Chapter 608
The Third and Fourth Households
Golden autumn October.
Chen Guangliang took a private jet to Tokyo, Japan, to have a gathering with his four wives.
In the study of the ancestral home of the fourth branch, his three children—Chen Wenying, Chen Wensheng, and Chen Yingyi—are reporting on their work to Chen Guangliang.
Chen Yingyi is his youngest daughter, and also his most obedient and filial daughter. Following Chen Guangliang's wishes, she married a Hong Kong man. This son-in-law's elders had a close relationship with Chen Guangliang, and after the marriage, they moved to Japan with Chen Yingyi to assist his wife in developing her career.
In this way, Chen Guangliang still regarded Chen Yingyi as an important participant in the 'Chen family', and she and her sisters Chen Leyi and Chen Mengyi were all 'directors' of Chen Guangliang's family office.
Chen Wenying respectfully reported, "Father, as you instructed, we have had Chiba Bank tighten its credit and collect on real estate loans, among other measures. Chiba Bank is now relatively stable. Regarding EA, we have already cashed out nearly half of our properties, obtaining over $600 million in cash flow. Personally, I have already cashed out $1 billion from EA, and currently still hold 68.5% of the shares; the cashing out is still ongoing."
Electronic Arts (EA) boasts a market capitalization of $180 billion thanks to the phenomenal success of its second-generation handheld console, the Game Boy, and its Super EA (16-bit console).
Furthermore, EA Group itself also has real estate and securities investments, media investments, music production, and other businesses, making it a diversified conglomerate.
Subsequently, Chen Wensheng reported: "At the beginning of the year, the total value of my properties and securities reached US$15 billion, with liabilities of US$150 billion (including interest). Later, I began selling properties or their equity and securities. After nine months of sales, I paid off the US$60 billion debt, and have US$60 billion in cash flow, as well as properties and securities worth US$85 billion. My net worth has exceeded US$100 billion. I will follow your instructions to continue to cash out, retaining only five core properties, including the Umeda Sky Tower, the Ginza Nikko Tower, and the Ritz-Carlton Tokyo (ownership)!"
At just 34 years old, with assets worth billions of US dollars, Chen Wensheng has created a miracle. It's fortunate he didn't go public, otherwise he would have been even more famous.
He entered the securities industry at the age of 21 and the real estate industry at the age of 23, and his career has always been smooth sailing. In Japan, he had his mother, Tsukasa Yoko, and his elder brother, Chen Wenying, to guide and take care of him, and his father, Chen Guangliang, to personally guide him behind the scenes.
Of course, if it weren't for Chen Guangliang's guidance, the 160 billion yuan worth of properties he owned would only have been worth 50 billion yuan in 1992; and his debts would only have increased (interest), and he might have ended up insolvent.
So the key point is: new projects were stopped in 1988, and cashing out began in 1989.
What is the value of the five properties?
"The value is $60 billion, and I expect to be able to cash out nearly $40 billion in cash flow and deposit it into Chiba Bank."
Chen Guangliang nodded. The eldest son of the fourth wife, Chen Wenying, is a well-known 'top tycoon' in Japan. His net worth this year is publicly disclosed as US$120 billion (including shares in Chiba Bank). The second son, Chen Wensheng, has a net worth of US$100 billion, but because his company is not listed, he is not on the list.
Next up was the third sister, Chen Yingyi, who reported, "I also cashed out securities worth 2 million US dollars. If I cash out all of them, I will get 3.5 million US dollars in cash."
She's a girl, and she's already very satisfied with her wealth.
Moreover, investing in securities is only a side business for Chen Yingyi; the main businesses of her companies are cultural industries such as game development, comic book publishing, and jewelry brands.
Of course, Chen Guangliang did not give her an 'outline'. Chen Yingyi was able to develop her career not only because she obtained authorization from her brother in Hong Kong, but also because of the game resources provided by her fellow countryman.
Overall, Chen Yingyi is only 27 years old and has her own career, which is already quite remarkable.
Finally, regarding Si Yezi's investment company, she said with a smile, "I've already cashed out securities worth $20 billion, and I'll continue to cash out in the remaining three months of this year, bringing the total value to around $50 billion. The properties are scattered, but cashing out $10 billion is no problem."
The total market capitalization of the Japanese stock market is approximately US$3.5 to 4 trillion, nearly twice that of the United States.
