Conquer America, Start with a Boxing Champion

"This damn Link, I'm going to kill him."

In the Weinstein Films conference room, Harvey picked up the documents on the table and smashed them against the wall. Dozens of white papers in the folder floated up with a rustling sound, and then scattered on the ground, everywhere.

Bob Weinstein, Jon Gordon, head of the publicity department, Mickey Rourke, head of the production department, and others looked at the angry Harvey helplessly.

Originally, they were discussing cooperation with the senior executives of Summit Entertainment, planning to acquire Summit Entertainment for about 420 million US dollars with 280 million US dollars + 45% of Weinstein Films shares.

After the merger of the companies, the senior executives of the two companies jointly presided over the work of the new company. Summit was mainly responsible for commercial films, and Weinstein was responsible for art films.

The strong combination created a new situation in the film industry.

After more than three months of negotiations, when it was almost successful, Summit Entertainment suddenly announced the suspension of negotiations and postponed the signing time.

At first, they didn't understand the situation, thinking that Summit Entertainment was not satisfied with the price and was going to ask for more money in this way.

They sent people to investigate the matter and see how much money Summit Entertainment wanted to add.

As a result, they found that it was not Summit Entertainment that wanted to add money, but Lionsgate sent people to contact Summit Entertainment again to restart the acquisition plan.

Compared with Weinstein Films, Lionsgate Films has great advantages in market value, operating conditions, capital chain, and management.

Currently, Lionsgate Films has a market value of 1.6 billion US dollars and 300 million debts. Because of the good box office of the movie, Wall Street's valuation of Lionsgate is getting higher and higher. Many capitals want to buy Lionsgate at a premium, but they have no chance.

The market value of Weinstein Films is only 300 million US dollars and 160 million debts. Because of the sluggish box office this year, Lionsgate Films has faced severe challenges in the Oscar Awards, and Moodys' valuation of Weinstein Films has also been getting lower and lower.

In terms of film business, Lionsgate has hit series of movies such as "The Hunger Games", "The Expendables", "Saw", and "The Madman", with high brand value, which also shows that Lionsgate has great development potential, while Weinstein Films does not have such movies.

Lionsgate also has shares in Netflix, TV production departments and TV Guide shares, as well as a large library of films, which are all valuable assets.

In any case, it is more valuable than Weinstein Films, which was established less than 5 years ago.

In addition, in terms of management, Eva Ka showed excellent management skills during her tenure as chairman of Link Music and Lionsgate Films.

There are also Jon Fehlem, Steven Bewkes, Michael Burns, Brian Goldsmith, Jamie Jones, Stacey Schneider and others, who are also elites in the film industry and have strong working abilities.

Weinstein Films mainly relies on the Weinstein brothers to manage the company. The two are very strong at work, especially Harvey, who has a bad temper, is not easy to cooperate with, and is difficult to get along with. It is no secret in the industry.

Comparing the two sides, Lionsgate is more suitable for cooperation than Weinstein Films in any aspect.

Summit Entertainment probably thought the same, so when it saw Lionsgate sending people to propose marriage, no, to discuss cooperation, it immediately suspended negotiations with Weinstein Films and actively contacted the acquisition team led by Michael Burns, Chief Strategy Officer of Lionsgate Films.

Summit's actions are in line with the rules of commercial negotiations, but they are very unfriendly to Weinstein Films.

The two companies had a good talk before, the atmosphere was very harmonious, and they looked like they were going to become a family. For this reason, Harvey put on a smile every day to face the people from Summit Entertainment.

Originally thought that he could become one with Summit Entertainment and unite to deal with Lionsgate.

But when the two companies were about to complete the "marriage", the "tall, rich and handsome" Lionsgate suddenly came to flirt with Summit. When Summit saw the "tall, rich and handsome" Lionsgate coming to propose marriage, it immediately forgot about the ugly Weinstein Films and turned to flirt with Lionsgate, looking like it couldn't wait to devote itself to Lionsgate.

This was tantamount to a slap in the face of Weinstein Films, and also made Harvey, the boss of Weinstein Films, lose face.

After hearing the news, the hot-tempered Harvey naturally couldn't help but get angry. He flew into a rage in the conference room in public and threatened to kill Link.

"Harvey, don't be angry. This has already happened. All we can do now is wait and see how Lionsgate and Summit talk. If the two companies don't reach an agreement, we still have a chance."

