"In general, Panasonic wants to sell Universal Pictures, but cannot let go of losing to Sony in the competition. This is a particularly embarrassing thing for them."
After the secret meeting with Ron Meyer, Ronald got some information about Ovitz and went back to have a meeting with his confidants. Panasonic hired Ovitz as a sales consultant, just like they hired him as an acquisition consultant.
, but this time, Panasonic did not invite Ronald as a consultant. Ronald also vaguely knew why...
"I don't understand, Spielberg has just made Jurassic Park and Schindler's List for them, how can they still perform poorly financially?" Lawyer Lindsay Doerr lived in China during this time.
In Los Angeles, Ronald handled the legal counsel he needed.
She also brought her son Matthew over and lived in the guest room of Ronald's house. Unexpectedly, little Matthew had a lot of fun with Ronald's son Roger. There was no mother here.
I bought a lot of toys. Little Roger also liked this brother very much. The two of them made up many stories every day using the toy dinosaurs from Jurassic Park and the Jedi dolls from Star Wars. They had a lot of fun and just wished they could
Lindsay's job doesn't end anytime soon.
Therefore, Lindsay Dole saw the strong ability of Jurassic Park to attract money. Even if Universal has had money-losing products such as "The Last Action Hero", Jurassic Park should be enough to smooth out the box office performance of various projects.
That's right, why are you so eager to sell?
"Their fixed costs are too expensive..."
Ed Bastian looked at Universal Pictures' financial report and sighed. Although Jurassic Park made a lot of money, Universal Pictures' bill was even bigger.
The Universal Studios theme park, which has brought a lot of revenue to Universal Studios over the years, is the second largest theme park in Hollywood after Disneyland. The two theme parks in Hollywood and Orlando have also followed in Disney's footsteps and produced many movies.
Related adventure projects.
For example, Hollywood theme parks have projects to renovate the sets of Jaws and King Kong, allowing viewers to understand how the monsters in these two blockbusters were filmed. You can also take a boat ride and be attacked by a great white shark like in the movie.
Orlando's theme parks are even newer, with ET and Back to the Future attractions.
As soon as you hear the names of these movies, you will know that they are relatively old. The youngest one, Back to the Future, was also a blockbuster ten years ago. Most of the children today have watched the new movies of Disney, and they are not interested in these Universal movies.
Many people have never seen the movie.
Over the past few decades, these facilities have also reached the stage of renovation. For example, the latest Jurassic Park, if you want to add this project, the cost will be sky-high. In addition to the renovation and construction costs, the daily operating costs are also astronomical.
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Universal Studios is originally a gimmick that recreates famous scenes in movies. It is different from Disney, which builds some castles and hires some cabaret performers to sing and dance inside. The daily operating costs are very expensive, but it only sells toys.
The ability is not as good as Disney.
A more expensive fixed cost is that Universal's global distribution network has lagged behind Paramount and Warner Bros. This time around, many of Jurassic Park had to negotiate cooperation with local distributors individually, which in vain increased the cost.
More costs.
In order to catch up with competitors, the money for rebuilding the distribution network cannot be saved. Wall Street also looks at the main data of these competitors to make demands on Global.
Adding up these alone, Universal is facing huge investment in fixed assets, which can be said to be financially stretched.
But none of these are as big as another problem.
Two of Universal's leaders, Lew Wasserman and Sidney Sheinberg, have reached the age of considering retirement. Two long-time Universal heroes, after earning stock options and pensions (mostly
Panasonic gave it to them after it acquired Universal), and they have long since lost the motivation to move forward. But they have not officially retired yet.
Not only is it very difficult to find the right people to replace them, but it will also inevitably involve a blood loss, allowing the two of them to enjoy their retirement in peace.
"I heard that their situation in Japan is not good..." Richard heard a lot of news. Now Japan's economy is in trouble. These Japanese multinational companies that bought and sold in America in the early years are now in trouble.
The prototype was revealed.
Whether it is strong enough to survive in Hollywood, or whether it was just trying to make a fool of itself when it bought the studio, the time has come to tell today.
But precisely because of this, Panasonic still seemed coy when it wanted to sell Universal Pictures. Those Japanese executives did not want this behavior to be interpreted as an investment mistake by Panasonic, nor did they want to be said to be inferior.
