I’m in Hollywood - Chapter 430
[Chapter four hundred and twenty seventh poison pill]
When the news that Cutthroat Island caused a huge loss of 120 million US dollars was revealed, although the loss belonged to Disney was only more than 70 million, the impact was more than Disney’s loss of 100 million through multiple movies last summer. The dollar is even stronger.
… In just three days, Disney’s stock price fell by 11%, and its market value quickly shrank from $3.8 billion before the release of “Cut Throat Island” to $3.45 billion.
As a result, there have been a lot of discussions and reflections on the pros and cons of big-budget movies in the newspapers and media, and a detailed comparative analysis of “Cutthroat Island” and “Terminator 2” has been made. Success, the contrast is stark.
As the discussion progressed, it gradually involved films with a large investment of more than 50 million US dollars in the past two years. Of course, there is also no need for Eric’s “Tornado” and Spielberg’s “Captain Hawk” directed. Analysis, because both of them are the most successful commercial film directors in Hollywood in recent years, and the investment of these two films has exceeded 70 million US dollars.
When the box office of “Terminator 2” was released in the first weekend, Eric had already completed all the filming of “Tornado”. Seeing that the box office of “Cutthroat Island” exceeded 20 million, Eric was very disappointed,’ Miracle’ in the end still did not happen.
However, he is not too surprised. The status of the original independent production company Carlock is far from that of Disney, which is one of the seven majors. In addition, Carlock was suppressed by the seven major alliances, resulting in “Cutthroat Island” “The tragic situation that the 90 million investment only got more than 9 million box office.
What Eric regrets is that the loss of more than 120 million US dollars in this version of “Cutthroat Island” is not all borne by Disney, otherwise, the next acquisition of Disney will be smoother.
After “Tornado” was closed.
Eric continued to spend a few days in Oklahoma dealing with some clutter.
Only returned to Los Angeles with a few main creators.
In the faraway punk town.
Eric has already felt the public opinion turmoil in the media because of several summer movies. When the flight arrived in Los Angeles, Eric, Jeffrey, Joanna and others just walked out of the airport, when dozens of people waited for a long time. Reporters were blocked at the door of the pick-up hall.
Looking at the frantically flashing camera flashes and the tape recorder trying to get past the bodyguard, Eric was worried that the situation would get out of control, so he quickly squeezed his hands and made a quiet gesture.
Originally worried that Eric would leave immediately and asked loudly, the group of reporters who were expecting a response quickly quieted down.
Since Eric had promised to answer their questions, there was no need for it.
“Everyone, I can stay and answer some questions, but after a few hours on the plane, my companions are very tired, can I let them leave first?”
Unexpectedly, Eric suddenly mentioned this, and everyone looked at each other. Eric didn’t want to get an affirmative answer either,
made a few gestures to Jeffrey and the others, and then signaled his bodyguard to clear the crowd.
The reporters saw that Eric didn’t move, and made a way out of the way.
Watch as Jeffrey and Joanna and the others board the roadside car.
Eric clapped his hands: “Then…” The
reporter group immediately remembered the messy voice again.
“Stop, come one by one,” Eric said, pointing to a bespectacled female reporter in a small black suit: “This lady, come first.” The
female reporter excitedly wanted to take a step forward. But he was blocked by the bodyguard, so he had to say loudly through the human wall: “Mr. Williams, it is rumored that the script of “Cut Throat Island” was the first thing you liked. Regarding the bleak box office of this movie with an investment of over 100 million, you have What do you think?”
Eric had already thought about his response to this question before he came back, and of course he couldn’t admit that this was a pit.
Therefore, when he heard the female reporter’s question, Eric showed a heavy look: “”Cutthroat Island” was originally a very good idea, I also thought about making this film into a trilogy. Unfortunately, Disney is producing I went astray in my thinking and ruined this promising story, and I can only say sorry about that.”
Before Eric’s voice had completely fallen, the female reporter immediately seized the opportunity and asked again, “Can you talk about your story?
