Hollywood Hunter

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When Akio Furui heard Simon talking about the cooperation, his expression did not change much, but the cooperation draft that Daenerys Entertainment had previously sent came to his mind.

The draft is roughly divided into three items. The first item is in-depth brand cooperation, including the priority of Daenerys Entertainment's future release of audio and video products on Panasonic's electronic hardware platform and the advertising of the Panasonic brand in Daenerys Entertainment's film and television content. implant, etc.

This is actually the main purpose of Panasonic's acquisition of mca.

The second is the joint construction of Universal Studios Osaka.

Universal Studios Osaka in the original time and space was only completed around the new millennium, and there is no sign of it at the moment.

Relying on the Japanese people's respect for American culture, Tokyo Disneyland, which opened in 1983, achieved great success that year. The investment of 1 billion US dollars was fully recovered in just a few years. Disney is sorry.

Universal Studios Osaka, as Simon remembers it, has not been as successful as Tokyo Disneyland, but it's also very popular.

As long as the mca can be successfully won, with the years of operating experience of Universal Studios and the rich content accumulation of Daenerys Entertainment, a very important expansion goal for Simon in the next stage is to build Universal Studios Osaka in advance.

It is said to be Universal Studios Osaka, but in fact, once the studio is completed, the potential source of customers will cover the entire Asia, which will be of great benefit to the promotion of Daenerys Entertainment's brands throughout Asia.

Simon's construction of Universal Studios Osaka certainly won't make the mistake of Disney's that can only get 10% of the ticket revenue and 5% of the brand licensing fee in the Tokyo Disney district. However, he also does not plan to invest alone. As an outsider, if you no longer find a local snake to cooperate, it is almost inevitable that you will encounter various difficulties and setbacks in the future.

Panasonic, headquartered in Osaka, is undoubtedly the biggest local snake.

Moreover, compared with Tokyo Disney's partner Japan Oriental Land Corporation, Panasonic, which is not involved in the studio park business, will not fight for control with Daenerys Entertainment.

The final deal is a five-year convertible bond valued at $1 billion.

Daenerys Entertainment will issue a convertible bond worth US$1 billion to Panasonic. It is agreed that once Daenerys Entertainment conducts an IPO within the bond contract period, Panasonic can convert the money into shares of Daenerys Entertainment. in order to further deepen the cooperation between the two parties.

The $1 billion bond amount was also carefully considered.

Simon is confident that as long as mca can be successfully digested in the next few years, the market value of Daenerys Entertainment will not be less than $20 billion when it goes public. The $1 billion in bonds translates into Daenerys Entertainment stock, which happens to be equivalent to about a 5% stake.

The 5% shareholding ratio is not only the lower limit for filing by the SEC, but also the upper limit for foreign investors to hold shares in some restricted industries in the United States.

If the U.S. government still does not lift the industry restrictions that foreign investors are not allowed to hold U.S. TV stations, it only needs to control the shareholding ratio of Panasonic to less than 5%, and only exists in the form of investors who have no right to speak, and it will not be touched. related bans.

Each of the three collaborations has a potential value of $1 billion.

The total value of the $3 billion cooperation program is almost half the size of the mca acquisition. It can be said that Simon has shown great sincerity.

Seeing that Akio Furui fell silent, Simon also temporarily stopped speaking and began to enjoy the food in front of him.

After a few minutes of silence in the box, Akio Furui finally spoke again and said, "Simon, what if Panasonic still doesn't want to withdraw?"

"Daenerys Entertainment will also not take the initiative to withdraw," Simon looked up again, looked at Akio Furui without hesitation, and then smiled again: "Furui, I remember that the Japanese like a book called "Romance of the Three Kingdoms" ?"

The C girl beside Simon obviously didn't know "Romance of the Three Kingdoms", and after looking at her boss, she could only translate it according to her own judgment as much as possible.

Akio Furui listened to his translator and explained a few words in a low voice, with an unexpected expression on his face, and asked: "Simon, you also know the Three Kingdoms?"

"Actually, I can speak very good Chinese." Simon nodded, poured some sake in a saucer, and dipped his fingers on the table to quickly write a standard regular script: The general trend of the world, the long-term division must be together, the long-term cooperation Must score.

