Chapter 380: Target Disney
"The MGM brand itself is his value," Chris said, and then shook his head: "But it's really not worth anything, so which one do you fancie, Columbia and Universal must be out of play, Warner doesn't even think about it, the only ones left are Disney, Paramount and Fox, well, Fox is no play, now there are only Disney and Paramount, Disney is on a rapid rise, so, you like Paramount?"
Eric asked rhetorically, "Why not Disney?"
Chris showed a surprised look: "Disney is now in a period of rapid rise, not to mention, Disney's CEO is Michael Eisner, after the incident at the beginning of the year, although you have reconciled on the surface, if you want to buy Disney, Michael Eisner must know what his fate is, and he will do his best to stop you." ”
Remembering that Paramount, who was attached to Viacom in his previous life, was overtaken by the second-tier Lionsgate in terms of performance, and even became a drag on Viacom Group, Eric shook his head: "It's easy to buy Paramount, I think those shareholders will be happy to sell Paramount to me." But Paramount is not a good choice, the company's development ideas do not meet my plan, Disney is different, Disney's business strategy of the whole industry chain is very suitable for me to expand my territory in Hollywood in the future. ”
"If you insist, you may spend more money than the two major Japanese conglomerates," Chris said while thinking about the not too much information about Disney in his memory: "Disney's current market value is about $4 billion, and if you want to buy Disney, you can only use the hostile takeover method, then the premium is at least 50%." It's hard to take Disney without $6 billion. ”
"If you don't do it now, you won't even want to buy Disney in a few years," Eric said.
With the rapid development of the U.S. economy and the rise of Hollywood around the world, the market value of several major Hollywood studios has grown by more than 30% every year, even the dilapidated MGM. More than ten years later, it also sold for a high price of more than $5 billion, and in my memory, Viacom spent $10 billion to acquire Paramount three years later, and the current Paramount can only sell for $6 billion at most, as the parent company of Universal Pictures. While the deal had a Barry Diller sniper factor, it also reflected the skyrocketing market value of the seven major studios as Hollywood expanded.
Although the patience continues. With the development potential of Firefly, it can be compared to any of the Seven in five years at most, but Eric also knows that if things are allowed to develop. Five years later, the seven major film companies have basically completed the integration with the media group.
Of course, in this process, Firefly will definitely be 'recruited' by the media group, but this is not what Eric wants.
What he wants to do is the master, not someone else's vassal, so now that he has the opportunity, Eric certainly wants to take a big movie company as the most important bargaining chip. In the future, through various financing methods, it will develop itself into a media group, rather than being recruited. In the previous life, the only one who developed into a media group with its own strength was Disney, and Time Warner could only be regarded as half.
"If you want to buy Disney, then you have to prepare from now on," Chris thought about. "The first thing we have to do is buy Disney stock," he said. Get a say on the Disney board of directors first. Next, because we don't have to pay everything at once. So the $3.6 billion in cash is enough, and, if needed, it can also be financed, with Firefly's performance in the past two years, I think any investment bank on Wall Street would be happy to participate in this investment, and even many Disney shareholders probably want equity rather than cash......"
Eric listened to Chris's analysis, while holding a pen and writing something on the coffee table, and when Chris finished speaking, Eric had already filled out a check and handed it over, saying, "This is your dividend." ”
Chris took the check and looked at it, then quickly pushed it back and said, "That's too much." ”
"You deserve it, and I wouldn't have made that much profit in this oil crisis without your help," Eric said, reaching out to block Chris's movements.
"I really can't take that much, I know how much it's worth to do what I do," Chris shook his head resolutely, and added, "And Dad knows, and he definitely won't agree." ”
At the mention of Jeffrey, Eric thought for a moment and said, "Otherwise, I'll exchange this money for a stake in Firefly Investment, 3%, the same as your father's share in Firefly Films." ”
Chris thought for a moment, then nodded.
Firefly's main asset now is only 23% of Cisco's shares, and with Cisco's current market capitalization, 3% is not too much, much less than the money given by Eric.
However, Eric knows what kind of behemoth Cisco will develop into in the future, so he doesn't feel that he will give less, not to mention that he can also increase Chris's shareholding in the future, what if he gives too much at one time, he can't afford to give it in the future.
Although Chris is now introverted and calm, no one knows what will happen with the passage of time, Michael Eisner in his previous life was from a wise leader who brought Disney to the top to a stubborn Disney tyrant, and finally lost the hearts of the people and was ousted by the board of directors.
"Since you've just come up with some plans, it's up to you to do this, and from now on, slowly absorb Disney stock," Eric chatted with Chris, remembering the rotten egg that hadn't moved yet, "Cut Throat Island."
It would be nice if "Cut Throat Island" could be thrown to Disney, this summer, Disney has lost hundreds of millions of dollars, and it is estimated that it will be difficult to reverse the loss situation in the second half of the year. If "Cut Throat Island" can be thrown to Disney again, then this project can make Disney lose another 100 million, and the loss for two consecutive years is enough to severely weaken Michael Eisner's prestige at Disney and weaken Michael Eisner's control over the board of directors, then after the acquisition plan is launched, it will be much simpler.
But Michael Eisner is no fool, and it's a tricky thing to do.
Thinking in his heart, Eric quickly remembered the figure of Robert Shay, who had been close to Michael Eisner since the turmoil at the beginning of the year, and might be able to make a fuss about this. (To be continued)