Production ideas?”
“Sorry, it’s not convenient for me to disclose this question, next, this gentleman.”
The reporter who was named immediately said: “Mr. Williams, since you have already conceived of Cutthroat Island, you may remake this film. Series?”
“The failure of this film has given audiences preconceived notions, not to mention remaking this film, maybe within ten years, I estimate that within ten years, no one will dare to make a pirate film again. ”
Don’t you dare?”
Eric nodded: “Yes, I dare not. The failure of “Cutthroat Island” was too thorough, and it hit the island type movie too much, although I am not afraid of failure, But I don’t want to experience failure so soon, next, you.”
A black-haired reporter tiptoed forward and stretched the tape recorder forward, saying, “Mr. Williams, it seems that you have already experienced failure. The “Eagle” series is a script that you personally selected and participated in the investment.”
Eric showed a smile on his lips and explained: “The first script of “Fighting Eagle” was indeed personally selected by me, and I also participated in some of the scripts. Investment. But the second part has nothing to do with me. I haven’t even seen the script. You can investigate this matter.”
“Did Miss Connery show you the script?” A thin reporter hurriedly asked. After inserting a sentence, everyone’s eyes suddenly lit up, looking forward to Eric’s answer.
Of course Eric knew that this question was actually testing his relationship with Connery. The smile on his face didn’t change, but he didn’t have any extra words, and replied directly: “No, next one, come on. , this is the last question, I’m in a hurry.”
The reporter was about to speak, when he heard Eric’s addition, he swallowed the original question, thought for a while before asking: “Mr. Williams, “Toys” “General Mobilization” and “Terminator 2″ have achieved such outstanding results again, will you make Firefly listed?”
“No, Firefly’s cash flow is very abundant. So there is no need for listing financing. And after listing. In order to maintain the stock price. In order to maintain investor confidence, Firefly may have to make some radical decisions that are contrary to the company’s development strategy. It is very unfavorable for the development of the company, so I still hope that Firefly can develop more freely in an environment that is not disturbed by external investors.”
After answering this question, Eric nodded to everyone, and then waited for a group of bodyguards. Under the support of , squeezed away the crowd and walked out.
Although Eric did not answer many questions, it was enough for these reporters to produce a good report, so no one was trying to stop them.
Eric quickly left the Los Angeles airport.
“Trilogy, hehe, at this point you haven’t missed the opportunity to block Michael Eisner,” Chris Hansen, who came from New York the next day, said when he saw Eric , he had apparently seen about yesterday’s reporters’ interview with Eric.
Eric shook hands with Chris, walked side by side with him towards the Pointy Manor Villa, and said, “‘Cutthroat Island’ won $20 million at the box office, which is a lot more than I thought, and of course I have to take the opportunity to vent. Just a
moment.”
“140 million investment. I feel a chill when I see the final box office of 20 million US dollars. You are too much.”
“It’s a pity that Robert Shea took part of the loss.” The person said, has already entered the villa.
The glass curtain wall of the City of Liberty facing the sea, Chris sat on the sofa and looked not far away and said, “You are still alone, don’t you feel that this villa is too spacey?”
Eric came over with a coffee pot, The two poured coffee and said, “It’s different, I prefer this feeling.”
Chris took the coffee cup, looked at Eric and said, “I don’t know if it’s my illusion, although I don’t spend time with you for a long time. A lot, but I feel that you and the world around you always seem to be separated by a layer of film. You are very good at getting along with people, and your ability to deal with people is far beyond the level of your age, but you are always like a little oil in the water, Although the contact with the water is very intimate, it is reluctant to melt into it.”
Eric was stunned for a while, but did not refute, smiled: “Your intuition is really sharp.”
Hearing Eric admitting so lightly, Chris was a little surprised, but then said: “Eric, this is not It’s a good phenomenon, and it may even lead to schizophrenia in the long run.”
“Um, you studied finance, right?”
