Reborn as a tycoon in Hong Kong

Chapter 420 Deciding to Split the Business

After the meal, Wade Thomas said goodbye and left, while Lin Baicheng called Isabella and Bill Harveys to the villa.

Together with Maori Haruko, Lin Baicheng called the three of them to the study to talk.

Lin Baicheng first talked to Isabella and Bill Harveys about the listing of Galaxy Games, Wade Thomas and the capital market's disapproval of the console game business, and the splitting of related businesses.

"You think, should I choose to spin off the console games and then list Galaxy Games? Or is it better not to go public for the time being, and strive to develop the console games, and then go public?"

Lin Baicheng asked the three people, wanting to hear their opinions.

"Chairman, I think you should spin off the console game business and promote the listing of Galaxy Games."

Haruko Mouri was the first to speak out. She said: "Whether you are optimistic about the console game business or not, it does not affect the spin-off of the business. If you think that the business can definitely be done and can bring you a lot of profits, then spin it off." After the business is spun off, the profits from the business will belong exclusively to you. And if you are not sure whether the business can develop, you should also spin off the business to avoid affecting the company's revenue and profits, thereby affecting the company's Listed."

"Excluding the console business, Galaxy Games' current operating data is excellent. This is a great time to go public. At this time, a listing is likely to achieve a very high price-earnings ratio. But if it is not listed first, once the console game If the company's business does not develop smoothly, it will inevitably affect the company's performance, thereby affecting the company's listing plan. Even if it can still be listed, the price-to-earnings ratio will definitely not be as high as it is today."

"Of course, all this is based on the premise that, Chairman, you are willing to list the company. If you are not willing to list the company, then now is a good opportunity. Since the capital market is not optimistic about the company's host business, then once If you decide not to spin off the business, then Goldman Sachs will definitely be unwilling to promote the listing of the company, and Goldman Sachs will have to think carefully if you want to go public."

After hearing what Haruko Maori said, Lin Baicheng said: "Let me make it clear first that my personal opinion is that whether Galaxy Games is listed on the market or not. In other words, if listing is more beneficial to me, then I will choose to put the company on the market. Listing, otherwise I prefer not to list it temporarily."

"Chairman, the advantages of listing a company outweigh the disadvantages. This is also an important reason why a large number of companies want to go public."

Isabella said: "Chairman, what I say next may not sound good, I hope you can understand. The four games currently on sale by Galaxy Games have all become popular and created a lot of profits for the company, but one game has No one can guarantee whether it will be a big hit before going public, so you should take advantage of the fact that the company is doing well now to list the company.”

"Once the company is listed and the stock is lifted, you can reduce your holdings. To put it bluntly, even if the company does not develop well, your losses will not be too great, because you have already reduced your holdings and withdrawn them. Just raising some funds will not affect your wealth.”

"It doesn't matter if it doesn't sound nice, as long as it makes sense."

Lin Baicheng nodded slightly after hearing this, but he did not tell Isabella that he was almost guaranteed that the game he made would be welcomed by the market. Such words would only make people think that he was too arrogant, after all, there is such a thing as 'rebirth' It is impossible to tell anyone, and no one will believe it.

"Chairman, in fact, even if every game the company produces in the future becomes a hit and makes a lot of money for the company, you will still have no losses."

Bill Harveys finally said: "First of all, the company's current revenue and profit are high, and the price-to-earnings ratio after listing will definitely not be low. Although your shareholding ratio will decrease after listing, your wealth will actually increase. It is better for the company to make a lot of money every year. Even if you don’t reduce your shareholdings, you can still choose to pledge your shares to banks or institutions to get a certain amount of cash to develop other companies, and you can still get related profit dividends from the money earned by the company itself.”

"It would be a good thing if the current console games developed by Galaxy Games can be spun off and developed. At that time, whether it is acquired by Galaxy Games at a high price, or you will list the spun-off company , can bring you greater benefits.”

"So, all three of you suggested that I spin off the console game business and let Galaxy Games go public."

Lin Baicheng nodded. Haruko Maori, Isabella and Bill Harveys all had similar views. They all thought it would be better to list Galaxy Games now.

"Yes!"

Haruko Mouri, Isabella and Bill Harveys all nodded.

Lin Baicheng pondered over the pros and cons. First of all, Galaxy Games will be listed sooner or later. Even if it is not listed this time because of the console game, as long as the console game does not perform too badly after its release, the company will be listed next year. Otherwise, Goldman Sachs might have a son secretly.

Although Lin Baicheng and Goldman Sachs cooperated very well and brought a lot of benefits to Goldman Sachs, as long as the benefits were large enough, secretly targeting Lin Baicheng was nothing for Goldman Sachs, and it was a normal operation.

Lin Baicheng never thought that after he asked Goldman Sachs to make some money, Goldman Sachs would stand firmly on his side and help him resist some pressure. This is impossible, so Galaxy Games is very profitable and relies heavily on the US market. It must be listed to give away the benefits.

Lin Baicheng thought for a while, and since it was going to be listed sooner or later, it was very necessary to spin off the uncertain console games and let Galaxy Games go public at a higher price-to-earnings ratio.

In the long run, console games will definitely make a lot of money, but there is no guarantee that they will be lukewarm when they first go on sale. What Lin Baicheng can guarantee is that he will persist until the dawn comes.

"Well, I'll listen to you. Split out the console games and list the company with the arcade business first."

After thinking for a while, Lin Baicheng made a decision.

Bill Harveys listened and said: "Chairman, if this is the case, then Galaxy Games' loan to Goldman Sachs is unnecessary."

"I know this, I will use the shares of Galaxy Games Company to make a private loan."

Lin Baicheng nodded and said: "The most important thing at the moment is to spin off the console game business and establish a separate company, so that neither the production and sales of console games nor the listing of Galaxy Games will be affected."

Now that the console has been developed, it cannot be left unproduced. Fortunately, if it is only delayed for half a month or a month, there is still no problem, and Lin Baicheng can accept it.

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