As for the securities held by Si Yezi, she has slowed down her investment in recent years, handing them over to her children, so the total value is only about five billion US dollars. This includes 'Electronic Arts', which she founded, and passed it on to Chen Wenying long ago.
Chen Guangliang nodded.
Taking the opportunity, Si Yezi said, "I plan to donate 10 billion US dollars to the foundation for the family's charitable causes."
She knew that her husband wouldn't accept the money if she gave it directly, but giving it to the foundation would be different.
Chen Guangliang said with satisfaction, "Okay. Also, you should continue to do charity work in Japan and expand your influence, especially Wenying."
In the fourth branch of the family, Chen Wenying openly married a woman from the Tokugawa family and cultivated relationships with Japanese politicians and businessmen.
The second son, Chen Wensheng, was relatively low-key and quietly made his fortune.
Chen Wenying quickly replied, "Yes, Father."
Then, Chen Guangliang seriously took out a document and said, "If you want to become a real conglomerate in Japan, you must get involved in more industries. This is a forecast I compiled about the prospects of emerging technologies in the future—telecommunications, computers and the Internet. Wenying, I hope you will work with your younger brother and sister to accomplish this mission."
Chen Wenying, Chen Wensheng, and Chen Yingyi were excited. Their father's vision was always ahead of its time and incredibly accurate. This information would allow their Chen family's Japanese branch to reach even greater heights.
Then, the three of them took turns looking at it.
This document mainly includes three aspects:
First, after cashing out, the Japanese Chen family will seek opportunities in the telecommunications sector, namely, to acquire Japan's third-largest telecommunications company and then gradually develop the telecommunications industry.
Second, the internet strategy. Investing in the software industry, expanding the sales network, seeking cooperation with Cisco in the United States, selling Cisco products in Japan, and preparing for the internet era.
Third, the three of them founded a venture capital firm.
Chen Wenying finished reading first, and after his younger siblings finished reading, he immediately said, "Father, rest assured, with your instructions, we will definitely fulfill the family's mission."
Chen Guangliang stood up, patted his shoulder, and said, "Although the three of you have established this venture capital firm, you own 51%, your brother owns 39%, and your sister owns 10%. Protect your brother and sister!"
"Yes, Father, I understand what you mean!"
Chen Wensheng's main assets are not publicly listed. Although the Japanese know that he owns many rental properties, they cannot accurately calculate his wealth, making him a 'hidden tycoon'.
Chen Yingyi is still young, and because she is a woman, she is not famous.
Only Chen Wenying is a 'famous entrepreneur' in Japan who monopolized the FC game console globally and enjoys great fame in Japan and the world.
In that case, Chen Wenying would naturally be the head of this new Japanese zaibatsu group.
Chen Wenying has five children (three sons and two daughters), and his younger brother Chen Wensheng has four children (four sons). They place great importance on the continuation of the family line. Although they have adopted the Japanese name 'Amada Family', they are still proud to be known as the 'Chen Family' internally.
Of course, EA, under Chen Wenying's leadership, is indeed a "shining example of Japan," monopolizing 90% of the North American game console market, 85% of the European game console market, and 90% of the Japanese game console market.
Neither Sony, nor Sega, nor Nintendo actually pose a significant threat.
In particular, EA has won a remarkable victory in this battle of 'portable game consoles'.
Sony and Sega chose 'color LCD screens', but the projects failed due to cost and immature technology.
GAME BOY not only chose the inexpensive and technologically mature black-and-white screen, but also continued to sell extremely well because it included two best-selling games, 'Hong Kong Blocks' and 'Super Mario'.
Then, Chen Wenying tentatively asked, "Father, with our fourth branch of the family having cashed out such a large amount of cash, and Japan's bubble about to burst, is it possible for us to invest overseas?"
Chen Guangliang asked, "What do you want to invest in?"
Chen Wenying stated, "Electronic Arts (EA) has cashed out a large amount this time, and combined with its existing profits, this is sufficient to support large-scale overseas acquisitions. Examples include Sony's $34 billion acquisition of Columbia Pictures, Mitsubishi's $20 billion acquisition of 14 skyscrapers in Manhattan, Panasonic's high-priced purchase of an American music company, and Japan Insurance's $3.9 million purchase of a Van Gogh masterpiece."
Chen Guangliang immediately called a halt: "Stop! These are all loss-making deals. I will not agree to purchase companies that are not needed by Electronic Arts."
