Chapter 324: The Clash of the Two Factions

……

"It's... Boss, won't your demands be too harsh, will Warner say yes?"

After listening to Guo Shouyun's words, Buddy Morris couldn't help but be shocked.

"TBS and DC Comics might be a little more difficult, but C TV and Warner Records shouldn't have much of a problem. Guo Shouyun said with a smile.

Throwing away AOL, which has almost become scum, AOL Time Warner's most coveted assets now have three pieces. They are: HBO, Turner Broadcasting, and Warner Bros.

HBO, as it is known, is Time Warner's pay-TV network, which was founded in 1972 and after more than two decades of development, it already has a total of 35 million subscribers. It accounts for 90% of the U.S. pay-TV channel market. This means that at least 9 out of every 10 paying subscribers of U.S. TV channels regularly tune in to HBO, making it the dominant pay-TV subscriber.

Turner Broadcasting, is an entertainment, sports, and news company that produces and distributes a variety of programming. Turner owns cable channels and their brand extensions, including CNN, TBS, Turner Classic Movies (TCM), truTV, Cartoon Network and TNT. Turner's brand and sub-brands have a wide audience both domestically and internationally.

In particular, CNN is a world-class television news network in the United States that can compete with ABC, NBC, and CBS.

Finally, there is Warner Bros., in addition to thousands of theaters around the world, Warner Records and DC Comics are its subordinate companies.

Guo Shouyun wants these three assets. But AOL Time Warner has been dragged to the edge of a cliff by AOL. It's too costly to save. Now, before dragging Enron Pacific out of the quagmire, Guo Shouyun doesn't want to take on such big trouble. Moreover, the price to pay for AOL Time Warner is too great, and he does not have so much money. Therefore, piecemeal and little by little is the best option.

For Guo Shouyun's analysis, it is no secret that Buddy TV has been losing money all year round, and it is no secret that there is infighting within Warner Records, AOL, and Time Warner's management. It's a lot easier than TBS, Limited TV and DC Comics.

Actually, Guo Shouyun quite wants DC Comics, after all, whether it is "Superman", "Batman", or "Wonder Woman", they are all popular IPs. But the people at Warner are not stupid, and they can also see the value of IP. Of course, the level of attention is obviously not as high as that after the fire of the Marvel Universe movie. But if you want to buy it, the price is not small.

"Seize the contradiction between AOL and Time Warner's management and try to talk about it. If you can buy all four of these companies, then I agree to your reform plan and make you the first CEO of the matrix!"

Buddy Morris's eyes lit up quickly. The power of the 'carrot' is on full display at this moment.

"Boss, I'll do my best!"

"Also, the copyright sold by Marvel must be recovered as much as possible. I'm done talking about Disney, Universal, Paramount, and all of them. You are responsible for the rest of Lionsgate and New Line. ”

"Understood!"

"How's the negotiation with Hasbro?"

They agreed. But they don't want licensing fees, but they want 12% of the global box office for "Transformers" and "Special Forces," and 21% of the movie's peripherals!"

"Hasbro isn't stupid. However, 12% of the total box office share and 21% of the peripheral share are too high. We can accept that the international part is so, but the United States has to account for it separately. ”

"What if the people at Hasbro don't agree?"

Guo Shouyun frowned. The big IP of "Transformers" must not be lost.

"Try to talk about it, and if it really doesn't work, then so be it!"

"Yes!"

"By the way, I'm going to France tomorrow. The matrix is up to you. Call me and email me if there's anything!"

"Understood!"

……

When Guo Shouyun and Buddy Morris talked about AOL Time Warner, the other party was also talking about them, but the atmosphere was not very pleasant.

"Bang... I don't agree, Turner Broadcasting, Warner Records, C TV Network, and DC Comics are all Warner's not for sale!" said Ted Turner angrily as he slapped the table.

"There's nothing that isn't for sale. Moreover, now the company needs a stable and profitable project. Harry Potter, Pirates of the Caribbean, and National Treasure are all popular series. As long as we can keep these three projects at Warner, we can get at least $1 billion a year at the box office, and double their revenues with peripheral revenues like TV on demand, disc sales, and videotapes. With this annual revenue of more than $2 billion, we were able to survive the most difficult phase of AOL Time Warner and usher in the harvest period. Gerald Levine said.

"I recognize the value of the three film series of Harry Potter, Pirates of the Caribbean and National Treasure. But if we sell Turner Broadcasting, Warner Records, C TV Network, and DC Comics, and leave behind the production and distribution rights of the three franchises, will we really be able to reverse AOL's decline?"

Speaking was AOL Time Warner COO Richard Parsons.

"Richard, AOL's current decline is caused by the deterioration of the Internet environment after the NASDAQ crisis, not AOL's own problem. Moreover, how many Internet companies in the world are profitable now? Amazon, LinkedIn, aren't they all losing money? But do you see them dissolved or abandoned by capital?"

Bill Tim, Executive Director of AOL Time Warner, is in charge of the Instant Messaging Division, also known as ICQ!

