nownovels Chapter 206 Plans Can't Keep Up with Changes
Chapter 206 Plans Can't Keep Up with Changes
Chapter 206 Plans Can't Keep Up with Changes
For Ernst, hyping up artworks might be a decent way to make some extra cash. But it's clear to everyone that Massim's purpose in coming all this way is still the tempting target of the lucrative Dynamic Games company.
We missed out on Google back then, especially watching Google AdWords (GG) sweep the market like it had a cheat code.
After making a fortune, even the eight billion US dollars in the second round of financing back then now seems like a great bargain.
Nobody wants to experience that feeling of regret and despair the moment they miss out.
The Boston Consortium, which has little presence in the internet field, is now making it clear that it doesn't want to miss out again.
Now that Leap Games is emerging as a dark horse and is poised to become the next big thing, if the Boston Consortium doesn't step in soon, they'll probably be left regretting their decision.
The Los Angeles sun was still shining brightly. Thanks to Massim's arrival, Ernst was finally able to return directly to MGM headquarters after a few days of leisure and have a four-hour private meeting with Henry Paulson, the president of Goldman Sachs, who had come from afar.
"Has an agreement been reached?"
In Robert Iger's office, when Ernst walked in, he quickly signed his name on the document in his hand, neatly closed it, and handed it to his secretary. Then he screwed the pen on the table and stood up, staring intently at Ernst, as if trying to find the answer on his face immediately.
Ernst, with an undisguised smile on his face, walked briskly to the sofa area and sat down before nodding with a grin. "It's settled! MGM Resorts is valued at $85 billion. MGM will issue 2350 million shares to Goldman Sachs, and Goldman Sachs will be the underwriter when MGM goes public."
Robert Iger instantly started doing mental calculations: 23.5 million shares, which represented 2350% of MGM's total share capital, or roughly 12% of MGM's shares.
He strode over to Ernst and sat down next to him, his face full of surprise. "This is quite different from your original plan."
Ernst's initial plan was to raise 10% of the funds and distribute the pie among three to four financial institutions, which would both diversify the risk and attract more partners.
But now, Goldman Sachs has taken the whole cake, and not only that, it has acquired a significant number of shares.
What surprised Robert Iger even more was that Ernst didn't follow his usual practice of asking for an exorbitant price.
He also thought that MGM's valuation would be at least nine billion dollars this time. He wouldn't be surprised if Ernst gave MGM a valuation of one hundred billion dollars, after all, MGM's trump cards were really too strong recently.
The movie is incredibly powerful, exceeding everyone's expectations. Two and a half months after its release, its weekly box office is still booming, steadily earning around $70 million worldwide each week.
Now, nine weeks later, the total box office has exceeded $6.4 million, and there is no sign of it declining. This frighteningly stable performance has plunged the entire Hollywood into despair.
After all, no movie has ever dominated the charts like this before. Other films can only tremble under its halo and can hardly get a share of the profits.
The rating agencies were so amazed by the performance of "Titanic" that they repeatedly raised their total box office forecasts, and now they have set a global total box office of $17 billion.
When this number came out, the entire Hollywood was in an uproar. You have to understand that no movie had ever broken the $10 billion mark before. "Titanic" is simply going to break the industry ceiling.
In response to the overwhelming impact of "Titanic," many Hollywood studios have begun to back down and are planning to postpone the release of their blockbusters at the end of July.
Among them, 20th Century Fox and Columbia Pictures suffered the most. As the original owner of "Titanic", 20th Century Fox failed to seize this cash cow. Now, while others make a fortune with the movies they invested in, they can only be ridiculed by the media. The company's employees wish they could bury their heads in their collars every day when they go to work, for fear of being recognized.
Columbia Pictures, on the other hand, was unsettled by Titanic, which disrupted its summer movie lineup.
In early May, many people ridiculed Titanic as a long and pretentious epic, feeling it was beyond redemption.
But who could have imagined that starting from the second weekend of "Titanic," the box office exploded, all the mockery instantly turned into amazement, the winds of change completely turned 180 degrees, and those who were pessimistic at the time are now obediently shutting their mouths, and even have to say a few words of praise against their will.
Before July, many Hollywood giants were still hoping that Titanic, having been showing for almost two months, would have exhausted its potential, no matter how good it was.
So they were all geared up and full of confidence, ready to make a big splash during the summer season, since the summer season has always been the golden period for box office revenue.
But reality dealt them a heavy blow; Titanic remained strong, showing no intention of stepping down.
Columbia went even further, boldly announcing its intention to end the Titanic miracle.
Their "Men in Black," released in early July, did perform quite well, with decent box office and critical reception. However, even so, it couldn't escape the impact of "Titanic."
It's important to understand that the total box office revenue for the same period is limited. "Titanic" acted like a money-devouring monster, frantically grabbing market share, which naturally compressed the box office revenue of "Men in Black".
