stock market guru who rescued (bought the dip) the world during the financial crisis.

Another person was Google, who was invited by Big Hard Company to become a white knight and repel Big Hard Company when Big Hard Company made a hostile takeover of Yahu in 08. After that, Google became the core supplier of Yahu's search technology services.

Since then, although Yahoo's management retained control, it lost the motivation for iterative evolution due to the outsourcing of core business technology, and eventually gradually declined.

In fact, there have always been two views on the White Knight in the stock market.

A type of operation known as the "white knight" refers to acquiring a majority stake in a target company through a friendly takeover rather than a hostile takeover, but with the ultimate goal of exploiting and plundering the company through amicable negotiations.

Another type is called "white-clad bodyguards": they assist target companies in resisting hostile takeovers by acquiring a small amount of target equity or even providing financial and technical support. They do not seek controlling stakes or other benefits, but they will achieve long-term high-interest loans or core resource sharing.

There aren't that many kind-hearted people in the world, especially not in the capital market.

From the information provided by Xu Chen, Wang Yao understood why Tan Hui had been able to refrain from contacting him for so long.

The box office of "Lost in..." has indeed exceeded 40 million, with a return rate of nearly 8 times, breaking the previous record of 7.8 times for a low-budget comedy set by "Crazy Stone".

Back then, Huayi Brothers established its high-risk, high-reward model by leveraging the success of the "Crazy Stone" series. At least one-third of Huayi Brothers' current market value of 10 billion yuan is attributable to the Ning Hao model.

If Tan Hui's Xingmei wants to go public at a premium, it must seek similar support. Whether it's directly exchanging for the 'model' in Wang Yao's hands or poaching Xu Zheng, it should involve proactively contacting Wang Yao.

So they were planning to try and catch fish by climbing a tree.

They probably guessed that Wang Yao must have something on his mind regarding Cheng Tian, ​​so they prepared to flex their muscles and see if they could get their hands on him.

These bigwigs are obsessed with saving face. They'd rather pay extra costs and take risks than compromise their own position at the negotiating table. They're afraid of being outdone.

But that's fine too. Now that the stage is set, it would be presumptuous not to start the show.

Wang Yao first instructed Xu Chen not to act rashly.

They then contacted Liu Haifeng to explain the situation and proposed a preemptive strike.

With 15.4% of Chengtian's shares in his hands, plus the Li family's (6.64%) and Kanpianer.com's (8%), he has a total of 30.04% equity, which allows him to launch a takeover bid.

“But if Alibaba really gets involved, our acquisition cost could exceed 10 billion yuan.” Liu Haifeng said with some concern after hearing this.

他手里跟王曜一起持股的15.4%建仓成本是12元/股，一共将近3亿成本，如果发起要约按照现在成天7元的股价，就算腰斩后3.5元/股的成本也要10亿才能完成整体收购。

If there is any white knight or capital inflow to counter it, the cost will increase infinitely. Chengtian is already a company worth 20 billion, but it has 14 billion in debt. Acquiring too much at a premium will not be very beneficial, unless the stock price really has a chance to surge.

This is why Liu Haifeng and Wang Yao didn't take advantage of the Meishe scandal to launch a full-scale attack last time.

"It's alright, we're just testing Wu Kebo's resolve. At worst, we'll just give up the acquisition; there's no punishment anyway," Wang Yao said dismissively.

"Okay, by the way, Alibaba's positions are already set up, but Q2 is coming up soon, and once the earnings report is released, prices will likely rebound. You should prepare in advance," Liu Haifeng reminded him.

Even the biggest acquisition is only worth 10 billion.

But Wang Yao's Alibaba side also has a large short position of 30 billion yuan with a leverage ratio of 6 to 10.

"It's alright, I trust Alibaba." Wang Yao smiled.

The next morning, before the Hong Kong stock market opened, Chen Hao posted an announcement on her MS account, stating that she had joined forces with several shareholders to form a concerted action group, acquiring 30.02% of Chengtian Entertainment's shares. She also issued announcements to the Securities and Futures Commission, the Stock Exchange of Hong Kong, and Changtian Company, disclosing the offer intentions, price, and funding arrangements.