Japanese and Chinese have so much in common that almost no translation is needed. Akio Furui recognized the most famous sentence in "Romance of the Three Kingdoms" and read it again in Japanese, looking at the beautiful vertical Chinese font, Looking up in surprise, he said, "Simon, I have to say, you surprised me again."

Simon picked up his chopsticks again and said, "I didn't write this sentence to surprise you. This is actually my opinion on the development trend of the American media industry. Hollywood acted according to the famous Paramount Act in 1948. The demarcation point. Before that, it was the era of big studios. Big film companies firmly held control over Hollywood through a vertical management system from brokerage companies, studios to theaters. It was an era of 'combination'. After the Paramount Act, studios were no longer allowed to carry out talent agency, and at the same time they had to divest theater chains. Coupled with the rise of the TV industry, many new small and medium-sized film companies began to emerge, which were different from the traditional major studios. To compete, it should have been until the stock market crash in 1987, the end of the economic boom in the 1980s in the United States, and the capital-intensive film and television industry fell into depression.

Second- and third-tier film companies such as Laurentiis Entertainment went bankrupt one after another, and this era of 'dividing' has come to an end. "

Akio Furui listened attentively to the real-time explanation of the translator next to him, and finally couldn't help but glance at the traces of the line of Chinese characters written by Simon on the desktop, and said, "Simon, what do you mean, Hollywood is now in a 'combination' again. ' era?"

"Yes," Simon nodded and said, "The merger of Time Inc. and Warner Bros. completed in January this year is a very obvious sign. However, this time, it is no longer the vertical integration of many years ago, but Horizontal integration, the major Hollywood film companies are driven by film and television content, and achieve synergy through diversification through expansion into music, television, print media, retail and other fields. Compared with the vertical management system in the era of large studios, horizontal integration After the diversification is completed, the rise of latecomers can be more easily suppressed through comprehensive industrial barriers. In the future, it will be difficult for Hollywood to have too much room for survival for second- and third-tier film companies, and the major giants will continue to interact with each other. annexed, and eventually a few large media oligarchs were formed.”

Furui Akio didn't wait for Simon to explain in more depth, and there was already a little clarity on his face.

Simon further pointed out: "Furui, if you pay attention to the recent public opinion trends in the United States, you will find that there are very strong calls for restricting Japanese companies from buying Hollywood studios. Even if you can suppress Daenerys Entertainment on price, this time The acquisition case may not be successful. On the other hand, even if you insist on getting mca at a very expensive price, the first thing Panasonic will do is to sell the TV stations under mca according to the restrictions of US law. I believe it will be a long time in the future. Time, the federal government will not lift this ban. On the contrary, in order to prevent more Hollywood companies from being acquired by overseas giants, the federal government has recently considered lifting the regulatory restrictions on mergers between TV networks and studios. I think this is It is an inevitable trend. At that time, the horizontal integration of the US media industry will be further accelerated, and it will have more and more powerful industrial advantages. When Panasonic bought mca, it would have been rejected by Hollywood as an outsider and restricted by US laws. You are destined to be unable to follow the pace of horizontal integration in the media field, and multiple disadvantages are superimposed. Apart from exiting again, I don’t think Panasonic will have a second way in the future.”

Simon finished this in a hurry, and finally added: "Also, Daenerys Entertainment will not easily withdraw from this bidding, because Daenerys Entertainment must be in this horizontally integrated media industry trend. Take the lead. In addition, when it comes to the funds that can be used, I believe that my company is no worse than Panasonic. However, I do not want to start a bidding war with Panasonic, and the current price is relative to the value of mca itself. It's already very expensive."

"But, Simon," Akio Furui said quickly, "Panasonic bought mca for its own diversification."

Simon couldn't help shaking his head and said: "Furui, Panasonic is now diversified enough. With the current economic situation in Japan, what you should do is to prune branches and leaves, and try your best to ensure that you are in some core industries during the economic downturn. You have the advantage, and expand into emerging markets as soon as possible against the backdrop of Japan-US trade tightening, rather than blindly expanding into areas that you have not been involved in at all.”

After hearing Simon's words, Akio Furui fell into a longer silence.

It took nearly two hours for lunch. After the meal, Simon and Akio Furui rushed to a private house on the beach in Osaka. The two discussed the draft cooperation agreement and many other topics for more than two hours.

