readease Chapter 126 The Sneak Attack Was Discovered
Chapter 126 The Sneak Attack Was Discovered
Chapter 126 The Sneak Attack Was Discovered
In the Citigroup president's office, John Reed pushed open the door. His expensive handmade leather shoes made almost no sound as they stepped on the Persian carpet, but the heavy look on his face, like a dark cloud, made the temperature in the entire office seem to drop several degrees.
The air seemed to solidify into lead because of his gloom, pressing heavily on every inch of space.
For Citigroup, the most important thing right now is the merger negotiations with Travelers Group.
Although this matter cannot be completed in a short time, the real controllers behind the scenes have not yet reached a formal agreement, and there are still some disputes.
But both sides are interested in the merger, and their legal teams and financial advisors are working day and night to recheck various data and assets. Clearly, both companies are very interested in the merger.
After all, the merged group will become a financial behemoth, capable of shaking up the entire industry landscape.
However, hidden dangers lurk beneath the halo. Mergers mean a reshuffle, and countless employees will face the risk of job adjustments and layoffs.
And John Reed, the head of Citibank, was not immune to the situation either.
According to the preliminary understanding reached by both parties, the new group will adopt a dual CEO model, with him and the CEO of the Travelers Group...
Sandy Weir will co-lead this emerging financial empire.
John Reid, who had spent many years navigating the treacherous waters of Wall Street, knew better than anyone that this duopoly was merely a temporary measure. Like two equally powerful torrents, they would one day collide and create a tremendous splash, and the loser would inevitably be swept away without a trace.
According to the latest news today, Travelers Group has completed preliminary negotiations with Salomon Brothers, one of the five major investment banks on Wall Street.
If Travelers Group were to acquire Salomon Brothers' investment arm and merge it with its own, Travelers Group would instantly become the second-largest investment bank in the United States.
This substantial dowry would undoubtedly be a huge plus for Sandy Weir, while making John Reed feel uneasy.
So he looked somber and knew he had to find more achievements to boost his reputation.
"Boss, there's a document I need you to look at." Just as John Reed was deep in thought, his secretary tiptoed in, carrying a thick document.
He had followed John Reed for many years and knew that his boss was in a bad mood at the moment, and his voice was lower than usual.
John Reed looked up, his eyes still clouded with lingering gloom, and asked curtly, "What document?"
"It's about the Marvel acquisition," the secretary replied cautiously.
John Reed's face instantly darkened to a grim level, and the anger that had just been suppressed erupted like a volcano.
He slammed his hand on the table, making the coffee cup jump and spill a few drops of scalding coffee onto the expensive tablecloth, leaving unsightly stains.
"Does the decision to acquire Marvel need my approval? What are Frankel's team doing?"
"When did Citibank become a kindergarten? Why do you have to report every little thing to me?"
Marvel is a household name in the United States.
Spider-Man, Iron Man, Captain America—these superheroes were once vivid in the childhood memories of countless people.
But in the eyes of Wall Street elites, fame can't put food on the table.
If a company cannot generate enough profit and cannot bring returns to its shareholders, then it is worthless, even less valuable than a pile of dog poop on the street.
Moreover, this acquisition was practically a losing proposition for Citigroup.
ToyBiz wants to acquire Marvel, but is making exorbitant demands, asking Wall Street to forgive its debt.
Marvel isn't worth $600 million right now. I can acquire it, but you have to forgive a portion of your $600 million debt.
This is ToyBiz's attitude.
John Reed is fully aware of Marvel's current situation. Judging from the current circumstances, Marvel's revenue this year will definitely drop significantly compared to last year. Profit? That's simply a pipe dream. They'll be grateful if they can at least minimize their losses.
Wall Street's continued delay in resolving Marvel's debt problems is itself a risky move.
The comic book industry is no longer what it used to be; it's like a candle flickering in the sunset, ready to be extinguished at any moment.
Marvel will only decline further and become a hot potato.
But is it that Wall Street can't solve this problem? No, it's that no one is willing to take on Marvel's huge debt.
ToyBiz understood this, which is why it insisted on demanding debt relief from Wall Street.
After all, Wall Street has made a lot of money from Marvel over the years, so it's only natural that they would give up some profits.
"But now things have changed a bit, and Ernst seems to be interested in the company as well."
"Ensemble—" John Reed seemed to be frozen in place, suddenly stunned. He wondered if he had misheard, or if the pressure of the past few days had caused him to hallucinate.
He pressed on uncertainly, "Who did you say?"
"Ernst," the secretary repeated, emphasizing each word.
"Ernst Garfield?" John Reed's eyes widened, his voice still filled with disbelief.
He was not sure he had heard correctly until he saw his secretary nod affirmatively.
"Tell me the details," John Reed said, his voice tinged with barely perceptible urgency. His earlier anger had vanished, replaced by intense interest and a hint of wariness.
The secretary composed herself and reported everything she knew: "Frankel just called me and said that Ernst contacted him, knows that he is now in full charge of Marvel, and wants to arrange a meeting with him."
"Frankl felt that the other party was Ernst Garfield, and that this matter was probably not simple, so he immediately reported it to me."
"Good!" John Reed slapped his thigh, the gloom on his face vanished, and a long-lost smile appeared on his face, as if his complexion had instantly transformed from the cold winter into the warm spring.
