[Chapter 254: Progress of the Purchase]
After finishing filming the movie, Linton returned to the estate he hadn't seen in a long while.
Unexpectedly, Winnie was already waiting for him there. Today, Winnie was dressed like a sophisticated urban professional, wearing a dark gray-black suit on top, a knee-length skirt below, black stockings, and black high heels, perfectly embodying a financial elite.
Seeing Linton come back, she joyfully jumped into his arms, kissed him, and said with emotion, "Honey, I missed you so much."
Linton embraced her soft figure. Indeed, it had been over a month since their last meeting. Feeling her warmth and enthusiasm, he headed straight to the third floor.
Soon, a sweet and beautiful song filled the air...
...
Two hours later, Winnie lay on Linton, eyes glazed with affection, her delicate hands subconsciously tracing circles on his chest.
"Honey, the information superhighway project has made a huge impact. Over the past two months, stocks related to computers and network communications skyrocketed. Microsoft and Cisco stocks rose more than 20%."
"Really? That's fantastic. Our wealth is soaring too."
"Yes, our assets have increased by at least $400 million. Darling, your sharp eye for investing really paid off back in August with those Microsoft shares."
"Baby, the success comes from your trust and swift execution."
"That's just what we're supposed to do, honey. The three things you told me about earlier are all progressing well."
"You're amazing, tell me more."
"Let's head to the study to discuss. I brought all the documents with me." They freshened up and went to the study.
...
Winnie took three documents from her briefcase and handed the top one to Linton.
"First, all formalities for the Internet Special Investment Fund are completed. We're still recruiting team members -- currently, we have a market analyst, actuary, background investigator, and lawyer. Others are on the way.
"The core team is taking shape, but since the Internet is a new frontier, everyone is feeling their way forward. Venture capital is inherently risky. I think we should first establish all the protocols, build investment analysis models and background check tools, then proceed once the team solidifies their approach."
"That's smart. Take your time. After all, the information superhighway project is just kicking off. The key to venture capital is risk control, but you can't miss the boat. Given the Internet's hot status and strong government backing, prospects are bright. Your risk model can be a bit more flexible compared to traditional industries. In my view, the two most important investment criteria are whether the plan is reliable and whether the person executing it has credibility. If we control these, risks remain manageable."
"That's true. I'll brainstorm more with the team and get our ideas sorted quickly."
"What about the other two things?"
"The second is the publishing house acquisition." Winnie handed over the second document.
"The consulting firm we hired provided feedback, and we've identified a preliminary target -- Meluva Publishing, based in New York."
"Tell me more."
"Founded in 1947, Meluva owns the rights to over 27,300 book titles. Their publishing business spans the U.S., with cooperating bookstores nationwide and 125 franchise stores across the country. They also have solid overseas sales channels -- networks in several English-speaking countries like the UK, Canada, Australia, and New Zealand, with 97 franchise stores abroad."
"Sounds promising."
"However, their revenue isn't ideal. Despite the solid channels, Meluva hasn't had a major hit in years. Recent book sales have been weak, leading to barely breaking even last year and a loss over $1 million in the first three quarters this year."
"So, they have great distribution but poor content."
"Exactly. Their books haven't appeared on the New York Times monthly top 100 bestseller list for two straight years."
"Seems like it's an editorial issue -- they can't keep up with changing tastes and reader preferences."
"That's what the consulting report suggested. If we acquire the company, the editorial department needs overhaul with a market-savvy editor-in-chief brought in."
"This meets my criteria. I can supply top content moving forward. What's the price?"
"Appraisal values it at $23 million. After discussing with Goodman, I re-commissioned Coopers & Lybrand for a re-evaluation. Results will be ready next week."
"Good. Keep me posted when Coopers & Lybrand finishes."
"Will do." She handed Linton the last document.
"A game company?"
"Yes, Fire Elf in Silicon Valley. It's a startup established three years ago by two high school classmates -- computer prodigies who won national competitions. One got into Stanford, the other UCLA. In their junior year, inspired by Bill Gates, they dropped out to start their own business in gaming.
Their first shooting game sold well, but later ones didn't, and the company now barely sustains operations. It's small -- just six computer geniuses.
The main issue: they have zero business operation skills, and no departments beyond game development. It's an immature enterprise, hence poor performance. We should consider acquiring it."
"I agree. We need talents like these. You and Goodman should form an acquisition team and move quickly. Make sure all existing talent stays -- we'll offer salary raises."
"If we want to keep them all, we may have to offer some equity, following Silicon Valley's model."
"How much equity?"
"At most 10%."
"That's a lot. Can we offer higher salaries and bonuses instead, with less equity?"
Linton thought of the potential cash cow if their games took off -- shares would be valuable.
"Increasing salary and bonuses means less equity -- say 5%, no less, or we risk losing them."
"Okay, get in touch with them ASAP and seal the deal."
"Got it. I'll monitor closely."
"Baby, you're amazing."
"Honey, shouldn't you reward me?" Winnie's eyes sparkled as she stood and sat on Linton's lap, arms around his neck, a rare request.
"Oh, what kind of reward?"
"I want you to be mine for the next three nights, okay?"
"No problem."
"Great, honey. I want to take the lead."
"Right here?"
"Yeah, why not?"
"Baby, you've picked up some naughty habits."
"Don't you like it?"
The sweet and merry singing sounded again...
*****
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