Chapter 506: USA Television Network

Last summer, at the height of Jean Messier's life, he received France's highest honor, the Order of Napoleon's Initiative, at the Bloomberg Center.

On that elegant occasion, Messier was dressed in a neat blue suit, and with a bright smile on his face as he had a successful career, he stepped onto the stage.

When the medal was pinned to the lapel of his suit, he began his speech in the usual tone: "It is with great pleasure that I thank all my friends and loyal companions, and looking at Vivendi Worldwide today, we can rightly say ......"

The past is empty.

On July 3, 2002, Vivendi officially announced that Messier's resignation had been approved by the Board of Directors.

Vivendi, it's time for a change of dynasty.

Michael Ovitz has been bridging Vivendi with Donn, and Done has been able to get first-hand information about it.

Now, Vivendi has to quickly select an experienced and experienced CEO to lead the company out of the predicament.

But how simple is it?

Vivendi now has a debt of more than 34 billion euros. At least 12 billion euros of assets will need to be sold to alleviate the financial pressure of huge liabilities, and at least 20 billion euros of assets will need to be sold to upgrade Moody's credit rating.

To make matters worse, the sale of assets is a lengthy process, and Vivendi is now unable to even pay interest on its debt and desperately needs a short-term loan of 2 billion to 3 billion euros to stay afloat.

This, of course, is good news for Donn.

The more Vivendi is short of money, the more he needs Donn!

At this time, it is estimated that only Donn in the world can come up with a huge amount of cash in a short period of time to help Vivendi, a company with a bankrupt reputation, tide over the difficulties.

There is also a piece of good news, Donne's luxury yacht has finally come to Los Angeles from the German shipyard in a big circle!

This is currently the largest private yacht in the world!

Not counting the bilge, there are 4 floors, as high as a three-story building, the classic and atmospheric style design, there is a very aristocratic and graceful style.

The "NAT" logo, as soon as it appeared, caused a strong shock in Los Angeles.

That night, Don invited Hollywood celebrities, including directors, stars, and company management, to a grand reception on the yacht.

It is a celebration of the successful premiere of "Pirate League: The Curse of the Black Pearl", which received rave reviews. Those who know the inside story actually understand that Donn is celebrating the resignation of Vivendi's CEO Messier.

The NAT yacht has four floors, the top floor is the master bedroom, the promenade and the observation deck, the third floor is the guest rooms, restaurant and bar, and the second floor is now the reception center, with several fields in the next room.

The yacht sailed to the open sea, and everyone can go over and play a few hands.

Of course, most of the participants are celebrities, actors, and some dancers and models hired to liven up the atmosphere.

People with real status will not show off on such a grand occasion.

Michael Eisner walked over with a glass of red wine, "Looks like you're halfway there!"

Don smiled at him and whispered to Jennifer Connelly, the girl next to him, "You can go to the first floor, there's a pool over there, Nicole and Kate, they're over there." ”

Then he raised his glass to Michael Eisner and took a sip, "It's still early!"

Michael Eisner disagreed, "Comcast has been entangled by me, Vivendi is in such a bad condition, and desperately needs a lot of money, Universal Pictures ...... Looks like it's going back to Hollywood. ”

Tang En said lightly: "Of course, Hollywood's industry, only Hollywood can operate better!"

Michael Eisner's face suddenly appeared a little complicated, "I heard that ...... film "Pirate League" is about a group of pirates in the Caribbean?"

Tang En's heart jumped, and he said quietly: "Yes." ”

Michael Eisner said, "You know, Disney's Adventure Park in California happens to have a Pirate of the Caribbean Park, if possible......"

"Wait!"

Don immediately waved his hand and interrupted him, "Michael, don't forget, Disney has amusement parks, and Universal has too!"

Michael Eisner wanted to get the license to update and renovate Disney's Adventure Park to include elements of The Pirate League, which was absolutely impossible.

Amusement parks are an inevitable choice after the development of the film and television industry to a certain scale, and they are a major source of brand value and peripheral income.

Now, the most well-known amusement park in the world is undoubtedly Disneyland.

However, Universal Studios is not a small fame!

After Don became the owner of Universal, his first step was to change the strategic direction of Universal Studios, expand the park, strengthen its influence, and challenge Disneyland.

With elements of "Marvel", "Harpo Little", "Pirates", and later "Transformers" and many Pixar animations, Universal Pictures is sure to shake the status of Disneyland.

Finding a casual reason, Donn said goodbye to Michael Eisner and walked over to Ron Meyer, his voice low, "How's it going?