A formal tender offer has been launched.

The scandal involving Chen Hao, Fan Bingbing, and Wu Kebo was almost common knowledge a few months ago, but unexpectedly, there has actually been a follow-up.

And it's supposed to be a story of the female lead turning the tables?!

This is a revenge story unlike any we've ever seen before.

Revenge, female lead, love and hate, capital, unspoken rules, celebrities, gossip—it gathers all the elements that could trigger public excitement, creating a huge stir.

Chen Hao gained over a million followers on both MS and other platforms in just one morning. This female celebrity, with her immense popularity, is transitioning into a female Warren Buffett with tens of millions of followers across the internet.

This is the second person, after Fan Bingbing, to be jokingly referred to by netizens as having a "queen's revenge" persona.

But Wu Kebo himself was the most shocked.

It wasn't that he was shocked by Chen Hao's sudden attack, but rather that he couldn't understand how the other party could possibly have more than 30% of the shares.
When he checked the list of parties acting in concert with the law, he was shocked to find that the Li family, the shareholders he thought would be least likely to be involved, were actually on the list!
Wu Kebo nervously called the eldest son of the Li family to verify the news, only to learn a terrible one: the Shangyou Foundation, which held Chengtian's shares, had been given to Liang Luoshi by his younger brother as a breakup fee and child support.

The Li family was unaware of and did not participate in this takeover bid.

?

You're using Chengtian's shares as a breakup fee?
Why didn't you notify me?
And I even sacrificed myself last time to help you divert attention from the controversy?!
Your Li family doesn't treat me like a human being either!
Wu Kebo wanted to question him, but he didn't dare. In the end, he could only force a smile and hang up the phone.

Because calls kept coming in from other shareholders and institutions.

The poison pill plan was launched unexpectedly, and the acquirer turned out to be Chen Hao, who was truly malicious.

“It’s okay, at least I still have Ali.” Wu Kebo comforted himself and made the first call to Cheng Wei for help.

This is different from the script we were just having fun with yesterday. Having Tan Hui as a white knight isn't enough; he needs to find someone to back him up.

"I'm sorry, Mr. Wu, we will not be participating in this project at this time," Cheng Wei politely declined the other party's request for help.

Wu Kebo exchanged a few pleasantries, and although it was expected, he was still somewhat disappointed. He then called Morita Ryu, whose attitude was even colder. He said that he would at least see if the poison pill plan could boost the stock price before making a decision.

After making a round of calls, everyone's attitude was to remain neutral and observe.

"A bunch of greedy scoundrels!" Wu Kebo cursed a few times before deciding that he could only rely on himself.

They directly summoned the public relations manager and released the previously prepared press release on "Protecting Chengtian" and Chengtian's Q2 quarterly report. Then, they contacted a brokerage firm to release a small amount of 500 million shares to the secondary market to see how investors would react.

With the poison pill plan, favorable corporate news, and the entry of White Knight Xingmei, the acquisition of Chengtian has become the hottest topic right now, attracting attention not only from the business community but also from ordinary netizens.

Meanwhile, with Wu Kebo having prepared positive news in advance, the secondary market seemed to react, and the stock price, which had fallen below 7 yuan, rebounded.

Near the close of trading, the stock price actually rose by 5%.

It really works!
Wu Kebo, who had been anxious and uneasy, seemed to have a sudden burst of energy before death and immediately called Tan Hui to communicate the news.

After the market closed, Chengtian Entertainment issued another announcement stating that Xingmei, with a friendly and impartial purpose, intervened as a white knight, investing 5.6 million yuan to issue 1.6 million new shares, becoming Chengtian's largest shareholder with a 50% stake. The shareholdings of other shareholders will be diluted accordingly.

The announcement caused an uproar across the internet.

For a time, financial terms such as "white knight" and "takeover bid" became hot topics online again, just like during the 08 financial crisis, and even the entire stock market was affected by the surge in sentiment.

The entertainment sector was particularly shaken, with Xingmei even stepping in to help Chengtian?

