Chapter 639 The possibility of losing money after the acquisition is very high
Chapter 639 The possibility of losing money after the acquisition is very high
United Artists Pictures cannot be described as miserable now, but should be described as extremely miserable.
After Tom Cruise moved in, he actually completed the plan to shoot four movies a year as promised in the press conference. The result was that he won and lost half and maintained a balance of payments.
Two years later, it started to suffer losses. In order to save money, it compressed the four films to three films, which continued for another three years.
The Bona Foundation couldn't stand the company's continued half-death, so it dispatched a specialist to contact Tom Cruise. Instead of making three films that year, they concentrated on one film.
Come to a big production, pursue big investment and big profit, and fight for a turnaround.
Tom Cruise was given full power, and as a result, a film with huge investment and huge losses was born, and Tom Cruise's last inner defense was defeated.
He told the Bona Foundation that he was not a qualified manager and was willing to step down and make way for others.
The Bona Foundation could not find a suitable person to take over for a while, so it comforted Tom Cruise and allowed him to continue to lead United Artists for the time being.
Four months later, Heimer resigned from Disney and officially joined United Artists, becoming the general manager of United Artists until now.
Heimer is very stable in his work. After taking office, he began to adopt a contraction strategy, dealing with those industries that lost money, rectifying the internal affairs, and allocating funds to support those profitable projects.
It took seven years for United Artists to turn a profit. At this time, Hemmer retired due to age, and her deputy Cohen took over United Artists.
This Cohen is also a businessman. In just a few years, United Artists began to suffer losses, and the foundation that Heimer spent many years accumulating was completely consumed.
The Boehner Foundation fired Cohn directly and let Tom Cruise return to take charge of United Artists.
This time, Tom Cruise got aroused and directly pushed Coen's tactics. The streamlined staff shrank and began to implement Highmore's tactics.
Although we are losing money every year now, we are not losing a lot.
According to calculations, United Artists currently has liabilities of US$76 million, total assets worth more than US$350 million, and net assets of more than US$200 million.
After deducting the inflated market value, more than US$100 million is still worth it.
The purchase price was 100 million, and the price given by Parker was considered very sincere.
"Boss, this price is very attractive. My suggestion is to give up the acquisition!"
"At this stage, we must be level-headed and show our principle of not having any bias. If we want to acquire, we can wait until the U.S. Renewable Resources Ecosystem Company is established."
"The current environment is not suitable for our acquisitions"
Hyde Hill gave his clear opinion and did not recommend that Gao Jin acquire United Artists Pictures.
"Chairman, my opinion is not to make an acquisition."
"The current global movie market is dominated by Marvel Films, DC Films, and Disney Films."
"All other film companies are losing money"
"The most important thing is that the acquisition will not benefit our Xingling Group in any way. There is a high chance that we will need to allocate a sum of funds every year to fill this bottomless pit."
"The gain outweighs the loss"
Guan Hongsheng expressed his views on the sidelines and clearly opposed the acquisition.
Gao Jin frowned, thought for a while and said, "Isn't it okay to merge Lianmei Film and Television Company into Starlight Film and Television Company?".
"Boss, some companies have done this before."
"I acquired a Hollywood film company and merged it into my own film and television company in China. As a result, after a few years, I lost a lot of money and sold the company again."
"The two places have different cultures, different national conditions, and different rules. It is too difficult to integrate them together."
Guan Hongsheng told the truth, there were many people who had ideas similar to Gao Jin's, and many of them put them into practice, but in the end they all failed.
Either lose money and get rid of the company, or simply go bankrupt.
"Boss, what Guan said makes sense."
"Hollywood film companies in the United States are not that fun. Let alone China, even if a European film company acquires a Hollywood film company, it still won't work."
"Several film and television companies in France have tried, but all ended in failure."
"The price doesn't look high now, but we still need professional management personnel when we buy it. I don't know if we can make money. The possibility of losing money is very high."
“The possibility of losing money after the acquisition is very high”
On the sidelines, Hyde Hill also began to persuade Gao Jin not to take advantage of small opportunities and jump into big pits. Hollywood film companies are not that simple. The water here is very deep.
Gao Jin drank tea and said nothing. Xingling Group has developed to the point of reintegration, especially its companies involved in film and television.
The films produced by Starlight Film and Television Company cannot go abroad, and there is no market at all outside the country.
It is also necessary to acquire a film and television company in the United States or Europe to make up for it. Even if it is not acquired now, it will have to be acquired sooner or later, unless Gao Jin gives up the entertainment industry.
If the current United Artists Pictures Company is acquired, what Guan Hongsheng and Hyde Hill are worried about may very well happen.
