America's No. 1 financial conglomerate

Chapter 88 Overnight Fame

In Midtown Manhattan, the New York Times building, standing amidst the bustling streets, appears particularly solemn in the darkness at three in the morning.

The entire city seemed to have fallen asleep, except for the lights inside the buildings, which, like a sharp blade, pierced through the thick darkness and illuminated a battlefield belonging to journalists.

In the office, the fax machine worked tirelessly, paper slowly being ejected from the outlet, making a hissing printing sound that was particularly clear in the quiet early morning.

The ringing of the telephone is like a bugle call in a war without gunpowder, rising and falling without ceasing, each connection signifying new instructions and urgent tasks.

"The article has been revised, and the front page must be changed tomorrow."

"I don't care if you have enough time or not, it's 3 a.m., and I believe you can do it."

"Online platform?"

Thinking back to the New York Times' digital transformation website launched last year, I chuckled and lamented, "How can it be the same? Does anyone even read that crappy website?"

After hanging up the phone, the editor-in-chief of The New York Times leaned back wearily in his chair, his eyes fixed on the content he had written, his heart filled with mixed emotions.

"It's so frustrating to compare yourself to others; how can the gap be so huge?"

Before the morning mist had completely dissipated, the entire American media dropped a bombshell, completely igniting the nation.

The front pages of every newspaper were dominated by a photograph—a photograph that was enough to make the whole of America go wild.

At this moment, Ernst was still sound asleep, completely unaware of the sensation that was about to unfold.

But newspapers announcing Google's investment of over $100 million have quietly appeared on the dining tables of almost every American household.

A pre-investment valuation of $18 billion is undoubtedly an astronomical figure for a startup.

And so, the youngest super-rich person in the entire United States was born, a piece of news that exploded in people's hearts like a thunderbolt.

"We have received confirmation from within Goldman Sachs that Google has raised $4.5 million at a pre-money valuation of $18 billion, led by Goldman Sachs with participation from Morgan Stanley, Lehman Brothers, and Merrill Lynch. America's youngest super-rich person has been born."

Major media outlets rushed to report on it, and every word had a powerful impact on ordinary people.

NBC's morning news devoted a significant amount of time to reporting on this financing event, and even invited financial experts to provide detailed explanations in order to help viewers better understand the implications.

"Don't overlook a very important piece of information, which is pre-investment valuation," the expert said seriously, his tone carrying a hint of professional rigor.

"Financing is divided into pre-investment valuation and post-investment valuation. It may seem like a difference of just one word, but the difference between them is huge."

The expert paused to allow the audience to better grasp the concept: "For example, when a company raises funds, its pre-investment valuation is $100 million, and it raises $20 million. Under the pre-investment valuation, the investor's shareholding percentage is $20 million divided by $120 million, which is 16.7%."

"But the post-investment valuation is different; it's $20 million divided by $100 million, with the investor holding a 20% stake."

Experts used simple and clear examples to explain the difference between the two, making it easier for the audience to understand.

"Take Google as an example. If it's a post-investment valuation, releasing 20% ​​of the shares, investors only need to contribute 3.6..."

"The pre-money valuation was $18 billion. But now it's $4.5 million for investors, and Wall Street is paying an extra $9000 million."

"In other words, Google's current valuation is no longer $18 billion, but $22.5 billion."

This is the allure of pre-money valuation; with just a single word difference, Google received an extra $9000 million in cash, and its valuation instantly increased by $4.5 million.

The New York Times used "billion dollars" as the headline, referring to the billion-dollar man.

As expected of one of the largest newspapers in the United States, they know how to attract readers' attention and understand that in this country full of opportunities and dreams, what could capture readers' attention more than the American Dream?

"We should not overlook a very important issue, which is the meaning behind the pre-investment valuation."

A veteran journalist wrote in his column, "The pre-money valuation of $18 billion may seem like a premium, but it is actually a bet on the future of the internet industry. In this era of rapid technological development, the internet industry is changing people's lives and business models at an astonishing pace, and Wall Street's financial giants have clearly seen its enormous potential."

"Clearly, this emerging industry has already attracted significant attention from Wall Street, and its future market is likely to far exceed our expectations." The entire article exudes boundless optimism for the future of the internet industry.

Many media outlets have also turned their attention to Ernst, the young billionaire.

"We also cannot ignore Ernst Garfield, this newly minted tycoon."

"A Hollywood playboy? Compared to the halos of a genius author, a Hollywood mogul, an internet upstart, and America's youngest super-rich man, he's simply insignificant."