Bob stepped forward to persuade.

Other senior executives in the company knew that Harvey had a bad temper and sometimes even hit Bob when he got angry, so every time when Harvey got angry, everyone stayed away to avoid being affected.

And hearing Bob's persuasion, Harvey became even more annoyed.

What do you mean we can only wait now? What do you mean the two companies failed to reach an agreement, and Weinstein Pictures still has a chance?

They are all film companies, why can Lionsgate negotiate with Summit Entertainment first, and Weinstein Pictures is waiting in line like a taker?

It's too insulting.

Harvey has never suffered such a naked insult in his life, except for the time when he was scolded by Link.

Especially as the king of Hollywood, being insulted like this, the harm is doubled.

Harvey's face was sullen, and his pitted face became more ferocious. He glared at Bob and said, "Go tell Robert Friedman that Lionsgate doesn't really want to cooperate with Summit Entertainment. The reason why Link did this is If you want to destroy the cooperation between our two companies, you must not be fooled. Tell Robert that if he is willing to give up negotiations with Lions Gate, we can increase the price by .4%.”

Robert Friedman is the founder, chairman and majority shareholder of Summit Entertainment.

"Harvey, we don't need to remind Summit Entertainment about this matter. They also know that there is a 4% increase in price. We don't have that money."

Bob said politely.

In fact, he did not approve of the acquisition of Summit Entertainment from the beginning.

The Weinstein Pictures has only been established for less than five years, with a market capitalization of just over 300 million and a foreign debt of 160 million. Now to acquire Summit Entertainment, which has more than 400 million, will undoubtedly make the financial situation of the Weinstein Pictures even worse. will bear a heavy burden of foreign debt.

Once there is a financial crisis, or the movie box office suffers losses, and the capital chain is broken, the Weinstein Films will face the risk of bankruptcy.

Harvey knew this too.

But Harvey saw that Lionsgate Pictures was getting stronger and stronger, and it had far surpassed Weinstein Pictures in terms of market value and box office. Link's power in Hollywood was also growing. In last year's "Hollywood Power Ranking" On the list, Link's name is not yet visible.

This year, Link and his wife joined forces to join the list, ranking third and fourth on the powerful list.

If Harvey wants to take revenge on Link, suppress Lionsgate Pictures, and stabilize his status as the 'King of Hollywood,' he cannot rely on Weinstein Films alone.

So after hearing that the negotiations between Relativity Pictures and Summit Entertainment had broken down, Harvey tried his best to persuade the Weinstein Films board of directors to raise funds and prepare to acquire Lionsgate Pictures to accelerate the development of Weinstein Pictures.

The major shareholders on the board of directors have little interest in increasing investment. Only shareholders such as Ivy Niwo are willing to raise US$120 million.

In order for the company to complete the merger and acquisition, it needs to borrow a large amount of money.

This is too much pressure and too risky for Weinstein Pictures, which already has 160 million in debt.

Not a good idea.

Bob tried to persuade Harvey many times, but Harvey couldn't listen and insisted on going his own way.

Bob is almost dying of grief these days.

Suddenly I heard that Summit was abandoning Weinstein Pictures and preparing to cooperate with Lionsgate.

Bob didn't feel insulted at all. Instead, he was very relaxed and looked forward to the cooperation between Lionsgate and Summit so that the company would not have to bear huge debts.

What he has to do now is to persuade Harvey to put this matter aside and work on movies without worrying too much about the fame and power.

Rather than being given frivolous titles such as 'Golden Producer' or 'King of Hollywood', he would rather be a billionaire, worth billions, and be on the "Forbes Rich List", just like Link.

"We have no money to borrow. We have the support of Warner Pictures. As long as Summit Entertainment is willing to cooperate, we will definitely catch up with Lions Gate within three years."

Harvey shouted confidently.

"Warner Pictures?"

Bob shook his head. Although Warner Pictures promised to invest 300 million US dollars to jointly produce 5-6 movies with Weinstein Pictures, this cooperation method is dominated by Warner Pictures. Even if the movie makes money, it is Warner Pictures. To make money, Weinstein Pictures can only earn a little production funding.

Although the risk is lower, the profit is also less. It is better to make more niche art films such as "The King's Speech", "The Iron Lady" and "The Artist" every year to make more money.

In addition, even with the financial support of Warner Pictures, it is impossible for Weinstein Pictures to catch up with Lionsgate Pictures within three years.