Sony. After all, Columbia Pictures under Sony's rule only lost money and did not form such a heavy burden.
Therefore, last year, when a company named Seagram and Bronfman Jr., the son of their founder, took the initiative to contact Panasonic and wanted to buy Universal, Panasonic flatly rejected it.
In fact, it is not difficult for Panasonic to turn losses into profits. They only need to imitate Redstone's Viacom and acquire some TV stations, so that they can form a very large media group. The resources of film studios and TV stations can
Take advantage of each other and raise the valuation of both.
For example, a star who is loved by many viewers in a TV series can try filming a movie, and vice versa. Good movies can also be broadcast on their own TV stations, and good TV series can produce movie specials.
In short, if a business group has two major media outlets, they can hype each other up and form a virtuous circle.
But this is where Panasonic is embarrassed. They are not a local company in America. According to FCC regulations, they cannot own or control a local TV station in America.
This chapter is not over yet, please click on the next page to continue reading! If you cannot take advantage of such a good opportunity, Panasonic has the only option to sell it. And the movie and record company that spent 6 billion US dollars to buy it will now be sold at the original price.
Not an easy task.
When Bronfman Jr. from Seagram approached Panasonic last year, the terms he offered were quite favorable. They were willing to use cash to acquire them, and they offered a price that was 10% higher than Panasonic’s purchase price that year.
price.
In fact, it is difficult to find such a buyer in China. But Panasonic still refused, which made Bronfman very puzzled. He had to ask Ovitz, who was very familiar with Japanese culture in Hollywood, to ask for advice and try to find a way to initiate another invitation.
.
In fact, Bronfman Jr. has found the wrong person in this matter. If he finds Ronald, he can probably explain it clearly in one sentence. The Japanese cannot lose face even if they lose anything. Therefore, it is impossible to admit that the acquisition failed and sell everything.
For you...
However, after all, outsiders don’t know much about Ronald’s relationship with Panasonic’s Oga Sang. Therefore, to outsiders, Ronald looks more like a lover of Chinese culture. His home is full of Chinese gardens and Chinese artworks, which is certainly not as good as at home.
Ovitz, who decorates the Japanese style of dry landscape, understands Japanese people...
Panasonic, in fact, has not stopped looking for suitable buyers.
One potential buyer they thought of was Redstone, who had already acquired Paramount. Of course, Redstone's Viacom was still in financial danger and had made various moves to sell assets.
From the perspective of knowledgeable people, Redstone is already walking a precarious tightrope. It is simply a fantasy to expect him to take on another burden and add leverage to acquire Universal.
But Americans don’t understand Panasonic, and Panasonic doesn’t understand Americans. In the eyes of those at Panasonic, Redstone is a very powerful person. Since he bought Paramount, why not buy Universal too?
Redstone was probably surprised when he was approached, but as a consistently strong entrepreneur, he cannot show weakness at any time, otherwise it is no joke to have weaknesses smelled out in the capital market.
After going back and forth, the two sides really started talking. Panasonic really wanted to sell, but Redstone didn't want to buy it at all. The two sides spent a month in a chicken-and-duck talk, without making any progress.
At this time, Ovitz showed himself to be a qualified broker again. He helped Panasonic contact several potential buyers.
For example, Time Warner Group wants to expand the scale of its film production. They were formed by the merger of Warner Bros. Pictures and Time Publishing Group in the early 1990s. The capital market is not very satisfied with their performance, especially a few very popular movies.
Influential movies were snatched up by other companies (such as Forrest Gump), which caused investors to demand more from the company, such as making more movies that were successful at the box office and critical awards.
Looking at Hollywood, Universal's Jurassic Park, and Schindler's List, if you are not successful enough at the box office and awards, then no one else can be said to be successful. Doesn't this sale just meet the requirements of Time Warner?
Disney is also rumored to be interested in Universal's assets, especially those early film libraries. Remakes have always been a magic weapon for Disney...
In addition, Ovitz’s recommendation list also includes PolyGram Pictures from Europe. They are now owned by the Dutch electronics giant Philippe, and like Panasonic, they may also invest in studios to provide for themselves.
The electronic entertainment products produced provide better film and television products.
In addition to them, Ovitz also recommended Turner Television Network to Panasonic. After all, Philips is a Dutch company, and Panasonic is a competitor of consumer electronics. Besides, they cannot own American TV stations.
