RBCT Chapter 161 Where Does the Confidence Come From?
Chapter 161 Where Does the Confidence Come From?
Chapter 161 Where Does the Confidence Come From?
On the evening of May 16, the Manhattan sky was dyed a deep, diamond blue, and the glass curtain wall of the Hilton Hotel reflected the last rays of the setting sun, like a giant jewel set in the heart of the city.
Ernst, dressed in a dark gray suit, stepped out of the car with a composed gait. His leather shoes made a crisp and steady sound on the marble steps in front of the hotel.
The banquet hall was already bustling with activity, filled with elegantly dressed people. The crystal chandelier emitted a dazzling light, illuminating the entire space as if it were daytime.
As soon as Ernst stepped into the banquet hall, his gaze was involuntarily drawn to the figure on the stage.
A man with a noticeably receding hairline was standing there. His hair was so sparse that you could almost see his scalp. His smooth forehead was particularly striking under the light. You could easily believe he was forty years old, but he was actually only thirty-four.
Holding the microphone, he delivered a speech in a loud and clear voice, his tone filled with undisguised confidence and enthusiasm, as if the whole world was listening to his voice.
"In 1994, when I was still working on Wall Street, I was examining Internet projects and I keenly sensed that this industry had enormous potential and would completely change the way of life that humans had formed over thousands of years."
The man's voice, carried through the speakers, resonated throughout the banquet hall, exuding a firmness.
His hands waved in the air, as if drawing a grand blueprint, his eyes sparkling with boundless anticipation for the future.
"So I resolutely quit that high-paying job and started Amazon in my own garage."
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These words resonated deeply, and a round of enthusiastic applause immediately followed.
Ernst stood in the crowd, observing everything calmly.
Today's Goldman Sachs-hosted cocktail party is less a Goldman Sachs event and more a one-man show by Amazon or Bezos.
Just two days earlier, on May 14, Amazon successfully went public on Nasdaq with an IPO, offering 3 million shares at $18 each, raising $54 million and valuing the company at a staggering $4.29 million.
This spectacle caused quite a stir on Wall Street, and Amazon instantly became the focus of everyone's attention.
After IPO, Bezos held 43.1% of Amazon's shares, officially joining the ranks of billionaires. The media even called him "the second Ernst Garfield".
Ernst couldn't help but want to complain about those media outlets. What kind of eyes do they have?
Although Bezos is only 9 years older than me, his worrying hairline makes him look like he's in his forties.
As for myself, I am young, with a tall and straight figure and a handsome face, and I am the focus of attention wherever I go.
Ernst subconsciously straightened his tie, a barely perceptible smile curving his lips as he looked at Bezos on the stage and thought to himself, "Are we even comparable?"
Of course, Ernst also understood that the media referred to Bezos in this way because they valued his achievements in the Internet field.
Amazon is indeed widely favored by the capital market; otherwise, the underwriters would not have gone to such lengths to invite guests from all walks of life and hold such a grand celebration for it before it even went public.
This is actually paving the way for Bezos, building his network, and expanding his resources.
On the podium, Bezos's speech continued, his voice sometimes high-pitched, sometimes low, and extremely infectious.
"At the time, I was very convinced that e-commerce would become one of the most profitable sectors in the internet industry. Through extensive data research and in-depth analysis, we identified five products that were most likely to be profitable in the e-commerce industry."
He paused, his gaze sweeping over the audience, as if to make sure everyone was listening attentively. "They are CDs, software, computer accessories, audio products, and books."
"Among these commodities, the market for books is undoubtedly the largest, and its supply chain is the most mature and stable." Bezos's tone carried a hint of pride, as if he knew the market inside and out.
"More importantly, there are over 300 million types of books in the world, and no physical bookstore can cover all of them."
"Let alone more than 300 million titles, even 10 titles would require a large library to accommodate them."
"But this situation, which seems unrealistic in reality, can be easily realized in the world of the Internet, and only the Internet has the capacity to support such a massive scale."
"So I decided to start by selling books and officially enter the internet industry," he continued.
"After that, I started lobbying major publishers to get them to supply Amazon. By the time Amazon officially launched in 1995, we had the most categories of books in the world, leaving the second place far behind."
"It is precisely because of this significant advantage that Amazon has quickly become a market leader, expanding its business to 46 countries worldwide in just two months." Bezos's words were full of pride, and the audience once again erupted in enthusiastic applause and admiration.
"What I want to say is that the book business is just the first step in Amazon's development. Next, Amazon will enter the audio-visual products field —"
On stage, Jeff Bezos continued to recount his entrepreneurial journey and Amazon's grand future plans, conveying a message to the Wall Street elites and capital tycoons present.
Amazon has enormous growth potential and deserves their trust and investment.
Everyone was captivated by the grand vision he described, except for Ernst.
He listened casually for a few sentences before losing interest in the speech. He picked up a glass of champagne, grabbed some delicate appetizers, and strolled to a corner of the banquet hall.
He found a relatively quiet spot to sit down, trying to stay away from the somewhat noisy voices on the stage, and enjoyed a moment of peace.
"You don't seem very interested in this guy? He's the most sought-after person on Wall Street right now." A slightly hoarse yet magnetic voice sounded in my ear.
