Chapter 694: Rich and Capricious (Part II)
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When it comes to PolyGram Records, I'm afraid anyone in the world who has ever dealt with music will be familiar with it. Pen Fun Pavilion wWw. biquge。 info
The London-based record label is one of the world's most famous record giants today – much bigger than Xu Cun's DreamWorks Records, and it's not an exaggeration to say that it's the big brother in the recording industry today.
PolyGram's predecessor, Deutsche Grammophon, was founded at the end of the last century and became a subsidiary of the German industrial giant Siemens after World War II.
In the early seventies, Philips approached Siemens in order to protect against risks, and eventually the two European industrial giants reached an agreement - Deutsche Grammophon merged with Philips' PPI, and then changed its name to 'PolyGram International Limited', and moved its headquarters to London, England, with Siemens and Philips each owning half of the shares.
Backed by two major European industrial giants, Polygram has successively annexed many record labels owned by MGM, such as Shen Yun, Decca, Motown, DefJam, and Ludwin.
Three years ago, due to pressure from the Bertelsmann Group, Siemens finally chose Bertelsmann and sold most of its shares in PolyBond to Philips, making PolyGram the holding company of Philips.
Now is the peak period of PolyGram, even the newly acquired Sony Columbia Records, which is now known as the largest Sony Records in the United States, and the old giant Universal Music have mostly lost to it in the competition for top singers and orchestras, which shows how strong PolyGram is today.
The reason why Polygram is mentioned.
It's not that Xu Cun wants to buy PolyGram - although Xu Cun has money, he will not spend billions of dollars to buy this record company, which overlaps with DreamWorks Records, unless PolyCrystal is willing to divest itself from the European and American markets.
What Xu Cun wanted to acquire was actually PolyGram's UCT, which owns nearly a quarter of the theater chain in the UK - after the 87 stock market crash, the global record market began to decline, and PolyGram's profits not only stopped growing but even declined. In stark contrast, the annual profits contributed by the film industry have gradually risen, and the blockbusters of the United States and Xiangjiang have plundered across Europe, and can plunder billions of dollars from Europe every year. During this period, many European countries, including Britain, France and Germany, began to encourage and support their own films, and PolyGram also established PolyGram International Film Company at this time, and took advantage of the opportunity to create UCT Cinemas, and then planned to invest 420 million pounds in five years to shoot films, and enter the film market in a big way.
Polygram's cross-bank business strategy was regarded by many people as the biggest failure in Polygram's history in the last life. Not to mention that Polygram has no experience in making movies at all, if it can be a little more stable, invest less money to make a few small costs and slowly accumulate experience, relying on Polygram's strong strength and influence, it may not be able to carry the banner of supporting European local films, or simply acquire a relatively mature American film company to enter this industry, that will not create a tragic legend of losing more than 200 million US dollars a year.
Actually,
If it is fair to say that there is nothing wrong with the strategy formulated by Polygram, it is just that it overestimates the competitiveness of European films - the literary atmosphere of European films is too heavy, and the commercial elements are seriously insufficient, while Hollywood films and Hong Kong films are purely commercial blockbusters to please the audience.
Therefore, it is inevitable that Polygram will lose again and again.
Supposedly, in this case, PolyGram's wisest course of action is to sell UCT Cinemas, including PolyGram International Films. Anyway, that's what Xu Cun thinks - that's part of why Xu Cun approached PolyCrystal in the first place.
But what Xu Cun didn't expect was that Polygram's top executives had not yet admitted defeat - not only did they reject Xu Cun's acquisition of UCT Cinemas without even thinking about it, but they also spent tens of millions of dollars to co-produce the historical biopic "Columbus" with film companies in the United States, France, and Spain.
In the last life, this "Columbus Biography" had a total investment of more than 40 million US dollars, but in the end it only achieved a box office of more than 7 million US dollars, which can be said to have caused the main investor Polygram International Film Company to lose to his grandmother's family.
Xu Cun's acquisition team approached PolyGram's senior management several times about the acquisition of UCT Cinemas, but they were all rejected by PolyGram's senior management without any doubt, and "The Biography of Columbus" has been put on their agenda.
Good words are hard to persuade damn ghosts, Tianzun will not save himself - the European Union will be established next year, Xu Cun has no time to wait for Polygram's senior management to toss Polygram International Film Company and scrap it before buying UCT Cinemas.
But then again, in fact, among the three major cinema chains in the UK, only UCT Cinemas is the most suitable for Xu Cun to acquire.
Let's start with Vue.
Vue's family is the notorious Baron Hadlin, Britain's most famous white supremacist and colonialist, who was said to have been criminally detained for threatening the Prime Minister's safety for threatening the Prime Minister's safety for buying out the front page of a major London newspaper warning Iron Maiden to sign the Sino-British Joint Declaration.
Xu Cun estimated that this old thing saw that he, the person who had made the British Empire lose face, shot his own heart, how could he sell Vue to himself?
What's more, Vue is also in contact with Pearson, Europe's largest educational publishing group - choose one of the two, even if it is half cheaper, that old thing will definitely sell Vue to Pearson.
And then there's Odeon, which has been working with DreamWorks in recent years.
Although it has a larger market share of the British cinema chain than UCT, Odeon's financial position in recent years is good, and the board of directors has no intention of selling it, and it is conservatively estimated that it will cost 600 million pounds and nearly 7 billion Hong Kong dollars to forcibly buy it, which is really not cost-effective.
The most troublesome thing is that Xu Cun is already notorious in the UK for forcibly buying Standard Chartered Bank, and if he forcibly buys Odeon again, then he will not want to ease relations with the UK again.
If he doesn't forcibly buy Odeon, and wants to take Odeon, Xu Cun will inevitably have to hemorrhage - if Odeon is a little darker, Xu Cun is afraid that he will not have to pay a billion pounds for it, about 11 billion Hong Kong dollars, which is even less cost-effective.
However,
If Xu Cun has no theater in the UK, Xu Cun will not only have to accept Odeon's exploitation, but also be stuck by Odeon in the release channel - every time DreamWorks has a new film released, he must take the initiative to come up with conditions that satisfy Odeon, otherwise Odeon will not give DreamWorks movies a chance to be released in Europe.
Xu Cun has long had enough of this anger!
In addition, now is a critical period for Xu Cun to enter the European film market.
Therefore, after silently reciting "rich and capricious" twice, Xu Cun sent his acquisition team to London......
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