“I have taken psychology as an elective, and many students who major in finance will take psychology as an elective, so that they can analyze the opponents they encounter more thoroughly. Or a client.”
“Forget it, Chris, let’s get down to business, don’t worry, I definitely won’t suffer from schizophrenia, but I don’t know how to explain it to you.”
Chris was stunned and said, “Okay. Yes, but Eric, you know, everyone cares about you. My father, me, and Drew, and… your women, if there’s something in your heart that you want to talk to, I’m sure any of us One is a very good person to listen to.”
How could he tell his secrets to others, even if it was Drew’s little girl, Eric could not imagine how the girl would react if she learned of his secret.
After Chris finished saying this, he turned directly to the topic: “Okay, let’s talk about the acquisition of Disney.” With
that, Chris took out the information he brought with him and shared it with Eric One, said: “Disney’s latest stock market capitalization today is $3.43 billion and debt is $2.07 billion. So far, I have received a total of 11% of Disney stock through several companies and agencies, with a total payout of $376 million, Disney’s share of the stock market in the circulation market is only about 24%, so it can absorb part of it. Disney’s board of directors includes a total of 16 people, including Michael Eisner. Disney replaces board members through elections every year. If the takeover offer is rejected, it will pass In this year’s election and the subsequent absorption of Disney stocks, we can get two board seats, so that we can intervene in Disney’s management.”
Eric said: “Let’s talk about the most important things that will be encountered in this acquisition. Get in the way, except for money.”
Chris smiled: “This is also what I want to say the most. Some of the information I collected surprised me. After Disney experienced the hostile takeover in 1984 and lost more than 300 million US dollars, it has no long memory at all. Even There is no agreement on the most common anti-takeover poison pill.”
“Poison pill?” Eric showed a puzzled expression.
Chris thought for a while, then tried to explain in simple words: “The so-called poison pill is a share expansion agreement drafted by the target company in advance to prevent a hostile takeover. Once the company encounters a hostile takeover, the poison pill will be triggered. When the company’s outstanding shares are acquired by a large number of opponents, the shareholders of the target company can issue new shares to dilute the share of the shares acquired by the competitors. Through this method, the acquisition cost can be raised to a sky-high price, like a poison pill In the same way, it discourages acquirers who want to annex the target company. At least 2,000 public companies in North America have poison pill agreements, and to my surprise, Disney does not.”
Eric listened to Chris’ explanation and laughed: “All in all, it’s good for us, isn’t it?”
“Of course,” Chris continued, letting go of the other page of materials in his hand, “but, although Disney’s performance in the past two years has been relatively bleak, Cutthroat Island has With such a big loss, UU read www.sonicmtl.com But after all, Disney was brought out of the quagmire of decline by Michael Eisner. In the past seven years, Disney’s market value in the hands of Michael Eisner has turned over. A full doubling. At least half of the shareholders still have confidence in Michael Eisner. So the biggest problem with our acquisition is still Disney’s existing management.”
Of course Eric knew this, according to fragmented memory. The huge differences between Disney shareholders and Michael Eisner should be after 1996, when Michael Eisner stubbornly annexed the TV station, resulting in Disney’s ultra-high debt ratio and huge losses in the following years.
Before that, although Michael Eisner was stubborn and even regarded the board of directors as his own, and obtained a lot of self-interest for himself through the compensation committee, Disney has always been thriving and developing rapidly, so these problems have been ignored by shareholders They tolerated it.
However, Eric couldn’t wait until 1996, when Disney’s market value was estimated to have doubled several times, and it would be even more difficult to acquire it.
Chris didn’t know Eric’s inner workings, and continued: “Once Disney agrees to a goodwill acquisition, many things will be much easier, but I think Michael Eisner will definitely not agree. So the possibility of going the second way Sex is more than 70%, so the most important thing for us now is to consider the problems that may be encountered in the second way.” (To be continued.) u
[End of this Chapter]
***Commenting is only available on the Novel Description Page.