"Relax, Shirley. Summer (Redstone) and I just have some business to discuss. He may be a little surprised that I can discuss business with him so quickly..." Ronald took a sip of coffee and closed it.
He used a joking tone to reassure Shirley Lansing that he had no conflict with his boss Redstone.
"Hey, I'm just a little worried. Mr. Redstone didn't seem to be in a very happy state just now..." Shirley Lansing observed his words.
"You have no reason to worry. Paramount Pictures will be an important source of cash for the new group for a long time to come. As long as you can ensure that several blockbusters every year are profitable..." Ronald squinted his eyes.
answer.
"The important thing is that a big-budget movie doesn't lose money, not that one makes a lot of money..." Shirley Lansing keenly grasped the point.
"Between the two of us, you are the better studio manager..."
Ronald drank coffee and Lansing drank mineral water. The two looked at each other and smiled.
Now the interests of both of them are on one side. Ronald, Tom Cruise and others need Paramount as a platform to invest heavily in them, arrange good schedules, and invest huge amounts of marketing funds. And Shirley Lansing needs
This can ensure box office superstars to maintain their own performance.
What Redstone wanted was to squeeze out every drop of milk from his subsidiaries. Lansing and Ronald took advantage of his mentality and formed a small alliance. Anyway, they were guaranteed to make big money. Tom Cruise, Ronald
People like Nader will not let the project lose money. As long as it makes money, Redstone will not be able to find fault in the short term. There are still a lot of loss-making companies under Paramount Pictures. Paramount Pictures can be
In a high-risk industry like movies, maintaining a positive profit is a great achievement.
…
After Ronald returned home, he took out the reports of the MSG TV network and looked at them. Because they had been put on the shelves, some of the company's real operating conditions were also placed on Ronald's desk.
After looking at the business conditions of the past twenty years, Ronald found that this company was definitely not as boring as it seemed on the surface, but a very good hidden champion. He asked DDH CEO Ed Bass
Tian's view.
"So, you also think Madison Square Garden is a good business?"
"Yes, but there is still some incompatibility between him and DDH's current business. If the two gears do not mesh smoothly, it will lead to bad things... One of the key points is Charles Dolan..."
"How do you say that?" Ronald became interested.
Ed Bastian is a competent CEO, and he knows the local media in New York very well. He also knows the Dolan family, a local gangster who got its start by broadcasting professional sports events in New York.
Charles Dolan was actually a poor man of Irish descent. He relied on his father to sell a patent to Ford Motor Company. Dolan served in the U.S. Army Air Corps (later the Air Force) during World War II and came to the United States after retiring.
When I arrived in New York, I also made a fortune from the film industry.
However, his film business is not Hollywood drama films, but industrial films with New York as the production center, a kind of instruction-like film produced by companies for training employees and customers.
Dolan bought this kind of movies everywhere, then edited and packaged them, and sold them to the newly emerging cable TV networks. He gave this low-profit business to Telenews, the largest cable TV station in New York at the time, in exchange for a job opportunity.
Then, relying on his position at a cable TV station, he expanded his relationship with New York builders who were carrying out large-scale construction after the war, and opened a company to install cable TV lines for them. By the way, he also inserted his own cable TV network channels into the new building.
.
Later, Dolan's cable TV network in the New York area mainly provided regular season broadcasts of the New York Knicks basketball team and the New York Rangers ice hockey team playing in Madison Square Garden. The truly exciting playoffs
, it is handed over to the league’s broadcaster.
This regular season broadcast is very popular with viewers in the New York area. It is also the killer of Dolan's company. If it were not for the broadcast of these two professional events, his TV network would actually be averagely competitive in terms of content.
This time, Redstone's big sale, the property rights of Madison Square Garden, and MSG Media composed of two professional teams are his largest single sales assets. Dolan wants to go from being a wage earner at a broadcaster to becoming this
The owner of MSG has been targeting this piece of fat for a long time.
However, Redstone was not easy to deal with. He offered Square Garden and two professional teams a sky-high price of one billion US dollars for the bundle. Dolan mortgaged all his assets and could only get 400-500 million from the bank.
For the rest of the money, you can only find partners. Redstone needs to avoid the crisis in the upcoming fiscal year. The price of one billion is a fixed price, and he can sell it immediately.
What Bastian is talking about may not be in sync, referring to Dolan's own television broadcast network. If Ronald joins him and acquires Plaza Garden and the two teams, then due to the newly renewed long-term broadcast contract
, the broadcast is still owned by his TV station.
DDH also owns a TV station and a radio station in the New York area. If it can be allocated regular season broadcasts, it will be a virtuous cycle, allowing the assets to create a synergy of one plus one, which is greater than two, and continue to increase in value.
If the broadcasting rights are still retained by Dolan's company, it will give Dolan, DDH's media competitor, a big bargaining chip.
"What if I and some friends bid for the MSG Group with private assets? If I obtain the broadcast rights from Dolan according to the market's broadcast licensing price, can you do better than him?"
After Ronald had some ideas about this, he had a rough idea.
