Chapter 380 Exit Fee
After hesitating for a moment, Lu Vasalman said: "Simon, it is impossible to completely waive the exit fee, and the board of directors will not agree, but we can discuss the specific amount carefully."
Simon didn't plan to waste too much time on this matter and said, "Then let's just $50 million, fixed numbers."
$50 million is a huge sum of money for most ordinary people, but for Simon today, this money is nothing.
The exit fee negotiated by MCA and Panasonic is 2.5% of the final transaction volume of both parties. If calculated based on the recent market value of MCA is close to US$6 billion, once Panasonic gives up the acquisition, it will need to pay a withdrawal fee of US$150 million, which is roughly equivalent to MCA's net profit for half a year.
Vasalman originally considered that the exit fee for Daenerys Entertainment could be set between 1% and 2%, which was already a big concession. When Simon heard that he was only willing to give a fixed fee of 50 million US dollars, he shook his head and said, "Simon, this number is too low."
Simon insisted: "You want me to get involved in this as soon as possible, Lu, that's the price that must be paid."
Vasalman thought about it again and said, "Then, things must be made public in advance."
Simon shook his head: "No, after signing the intent agreement, Daenerys Entertainment will initiate a feasibility investigation into the acquisition of MCA, and will not really start the acquisition immediately."
Vasalman's mouth twitched, feasibility investigation, who would believe that Daenerys Entertainment has not even completed this pre-work yet?
However, everyone understood that this was just an excuse, so Vasalman did not refute it.
The two continued to bargain for a moment, and Simon barely raised the withdrawal fee to US$60 million, roughly equivalent to 1% of MCA's current market value. Daenerys Entertainment will sign an intent agreement with MCA within a week to investigate and evaluate the feasibility of the acquisition of MCA. MCA needs to cooperate to actively provide necessary internal assets and financial data.
At the same time, although this matter needs to be kept confidential from the outside world, MCA can inform Panasonic of the news that Daenerys Entertainment officially participated in the bidding.
He personally sent Simon away, and Vasalman returned to the office just now. MCA President Sid Himberg had already appeared. Seeing Vasalman nodding, Simberg knew that Simon had confirmed his entry and asked: "Lu, have you discussed the company's management with Westeros?"
After experiencing a serious illness three years ago, Lou Vasalman finally expressed his intention to retire, which is why he would agree to sell the company that he had been in control for decades.
However, the more power is, the more difficult it is to let go of it.
Over the years, as her physical condition improved again, Vasalman's idea of retirement gradually faded. Among the acquisition conditions discussed by Panasonic and MCA, continuing to maintain the existing management's control over the company is a very important one.
Compared to Lu Vasalman, who is 77 years old this year, Sidd Himberg, who is only 55 years old, does not want to give up his power.
Lou Vasalman shook his head and sat down slowly behind his desk, saying, "A friend of mine in Washington called me yesterday morning and said that Orwitz was in contact with people trying to stop Daenerys Entertainment's acquisition of MCA. I asked Orwitz personally this morning and he admitted it."
Ronald Reagan was a signed artist under MCA in his early years, so Vasalman actually has good connections in politics.
Sidd Sinberg was a little surprised by the news, for a moment, forgot the problem just now, and subconsciously said: "We can't let Orwitz destroy this acquisition."
"Of course," Vasalman signaled Himberg to sit opposite him, saying, "I have warned him. However, if I choose between Panasonic and Daenerys, I would rather sell MCA to Panasonic. Do you understand why this is?"
Sid Himberg pulled a chair and sat opposite Vasalman. After thinking about it, he nodded quickly: "If the company is acquired by Daenerys Entertainment, Westeros will most likely not continue to let us take charge of the MCA."
"Not very likely, it's definitely not," Vasalman said. "Once Westeros gets the MCA, he will definitely integrate Daenerys and MCA. Many of our company's businesses happen to complement Daenerys. Westeros has built a very good management team in recent years, and it is impossible for him to keep us at that time."