Rumors are circulating within Columbia Pictures that "Air Force One," scheduled for release at the end of the month, may be pulled from its release date and moved to the Christmas season. However, this idea has drawn strong criticism from the film's director, Wolfgang Petersen.
This Oscar-winning director is not someone to be trifled with; he wields considerable influence within the industry. He felt that his work should not be subject to arbitrary changes in release dates simply because of the strength of another film, leading to a protracted dispute between the two sides.
Not only Columbia Pictures, but MGM itself was also affected by Titanic.
MGM originally planned to release "There's Something About Mary" at the end of this month, but seeing the continued strong box office momentum of "Titanic", disagreements arose within the company.
Some people think the release date should be changed to avoid the competition from "Titanic" and prevent internal rivalry.
Some people think the film should be released as originally planned, since a lot of publicity costs have already been invested in the early stages.
Ultimately, it was Robert Iger who made the final decision to release the film as originally planned.
He had a clear plan in mind: the next big release window was Christmas, and MGM wanted to release "007" during that time.
With two major productions, Tomorrow Never Dies and Shakespeare in Love, there simply weren't enough resources to spare for There's Something About Mary.
Moreover, since Titanic is produced by MGM, they can leverage this relationship to drive traffic to There Is Mary. For example, they could show trailers for There Is Mary before screenings of Titanic, or organize a double screening of MGM movies, which might even bring unexpected surprises.
Ernst picked up the coffee his secretary had just put down, raised his glass to thank her, and then turned to Robert Iger, saying helplessly, "There's nothing I can do; plans can't keep up with changes. Paulson gave just too much!"
Robert Iger viewed this funding round from MGM's perspective, feeling that they had missed out on making a significant amount of money.
Ernst, however, wanted to think from a holistic perspective.
Henry Paulson made two promises that Ernst could not refuse.
First, they agreed to YueDong's $38 billion valuation and were willing to set an example for other financial institutions.
With Goldman Sachs leading the way as a troublemaker, YueDong's subsequent financing negotiations will be much easier. They won't have to wait until Call of Duty is released before they can raise funds, since time also has a cost.
Raising funds early allows you to invest in new projects sooner and seize market opportunities.
Secondly, Goldman Sachs pledged to fully assist Ernst Asset Management in acquiring properties in Asia.
The Asian financial crisis is making headlines, and on the surface, hedge funds like Quantum Fund and Tiger Fund are stirring up trouble. But in reality, the real masterminds behind it are the big banks and investment banks on Wall Street.
Those hidden capitals enter the Asian market through these channels, frantically buying up quality assets at rock-bottom prices, as easily as picking up cabbages at a market.
Goldman Sachs is the leader among these investment banks, and it wouldn't be an exaggeration to say that it's the one in charge.
With Goldman Sachs' help, Ernst's expansion in the Asian market will be much more efficient, an opportunity that money can hardly buy.
"In addition, Goldman Sachs has agreed to lend MGM a $200 million loan interest-free for three years." Ernst dropped another piece of good news directly related to MGM.
Goldman Sachs doesn't lend money, but that doesn't mean it can't get banks to lend.
Robert Iger's eyes lit up instantly upon hearing this. "With the surplus from Titanic, plus this $200 million loan and financing, we can not only complete the acquisition of Marvel, take over Bertelsmann Music Group, and acquire online music copyrights, but also have plenty of funds left over."
Ernst looked at the excited Robert Iger and teased him with a smile, "I know you've always wanted to make your mark in journalism, and this funding is more than enough for you to do."
MGM Television Network still relies on external purchases for its news content, buying news content from newspapers such as the Associated Press.
Not only do they lack exclusive news, but even the timeliness of their news depends on others. Sometimes, other news outlets have already finished airing for half a day before MGM gets their material.
MGM Resorts International has long wanted to establish its own news production center, send reporters around the world, and build its own news team.
However, all of these require a large amount of financial investment, from hiring professional journalists and purchasing advanced equipment to establishing news bureaus around the world. Each item costs money, and we have been unable to take action due to financial constraints.
"I bet Theodore will be ecstatic when he hears this news," Robert Iger said with a laugh.
Theodore Houston is the current CEO of MGM Resorts International. He was a key figure that Robert Iger poached from his previous employer, ABC Television.
"Hasn't he already bought up quite a few tabloids?" Ernst asked, somewhat puzzled.
During this period, MGM Resorts International has indeed acquired a number of local tabloids and has also begun to build its own news alliance, which seems to be progressing well.
Robert Iger looked at Ernst as if he were looking at an ignorant child, and explained helplessly, "Those tabloids can only have some influence within California. They can't even go beyond the western United States, let alone cover the whole country or the world."
"To gain a foothold in the news industry, you can't rely on these tabloids. You have to build a large news platform with broad coverage and strong professionalism. Only in this way can you have a voice in the industry."
After listening, Ernst nodded in sudden understanding. He hadn't paid much attention to the details of journalism before, but now, after hearing Robert Iger's explanation, he finally understood the intricacies.
With this ample funding, MGM's development in the news industry should also usher in a new chapter.