Chapter 1026: 351. Acquisition of General Electric

The reform of the Warburg Company does not actually require much cash from Donnie, but more of a reform in personnel and development.

Therefore, if Donnie wants the money earned from European government bonds by Venus Bank to play a greater role, he must continue investing!

This involves the previous negotiations between Donnie and Morgan regarding the exchange of Apollo Chain shares for shares in General Electric and General Motors.

Initially, Donnie’s concept was to exchange for shares in one of the companies, General Electric or General Motors, but Morgan saw through Donnie’s investment plan, suggesting that shares in both companies be exchanged partially, which dispersed Donnie’s investment.

What Donnie needs to do now is, in fact, select one of these two companies as his primary investment company. Do not be mistaken, the 1 billion US Dollars in Donnie’s hand in this era is already an astronomical figure.

But in the face of these two companies, even 1 billion US Dollars is not sufficient, as both companies are super conglomerates with a market value exceeding 1 billion US Dollars.

This indirectly demonstrates Morgan’s strength.

After some consideration, Donnie still turned his attention to General Electric!

Firstly, the real owner of General Motors now is Pierre DuPont. Pierre DuPont and Donnie are both members of the Tarot Society. Acquiring General Motors now will definitely lead to a conflict with the DuPont Family, which does not align with Donnie’s interests.

Secondly, even without Donnie’s acquisition, when the Great Depression comes, the DuPont Family will choose to exit General Motors. By then, Donnie can easily take over the DuPont Family’s shares in General Motors. This not only reduces the greater investment that blind entry would entail but also avoids a confrontation with the DuPont Family.

Thirdly, Donnie has been persistently acquiring shares in General Electric, ever since General Electric was not listed, Tang Fei used 30% of ABC’s shares to exchange for shares of equal value in General Electric at that time.

Afterwards, Donnie continued to have people buy shares in General Electric.

Now, Venus Bank’s shares in General Electric have exceeded 10%, making it the largest shareholder of General Electric!

Under such favorable conditions, Donnie has no reason to abandon General Electric and opt to first acquire the more challenging General Motors.

“If we focus solely on General Electric, we can very easily become the largest shareholder of General Electric. The real difficulty lies in getting the White House to agree to our acquisition of General Electric!”

After confirming Donnie’s thoughts, Robert proposed his idea.

“Now that we have secured control over Westinghouse, if we also gain control of General Electric, then the two largest electric companies in America will be in our hands. Even if Coolidge supports this move, there will definitely be significant resistance!”

Donnie scratched his head; he was well aware of this fact, as Jack Morgan had previously reminded him about it!

However, the allure of monopolizing the entire U.S. electrical industry was too tempting for Donnie. Moreover, the Coolidge era was the best time for such a move. If he waited until later, it would be even more difficult to accomplish!

“Ozzy, contact the Pennsylvania Railroad Company to book a train carriage to Washington!”

Donnie decided he needed to go to Washington to thoroughly discuss this matter with Coolidge.

Ozzy Barber went to make the arrangements.

Donnie then said to Bobby Moselle, “Call Owen Young and invite him to my estate in Washington as a guest!”

To fully acquire General Electric, one must first settle things with the White House and then the management of General Electric.

This is a common issue with large American enterprises; the management not only holds a portion of the company’s shares but also controls the company’s entire operations. If one wishes to acquire a large company, dealing with the management is a must-do task.

In several decades, it will become even more troublesome; not only would the management need to be dealt with, but also their unions.

Bobby Moselle also went to call Owen Young!

Yet, this is still not enough to exhaust the proceeds contributed by Venus Bank from European government bonds. Donnie further instructed Cafe Jackson, “Research the national cinema problem; our next step is to venture into the cinema business!”

This step of the plan was something Donnie had long envisioned, although later, Hollywood would put an end to the Hollywood Film Studio and the collective operation model of cinemas due to the Paramount decree. However, where there is a policy, there is a countermeasure. Donnie had already devised a response to the Paramount decree.

Regardless of how the future turns out, if Donnie becomes the largest cinema owner in America, then even if Jewish merchants enter Hollywood in droves, he would still be able to hold them by their weak spots!

Cafe Jackson nodded and said, “Understood!”

“As for the rest, let’s discuss it in detail after I return from Washington!”

Leaving cash in the bank to earn interest is considered a crime, but Donnie also understands that for a financial conglomerate, cash reserves are always the most important aspect!

The prior situation of the Warburg Company is a bloody lesson!

Before heading to Washington, Donnie returned home to visit Janine Woburg and Steve first, then headed back to the seaside estate to gather with Helen, Alice, Michael, and Lucia before setting off for Washington.

This time, accompanying Donnie to Washington was Mia Bock!