Upon hearing this, Chen Wenying stiffened and immediately said, "I definitely won't follow the trend."
Chen Guangliang said with satisfaction, “Whether it’s the United States or Europe, they have already reached the peak of their economies. The Japanese are like nouveau riche, they don’t even have the common sense of investment. Take Mitsubishi’s $20 billion investment in 14 skyscrapers (excluding land rights, they need to pay annual rent for the land, which is a characteristic of the United States). They believe that the rent in Manhattan can reach $60 in the future, but I think that in reality, the rent may only be $35 to $45. As for the investment in Columbia Pictures, Asians generally find it difficult to compete with Hollywood. Sony may need to continuously inject capital for many years to maintain it. I don’t need to mention the others. I will only say one thing: the yen may appreciate to 80 to 90 yen (1 US dollar to 80 yen) in the next five or six years. That is, even if you put your money in the bank, it will appreciate.”
Around 1995, the yen should have reached this level.
The three siblings, Chen Wenying, Chen Wensheng, and Chen Yingyi, listened attentively, afraid of missing even the slightest opportunity.
"Fortunately, we had our father's guidance, otherwise we would have made blind investments," Chen Wenying said, bowing.
They left their money in Japan, and the return on investment was substantial. The USD/JPY exchange rate is currently close to 150, and it's expected to drop to 80 in the next five or six years, equivalent to an annual return of 10%. Chen Guangliang then inquired about EA's PC game plans and the progress of developing Pokémon for the Game Boy platform.
After all, EA was an important cornerstone of the fourth division, so Chen Guangliang still let EA develop "Pokémon".
As for Hong Kong's Midea Games Entertainment, in the 1990s, it mainly focused on developing classic PC games such as "Resident Evil", "Age of Empires" and "My Life".
"Father, rest assured, we are already planning our PC game development, although it's just the beginning. As for Pokémon, we attach great importance to it and are prepared to spend three years developing an unparalleled game and IP."
That means it was released in 1993, which is still acceptable.
"Remember to start with the comics."
Chen Wenying looked at his sister and said, "I've already commissioned your publishing house to produce the relevant materials."
IP is a significant investment for the Chen family.
"Um"
Finally, Chen Guangliang said to Chen Daiyi, "The Japanese stock market is expected to peak at the end of the year, I guess it will be above 39000 points. A long-term crash is expected next year. Compared to your brothers, you started your career later, and I haven't left you any good assets."
Chen Daiyi said hastily, "My father has been very good to me, and I am very grateful to him."
Chen Guangliang waved his hand and said, "My daughter certainly can't have that kind of wealth. This time, when the index reaches above 39000 points, you can start shorting the Nikkei 225 futures for next month. As for the specific amount, you can decide, just don't go too far. In short, I think the Nikkei will definitely plummet next year."
"Thank you, Father. I will always remember your words!"
After the family meeting ended, everyone left the study and began to reunite with their families.
Chen Wenying's eldest son is already 12 years old. Chen Guangliang personally taught him and found that the child had a lot of his father's style, was mature and steady, and knew how to be filial. So he intended to personally train him.
After his trip to Tokyo, Chen Guangliang flew directly to New York in the United States.
After getting off the plane, Audrey Hepburn picked them up, and the two then returned to their villa on Long Island.
"Dad" Chen Wenou has already led his wife and children, a total of six people, to wait for his father's arrival.
"Hmm, when did you arrive?"
"I've been in the United States recently."
Chen Guangliang suddenly realized that since the early 1980s, Chen Wenou's business had been mostly in the United States, namely, inheriting the Mattel Group.
Today, Mattel has grown into a diversified conglomerate with businesses including toys, film production, television networks, real estate, and investments.
Fox, one of the film companies, was acquired in 1983 from Mark Ritchie and Marvin Davis, essentially stealing an opportunity from Murdoch; however, Murdoch later took a different path and acquired MGM Studios in the United States.
After acquiring Fox Film Corporation, Chen Wen-ou poached Barry Diller from Paramount Pictures and created Fox Television Network, thus fully entering the American media industry.
Of course, Mattel is also a major shareholder of Disney (though not in management) and a major shareholder of Pearson, a British education group (though not in management).
Mattel Group's market capitalization has now exceeded $10 billion, making it a high-quality stock on the US stock market. Its intellectual property includes Barbie, Little Mary, Transformers, Cabbageplant dolls, Harry Potter, and more.
