Although the second largest shareholder, Red Hat, experienced three large-scale shareholding reductions, the stock price rebounded rapidly after a brief decline and still remained at a high of 185 to 190 US dollars, once again showing the market's strong confidence.

On December 24, Microsoft issued a shareholding reduction announcement, reducing its shareholding ratio to 33% twice, cashing out 1.66 billion US dollars in the market, successfully reducing its own losses, and handing over chips to those who thought they had found a big bargain.

investor.

Affected by this news, Netscape's stock price once again dropped to 158 US dollars per share and stabilized, indicating that market confidence is unstable.

after christmas

With the release of Netscape's fourth quarter report and gorgeous 1993 annual report, investors' confidence was once again stimulated, and Netscape's stock price soared to $211 per share, setting another record high.

At this time, Red Hat issued another announcement saying;

After friendly negotiation, both parties reached an equity swap agreement with HSBC, using 10% of Netscape's equity in exchange for HSBC's 30% Cathay Pacific shares, 17% HAECO shares, and 13% Hong Kong Swire shares.

The property rights of a 36-storey Haitian Building and a 110,000-square-meter piece of land to be developed near Yuen Long New Town, with a total transaction value of US$1.92 billion.

Through this share exchange transaction, Red Hat's shareholding ratio quickly dropped to less than 3%, and it dropped out of the top ten shareholders.

After that, Red Hat short-sold its holdings and successfully cashed out US$554 million again, cashing out a total of US$3.124 billion. In addition, the stock exchange transaction was worth US$1.92 billion, and it held 31.6% of Netscape's shares.

A total of US$5.044 billion worth of equity was obtained, becoming a ruthless character who made a fortune silently.

Previously, a total cash income of 3.124 billion was obtained from selling on the Nasdaq market. After paying 20% ​​profit tax, corporate income tax, turnover tax and other taxes, plus the corresponding legal fees, it was just enough to earn 2.4 billion US dollars.

Income and tax paid amounted to US$724 million.

This huge amount of income was transferred into the Hong Kong royal family fund account in batches and became an investment fund that can be used freely.

As for the equity swap agreement reached with HSBC, the profit or loss cannot be reflected in the books. The transaction with a total value of 1.92 billion US dollars only needs to pay a turnover tax of one ten thousandth, and there is basically no loss.

At the same time, the Yahoo news website and cooperative print media widely publicized Red Hat's defeat. On the surface, it seemed that it had become an out-and-out loser in Silicon Valley. As for the huge profits gained, it was silent.

For some unknown reason, the local mainstream media in the United States followed this reporting approach, interpreting Red Hat more from the perspective of failure and turning a blind eye to its triumphant escape.
Chapter completed!