I’m in Hollywood Chapter 646: The SEC’s ills


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After returning from Universal to no avail, Ron Perelman ate a closed door soup in Warner, because WarnerCEOTerry Semel was already in trouble, and there was no time to deal with Ron Perelman.

With the continuous outbreak of multiple major production films Box Office, the total of North America14-week summer file Box Office in 1994 is expected to exceed the 2billion USD mark for the first time. In addition to the dazzling Firefly Pictures, Universal, Paramount and even the Metro Goldwyn Mayer, which has been quiet for many years, have achieved a good 'harvest' in this summer season. Only Warner, which was still in the top position in the market share a few years ago, can only use performance Dejected to describe.

While the western film "Maverick", which opened as a summer file on May 20, has a good reputation, it was originally squeezed by large films such as "The Mummy", "Saving Private Ryan" and "True Lies". The original 100 million USD Box Office expects that only 60 million USD will be harvested in the end. Immediately after another hugely expensive western film "JAG" ended with a dismal total of 25 million USD's total Box Office, although the "The Client" Box Office released at the end of July is expected to break through the 100 million USD mark, the cumulative Box Office obtained by Time Warner during the entire summer By 200 million USD, the market share will fall below 10% for the first time, and even the summer market share will fall below 20% for the first time in the last five years.

In the face of such a severe performance decline, Terry Semel, who had just taken the throne of Time WarnerCEO, immediately faced joint criticism from shareholders and Board of Directors, and competitors who had fallen out while fighting for the position of Time WarnerCEO also started to move. In this case, although Time Warner has enough strength to grab Marvel from Firefly, Terry Semel, who has become very cautious in order to keep his position, is afraid to blend in with Marvel, a mess that requires hundreds of millions of USD real gold and silver to smooth out. .

Subsequently, the request to meet Ron Perelman and ParamountCEOSherry Lansing was not answered. Three days passed quickly. When Ron Perelman was anxiously thinking about whether to return to the New York base camp for support or to try out whether the Film Studio, which are closely related to Firefly, are interested During the cooperation, a phone call from CEOSummer Redstone of Viacom Group personally brought hope to Ron Perelman again.

Paramount Headquarters of Hollywood Melrose Avenue.

Ron Perelman saw Summer Redstone and ParamountCEOSherry Lansing at the same time in an office.

After the greeting, sit down on the sofa in the reception area, Ron Perelman has not had time to publish his prepared speech. Summer Redstone said bluntly: "Ron, I have learned about the latest in detail. You want to get the position of Firefly Group director as a creditor, but you are in trouble because of the debt problem of Marvel. Paramount can help you solve this trouble. What do you think? "

The Ron Perelman, who was still somewhat ashamed, had an unpleasant feeling in his heart. After Firefly expressed interest in Marvel, Ron Perelman had already changed the original plan, and wanted to rely on creditors and the owner of Marvel. At the same time, he obtained the dual status of director and shareholder of Firefly Group.

But now, these powerful potential ‘collaborators’ seem to be only willing to give him a choice.

Sure enough, Summer Redstone did not wait for Ron Perelman to answer, and then said again: "Paramount can buy Marvel and bear all the debts of Marvel, and then you can fight for what you want without any burden, what do you think?"

After hitting the wall twice in a row, Ron Perelman gradually recognized some facts.

Since you can make 1 billion USD from scratch in Wall Street, Ron Perelman certainly does not lack the decisiveness of the winners and quickly weighs it. Ron Perelman found that by giving up the burden of Marvel, Firefly had no chips to threaten him, and then with the support of the Firefly creditor union and Disney Animation Department in his hand, he still has a great chance to get the position of Firefly director.

North America and even the world ’s No. 1 media group director seat and the substantial shareholder status of the comic company on the verge of bankruptcy, how to choose between the two, can almost be seen by fools.

Ron Perelman quickly made a decision and said, "Mr. Redstone, I do n’t know how much Paramount intends to bid?"

Summer Redstone Road: "100 million USD. [ㄨ]"

Ron Perelman almost jumped after hearing this offer.

100 million USD. Are you kidding?

When Ron Perelman bought Marvel six years ago, it took 80 million. In the past few years, in order to give investors the illusion of rapid expansion of Marvel in order to issue bonds, Marvel has successively acquired several animation companies and toy companies. These expenditures add up to far exceed 100 million USD.

Although Marvel is now facing the dilemma of continuous stock price decline and debt crisis, the actual net asset value is still more than 100 million USD.

The price tag offered by Summer Redstone is almost similar to robbery.

Forcibly suppressing the urge to drop the door, Ron Perelman said with a slight trembling tone: "Mr. Redstone, do n’t you think this price is too sincere?"

Redstone did n’t seem to notice the change in the expression of Ron Perelman, and still said with a strong attitude: "This price is very reasonable, although the market value of Marvel is indeed higher than this. But after Viacom bought Marvel, once Marvel did not show Viacom has to bear the extra debt of 500 million and USD, which is a very risky transaction. "

Ron Perelman retorted: "Eric Williams has spent nearly 500 million USD in cash in order to get Marvel. Could n’t this explain the value of Marvel?"

Redstone sneered: "I only know that once Firefly controls Marvel, then the debt financing you swallowed from Marvel will have to spit it out and will also face SEC (Federal Securities and Exchange Commission) investigation. Sell Marvel to Viacom, I can guarantee not to pursue this matter. "

Ron Perelman was silent. The thing he was most worried about was this matter. The SEC had a "bad problem" like the United States IRS. Once a company was found to have a problem in a transaction, it would be brought with him. Investigate all similar transactions in the past. Since Andrews holding company can skillfully withdraw hundreds of millions of USD funds by means of Marvel, the inside story of those previous transactions can be imagined. After all, it is impossible for Ron Perelman to obtain the present richness without using these obscure **** methods.