"What Dolan is best at is arranging cable TV connections for new houses. Running a media is not something he is good at. Over the years, he has not won any other professional sports events in New York State."
Ed Bastian is confident that New York's two football teams, the Giants, and Jets, two baseball teams, the Yankees, and Mets, and plenty of regular-season local television coverage, Dolan isn't talking about.
After all, his competitiveness is entirely achieved by the preferential subscription package that comes with the installation of cable TV.
"Let me make it clear, as long as I can take part of MSG's shares, even if DDH's TV station needs some cost to obtain the broadcast rights, you can do better than Dolan and others?"
"Exactly... Of course, it would be best to get more than 51% of the shares, so Dolan can't stop us with exclusive broadcast rights."
Ronald hung up the phone with satisfaction, and then called little Doug again.
"Doug, what do you think of this business?"
"Hey, you have a chance to win Madison Square Garden? So what are you waiting for? Do you need shareholders? I can take the money..."
Little Doug fully understood Ronald's strength, and he also wanted to continue to make a fortune with Ronald. When he heard about the opportunity, he quickly expressed his intention to get on the bus. His wife, Donna, had already made a lot of money with his cousin, and he had to follow suit.
, otherwise in front of my wife...
"Why are you so enthusiastic?" Ronald didn't quite understand. When making movies before, little Doug wasn't so excited.
"Ronald, I am a rich man from the countryside and I don't understand that. But I understand the importance of land. You should remember what Scarlett's father said to her in Gone with the Wind, 'Land is the only thing in the world that is worth you.
What you fight for, the only thing that lasts. Whether it's for money, for love, for honor, everything you strive for will disappear...'"
"Only the land belongs to you forever."
Ronald also added the last sentence. He understood the shrewdness of these so-called rich people. Madison Square Garden is located in midtown Manhattan, just above Pennsylvania Station, very close to the Empire State Building and Hudson Square.
Wall Street white-collar workers used to only have to take the subway for five or six stops.
This is a non-renewable monopoly resource, just like Scarlett's estate at that time. Not only is it difficult to find suitable large plots of land to build new stadiums in Manhattan, where land is at a premium, even if there is, it is politically difficult.
Might have passed...
Any monopoly asset that is unlikely to have a competitor is the most powerful and most profitable. In the next few decades, white-collar workers in Manhattan will have a sports venue that is only a 20-minute drive away from work after get off work to watch football. Regardless of the team's performance, Madison Square Garden is their only choice.
Anyway, they go to watch the game not because they are fans, but as a reflection of their identity.
"Steve, don't you want to be the owner of a professional team?"
Having made up his mind, Ronald immediately contacted Bannon and others to jointly form an acquisition group, and then issued a friendly invitation to Redstone and Dolan.
…
"Shouldn't he come to see me?"
Unexpectedly, Charles Dolan came over with a message the next day, asking Ronald to go to New York for a talk.
"He spoke very politely and said that he really wanted to talk to you, but his health is not good and his son has not been able to attend such an important gathering for him recently, so he can only ask you to fly..."
"OK, I'll go, just as a way of respecting the elderly..."
Ronald took an evening flight to New York, and then immediately took a car to Madison Square Garden.
"Ronald, I am Charles..."
Dolan greeted Ronald at the door of his office, but he didn't know whether he was really in poor health or just trying to show off, so he just stood there with his hand outstretched, waiting for Ronald to come forward and shake his hand.
"Hello, Charles..."
Ronald didn't attach much importance to this kind of false reputation, but he didn't like this way of relying on his elders. So he just called Dolan's name to Dolan, who was old enough to be his grandfather, and then he shook his hand a few times and let go.
.
"I heard that many famous competitions and concerts have been held here. Please show me around..."
"Of course, please come with me..."
Dolan did not have a fit, pointed to the place where the honors were displayed, and asked Ronald to go first.
"This is a photo of Ali versus Joe Frazier in 1971. At that time, the new venue had just been built three years ago and was hailed by boxing fans as the fight of the century..."
"Didn't you hold Tyson's event?"
"Well, this was last year's Eastern Conference Finals between the Bulls and the Knicks...we were leading 2-0."
"How come you were beaten four times in a row?"
"The Rangers have a lot of momentum this year..."
"Well..." Ronald knew very little about professional sports, but his casual remarks hit Dolan's weakness. He only didn't understand the Hockey League, so he could only deal with it. After listening to Dolan's remarks a few times, Ronald
, pointed impatiently at the poster opposite and said, "Is this a concert?"
"This is the concert held here by Elvis Presley, Lennon, and Queen... The greatest band will hold a concert in the greatest city..."
"Well, as expected, this venue is first-class for concerts..." Ronald nodded. He still knew a little about concerts. There were framed posters on the wall, including Madonna, MJ, and some current pop superstars.
of……
"There are dogs..." Ronald discovered something interesting again. Madison Square Garden also holds various dog competitions every year...
"Ronald, go to my office to talk. It's a pity that my son James is not here, otherwise he could have a good time with you..."
"Oh, what's wrong with him?" Ronald also brushed it off and promised Dolan to go to the office to sit down and talk.