At that time, if you wanted to sell United Artists, a money-losing product, you had to lose a lot of money and sell it at a low price.
"Let me think about this matter. You first prepare the documents regarding the establishment of a renewable resources company in the United States. I will make a decision tomorrow."
Gao Jin needs to think about this matter carefully, and it is difficult to make a decision for a while.
Haider Hill and Guan Hongsheng looked at each other and nodded to Gao Jin. They knew in their hearts that this matter was not just a matter for a film and television company.
There are other things involved as well, so Gao Jin can only think about and make decisions.
After talking for a while, the two of them left without disturbing Gao Jin's thinking.
Gao Jin sent the two of them off and stayed in the room. He called the restaurant to have lunch and lunch delivered to the room, and asked the staff to take them away after eating.
After drinking some tea, Gao Jin felt a little anxious. He took a few deep breaths to calm himself down, raised his hand, and drank the tea in the cup.
Without acquisition, it is not suitable to acquire film and television companies for the time being.
Even if you want to make up for the shortcomings of your entertainment companies, you have to wait until you finish the immediate things. It is not easy to make extraneous matters at this moment.
With the decision made, Gao Jin felt a lot more relaxed. He looked at the time, turned and walked towards the bedroom, planning to take a lunch break.
"Ding ding ding" the phone rang. Gao Jin frowned, turned back to the living room and picked up the phone to look at it. He hesitated for two seconds before answering the call.
"Hall, I'm Gao Jin," Gao Jin said calmly.
When the forum was held in Wilmington that year, Gao Jin met Hall through the introduction of others, chatted with Hall alone several times, and donated a sum of money to related funds.
"Gao, what did Parker talk to you about?" Hall asked straight to the point.
"Nothing. I talked about the Renewable Resources Company and his plan to sell a film company. I asked if I was interested." Gao Jin said directly without hiding anything.
The reason why he is so honest is that Gao Jin understands that even if he doesn't tell, Hall will know it soon.
It is better to be proactive than to be passive. Besides, this is not a shameful thing.
"Gao, let's talk, I've arrived in San Francisco," Hall said directly.
"where are you"
Gao Jin asked, feeling a little surprised. He didn't expect Hall to arrive in San Francisco. Coming here in such a hurry must be more than just a matter for the Renewable Resources Company.
"I will go to your hotel with a friend in a minute, it will take about an hour or so," Hall said.
"Can"
"I'm waiting for you in hotel room 1922"
Gao Jin reported his room number, chatted with Hall for a few words and then hung up the phone.
An hour flies by in a blink of an eye.
Hall arrived at the hotel with an old man of similar age. Gao Jin invited them into the room to sit down and drink tea. The bodyguards were all waiting at the door.
"Gao, let me introduce to you. This is Sam Simpson, the chief director of Ruanruan Company. He is also an old friend of mine for decades."
"Sam, you must know Gao"
Hall smiled and introduced the two of them.
"Welcome to be our guest," Gao Jin said with a smile and shook hands with Sam Simpson.
"Just call me Sam, no need to meet anyone else." Sam shook hands with Gao Jin with a smile on his face. Everyone sat down again, and Gao Jin started pouring tea and invited the two of them to drink tea.
Hall is different from Parker. Parker only drinks coffee, while Hall prefers tea.
After a cup of tea, Hall went straight to the topic and said, "Gao, we come here today with sincerity. I hope you can tell me the conditions Parker gives you."
"Can"
"Parker's condition is very simple. I will reply to him the day after tomorrow."
Gao Jin told the truth truthfully. Hall and Sam looked at each other and saw the expected meaning in each other's eyes.
"Gao, what are your thoughts on the equity allocation of renewable resources companies?" Hall asked again.
"I plan to run the renewable resources company independently. Each country will set up an independent company with independent financial accounting. The board of directors has the right to audit the accounts at any time."
"Based on the current situation, I will give 20% of the shares, and the Beautiful World Foundation and the Bona Foundation will each use one billion US dollars to purchase 10% of the shares."
"After the follow-up projects are launched, we can all provide the required funds according to the shares."
"I am just a business and have no intention of getting involved in other things."
Gao Jin made his attitude clear. Hall and Sam both nodded, understanding what Gao Jin meant and not participating in the overt and covert fight between the two foundations.
What Xingling Group did is not a special case, but a very common thing, including many companies in the United States.
I will settle things overnight and give you the same shares. I will not participate in your fights, and you should not bring secret fights into the company.
Take the famous e-commerce company Amazon as an example. Both foundations hold 10% of the shares, have board seats, do not participate in company management, and only enjoy dividends.