Ernst turned around at the sound and saw John Reed holding a glass of champagne, looking at him with great interest and a gentle smile on his face.
Ernst did not answer immediately, but merely raised an eyebrow slightly to indicate that he had heard what the other person said.
John Reed didn't mind, and sat down next to him, starting to ask and answer his own questions.
"That's true. After all, what internet company is more coveted by investors than Google? No matter how great Bezos is, he's just known as 'the second Ernst.'"
His words carried a hint of sarcasm, yet also subtly revealed his approval of Ernst's Google.
"Boring," Ernst muttered to himself, then continued to savor the food on his plate.
The rich foie gras melts in your mouth, accompanied by a creamy aroma. The salty umami of the caviar intertwines with the delicate sweetness of the champagne, creating a wonderful taste experience.
John Reed's smile faded, his expression turning serious. He said solemnly, "Let's talk about MGM's financing. The price you've offered is unrealistic; I'm starting to doubt your sincerity in raising funds."
Previously, Citigroup and MGM had held several rounds of negotiations, but MGM insisted on a valuation of $65 billion and refused to budge, resulting in a stalemate in the negotiations, which had to be temporarily suspended.
"This valuation is indeed inappropriate." Ernst put down his knife and fork, picked up a napkin, and slowly wiped his hands.
Upon hearing this, John Reed smiled almost imperceptibly, secretly relieved, thinking that Ernst had finally given in.
However, Ernst's next words made his expression change instantly, and his smile froze on his face.
"75 billion US dollars," Ernst said calmly, his tone completely unwavering.
"Wh-what?" John Reed's eyes bulged slightly, and he almost dropped the champagne glass in his hand. His movements became hesitant, as if he couldn't believe his ears.
He wondered if he had misheard, or if Ernst was joking with him.
"You heard me right, it's $75 billion." Ernst nodded solemnly, his expression extremely serious, showing no sign of joking.
"Are you kidding me?" John Reed's voice suddenly rose, filled with anger and incomprehension.
Some of the guests who were watching closely were drawn to the commotion and cast curious glances their way.
According to John Reed, MGM's previous valuation of $65 billion was already outrageous, far exceeding what Wall Street could accept.
Now that "Titanic" has suffered a box office flop, almost becoming a disaster, everyone knows that MGM will face huge losses this year.
John Reed had specifically sought out Ernst today hoping to use this opportunity to further lower MGM's valuation.
Despite the box office failure of "Titanic," it is undeniable that MGM still possesses enormous potential, with many of its assets being of high quality.
For example, its television network has flourished and has already secured a place in the industry.
Playboy Group has extremely high brand value and wide influence, and now it has entered the record industry, continuously expanding its business scope.
Even its film business has been greatly strengthened by the acquisition of Orion.
John Reed was very optimistic about MGM's future prospects; otherwise, he wouldn't have been so proactive in pushing for financing negotiations with MGM.
But to his utter surprise, Ernst not only refused to lower the price, but instead raised the valuation to $75 billion, making him feel like a fool being arbitrarily mocked.
He felt that Ernst could have simply rejected his price reduction offer; there was no need to humiliate him in this way.
Ernst, however, stared intently into John Reid's eyes, his tone calm yet unwavering: "I'm not kidding you, but MGM is worth this price right now."
"If Citibank misses this opportunity today, the price won't be this high next time," Ernst added.
John Reed stared intently at Ernst, not daring to blink, trying to find a flaw in the other's eyes and expression to prove that it was just a joke.
However, after a few seconds, he found that Ernst's expression and eyes had not changed at all; they remained so certain and persistent, as if he were not joking at all.
On what grounds?
John Reed kept asking himself the same question, but he still couldn't figure it out.
MGM is clearly in trouble, so why is Ernst so confident in raising its valuation? Where does his confidence come from?
A piece of information suddenly flashed through John Reed's mind: the rumors circulating on Wall Street over the past two days about Ernst Asset Management.
It is said that the financial company established by the other party will soon launch its second private equity fund.
In his view, given Ernst Asset Management's current state, how could anyone possibly be willing to invest heavily in managing the company again?
Jane Frazier came from McCarthy's family. Although she didn't have many outstanding achievements in the financial industry to prove herself, her background definitely gave her a deep understanding of the financial industry.
The company's head of private equity, Ralph Payton, is a well-known figure on Wall Street, and his team is hailed as a potential rising star.
Citigroup had previously considered evaluating them and inviting them to join Citigroup if they could demonstrate outstanding performance.
But no one expected that they would eventually choose to join Ernst Asset Management.
Therefore, launching a second private placement under these circumstances was certainly not Ralph Payton's decision.
Therefore, there is only one possibility: the order was given by Ernst himself.
John Reed felt his mind was overwhelmed, countless questions swirling in his head.
He simply couldn't understand where Ernst got the confidence to not only not lower the valuation but also raise the price when MGM suffered a box office failure, and even dare to launch a second private equity fund at this time.
Behind all of this, there seems to be a secret he is unaware of.
The atmosphere grew heavy. The two locked eyes, and it seemed as if invisible sparks were colliding in the air.
One was puzzled, the other refused to comply.
The guests who had been watching seemed to notice the unusual situation and lowered their voices, whispering and speculating about what had happened between the two.