Even without inside information, it's clear that the common interest between the two is the integration of cinema chains. Together, they will own nearly two hundred cinemas, undoubtedly making them the largest cinema chain leader in China.

Industry peers like Wanda Cinemas have truly felt the pressure.

The pessimism surrounding entertainment during the day turned into a positive one by the evening.

Chen Haofang, who had been touted all day, now faces a huge dilemma: if the stock price doesn't fall when the market opens tomorrow, the acquisition cost will increase from the previous 7-8 million to over 14 billion. If new shareholders increase their holdings tomorrow, the acquisition cost will likely rise again.

The next day, when the Hong Kong stock market opened, the stock price plummeted amidst great anticipation. After all, the direct increase in holdings of so many new shares would inevitably dilute the stock price, and there were also a large number of sell orders, resulting in a surge in turnover.

The stock price fell to around 4 yuan and then stopped. Overall, the stock price rebounded, but the increase was not significant.

However, the fact that they were able to stabilize the situation already indicates that Chen Haofang's takeover bid is likely to fail.

Even many netizens who were watching the spectacle and hoping for a successful 'queen's revenge' sighed with regret.

Just when everyone thought the dust had settled and Wu Kebo was preparing to pop the champagne, a bombshell news story reignited everyone's interest, shaking the entire nation.

An investigation from Wall Street, by an organization called Muddy Waters, revealed the transfer of Alibaba's online payments.

The truth has come out!
Yahoo's global CEO, Carroll, was furious and dispatched an external auditor to directly intervene.

Major shareholder Sun Zhengyi publicly questioned the company on social media.

As a result, the entire Hong Kong stock market, including the index, began to fluctuate.

The mood, which had been improving, suddenly turned extremely bad.

This is because this matter may involve future global doubts about the credibility of Huaxia Company.

It even felt like the opportunity that could cause the building to collapse.

This is the biggest crisis in Alibaba's history, perhaps without exception.

Compared to this matter, the White Knight's intervention in the Queen's revenge seems insignificant.

But the stock price did indeed fall in response.

Wu Kebo looked at the stock price starting with the number 2 and felt a chill run down his spine.

Is this... Heaven is going to destroy me?
Ma Yun is so busy that she has no time to worry.

He is a person who rarely engages in internal conflicts, especially after Alibaba's success. Even with such a big issue, he remained calm and handled it properly.

This matter could be big or small, depending on whether internal coordination can be successful. As long as Ya Hu and Sun Zhengyi are dealt with, everything else is a minor issue, but the cost will inevitably be severe.

Alibaba's stock price plummeted by more than 10%, wiping out nearly 10 billion yuan.

Fortunately, there was enough liquidity to support the market, which temporarily halted the trend.

Fortunately, the news was revealed in the afternoon, and fortunately, it's Friday!

Ma Yun always thought he was lucky; two days would be enough for him to resolve this big problem.

“Mr. Ma, there might be some issues with the cash pool. We need to prepare at least 50 billion yuan in cash flow to deal with the worst-case scenario on Monday.” Cai Chongxin hadn’t slept all night, and his eyes were bloodshot.

In fact, Muddy Waters' disclosure had already been sent to his email early yesterday morning. It was undoubtedly a threat, but Ma Yun decisively refused to communicate with them and chose to confront the issue directly.

Even if this issue could be a matter of survival.

Cai Chongxin didn't sleep all night, pondering how to break the deadlock.

“No need to rush. If the stock price can hold up, then hold on. If it can’t, then delist. Alibaba has already passed the stage of needing financing.” Ma Yun chuckled and patted him on the shoulder: “At worst, we can just tighten our belts in the future.”

Seeing Ma Yun's composed demeanor, Cai Chongxin felt a mix of emotions, but also a sense of relief.

"Cheng Wei reported yesterday that Wang Yao wants to acquire Meishe from the opposite side and asked if we are willing to sell." Cai Chongxin took a breath and brought up the project that he had originally asked him to put aside.

