William White was enjoying his time in the Bahamas when the capital market began to surge, and his acquisition plan went smoothly, enabling investors to start selling Disney stocks.
However, investors learned that William White was pursuing a comprehensive acquisition, making it difficult for them to exploit any advantages.
Warner also faced investor reductions due to unsatisfactory performance, resulting in a lively market response, and the entertainment sector experienced a general decline.
This year's market had already been underperforming, and now it was deteriorating further. Coupled with the losses caused by the actor's strike, several major giants were facing dire straits.
Disney, in particular, was in a precarious situation. Lao Mei's stocks couldn't afford to drop arbitrarily, and many shares were pledged to banks. The decline in stocks naturally led to a decrease in the value of collateral.
Banks were unlikely to show leniency, and if collateral couldn't be added promptly, they would not hesitate to sue.
With William White's interest in purchasing Disney known, discussions revolved around price negotiations. If Disney were to declare bankruptcy directly, the losses wouldn't be significant for the banks. Well, perhaps it might be substantial, but it was already the best-case scenario. Borrowing more money was out of the question, and it was uncertain whether these market losses could be repaid.
The banks' capital wasn't their own; excessive losses might even lead to their closure.
When William White received this news, it was already the following morning. A group of exhausted young men had been up all night on the desert island.
"Huh, I thought we could hold on for another two years, but it seems we couldn't last that long?"
"Yeah, boss, Warner's situation is also dire, and the old guy is keeping a low profile now."
Steve Ross didn't dare to stir up any more trouble. People hadn't even started shorting Warner yet. If he provoked more controversy, he might not be able to hold onto his position.
"Filson, you've noticed this. I am interested in acquisitions, but you should reassess their situation and see how dire it is. Accelerate the footbath's movements; I also intend to pledge those stocks and real estate."
"Understood, boss, I'll arrange it right away."
After making a call, William White left to take care of his appearance. The weather was sweltering, and he had no desire to maintain long hair.
"Boss, the other party is indeed interested in investigating Disney's situation."
"Good. What's happening with the footbath?"
"It appears that they have increased their holdings. The stock market in the footbath has been doing well recently, and these incremental funds haven't caused much reaction."
"Huh, their investment strategy is truly peculiar. Couldn't they have borrowed Japanese yen directly? This roundabout approach is unnecessary."
"According to the brokerage, they initially planned to short Warner, but later canceled it for reasons unknown."
"Idiot! Does shorting Warner require a billion dollars? They probably wouldn't even need half of that. Their initial plan must have been a hostile takeover, followed by diluting other shares."
"Boss, they've placed all this money in their footbath. Are they planning to pledge shares again?"
"Yes, in this market situation, it takes a lot of courage. I can't tell if they're geniuses or lunatics."
William White would not concern himself with others' opinions. In this era, making money wasn't easy. The era where a creative idea could fetch $100 million hadn't arrived yet.
Consider this: at the time, Jobs was planning to sell Apple, and when he made an offer, the lion's share of it was just $1 million.
Apple was on the verge of going public now. According to current valuations, Qiao Dashen would become a billionaire. Given his past performances, it was likely that this guy would become even more remarkable. Hopefully, everyone would be ready to give him a hard time.
William White was currently at ease. His competitors had quieted down, Steve Ross dared not make a peep, Larry Ellison was starting to behave, and everyone operated on different levels. Anyone jumping out and trying to do something would be seen as a clown.
Concerns over high-leverage acquisitions didn't trouble him. Once this acquisition was completed, he would immediately become a super giant. While he might not surpass Warner Bros., the gap would be minimal.
As for Oracle—no kidding, their assets would be reduced by a whole order of magnitude, and they were no longer on the same level. Relying on age and experience wouldn't help them in this case.
That's how the world worked in the Old and Beautiful Circles. The more you established yourself, the fewer shares you held as a founder, and Wall Street sharks had more power to dictate the company's direction.
"What? On the verge of bankruptcy?" William White was puzzled upon hearing Filson's conclusion. Wasn't Disney in a dire situation? What could have gone wrong?
"Well, wait for me to come back. I'll be back tomorrow. Keep an eye on it," he instructed.
"Okay, boss."