After a few minutes, Ron Perelman said, "I need to think about it."

Redstone nodded. Tao: "Of course no problem, Viacom has enough patience, but your opponents are big companies such as Firefly Group, Berkshire Hathaway and State Street Universal fund, they will not give you too much time."

Ron Perelman replied coldly: "These don't need Mr. Redstone to remind me."

Leave the Paramount office building. Ron Perelman stood in the bright sunshine of Los Angeles in August morning, but felt a little chilly all around. He suddenly missed Wall Street in the 1980s. At that time, Drexel Burnham Lambert was still in full swing, and malicious mergers and acquisitions were in full swing. He could obtain endless funds for the siege by issuing junk bonds. But all this disappeared in the late 1980s following a stock market crash. Drexel Burnham Lambert collapsed, the junk bond market contracted, and his rapid expansion of the business came to an abrupt end. Even those heads of super-large enterprises used to be cautious about hearing his name, but now they have to be continuously attacked by these nasty Hollywood The ground snake ignores or mocks.

Recalling the past golden age, Ron Perelman soon decided to return to New York and Wall Street. Perhaps Wall Street is more greedy than these Hollywood ground snakes, but at least, there is his territory. On his stage, he can also use the rules more skillfully.

In the office building of Paramount, standing by the floor-to-ceiling windows of the office and watching Ron Perelman leave in a hurry, Sherry Lansing could n’t help but ask Redstone beside him: “Do you think he will sell us Marvel?”

Redstone looked at the luxury car going downstairs and said: "It is difficult to say, but if it can be taken down, it will play an important role in the next development of Viacom."

Sherry Lansing echoed and nodded slightly. Viacom held a meeting on Marvel.

The current structure of Marvel is like a mini Disney. Although it is very compact, the system includes various departments such as movies, TV, music, comics and toys surrounding a comprehensive entertainment company. Of course, Viacom can't look down on the Marvel Entertainment film and television departments that are totally unclimate. What they need is still Superhero copyright in the hands of Marvel, but there are also toy companies in the hands of Marvel. The stable profits of hundreds of millions of USD brought by the Disney surrounding stores in the hands of Firefly are very greedy for almost any Film Studio in Hollywood. Several other Film Studios have never stopped trying to enter this business. Viacom is of course no exception, since the acquisition of the Pepsi video chain. The executives of Viacom put forward the idea of ​​using Blockbuster's retail distribution system to develop the surroundings of Paramount Pictures movies.

But the hardware conditions are met, but Viacom found that Paramount does n’t have much to use in the development of high-quality movies around, such as the “Jurassic Park” and “Toy Story” that can be developed by Firefly in recent years There are not many movies in the surrounding area.

Therefore, when Marvel Entertainment was brought into the field of vision of Hollywood with a series of topics around Firefly recently, the senior executives of Viacom immediately discovered the potential of Marvel. Marvel's popular comic characters and its toy companies can provide rich content for Viacom's surrounding plans. Moreover, if Marvel's Superhero can be used to develop several movie series comparable to Warner "Batman", then Viacom can easily open up the entire industrial chain from movies to toys.

Redstone stood silently for a while, and suddenly asked: "Sherry, have you seen what the little guy is doing recently?"

Sherry Lansing shook his head: "If it were me, I would definitely try my best to stabilize Disney's Animation Department and then cope with the pressure from creditors. Firefly just merged with ABC and still can maintain the net profit of 657 million USD in the first half of the year. Most of the summer, autumn TV series and new year films are concentrated in the second half of the year, and the popular films of the summer will bring explosive revenues at the end of the year and the surrounding markets, and the profit of Firefly Group will be more abundant in the second half of the year. With such confidence, as long as Firefly now stabilizes Disney Animation Department, there is no need to worry about the pressure of creditors, but Eric Williams does not do this at all, it feels like ... "

Redstone followed by Sherry Lansing, said: "Like he doesn't care about Disney's Animation Department at all, right?"

Sherry Lansing nodded: "Although we all know that Firefly originally planned to turn Disney animation to 3D Animation production, but after" The Lion King ", I believe that as long as there are some sensible people, they will not continue to adhere to the original strategy."

Redstone said: "If that little guy really doesn't care, we can grab Disney Animation Department."

"I have let Peter try to do this, and I'm sure that several other companies have also tried to dig people," Sherry Lansing replied: "But those of Disney Animation Department don't seem to have the meaning of switching jobs, Obviously, the platform Disney is more suitable for them. "

"And now, the little guy suddenly pointed his spear at Marvel," Redstone narrowed his eyes, and suddenly a thought came into his mind: "Sherry, why not make the boldest assumption ..."

Sherry Lansing looked at the old man beside him suspiciously.

Redstone hesitated for a moment and then continued: "Assuming that little guy still doesn't care about Disney Animation Department, what do you think he will do next?"

"This assumption is very unreasonable. No one in Hollywood will care about a Animation Department that can produce a movie with a profit of 1billion USD level." Sherry Lansing subconsciously refuted, but then said: "If this is really the case, Firefly is likely Will abandon the transformation of Disney Animation Department and directly cut off the entire department. "

Redstone's narrowed eyes Huo Ran opened, said: "Sherry, contact Group Finance immediately, I want to know how much cash flow Viacom has available."

Sherry Lansing immediately understood the intention of Redstone. If the very unreasonable assumption just came true, no matter what reason Firefly abolished Disney Animation Department, Viacom had enough reasons to win it at all costs. The effect of a mature Animation Department on the Viacom peripheral plan will definitely far exceed Marvel, a mess that has not shown any potential. (To be continued.)


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