Sidd Himberg quickly clarified Vasalman's ideas.
Vasalman urged Daenerys Entertainment to join the bid, which could force Panasonic to raise its offer.
Then, Orwitz took action at the right moment and squeezed out Daenerys Entertainment, so that he could sell MCA to Panasonic smoothly. Although he had changed shareholders, MCA would continue to be in the hands of his own management.
Seeing that Sid Himberg showed a stern expression on his face, Vasalman added with a little bit of a slight note: "And, Hollywood has always been ours after all, Westeros is just an outsider in any case. I don't believe that the other companies will really give up and stop Daenerys Entertainment from continuing to expand just because of the interests of one or two movies."
The ‘we’ here naturally refers to the Jews.
The seventh Hollywood world, or now it can be counted as Daenerys Entertainment, the new "eighth largest". Regardless of the shareholders behind the scenes, the heads of the studio itself with real power are basically Jews. Lou Vasalman, Sid Himberg, Steve Ross, Barry Diller, Shirley Lansing, Peter Cooper, etc., are all like this.
Even Amy Pascal, the same is true.
Therefore, Hollywood is a Jewish Hollywood, and almost no one will object to this statement.
The Jewish community in Hollywood will surely instinctively resist a non-Jewish man controlling more and more power.
Simon Westeros is a person with unknown origins. Although there was a surname that could show racial blood before Westeros, no one knew whether it was true or false, so no one knew what his racial bloodline was.
In Western countries, which are traditional and conservative, they have always been very interested in this issue among different groups of people.
The unconfirmed rumors that a certain American president will definitely be more or less involved in blood with the British royal family is actually the best proof of this.
Simon Westeros' rise is so fast that it is dazzling, but there may not be anyone who can't react in this MCA acquisition.
Although Westeros did not exclude Jews and other racial tendencies in running Daenerys Entertainment, he was not a Jew after all, or had not publicly promoted his recognition of being Jewish.
Although the Jews in Hollywood may not know Eastern culture, they understand a common truth very well.
If you are not of my race, your heart will be different.
Sidd Himberg didn't think there was anything wrong with Vasalman's words and asked: "Lu, what do you plan to do?"
...
Simon didn't know what Lou Vasalman was thinking, so when he returned to Daenerys Cinema, he instructed Amy and others to officially start contacting the MCA.
Signing the intent agreement as soon as possible will not only determine the exit fee of US$60 million, but also formally request some internal corporate assets and financial data from the MCA that was previously unavailable, so that the acquisition team can make appropriate adjustments to the originally planned acquisition plan.
After the meeting with Amy and others, Simon returned to his office, and the female assistant followed in with a document.
"This is information from New York. They will officially submit the bill by David Meroth to restrict overseas companies from acquiring U.S. assets next week. Also, we have helped contact the New York Times, the Los Angeles Times and the Washington Post, and they will follow up and report the bill."
Simon took the folder from the female assistant, sat behind the desk and looked down.
David Meroth, the U.S. Congressman who Simon met at the Hurst House party last time.
Although he parted with the Hurst family, he didn't think that David Meroth's proposal would be supported by Congress, Simon later reminded James Rebel to contact the other party and asked Schrapp Consulting, a funded by Westeros, to follow up on the matter simultaneously and take the initiative to help David Meroth build momentum.
As long as Panasonic can put some pressure on the acquisition of MCA, it is worth it.
Moreover, after one cooperation, Daenerys Entertainment was able to successfully establish contact with the Congressman named David Meroth. Such connections have always been accumulated little by little between you and me.
Because he had sufficient preparations for the MCA acquisition case, Daenerys Entertainment quietly signed an intent agreement with MCA in just two days on the weekend.
Although the MCA did not secretly reveal the matter to the media this time, Panasonic took back a quotation plan from last week and started negotiations with the MCA again due to the official entry of Daenerys Entertainment.
Due to this change, the MCA acquisition is destined to be delayed until at least the end of October before it can produce results, which is exactly what Simon wants.