In this way, Simon rejected Akio Furui's invitation to stay overnight and boarded his own private jet to return to Los Angeles again.

Before leaving, Akio Furui promised Simon that he would give him an exact answer within three days.

All the way back to the United States, due to the time difference, when I arrived in Los Angeles, it was still Monday morning on the West Coast.

The Halloween schedule has already started during Simon's busy time. Before October 26, three new films were released in North American theaters, namely "Ten Days of Dangerous Love", a collaboration between Universal Pictures and Daenerys Entertainment, and Pi Ramon's Cemetery Restricted and Columbia Pictures' Pillow Whisperers.

In the first week of its release from October 26 to November 1, "Ten Days of Dangerous Love", which was well-received by the media and invested enough in publicity and release, was one of the best. The $17.16 million box office is far more than the combined first-week gross of the other two new films, which are less than $10 million.

However, in the three days of the next weekend, "Ten Days of Dangerous Love" also dropped by 33% compared with the first weekend, and collected another 7.19 million US dollars. The accumulated box office in ten days was 24.35 million US dollars.

Because of the relatively large decline in the next weekend, the estimated total North American box office of "Ten Days of Dangerous Love" is between 60 million and 80 million US dollars, which can be said to be the highest among the 10 Daenerys Entertainment plans that have been released. Bad part.

Of course, this is only relative.

The total North American box office of more than 60 million US dollars is considered a big hit in this era, not to mention the total production and publicity cost of "Ten Days of Dangerous" is only about 20 million US dollars, only relying on the North American domestic box office, Danielle. Silk Entertainment and mca will be able to recover all costs and become profitable.

In addition, compared to the original version, the new heroine Susan Sarandon rated her 'chilling' performance by The Hollywood Reporter, and is very hopeful to win next year's Oscars like Kathy Bates in the original time and space. heroine. After the film was released, the distributors have begun to promote Susan Sarandon's best actress for the sake of follow-up channel revenue.

After a quiet and secret trip to Japan, Simon focused on the following days

Daenerys Entertainment will announce the release of the two major films at the end of the year. Before rushing to Japan, an additional budget of 20 million US dollars was prepared. Of course, this money cannot be thrown down without a purpose, and it must be as effective as possible.

On the other hand, the negotiation between James and Bell Atlantic is also progressing smoothly.

Many things are always planned to fail to catch up with changes. Before leaving Japan, Simon had already noticed Akio Furui’s intention to withdraw, and the news of the Bell Atlantic acquisition was no longer so eager to announce, so that more sufficient negotiation time could be reserved for both parties.

This went on until November 8, the last day that Simon and Akio Furui agreed.

I didn't hear any news for three consecutive days. I thought it would be news that Panasonic would further increase its offer for mca. In the evening, I attended a community reception with Janet after the official establishment of Malibu. The couple just returned to Dumei. In the villa on the west side of the cape, Claire, the C girl who was guarding the villa, reminded Simon that there was a call from Japan half an hour ago, and hoped that Simon would reply to a call after returning from the reception.

Simon dialed the number reserved by the other party and quickly transferred it to Akio Furui.

Akio Furui did not go around too much on the phone, and bluntly stated that Panasonic was willing to withdraw from the mca acquisition, provided that the two parties must first complete the signing of the cooperation plan. And, Panasonic hopes to get more concessions from Daenerys Entertainment on some of the details.

The two re-discussed some details on the phone for more than an hour. The basic contract framework did not change. Simon also made some concessions on some terms, and finally reached an agreement quickly.

The next day, Friday, Simon traveled to Japan again, this time with an entire team from Daenerys Entertainment.

Because a lot of preparations have been made in advance, this time it is only to sign an overall cooperation agreement, and many follow-up details need to be adjusted in real time. Therefore, after two days of consultations over the weekend, the two sides soon signed a formal agreement.

Simon and Amy are both in Japan and have frequent contacts with Panasonic executives. It is difficult to continue to conceal relevant news, and both inside and outside Hollywood are speculating about what happened.

immediately.

On Monday, November 12, Panasonic suddenly held a press conference at its Osaka headquarters in Japan, officially announcing that it would abandon the acquisition of mca.

When the news was announced, the media on both sides of the ocean was in an uproar.

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