"How can a young man not be a bit of a playboy? If he had no flaws, he wouldn't be a genius, but rather God's messenger on earth."

"Having achieved such great success at such a young age, it's inevitable that one would be somewhat flamboyant and unruly."

"Besides, this tycoon is currently unmarried, so what's wrong with him having a few girlfriends?"

Sure enough, when you succeed, you're surrounded by good people.

Ernst was woken up early in the morning by a shock at his mansion in Central Park.

Before his eyes were even open and he had just regained consciousness, his right hand unconsciously reached down to touch his little head.

As I opened my eyes and looked down, I was greeted by a beautiful face with captivating, alluring eyes.

"Why are you suddenly in such high spirits this morning?"

Gisele Bündchen, her words slightly slurred and tinged with coquettishness, said, "Of course I want to keep you, this super-rich man, at least to leave a place for me in your heart."

Ernst noticed the newspapers scattered by the bedside. He picked one up and glanced at it, his expression instantly turning disdainful. He snorted, "Wall Street really doesn't do business at a loss."

However, it was obviously inappropriate to think about these things now. He threw away the newspaper and pressed down on her while she was pleading with him, her pretty face flushed.

As Ernst said, Wall Street never does business at a loss.

With just a glance at the newspaper, Ernst keenly sensed something amiss and knew perfectly well who was behind it all.

In this game of capital, every move has a deeper reason behind it.

When news spread that Google had successfully raised funds and Ernst had become the youngest billionaire in the United States, who was most affected?

While ordinary Americans may also be amazed and envious of the news, the real impact is felt by the talent and businesses in Silicon Valley, as well as the middle class who have some capital but don't know where to invest it.

These individuals either possess cutting-edge technology but lack a platform to showcase their talents, or they run small businesses and yearn for greater growth, or they have idle funds and hope to find an ideal investment project.

After Ernst suddenly lived the life they had always dreamed of and became the person they had always wanted to be, these people were deeply moved and turned their attention to the Internet industry.

If Netscape's emergence was due to reaping the benefits of the times, it secured a place in the internet field by leveraging its first-mover advantage.

The emergence of Yahoo was an accident that inadvertently opened the door to the Internet.

So how could Google not be tempted by such a huge investment?

If someone who was once considered a playboy can do it, why can't these highly qualified graduates from prestigious universities create an even bigger miracle?

Needless to say, those who are already wealthy with some assets are even more remarkable. Ernst was still in debt when he acquired MGM, yet he was still able to transcend social classes and achieve a tremendous leap in wealth.

They had more funds than Ernst did at the time, so why couldn't they ride the wave and get a share of the internet boom?

This is exactly what Wall Street wanted to see.

Outsiders saw Ernst's exaggerated wealth growth, but he saw the tacit support and encouragement from all the capital on Wall Street.

Financial institutions that have already acquired Google stock naturally hope that Google can attract the attention of all investors and cause its market value to surge again, so that they can reap huge returns.

And why can't those who missed out on investing in Google create another Google?

Through extensive publicity surrounding Google and Ernst, Wall Street capital is thoroughly cultivating the internet as a fertile ground for exploitation.

They hope to find the next Netscape, the next Yahoo, the next Google on this land.

Wall Street has now realized that the Internet is an untapped gold mine.

This gold mine holds immense potential, waiting to be explored.

As for the gold deposit content, that depends on how you mine it.

If we keep digging, we might just expose the truth to the world.

But what if I could find the narrow vein's path? Wouldn't that allow me to fabricate a huge lie? The wasteland surrounding the entire gold mine gives the market endless room for imagination?

What were originally low-quality, poor-quality, or even wasteland areas have been transformed into huge gold mines in the eyes of investors.

Wall Street couldn't even imagine the enormous returns this would bring them.

Once this capital game is successfully implemented, the profits it will generate will be immeasurable.

Losing Google is no big deal. As long as we harvest this field of leeks, even without the thickest and strongest one, we can still fill our baskets.

Besides, who can say for sure that Google is the thickest and strongest leek in this field of leeks, when the other sprouts are just beginning to grow?

Therefore, all the media outlets are giving Ernst and Google's funding rounds rave reviews, with some newspapers practically calling him God descending from heaven.

However, all the newspapers did one thing in common: they were optimistic about the future of the Internet.

They used the story of "The Boy Who Cried Wolf" to plant a seed in the hearts of all American investors, making them believe that the internet industry was the future trend and that missing out on the internet would mean missing out on an era.

With the nourishment of capital, this seed will quickly take root and sprout, and an even greater wealth myth will emerge.

>