Thinking this way, since Panasonic cannot own a TV station, it might as well sell Universal to a TV station.
Now that the ratings of CNN on Turner Network are booming, and the tens of millions of subscribers created by the Gulf War, there must be a lot of interest in becoming a comprehensive media oligarch, right?
In fact, this is all Ovitz's trick. He knows that the only company with enough cash to acquire Global is the Seagram Group. The Bronfman family actually owns 24.3% of DuPont's shares. This part
The equivalent value of the stock is close to 8.8 billion, which is enough to buy the entire world at a premium.
However, Seagram had just quoted a price, and Panasonic rejected it. If the misunderstanding between the two parties was solved so easily, then Ovitz would not be of much value.
The most ideal situation is to introduce a bunch of companies to Panasonic that seem to have great acquisition ideas, but in fact it is impossible to actually buy Universal's companies. After Panasonic has experienced many setbacks, it can re-launch the Seagram Group, so that it can
The psychological position of both parties has reached a state where they hope that this transaction will succeed.
This is important information that Ron Meyer specially revealed to Ronald when he had a secret conversation with him.
Meyer, like Ovitz, is one of the five founding partners of CAA. But over the years, Ovitz has used various means to force away the other three partners. Now Meyer has less than 20% of CAA
Shares, even when faced with Ovitz's domineering attitude, they dared to get angry but dare not speak out.
According to Meyer's understanding, Ovitz was so enthusiastic about promoting the sale of Universal to Panasonic with Zhang Luo. According to Meyer's understanding, he actually had the intention of changing jobs from the brokerage industry and becoming the future CEO of Seagram-Universal Group.
Ovitz especially wanted to prove that he could not only be successful in the agent industry, but he could also achieve the same success by managing a movie studio and a record company.
In this way, due to legal regulations, the agent is not allowed to engage in any production business, and he can no longer serve as the boss of CAA.
And Ron Meyer has finally waited for the day when he becomes CAA's largest shareholder. As the only remaining entrepreneurial partner, it is natural for him to serve as the president of CAA.
This chapter is not over yet, please click on the next page to continue reading! By the way, after Ovitz leaves, 80% of his shares can also be sold to the younger generation within CAA known as the "Young Turks" through the equity sale plan
The broker also got some equity, which in turn dispersed the original major shareholders, making Meyer the one with the largest shareholding.
To achieve this goal, we must find a way to facilitate Ovitz to successfully complete the deal, and the buyer must be so satisfied with him that he will be hired to manage the company's business after the acquisition.
However, Ronald was still surprised when he talked with Ron Meyer. It turned out that Meyer didn't have much desire to take charge of CAA.
In this day and age, agents are not as able as they were in the past ten years to take advantage of the weakening of many major studios and the lack of stars and box office guarantees to package projects to obtain a lot of excess profits.
Since Redstone acquired Paramount, the industry has quickly felt that studios owned by such media tycoons are no longer as weak as in the past when it comes to negotiating salaries for stars and packaging agencies.
.
Moreover, Viacom's financial pressure will also allow them to continue to compress all possible costs and reduce the risks of filming movies.
So, in fact, what Ron Meyer really wants is the position of Universal President after the acquisition. He also wants to break out of the agent business and become the head of a studio.
Ronald, who was very shocked by this, also asked Richard, Niceta and others what they thought afterwards.
Niceta is happy to stay at CAA as a senior partner because his wife Paula Wagner has become a production partner with Tom Cruise. In this way, one foot is in the agency industry and the other is in the production business.
It is most beneficial to them as a couple.
And Richard...Richard showed his nostalgia for the brokerage business. He is indeed a person who wants to make a big difference in the brokerage industry. He also disapproves of Ovitz's high-pressure model in the past.
In this way, Ronald felt that he could strengthen cooperation with Ron Meyer. If he could successfully recommend him to Seagram's Bronfman Jr., this would become a strange situation. Meyer snatched away O.
Weitz's way out, and the young Turk group represented by Richard cut off his way out.
Ovitz had a lot of money, but he no longer had a foothold in Hollywood and no influence.
If this plan succeeds, it will be very much in line with Ronald's wishes. However, whether it succeeds or not depends on Ronald's luck. In short, with the idea that at least Ovitz cannot become the CEO of Global, Ronald started