Chapter 1069: Green shoes

After lunch with Bill Michalnik, Eric boarded the plane to New York.
Today is November 18th, Wednesday.
In order to have enough time to formulate a targeted response strategy based on the first day's stock price movement, Yahoo's IPO date was specifically set for the day after tomorrow, the last day of the week's single-week stock trading day.
Inside the cabin of the Boeing 767.
Although growing up in a wealthy middle-class family, this is the first time Anne Hathaway has taken a private jet.
In order to avoid being regarded as an unseen little girl, she stayed in the cabin lounge after the plane was lifted.
After more than half an hour, a magazine for pastime was flipped over, but nothing was seen. Looking up and squinting around, Eric’s female assistant seemed to have been looking at the documents in her hands. She didn’t seem to notice herself. After hesitating for a while, she stood up and walked to the front of the cabin.
Eric just said that he went to the study.
There is also a study on the plane?
Hey, what a strange thing about such a big plane with a study.
Like worrying about his psychological activities being peeked by Mayer, Anne Hathaway turned her head in dismay, and then left the lounge with a crappy.
Passing through a reception room and a bathroom, and gently pushing the third door, Anne saw that Eric was sitting behind a desk and saw the man looking up. The girl quickly revealed that a human and a human being was harmless. Smile: "Eric, I, um, I just see if you are not there."
Eric put a wave at the girl and let her come over. He smiled and said: "Do you think I have the ability to sneak away from the plane?"
"Of course not," Anne Hathaway realized that she had just said something stupid, and spit her tongue and argued a little.
Come to Eric, see the man reaching for himself, sitting naturally on Eric's lap, curiously looking at the contents of the desktop laptop screen, feeling a powerful hand on his waist, she The body softened backwards, thinking of one thing from the previous days, whispered on the man: "Eric, I went to see "Teddy Bear" with a few friends on Saturday, it was really you Script?"

Yeah,
Eric put the laptop screen on and moved it to one side and said,
So, how is it?


Very,
Annie thought for a moment and smiled.
It’s very interesting.

"Oh, this is not what a good girl should say," Eric smiled and took the girl's waist and placed her on the opposite desk. "I thought you would say that you saw it for 15 minutes." Can't stop running out."
Annie smashed the small leather shoes on her feet, and the feet in black stockings were gently placed on Eric's legs, and there were a few small charms in his eyes: "This is your movie."
Eric held down the girl's calves and looked up. She found that she was wearing a magenta mid-length trench coat and a long hem at the hem. She curiously reached out and took the windbreaker on the girl's waist. Pulled open, there was only a thin shirt and an OL-style black skirt, and I couldn’t help but smile: "Do you know the temperature in New York now?"
Annie thought that Eric was going to do something bad, leaning back slightly and holding his hands on the desk. When she heard the man's problem, she squatted, but soon said: "Know, but Eric will definitely not let me freeze, right?"
Eric nodded and looked at the girl's seductive appearance. The finger pulled down the zipper around her thin waist and found the skirt. "Oh, since you read "Teddy Bear", I also To test where your tolerance is?"
Annie lifted her body slightly and obediently let Eric peel off her skirt, but with a little resentment in her eyes, she said half-truth: "You obviously have tested it."
Eric had a terrible smile on his face and said, "Little guy, do you think that is the limit? It’s too naive."
More than three hours later, the Boeing 767 landed on Eric's private airport on Long Island. The East Coast is already coming to night. New York's temperature is similar to that of London, and it has entered the winter.
Tonight, there is a reception that requires Eric to attend in person and call East Hampton, and Eric once again boarded a helicopter to Manhattan.
When the helicopter landed on the roof of Eric's high-rise mansion at the entrance to Manhattan's 6th Avenue, the time was exactly eight o'clock.
A group of seven people came down from the still black VH-60. Meyer took a few bodyguards downstairs to arrange the car. Eric took Anne to his home.
Opening the air-conditioning system in the mansion, Eric looked at Annie, who leaned softly on the sofa in the living room, and smiled. Although she said on the plane to test the girl’s ability to bear, he did not do anything excessive. .
When I came over and reached out and squeezed on the girl's chin, Eric said: "Would you like to go to the reception with me?"
"Is it okay?" Annie immediately began to feel the spirit. In a blink of an eye, she realized that her reaction was not in line with the 'state'. She reached out and grabbed a pillow next to her in her arms and said, "But, Eric, I have nothing." Do not understand."
"These cocktails are small vases that don't need anything to understand," Eric said with a smile. "Oh, that's it. Wait for me to go with me and send you back to Milburn tomorrow morning."
Anne is walking with Eric this time, mainly to come back with her family for Thanksgiving and Christmas at the end of the year. Her home is in Milburn, New Jersey. Eric is not sure about the location, but it is also in Manhattan. Near the city of Jersey, across the river.
When I heard Eric, Anne said with some expectation: "Eric, actually, I didn't tell my mom and dad that I came back these two days. Can I play in Manhattan for two more days?"
Eric shook his head and said, "I have been too busy these two days, but I have no time to accompany you."
Anne looked at Eric for a moment, and saw that the man was unmoved, and had to give up his thoughts.
After a while, Meyer gave a few sets of clothes back in a cold expression, watching Anne put on the set of dresses that she actually put on, and waited for Eric to leave with the girl, the female assistant was like being thrown by the owner. At home, the resentful cat, a little frantically tossed in the apartment, and drank the most expensive bottle of red wine in the Eric wine cabinet.
IPO, the usual translation is 'initial public offering', Eric thinks that this translation is not appropriate, but the literal translation of the three words Initial-Public-Offerings is in line with the correct meaning of IPO: first supply to the open market (stock ).
Because, when the IPO is going on, in fact, the company has completed the fundraising for institutional investors. After the IPO, it means that the shares sold to institutional investors can be officially traded on the open market.
On the other hand, when people hear a company officially announce the IPO date, this already means that the company can basically be a successful listing.
What Eric took with Anne tonight was Yahoo’s thank you cocktail party for the institutional investors who subscribed to the company’s stock.
Driven by the recent hype of Yahoo's listed technology stocks, this week, the Nasdaq index broke through 2,500 points in one fell swoop, entering the most dangerous turbulence range that Eric believes, as of today's day closing, Nasdaq index It has reached 2,567 points, and the increase is not too big, but it also increases the uncertainty of the Nasdaq curve after the Yahoo IPO.
In the banquet hall of the Plaza Hotel, Eric took Anne to some important guests tonight, and Chris, Ian Gurni and Morgan Stanley President John Mark and others gathered around Eric. .
Handing Annie to Emily, a few men stood around the corner of the hall, and other guests were not very interested in coming over.
Although the acquired IPO means that Yahoo has completed its first public fundraising, then, whether it is the firefly system or the Morgan Stanley and other banks that are underwriting, they are facing more serious problems.
Everyone has a large number of technology stocks in their hands. Although it is not clear about the exact amount, Eric can be sure that the size of the technology stocks held by Wall Street’s major investment banks is no less than that of the Firefly Group’s three-leaf clover fund. These investment banks have more time to enter than the Clover Fund. To ensure profit, the Yasdake IPO must be guaranteed that the entire Nasdaq market will not be affected by Yahoo's share price fluctuations.
As one of the largest pure Internet companies with IPOs to date, once Yahoo's stocks are strongly degraded or sold out in large quantities after the IPO, it will definitely trigger a domino-like chain reaction more than any other technology company.