Audrey Hepburn and her eldest son, Wen-Ou Chen, jointly own 41% of Mattel Group. Audrey Hepburn owns only 11% of the shares but remains the chairperson, while Wen-Ou Chen serves as the executive director.
"dad"
The daughter-in-law, Lisa, also greeted him respectfully.
She was an American woman, and her husband's business moved to the United States, which naturally made her very happy.
Of course, Chen Wen-ou also serves as the chairman of Red Bull Europe while serving as the executive director of Mattel Group.
The group entered the villa, while Chen Wenxi, the second son of the third wife, naturally settled in Europe.
On the lawn, the family sat together discussing.
After acquiring Fox and establishing Fox Television Network, Chen Wen-ou enjoyed the work. During this period, Chen Guang-liang instructed him to direct "Ghost," which was a huge success, grossing $2 million at the box office in 1986 and $3 million overseas. In addition, Fox Television Network also produced popular shows such as "The Simpsons."
Of course, looking back at Fox in the 2s, there were also films like Cameron's Terminator and Aliens.
"Father, filming for 'Harry Potter and the Sorcerer's Stone' has been completed, and it is expected to be released next year!"
Initially, Harry Potter was a comic book published by Mattel, which then commissioned authors to adapt it into novels. The novels are the most popular, having sold hundreds of millions of copies worldwide.
At the same time, the Harry Potter toy line also began to emerge.
Of course, the most important thing is the Harry Potter film series, which in its previous life surpassed the Star Wars series.
Chen Guangliang said with satisfaction, "This IP will truly flourish because of the movie, and subsequent derivatives include toys, video games, and theme parks. I believe you are a veteran in the IP business and should know how to manage it. If done well, this could be a multi-billion dollar IP!"
Lisa, the daughter-in-law, was surprised for a moment, but quickly calmed down. She also trusted her father-in-law's judgment.
Chen Wenou naturally understood and immediately said earnestly, "I will manage this IP seriously."
"There's also the competition for 'Jurassic Park,' which 21st Century Fox should try its best to secure; the return on investment will definitely be substantial."
"Yes, we are now basically certain that we are the winners."
Given the partnership between Fox and Cameron, the future Titanic would inevitably be a Fox investment as well. However, in this iteration, even with a production cost of $2 million, it must be solely funded by Fox; Paramount cannot be allowed to take a share.
Overall, Chen Guangliang did not interfere with Fox's affairs, except for providing the script outline for "Ghost". As for "Harry Potter", it was originally an important intellectual property for Mattel.
In its previous life, Harry Potter generated $200 billion in retail sales for Warner Bros., becoming known as the "Harry Potter economics." In this life, it naturally belongs to Fox, a subsidiary of Mattel.
night.
Audrey Hepburn, who was actually sixty years old but had the physical appearance of someone in their thirties, came to Chen Guangliang's side with great charm.
She remains as elegant and graceful as ever; time cannot diminish her beauty.
However, Audrey Hepburn lamented, "We still have too few children. Now that Vincent has shifted his career focus to the United States, Vincent is the only one left to support us in Europe."
As for Chen Daiyi, although Audrey Hepburn liked this daughter, her husband had excluded her from the core of the family, so she naturally wouldn't force her.
Chen Guangliang put his arm around her and said casually, "Compared to back then, Wen Ou and Wen west haven't grown up yet. So what if you single-handedly support the business of the three families?"
Audrey Hepburn suddenly realized and said, "It's so easy now. Your two sons are so outstanding that I haven't needed to focus on my career for a long time."
Chen Guangliang laughed and said, "That's right. It's not about having many children, but about having the ability to carry on the family business. Besides, Wen Ou and Wen Xi's children are already growing up. In another ten years, they will all follow in their fathers' footsteps and run their businesses. What do we have to worry about? Moreover, after my last conversation with Dai Yi, I have forgiven her and hope that she can assist her brother at Harrods Group."
Audrey Hepburn was delighted and said, "She will! She has always been proud to be a member of the 'Chen family'."
She had been mediating between the two sides, not wanting to go against her husband's wishes but also unwilling to lose her daughter's affections—a difficult situation indeed. Now that the father and daughter's relationship has been restored, it's a very good thing.
That night, Audrey Hepburn went to great lengths to please her man! (End of Chapter)