"Frankel handled this matter very well. I told him that I would now be in full charge of this matter. I told him to bring all the relevant documents and come to me immediately to report on his work."
The secretary acknowledged and left, leaving John Reed alone in the office once again.
He leaned back in the large boss's chair, his fingers lightly tapping his temples, his thoughts racing like a wild horse.
Why did Ernst suddenly become interested in Marvel? Was he optimistic about the comic book industry? John Reed himself thought this reason was absurd and ridiculous.
The comic book market today is a thing of the past, with fewer and fewer readers and its market share constantly being squeezed, showing no signs of recovery.
Marvel's comic book character copyrights? They're all geared towards film and television adaptations.
But Marvel has tried adapting movies and TV shows before, and what were the results? One after another, they were all terrible films that lost money.
Even Stan Lee, the soul of Marvel, publicly criticized that Marvel's superhero movies were not even as good as children's cartoons.
Although Hollywood's special effects technology is becoming increasingly sophisticated, Marvel has yet to prove that its characters can succeed in film and television adaptations.
Looking at the market as a whole, Marvel and DC, the two comic book giants, only occasionally make some money with the Batman series. Their other superhero movies almost always lose money but gain publicity, and when they do lose money, it's a huge loss.
As a result, a saying has circulated in the industry that Marvel and DC have declined and that their film and television adaptations are simply unrealistic fantasies.
The golden age of these two comic book giants was in the 1960s, and the readers of that time are now middle-aged and elderly, their enthusiasm for comics long gone.
And what about young people? Most of them have only heard of Marvel, very few have actually read the comics, let alone become die-hard fans.
Without a fan base or successful precedents, can Marvel's film and television adaptations really make money? John Reed is full of doubts about this.
But the other party is Ernst! From the acquisition of MGM to now, every step he has taken has been incredibly precise, creating one business legend after another.
This made John Reid hesitate again. Perhaps Ernst really saw a business opportunity that others couldn't see?
His gaze fell on a document on the table—Marvel's debt list.
Citibank is Marvel's largest creditor, with loans exceeding $2.3 million.
More importantly, the bonds held by Citigroup are all eligible for debt-to-equity conversion, which means that Citigroup effectively holds the power of life and death over Marvel.
To put it bluntly, Citibank is the one who truly controls the fate of Marvel; it is the real master.
Selling Marvel is definitely going to happen, but how to sell it is the question John Reed needs to consider now.
If Ernst can really revive Marvel, wouldn't I be the fool who let the golden phoenix go? Shouldn't I be the one to take the blame?
However, if the other party fails this time, having some Marvel shares in their hands will still be a stain on their record.
John Reed thought of MGM; Ernst's acquisition of Marvel would definitely be spearheaded by MGM.
Is it possible to extract more profits from MGM?
Thinking of this, a glint of light flashed in John Reed's eyes.
He picked up the phone on the table and dialed his secretary's extension. "Have someone contact the other institutions that hold Marvel bonds and tell them that Citigroup intends to acquire their Marvel bonds."
His idea was simple: if Ernst was really determined to acquire Marvel, then Citigroup should hold onto all the bonds to increase its bargaining power and prevent other institutions from interfering.
If negotiations with Ernst fall apart, Citigroup can make a feint, since it's just an intentional acquisition and no formal contract has been signed, so they can withdraw at any time.
After explaining the matter, John Reed felt much more at ease.
He picked up the coffee on the table, took a sip, and although it was a little cold, he could still taste a hint of sweetness.
Just then, there was a knock on the office door, and Frankel walked in, panting.
He was carrying a thick stack of documents, and his forehead was covered in fine beads of sweat, clearly indicating that he had run all the way here.
"Boss, you wanted to see me?"
"Sit down and tell me the details about Marvel," John Reed said calmly, gesturing to the chair opposite him.
After sitting down, Frankel opened his folder and began to give a detailed report: "ToyBiz has indeed shown great interest in acquiring Marvel, but they are adamant that we must reduce their debt by at least 20%."
"We've assessed that if we grant them the debt relief they demand, we'll lose at least $6 million in principal and subsequent interest..."
Frankel gave a long and detailed report, while John Reed listened attentively, flipping through documents and occasionally asking questions.
Meanwhile, Ernst was getting up with the help of his secretary.
He stretched and his gaze fell on his secretary, who was getting dressed beside him.
Her curves, with their prominent breasts and shapely buttocks, are as perfect as a meticulously sculpted work of art, and her face is so beautiful that she could directly enter the entertainment industry.
Ernst's lips curled into a playful smile. He hadn't been able to get into Harvard University back then, but now he was a Harvard student. It was a kind of fulfillment.
Just as I was thinking about it, the phone on the bedside table suddenly rang, breaking the silence of the room.
When Ernst answered the call, he found it was from John Reed, which was both unexpected and understandable.
Through his investigation, Ernst learned that Marvel was now being managed by Frankel's team. He originally intended to take advantage of Frankel's unpreparedness to acquire the shares held by Citigroup, but John Reed found out anyway.
John Reed on the other end of the phone was almost overly enthusiastic: "I heard you're interested in Marvel? I'm free this weekend, how about we play a round of golf and talk about it?"
"Great, I certainly won't refuse Mr. Reed's invitation."
Ernst knew that the real game was about to begin.
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