"Amazon and LinkedIn are losing money because their business is always expanding, while AOL is losing money because our business is declining. Ted Turner said without mercy.

"Ted, I think you should take a look at the company's statements, CompuServe users increased by 12% in the third quarter, and ICQ users increased by 23%!"

But Netscape has seen a 32% drop in hits, and ICQ user traffic has not been monetized. ”

"The problem of ICQ traffic monetization is not just a problem for AOL. Even Microsoft's MSN and LinkedIn's TT have not found a monetization model, but they have never given up operations. ”

"But now AOL Time Warner, without the same capital as Microsoft and Bruce Kuo, we are losing money, and I think we should divest the loss-making assets first than selling the company's core assets. ”

"Ted, do you want to split the company?"

"Yes, that's right. I'm fed up with you idiots who don't know anything about the media, but who always think you're always right!"

"Ted Turner, you've been fired!" Gerald Levine said coldly.

"If you want to dismiss me, at least the board of directors must approve it, although you are the CEO of the company, you do not have this right. ”

Now that he has torn his face, Ted Turner has no scruples.

"Enough, do you still have me as the chairman of the board of directors in your eyes?"

Steve Case, who was sitting on the throne, said angrily.

Seeing him angry, Gerald Levin and other executives who originally belonged to AOL calmed down. But people who originally belonged to Time Warner, including Ted Turner and Richard Parsons, still have ugly faces. Because, since being acquired by AOL, the management of AOL Time Warner has fallen into the hands of AOL executives led by Steve Keys and Gerald Levin.

"Harry Potter has written five books, and from Rowling's feedback, there are two more to come. This means that there are seven films in the entire series. If the performance of each of the later parts is not much different from the first one. This means that the entire Harry Potter series can generate nearly 7 billion at the box office, as well as the same peripheral revenue. Winning it means that there will be 70~9 billion in the next ten years. ”

"Look at "Pirates of the Caribbean" again, there are currently three on the market. Bruce Kwok says he can write at least six. Optimistically, it is estimated that the whole series can create a box office of 30~4 billion, as well as the same, or even higher peripherals. According to the previous cooperation agreement, we can get 40~50% of it!"

""National Treasure" has not been released yet, so let's not talk about it for the time being. But "Harry Potter" and "Pirates of the Caribbean" alone can bring us more than 10 billion in revenue. … Are you willing to give up the $10 billion?"

Steve Case's words made Ted Turner and Richard Parsons, who had originally insisted on opposing it, also have a look of hesitation on their faces.

"Of course we can't bear it, if we give up. The whole of Hollywood will laugh out of their big teeth, and the people from Disney and Paramount will definitely pounce on it without hesitation. Gerald Levine said.

"Yes, we can't be the laughing stock of Hollywood!"

"So, we're going to talk to Bruce Kwok and Matrix, and we're going to keep the co-production rights and distribution rights for Harry Potter and Pirates of the Caribbean. But they should not be allowed to open their mouths. ”

Steve Keys has set the final conclusions for this meeting.

Ted Turner and Richard Parsons glanced at each other and saw a hint of gloom on each other's faces. The current AOL Time Warner is in charge of AOL's management. What they really value is AOL's web business. As for Time Warner, important is important, but when it comes to making trade-offs, it will definitely be the object they will abandon first.

However, while the meeting reluctantly approved the model of a fire sale to save itself, it increased the conflict between AOL and Time Warner management.

"Alas!"

Back in his office, Ted Turner sighed heavily.

"Ted, don't care. After all, we have already fought for it. ”

"I know, but Richard, are we just going to watch the whole Time Warner being dragged into the abyss of bankruptcy by that group of bastards at AOL?" As a descendant of the Turner family, he doesn't want to see the Turner Broadcasting Company, which his father worked so hard to found, and Time Warner die like this.

"I understand your feelings. But now the company is not our decision after all!"

"I know, but I'm just not reconciled. Those guys don't understand traditional media at all, but they just look like they know everything and are on top. ”

"I'm just as unwilling as you are. It's not going to be like this forever, though!" Richard Parsons blinked.

"What do you mean...?"

"The board of directors is a group of mercenary capitalists. If AOL guys can't get the company out of the loss, do you think the board will continue to indulge Gerald and Steve?"

"Of course not!" said Ted Turner without hesitation. He knew too well the character of the vampires on the board.

"So, we'd better keep quiet for now. When the board can't take it anymore, it's time for us to play!"

Ted Turner nodded.

"If that's the case, I'm afraid a lot of Time Warner's assets will have to be sold by them!"

"There is always a sacrifice in everything. Besides, Harry Potter and Pirates of the Caribbean are indeed two gold mines, and we can't afford to give them up!"

"Yes, if we had bought their rights earlier, they wouldn't have been as troublesome as they are now!"

"No one is a god, let alone predicts the future. Instead of regretting it, think about how to take them at the least cost. ”

"I understand!"