Richard Played WALMART And TARGET...

@money_rules_daily

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Why it worked

The video succeeds by leveraging a high-stakes, 'insider' business story that feels exclusive and dramatic, keeping the viewer engaged through a clear narrative arc of conflict and resolution.

Summary

Richard Baker recounts a high-stakes business negotiation where he played Walmart and Target against each other to sell his retail division, Zellers. The story details the bidding war that ultimately led to a successful deal with Target.

Structure

1Introduction of the Zellers retail division sale
2Initial low-ball offers from Walmart and Target
3Escalation of the bidding war between the two giants
4Target's final offer and the agreement
5Walmart's last-minute intervention and apology
6Final resolution and personal reflection

On-screen text

Richard Played WALMART And TARGET... WALMART CONTACTED US CALLED ZELLERS WHICH WAS LIKE THE KMART OF CANADA WE'VE HEARD THAT TARGET WAS INTERESTED IN BUYING ZELLERS HOW MUCE WE'D LIKE TO SELL IT TO YOU FOR $2.2 BILLION $2.2 BILLIONS THAT SOUNDS A LITTLE STEEP RICHARD I CALLED TARGET IF YOU EVER WANT TO COME TO CANADA CANADA LAST CHANCE CEO WE'LL TAKE YOUR BEST 50 STORES FOR $500 MILLION 50 STORES NO BID THEY WOULD TAKE 80 STORES OR 90 STORES 80 STORES $800 MILLION THEN TARGET CAME UP TO A BILLION DOLLARS AND THEN WALMART CAME UP TO $1.2 BILLIONS $1.2 BILLION FINAL CALL WE'LL TAKE ALL OF IT FOR $1.85 BILLION $1.85 BILLIONS WE'LL GIVE YOU $900 MILLION AT CLOSING $900 MILLIONS WE HAD A COMPLETED PURCHASE AGREEMENT PURCHASE AGREEMENT THE TARGET BOARD MEETING WAS ON MONDAY THE CEO OF WALMART INTERNATIONAL DOUG MCMILLAN IS ON THE PHONE THEY GOT THEY ALL KNEW WHAT EACH OTHER WERE DOING WE ARE SO SORRY WE SCREWED UP SORRY WE HAVE TO OWN THAT COMPANY YOU CANNOT SELL THAT BUSINESS TO TARGET SELL! AND IT'S OUR FAULT UH WE ARE PREPARED TO PAY YOU ANOTHER HUNDRED MILLION DOLLARS EXTRA $100M DONE I SHOOK HANDS WITH TARGET I'M GONNA FINISH WITH TARGET IF FOR SOME REASON THE BOARD OF DIRECTORS OF TARGET CORPORATION TURNS ME DOWN I'LL BE BACK TO YOU HAT IN HAND I CAN'T BACK OUT OF THE DEAL BACK OUT AND THEY SAID WE RESPECT YOU RICHARD WE UNDERSTAND TARGET APPROVES THE DEAL THE NEXT DAY $900 MILLION IN CASH GETS WIRED IN $900 MILLIONS AND THEN ANOTHER $900 MILLION MY FATHER HAD A SMILE ON HIS FACE HE NEVER FUSSED WITH ME NEVER RAISED HIS VOICE NEVER LOOKED AT ME SIDEWAYS + FOLLOW LIKE SHARE

Original caption

Richard Baker explains how a Canadian retail deal turned into a bidding war between Walmart and Target — with Target coming in at around $1 billion before the deal got complicated. #RichardBaker #Walmart #Target #BusinessDeals #FinanceTok

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Transcript

Walmart contacted us and said they wanted to buy a division we had called Zellers, which was like the Kmart of Canada. And they said, Richard, we've heard that Target was interested in buying Zellers. Well, how much do you want to sell it for? I said, well, we'd like to sell it to you for $2.2 billion. So they said, oh, that sounds a little steep, Richard. I called Target. I said, this is your last chance if you ever want to come to Canada because this is the last set of boxes available. I spoke to the CEO. He said, we're interested. We'll take your best 50 stores for $500 million. I said, that doesn't work for me. I got my first bid from Walmart. They would take 80 stores or 90 stores for $800 million. And I said, that doesn't work. Then Target came up to a billion dollars. And then Walmart came up to $1.2 billion. Finally, I get a call from Target saying, we'll take all of it for $1.85 billion. We'll give you $900 million at closing and the balance 90 days later. By Friday morning, we had a completed purchase agreement. The Target board meeting was on Monday and the closing would have been on Tuesday. The CEO of Walmart International, Doug McMillon, is on the phone. They were very gracious. They got, they all knew what each other were doing, by the way, they all have spies at each other's offices and whatever. So, uh, they said, Richard, we are so sorry, we screwed up. We have to own that company. You cannot sell that business to Target and it's our fault. Uh, we are prepared to pay you another $100 million. I will send a team to your office this weekend and have it done and signed by Sunday night. I shook hands with Target. I'm going to finish with Target. If for some reason the board of directors of Target Corporation turns me down, I'll be back to you hat in hand. I can't back out of the deal. And they said, we respect you, Richard, we understand. Target approves the deal the next day. $900 million in cash gets wired in. And then another $900 million. My father had a smile on his face till the day he died. He never fussed with me, never raised his voice, never looked at me sideways.