Bob felt that Harvey must have been so angry that he lost his mind and said such a thing.

"Harvey, the company already has 160 million in foreign debt. If we borrow another 200 million, the interest that the company has to repay every year will be a heavy burden. Once the company's movies suffer box office losses, or the funds are withdrawn slowly, and the capital chain is broken, The company will be in danger of bankruptcy, so I hope you will think about it again.”

Bob said.

"Shut up!"

Harvey picked up a folder and threw it on Bob's body. He slapped the table and shouted: "I don't want to hear this. Hurry up and contact Robert Bradman. I must successfully acquire Summit Entertainment before Lionsgate." "

Bob's eye muscles twitched, he sighed, and left the conference room with his assistant.

When the other people saw Bob leaving, they also left the room with solemn expressions.

Harvey stood alone in the empty conference room, his face becoming even more ugly. Just three minutes ago, he was fantasizing about how to arrange the work of the new company after successfully acquiring Summit Entertainment, how to increase the production volume, and strive to achieve success next year. Catch up with Lionsgate, slap Link in the face, and complete your revenge.

Everything was well thought out, but unfortunately after the people from Summit Entertainment left, the previous fantasy burst like a bubble and turned into a cold and cruel fact - the gap between Weinstein Pictures and Lionsgate Pictures is getting wider and wider. , he will inevitably be stepped on by Link, no matter what he does, it will be in vain.

"Fuck! Fuck! Damn Link Baker, I will never give up, never!"

Harvey roared loudly facing the empty conference room.

——

"Summit Entertainment's offer of US$430 million? Including unreleased movies such as "The Twilight Saga: Breaking Dawn" and "The Informer"?"

Lionsgate, Link asked as he flipped through the documents.

"Yes, but in terms of funding, they hope to get no less than 20% of Lions Gate Pictures shares."

Executive President Steven Biggs, Chief Strategy Officer Michael Burns, and Chief Operating Officer Brian Goldsmith were all standing in front of the desk waiting for his instructions.

Link stroked his chin and pondered.

Unlike Lionsgate, which has both film and television production departments, TV channel shares, and strong production and distribution channels, Summit Entertainment's assets are relatively simple, with four main assets.

The first part is the copyright of more than 900 film libraries, worth about 35 million US dollars.

The second part is Summit Studios, and Summit Distribution Company is about 60 million US dollars.

The third part is the script library with 12 scripts and novel adaptation rights, worth 15 million US dollars, including "Divergent", "Ender's Game", "The Last Witch Hunter", etc.

The fourth part is also the most important asset, which is several unreleased movies, including "Twilight 4" and "The Informer", four unreleased and in-production movies, worth about 300 million US dollars, of which "Twilight 4" is as high as 200 million US dollars.

Summit Entertainment offered 430 million, requiring payment in two ways: Lionsgate shares and cash.

The current market value of Lionsgate is 1 flix share.

20% of Lionsgate shares are worth about 380 million, plus 50 million in cash.

Link thought for a moment and told Michael Burns, who led the negotiation, that he accepted Summit Entertainment's offer of 430 million, but only agreed to give 10% of Lionsgate shares, which is 160 million, and the remaining 270 million can be paid in cash.

If Summit Entertainment wants to get more Lionsgate shares, it needs to buy them at a price of 2 billion, which is also his offer to Wall Street, and he treats Summit equally.

"Okay, boss, I'll go negotiate with Summit Entertainment right away."

Michael Burns nodded.

Link discussed the loan with several executives. Lionsgate currently has 320 million in debt, part of which is the debt that was not paid off last year, and part of which is the loan for production costs this year.

With the box office and peripheral income of movies such as "The Hunger Games" and "Buried" gradually coming back, the company now has a surplus of nearly 300 million US dollars in its account.

But this part of the funds needs to be reserved for filming next year, and cannot be used to repay debts.

If the negotiation with Summit is successful, the 200 to 300 million US dollars to acquire Summit Entertainment will need to be borrowed from banks.

Lionsgate is currently developing well, with many valuable assets and a high credit rating with banks, so it is no problem to borrow another 600 to 700 million.

There is no problem with funds.

There is also the issue of work after the merger of the two companies, which can be discussed after the negotiation is successful. After all, more than one company wants to acquire Summit now.

"It's settled, let's continue to negotiate with Summit."

"Yes, boss!"

The executives withdrew.