To get this done, Simon flew to Melbourne as planned on the new Monday on October 15.
For several days, he spent time in the shooting base of the western suburbs of Melbourne, which was originally an abandoned factory, which was already quite in the form of a cinema. Although he was very satisfied with most of the samples taken by Debonte, because he was not in charge of the helm himself, Simon still discovered many shots that needed to be reshooted. For technical reasons, partly because he was not very satisfied with the lens effect.
However, the re-photographing work did not start immediately, but was scheduled to be three months later, that is, January next year.
At that time, the rough silhouettes and special effects shots of "Batman: The Dark Knight" will basically be completed, and the reshoot details can be confirmed more accurately to save budget.
Due to the great success of the first song, the budget for "Batman: The Dark Knight" is actually not limited as long as it is needed, but Simon has always paid great attention to this issue. With strict and meticulous preliminary planning, even if the reshoots are included in about two weeks, the final budget of the project can be controlled within the planned $80 million.
During the Simons' process in Melbourne, Panasonic once again submitted a offer to the MCA after urgent trade-offs, increasing the overall acquisition price to US$6.5 billion, which is equivalent to the transaction price in Simon's memory.
Perhaps the news that Daenerys Entertainment officially entered the market was inevitably leaked, and this week, MCA's stock price also showed a significant increase again.
According to this trend, it is only a matter of time before the MCA's market value exceeds Simon's planned $7 billion quotation ceiling.
The only thing that is thankful is that compared to Columbia Pictures' huge debt of more than one billion US dollars, the MCA, which has always had a very good operating condition, is almost negligible. Although it is impossible to have no, it is basically operating liabilities such as short-term accounts payable notes, and there are no large bank loans.
The Johnston House mansion outside Melbourne.
It was October 20th, Saturday, and I will return to Los Angeles tomorrow. Simon came here to have dinner with everyone today. Because of some things in North America, Janet did not come to Australia with Simon this time.
They are still a big family, including the Anthony Johnston family, the Norman Johnston family, and the Johnston family who have been officially engaged recently under the urging of the old man, Veronica naturally rushed over.
After dinner, Simon, the old man and the eldest son came to the study together. Patrick felt that since he was a Johnston man, he should have the right to listen. He just didn't finish the joke, but the old man stared at him and turned into a quail.
"Starting the acquisition of two companies at the same time may avoid some excessive market fanaticism, but Simon, have you considered the later financial pressure? I mean, not only the future repayment pressure, but also the funds needed for the two companies to further develop themselves, especially the Bell Atlantic. The investment in the telecom industry has always been very huge. Although it is just a regional telecommunications company, if you want to develop emerging Internet access services and only infrastructure investment, it will probably be calculated at the billion-dollar level?"
In the study, Raymond Johnston was obviously very familiar with Simon's recent movements and asked with obvious disapproval as soon as he opened his mouth.
Simon naturally considered these issues.
With the current accumulation of Westeros system, with the profits of Daenerys Entertainment in the next few years, some of the technology stock assets planned to be sold and the cash flow of the two target companies themselves after the acquisition is completed, it will not be a problem to support debt repayment in the next three to five years.
Further further, after next year's Gulf War, the US economy will recover again. Various other assets held by the Westeros system will increase rapidly in the next few years.
As I remember, in 1995, the market value of Microsoft and Intel will reach about $50 billion.
With Westeros system holdings of 20% and 15% of Microsoft and Intel, by then, the value of this batch of stocks is expected to reach US$17.5 billion. If necessary, Simon can completely relieve his own financial pressure by cashing out some assets.
After roughly telling his plan, the old man frowned even tighter and said, "It's so stupid to pin his hopes on the US economy that will improve. Bush is not a president who cares about the domestic economy. He is still planning to drag the US into another war. You can check what the situation of the US economy during the Vietnam War. If he is successfully re-election next, the US economic situation will only continue to deteriorate and it is impossible to improve."
Chapter completed!