Although Meishe has suffered a financial crisis, its 45% stake in Tianhuo is still worth 7-9 million yuan. Moreover, given Tianhuo's development, its value should increase in the future. When Alibaba enters the cultural and entertainment industry, it can directly integrate the company.

But things are different now. Regardless of how well this crisis is handled, Alibaba may have to scale back all of its businesses except for its main business in the short term and temporarily return to e-commerce itself.

In particular, if the payment issue cannot be resolved, all plans for next year may have to be scrapped, leaving no time to venture into other areas. Since he needs cash flow now, he plans to cut unnecessary and unimportant sections.

"What happened the day before yesterday?" Ma Yun frowned slightly, her tone somewhat cold.

Wang Yao was someone he had instructed to take care of, yet Cai Chongxin delayed this matter for a whole day.

"I was going to say it yesterday, but I was too busy and forgot," Cai Chongxin quickly explained.

"How much money is he offering?" Ma Yun pondered for a moment.

“Meishe currently has almost no value except for two supporting stocks, which together are worth about 10 billion. It has 4 million in uncollected foreign debt and 2 million in cash. He offered 4 million,” Cai Chongxin said in a deep voice.

Alibaba holds a 44% stake in Meishe.

"So low? Wasn't Meishe valued at 12 billion before?" Ma Yun frowned.

The company seems to have spent nearly 6 million yuan on the acquisition of Meishe, so how come the value has depreciated so much?

"The main problem is that the companies with cross-shareholdings have been diluting their stock prices with poison pill schemes lately," Cai Chongxin sighed, explaining the reason.

"Tsk, these are truly turbulent times." Ma Yun paused for a moment, then shook her head and chuckled.

Seeing poison pills and white knights in the Hong Kong stock market is quite amusing.

But why did everything all happen at once?

Such a coincidence?
An intuition flashed through her mind, but was quickly suppressed by a headache from lack of sleep. Ma Yun rubbed her throbbing temples and said in a deep voice, "Consider it a favor to him. However, I want Taobao's activities to be co-sponsored. From now on, all of Taobao's activities must be officially certified by Alibaba with graduation certificates and marketing certificates."

Taobao's business model is very important to Alibaba. This line of business cannot be handed over to a third party. Alibaba must maintain absolute authority and, incidentally, keep Wang Yao in check.

He even had a premonition that Alibaba's current turmoil might be a great opportunity for e-commerce platforms such as JD.com, Vancl, and Mecox Lane, and that Wang Yao's slightest inclination towards either side could trigger a series of chain reactions.

Previously, Ma Yun could let this monkey run wild, but now she has to keep him in her grasp.

Taobao cannot afford to lose Mulan Street and Tao Girls, and Alibaba cannot afford to abandon Tao Boss.

He now deeply regrets that he was too arrogant back then and should have directly recruited Wang Yao.

But once you miss it, you miss it, and you can't be careless again.

“Joseph, spring has passed.” Ma Yun suddenly sighed.

Cai Chongxin was slightly taken aback. Half a month had passed since the Grain in Ear solar term, and half of summer was already over.

He suddenly realized that Ma Yun wasn't talking about the weather.

"President Cai agreed?" Wang Yao was somewhat surprised when he received Cheng Wei's call.

Surprisingly, Tsai Chung-hsin did not try to bargain.

"It was personally signed by Mr. Ma, but there's an extra requirement: Taobao sellers must jointly issue 'e-commerce marketing certificates' with Alibaba from now on," Cheng Wei said with a smile.

"Oh? We are honored that Alibaba is willing to endorse us. Please thank Mr. Ma and Mr. Cai for me." Wang Yao agreed with a smile.

“I will no longer be involved in Meishe’s business from now on. I hope to have more opportunities to work with President Wang,” Cheng Wei said with a smile.

"There will definitely be an opportunity." Wang Yao exchanged a few pleasantries and then instructed the finance team to handle the share transfer.

Before leaving Hong Kong, Wang Yao asked Zheng Ziwen to invite Huo Qigang, the eldest grandson of the Huo family, to a meal and invite him to participate in the Mulan Street (international version) project.

(End of this chapter)