Only after being reborn did I realize how fascinating the world of the rich is.
Chapter 341 Begins the Acquisition of Architecture Media
Qin Wei waved his hand at Le Mengyao and said, "Mengyao, at this time, it's already a blessing that President Cao was able to get such a large sum of money for the company. The company's operation is more important."
Besides, this shareholding won't have a significant impact on the company's structure. Are you really worried that Mr. Cao wants to become the chairman of the board?
Just then, Luo Siqi's secretary rushed in from outside, saying in a somewhat heavy tone, "Mr. Luo, something bad has happened. There's a lot of negative news about the company circulating outside."
This morning, the stock price dropped five percentage points immediately after the market opened, and based on the current trend, it will definitely fall further.
It turns out that in order to get Cao Jinpeng to get these newly issued shares as soon as possible, and in order to reduce the cost of acquiring the shares as much as possible, Li Xiaofeng hired some public relations companies to exaggerate the current predicament of the structure media.
In addition to further releasing the negative news about the premium acquisition of Gage Media, it also revealed to the outside world that Gage Media's cash flow was depleted due to its increased shareholding in Wanzhong Media.
Some media reporters even interviewed internal staff of Gage Media by blurring their faces, proving that Gage Media is indeed experiencing cash flow difficulties and even faces the risk of a broken capital chain.
Luo Siqi said with a serious expression, "Gentlemen, did you hear that? The company is in a difficult situation right now, and we must take decisive measures to further reverse this unfavorable situation."
Although the company's stock price is currently at a relatively low level, issuing new shares now would result in a loss, but it's still worthwhile if it helps the company get through this difficult time!
Qin Wei and Le Mengyao exchanged a glance and then slowly nodded.
Not long after, good news came from the architecture media company: the company had just secured funding through a private placement and was currently operating well.
However, the overwhelming negative news surrounding the company made this only positive piece of news seem rather uninteresting.
Although Architecture Media also launched public relations efforts, the problem is that Architecture Media itself is not strong enough, and much of its public relations propaganda seems somewhat untenable.
In the past two years, Gage Media has made a lot of premium acquisitions and mergers and acquisitions, rapidly expanding from a small company into a large advertising company. In particular, after acquiring Wanzhong Media, it has become a giant in the domestic advertising industry.
The problem is that the premium in a premium acquisition is essentially a loss-making business in the short term, which is equivalent to rapidly expanding the market size by burning money.
However, for the company to truly survive, the money burned needs to be recouped through future profits; otherwise, it's just a game of musical chairs.
In addition, these premium losses will also be reflected in the financial statements when they are offset by profits.
Under normal circumstances, if a company has no net profit and no dividends to pay to shareholders, its stock price will inevitably be difficult to rise, or even fall. This is called negative news.
Of course, the stock market doesn't just look at this; it also considers factors such as whether a company's revenue is growing, whether it is consistently profitable, and whether its operations are healthy and sound.
The current predicament of the media company is due not only to the negative publicity surrounding Li Xiaofeng, but also to the broader context of the subprime mortgage crisis.
Even the slightest negative news can make shareholders extremely nervous, let alone the fact that Li Xiaofeng has triggered a lot of negative news about these two companies.
At this time, Li Xiaofeng was gradually acquiring shares of Kage Media through numerous shell companies.
Although Li Xiaofeng had tried to be as careful as possible, such a large-scale purchase still caused fluctuations in the stock price, which alerted Luo Siqi and others.
"Is there an organization manipulating our stock, or is someone maliciously acquiring us? Have you investigated the companies that are acquiring our stock?" Luo Siqi felt uneasy, and his tone was heavy.
Qin Wei shook his head: "They are all shell companies. We are still investigating them. It won't be easy to find out the truth. The key problem is that even if someone were to acquire our company, we wouldn't have any way to deal with it."
Hearing Qin Wei's words, Luo Siqi said with some vigilance, "Could Cao Jinpeng's targeted share purchase have already fallen into someone else's hands? Otherwise, how could it be such a coincidence?"
Then, he turned to his secretary and asked, "By the way, why didn't President Cao come today?"
The secretary quickly said, "President Luo, President Cao said he hasn't been feeling well these past two days. He also said that the funds from that financing have already been deposited into his account."
He withheld 5% of his commission as usual, and will transfer the money to the company soon. I haven't even had a chance to report it to you yet!
Luo Siqi said with some dissatisfaction, "This guy is really something. He never cares about the company's affairs. If I had known he was like this, I shouldn't have brought him in as a shareholder!"
Qin Wei smiled and said, "Forget it, he doesn't care about anything, he just spends money. Isn't that better for the company?"
Luo Siqi said in a very serious tone, "Whether he comes or not is not important. What we need to do now is to prevent anyone from maliciously acquiring the company."
The company is running low on cash flow. Once we secure the funding, we'll use the money to boost the company's stock price!
Le Mengyao immediately objected, "No, everyone is waiting for this money for emergencies. If this money is used for other things, what's the point of this financing for the company!"
Luo Siqi became somewhat anxious and said in a very impolite tone, "There is a high possibility that someone outside is maliciously trying to take over our company. The company is currently at a critical moment of life and death. Saving the company is the most important thing!"
However, human joys and sorrows are not shared. The Qin and Le families were just shareholders to begin with. As long as their interests were not affected, changing the chairman would not be a big deal to them.
Moreover, both companies have numerous other businesses, and their media operations are not their main business. For them, obtaining emergency funding from this source is the most important thing.
Sure enough, Qin Wei also objected, saying, "Mengyao is right. If we had known it would be like this, we wouldn't have needed to initiate this financing at the company's current valuation!"
Seeing that both major shareholders objected, Losi had no choice but to compromise for the time being. After thinking for a moment, he said to the two of them, "Here's what we'll do: divide half of the money according to the share ratio. You can take it for emergencies and keep the other half for unforeseen circumstances."
Qin Wei and Le Mengyao exchanged glances and agreed to Luo Siqi's distribution plan. After all, Luo Siqi had his own difficulties, and they couldn't dwell on it too much now; getting the money to tide them over was the most important thing.
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