Ron Meyer shook his head, "Not for the time being, but the intention of Vivendi headquarters to sell entertainment assets has been basically confirmed." ”

"Oh?" Donn was excited, "How?"

Ron Meyer said: "Yesterday, the financial people from the French side came to check the assets. Not only Universal Pictures, but also TV Network, Blizzard Games, Holden Mifflin and other companies. ”

Don pondered for a long time, thoughtfully.

Ron Meyer glanced at him, "What do you think of USA Network?"

Don smiled dumbly, "What do you think?"

USA TV Network is a basic cable television network in the United States, including Chiller Channel, Cloo Channel, E! Channel, USA TV, HD Channel, American Wonderful TV, Esquire TV Network and nearly 20 TV stations, covering more than 60 million households in the United States.

In 2001, the net profit was 530 million US dollars and the market value was 4.7 billion US dollars, ranking 15th in the United States!

In December last year, Vivendi spent $10.3 billion to acquire the USA television network, with a premium of nearly 200%, which shows Messier's madness.

Ron Meyer shook his head and said calmly: "In the past six months, USA TV Network has channels, Universal Pictures has content, and the turnover has increased by 40%, which is a good combination." ”

Don's eyes narrowed into a line.

He is not a novice businessman now, and he knows what Ron Meyer has in mind almost instantly.

Down Pictures' acquisition of Universal Pictures was an almost irreversible transaction.

In this case, Ron Meyer must have to think about the situation of the two companies after the merger.

He was the chairman of Universal Pictures, and Bill McNick was the president of Down Pictures, both of Hollywood's first-class managers.

After the merger, who will be the main person?

Or, even with Bill McNick as the main player, how much power can Ron Meyer gain?

The complementary role of Universal Pictures and the USA television network is Ron Meyer's greatest confidence.

Universal Pictures' rate of return and profit margin are far inferior to those of Down Pictures. But Universal Pictures has a library of 3,600 titles (1,800 exclusive, 1,800 shared) and 100,000 hours of television programming.

If Don Pictures had taken over the USA television network, then Ron Meyer would have had a bigger role.

Don groaned slightly, "But I'm not optimistic about the future of the TV network. ”

Ron Meyer raised an eyebrow, "STA Network?"

Tang En shook his head and said: "That's different, STA is professional and cable, and it provides high-quality content." ”

Ron Meyer was a little confused about Donn's train of thought, but just followed him and said: "But if the STA TV network wants to develop, it must use the huge TV network resources to promote its influence if the operators do not give it a strong force." ”

"Oh?"

"There are so many sports stations in the United States, but why ESPN has become the largest sports television station in the United States in just a dozen years? Now that ESPN has become an indispensable channel for the American people, it can in turn feed back into Disney's television network. ”

Ron Meyer watched Donn groan and continued: "I know that things are not going well for the STA network, the number of subscribers is decreasing, while the number of subscribers of rivals HBO and SHO is increasing. In addition to the high cost of STA subscriptions and the passivity of operators, it is because behind HBO and SHO, there are resources of powerful TV networks to promote!"

Don looked at him with a smirk, "So...... USA Network, is it a must-win?"

Ron Meyer remained unmoved, "USA Television Network and Universal Pictures at Vivendi Entertainment are two companies that work closely together. Once the cut is made, the value of both sides will fall, and Vivendi will not allow this to happen. ”

Don frowned, "You mean...... Will Universal Pictures be sold in a package with the USA Network?"

Ron Meyer said solemnly: "Very likely!"

"I see. ”

Don nodded, the problems of the TV media have always bothered him.

The next decade will be a golden period for the cable TV industry.

But ten years later, with the advent of streaming media, the TV industry will gradually decline and become a sunset industry. And the cable industry is too competitive to face competition from giant companies like Disney, Comcast, Viacom, and News Corp.

Therefore, Tang En was very cautious about getting involved in the TV industry, and only bought a professional cable TV station.

Because only a television station like HBO, which can provide a unique content service, can survive the streaming wave.

But if, as Ron Meyer suggests, Vivendi would insist on selling Universal Pictures and the USA network as a package, then he would have to accept it.

"Forget it, even if it's a sunset industry, the TV network won't fall into a situation of losing money. It's just that the stock price reflects slightly poorly, and the price-earnings ratio is not high. As long as you make more profits and make more money, you don't have to worry about a low price-earnings ratio! Apple has a price-earnings ratio of less than 20, and then isn't it also the world's largest company?"

Don shook his head and threw out his thoughts.

Things work themselves out.

Anyway, he had a foresight and could be one step ahead of others and prepare early.

Even if you buy it at a low price, it is a good deal to sell it at a high price in the next few years.

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