"James has an addiction problem..."
"Would you like me to introduce you to a rehabilitation center? I would throw some of the unruly stars in Hollywood before filming, and they would come out clean..."
This chapter is not finished yet, please click on the next page to continue reading the exciting content! "Just kidding, my health is not very good, I have placed great expectations on James..."
Dolan let out a long breath, calmed down at the table, took a sip of water and said to Ronald, "I already know your purpose, what do you want to do?"
"It's not what I want to do, it's what you want to do. I can buy this venue and two teams myself, but Sam (Redstone) said that you had already expressed a similar intention to him, and also said
Your broadcasting has made a great contribution to the team. If I am wise, I will keep you..."
Ronald didn't give Dolan a chance to show off. The situation was clear now. Dolan asked him, and he didn't need Dolan.
"Hey..." Dolan took a deep breath, "I envy you very much, Ronald. Every time I see my eldest son James, I think, if he is half as good as you... no, four times as good as you."
I'm happy if I have the ability..."
"So, Mr. Dolan, we are all very busy people, what conditions do you want? Ronald will not accept this.
"I want to make a 50-50 split with you. We each offer 500 million U.S. dollars, and each of us owns half of the shares..." Dolan set out his conditions.
This is the result of careful consideration. If you pay too little, you must have no decision-making power on the shares. Ronald can't stop whatever he wants to do. If you pay too much, you will have no money... In this way, you can rely on the 50-50 split.
With the broadcasting rights in hand, he slowly works out partners and waits for a long time before he can be squeezed out.
"You must be joking... I admire your sense of humor." Ronald was amused. "Let's do this. I won't take advantage of you. I will offer 600 million and you will offer 400 million. Your broadcast agency can be discounted and I will give you the shares."
Accounting for 55%, my subsidiary DDH can purchase the broadcast rights of the two teams at a preferential price."
"Ronald, this asking price is not fair. My company has been a broadcaster for twenty years and has accumulated a very professional professional reporting team..."
Ronald sneered. The quality of these broadcasting teams was really average, and they were often scolded by fans. Moreover, they were afraid of spending money on key games, so they were given to the league's national broadcasters. Fans would not be able to watch them unless they subscribed.
"I'm not here to discuss with you how much your broadcasting company is worth. I'm here to bring up an idea. You can make a counteroffer, but I must get the dominant equity in the company. If you are willing, just do it..."
"What if I don't want to?" Dolan sat up straight from his chair. He was not without foreign aid. For the 50-50 split plan, he had already found a Canadian multinational company, ITT Group, who was very willing to do it.
For a financial investment, it is very interesting to spend 500 million to buy an asset with appreciation potential, hold it for a few years and then sell it.
"That's very simple. I will find a partner and buy you out..." Ronald calmly stated his plan.
He is willing to raise the price, as long as the total purchase price is raised to more than one billion, how can Redstone care about so many nonsense of yours? The one with the highest price will definitely win.
In this way, Dolan had no money himself and could not find more investment partners in a short period of time. Redstone, who was eager to sell, could make a choice without thinking too much.
"You..." Dolan was unhappy, and he took a deep breath, "I think, you are not as stupid as Barry Diller. What good does it do to us to raise the price for no reason?"
"Controlling rights, broadcast rights, if you agree, we can let accountants and lawyers reach an acquisition plan today..."
"I still want to..."
"Think slowly. I'll go meet my friends on Wall Street. They still have doubts about why I bought Plaza Garden. I should explain to them..."
"Okay, okay, you're in the majority..." Dolan compromised. If the bidding goes up, he won't benefit. On the contrary, he still has a little room for change. Ronald offered 550 million, occupying
51% of the shares are fine. Anyway, this guy doesn’t understand the business of sports broadcasting. He will still have time to deal with it in the future. It would be great if James could be so capable. Dolan really hopes that his son can be more powerful now, and the family wealth
Only then can there be inheritance.
"To be honest, I was surprised after seeing the letter of credit endorsement from Wall Street... Everyone knows that your DDH is listed, but your private wealth has exceeded many people's expectations." Dolan recovered.
Normally, I suggest Ronald stay and watch today's game.
"I have made some gains in securities investment... Don't you believe it? It's very simple, just buy low and sell high..."
Ronald smiled, shook Dolan's hand, and said, "Can I make a call?"
"Please..."
"Hello, Spike? I'm Ronald. I'm at Madison Square Garden. There's a game between the Knicks and Cleveland tonight. I want you to watch it from the best seat..."
On the other end of the phone was film director Spike Lee, "Ronald, don't underestimate me, I also have sideline tickets..."
"I have the best courtside ticket, the kind where you can high-five Ewing..."
"Then I'll come, I'll come..."
Ronald knew that Spike Lee liked to watch Knicks games, so he pretended to be fat and imitated Jack Nicholson. He bought a courtside ticket and appeared in the broadcast camera, expressing that black people in Hollywood can also be
Big name ideas.
"Mr. Dolan, my friend wants a set of courtside tickets for the best seats. Is that okay? He wants it next season as a gift from me..."