Because the number of subscriptions after the roadshow is better than we thought, according to the green shoe mechanism, this time we sold a total of 172 million shares, of which 22.5 million were green shoes options, accounting for 15% of the established circulation. Once IPO After the stock price showed a downward trend, Morgan Stanley could take out $ 735.75 million in funds to support the market."
The so-called "green shoe mechanism", the scientific name is called the over-allotment option.
To put it simply, the issuer authorizes the underwriters to sell to the institutional investors more stocks with a maximum percentage of the issued issue of no more than 15% in the previous subscription process.
However, these stocks are not officially delivered, but a similar option trade of the subscribers. Moreover, since the cash has been paid like other share purchasers, the institutional investor’s subscription can not be repented. Equivalent to an adventure.
After confirming the green shoes option, after the IPO, the company's stock price rose and it was a great success. Then, the underwriters received the shares from the issuer according to the issue price and transferred them to the option subscribers. If the company's share price falls or even falls below the issue price, then the underwriters use the funds obtained by selling the option to buy back the stock from the open market and then sell it to the institutional investors who subscribed to the option.
The green shoe mechanism ensures that when the company's stock is popular, it can flexibly raise more funds for the issuer, and also allow an additional group of institutional investors to obtain substantial profits. But in fact, the most important thing is that once the company's share price is not satisfactory after the IPO, the underwriters can openly and legally carry out the operation of the market, so as to prevent the stock price from falling too much to harm the interests of all parties.
John Mark briefly introduced a few words and looked directly at Eric. He continued: "However, Eric, I think that more than 700 million US dollars of funds are still not too safe, I hope the firefly system can take more Measures. Although Firefly Investment acquired Sony's film assets some time ago, this expenditure only accounts for a small portion of AOL's equity sale funds. I think that in the event of an accident, Firefly Investment should be able to invest another fund to secure Yahoo's stock price."
Eric smiled and listened to John Mark and nodded. "If necessary, John, the fireflies will definitely do this."
In all fairness, Eric's investment banks, such as Morgan Stanley, are more worried about the chain reaction caused by the stock price loss after the Yahoo IPO.
If several major investment banks lose money on technology stocks, the losses are actually those investors who entrust investment banks to manage their finances. But on the firefly side, a large part of the technology stocks held by the clover fund is considered to be Eric’s own. If the tens of billions of dollars are lost, even if Eric’s current net worth is more than 200 billion US dollars, it will definitely Very painful.
Moreover, the most important thing is the 30% forward equity transfer agreement signed between Yahoo and Microsoft. Microsoft has formed a very stable monopoly on the operating system. Even if the Nasdaq crashes, Microsoft's share price will not fall too much. Although after several years of operation, even after giving the company a 30% stake in the listing, Firefly will not lose absolute control over Yahoo, but in any case, Eric does not want to have a 30% stake at this time. Selling 'to Microsoft.
"There is also media, this requires Eric to personally take it," although Eric's ambiguous promise did not satisfy John Mark, he continued: "I recently discovered that CNN has appeared for several days. Looking at Yahoo’s remarks, as well as the Washington Post, they criticized a piece of criticism on technology stocks yesterday. Eric, I don’t quite understand this, if I didn’t remember Wrong, your relationship with Mr. Buffett should be very good."
Eric also has some doubts. Although the Washington Post is in the hands of the Graham family, Buffett has long been one of the major shareholders and important directors of the Washington Post. Turning his head to see Chris, although Buffett's Berkshire Hathaway is also a major shareholder of the Firefly Group, but in terms of personal friendship, Chris and Buffett are closer.
Chris shook his head. "These two days are too busy. I didn't pay attention to it. I will personally call Warren tomorrow morning."
"I can see if I can have dinner with Terry Semel tomorrow at noon," Eric said. "The other TV stations, I will say hello. As for the newspaper, Chris, it’s up to you. Responsible, in short, to ensure that there will be no mess in the media during the Yahoo listing."