Chapter 459: Merger of MGM Pictures
Ding-a-ling~
While he was busy, the phone on the desk rang. It was Greg Davis who called and said that Kirk Kerkorian accepted the conditions he had proposed before and was willing to sell MGM Pictures to Guess What Pictures for 4.2 billion.
"Link, how is it?"
Greg asked.
"Not bad, we can start acquisition negotiations."
Link put down the phone, patted the woman's big butt to wake her up, and then asked Aishwarya to notify the board of directors and company executives to hold a meeting to discuss the acquisition of MGM Pictures.
Since Guess What Pictures has performed very well in recent years, the company's shareholders have great confidence in his abilities. After he proposed to acquire MGM Pictures, the proposal was passed unanimously at the board meeting.
At the company's high-level meeting, Michael Leeson, Jon Gordon, Joe Fillemer and others became extremely excited when they heard that the company had officially acquired MGM.
Founded in 1924, MGM Studios is one of the veterans of the Hollywood film industry and a symbol of the industry. It has released hundreds of classic film and television works, including "The Wizard of Oz", "Gone with the Wind", "Tom and Jerry", "Singin' in the Rain", "One Flew Over the Cuckoo's Nest", "The Graduate", "Rocky", "007 Series" and other famous IPs.
MGM is also an industrial group whose subsidiaries include MGM Entertainment, MGM-United Artists Entertainment, MGM Pictures, Modern Times Films, Digo International Cinemas, Comcast TV Channel, and the operating rights of eight star-rated hotels and resorts including MGM Hotels, MGM Grand, and Mandalay Bay.
If the MGM Group and its affiliated industries can be successfully acquired, it will undoubtedly be a qualitative leap for Guess Pictures, transforming it from a single film and television entertainment company into a large entity group company involved in multiple fields such as film, television, theaters, animation, real estate, catering services, travel and vacation.
The total market value will exceed 10 billion US dollars.
But guess what, it won’t be easy for the movie studio to swallow up the behemoth that is MGM.
First of all, the group's operating condition was very poor. Around 1970, Kirk Kerkorian acquired MGM and America West Airlines with debt.
In order to pay off his debts, Kerkorian treated MGM as a leech, constantly drawing blood from it to pay off his debts, or mortgaging MGM shares for other investments.
This also led to MGM's performance getting worse and worse. Despite the release of hit films such as "One Flew Over the Cuckoo's Nest", "The Graduate", "Rocky" and "The 007 Series" around the 1980s, it failed to reverse the situation.
Since the 1990s, MGM Studios has been struggling to survive, and its box office revenue has been even worse, squeezed by rising stars such as Guess What?, Miramax, and New Line Cinema.
It used to be ranked last among the seven major film studios, but now it sometimes ranks ninth or tenth, or even outside the top ten.
MGM's debt gradually accumulated from tens of millions to a huge amount of 3.8 billion US dollars.
Even if the annual turnover of MGM Group's subsidiaries reaches hundreds of millions of dollars, it cannot repay the bank's interest.
Faced with such a huge burden, it is expected that it will be difficult for the film industry to move forward. If it is not handled properly, it will be dragged down by this huge debt.
Therefore, Guess What Pictures must make good plans when acquiring MGM to avoid the acquisition affecting the company's development.
"Boss, MGM Hotels and Resorts is not our company's main business. I suggest selling this part of the industry after the acquisition to obtain funds and ease the company's debt pressure."
At the meeting, Joe Fillem, chief operating officer of Guess Pictures, proposed.
"Can we follow Disney's example and build MGM theme parks in hotels and resorts? Our company has many movie projects that are suitable for building theme parks, and there may be more in the future."
Link inquired.
“It’s very difficult. First of all, it takes a lot of money to invest in building a movie theme park. After we acquire MGM, the company’s funds will become tight, and we will not be able to make investments other than movies in the short term.
Secondly, the eight hotels and resorts under MGM Group are mainly concentrated in Las Vegas, and their main businesses are catering and gambling. If they want to build a theme park, they don’t need eight. Another point is that Disney and Universal Pictures are doing better in building movie theme parks, and we have no competitive advantage.”
Joe Fellermey said.
Link nodded, acknowledging Felmer's opinion, but not completely agreeing with him.
From the current perspective, Guess What Pictures does not have much advantage in this regard. One is the lack of money and people, and the other is the lack of suitable projects for development.
But in the long run, this is not necessarily the case. After acquiring MGM Studios, he is confident that he can help MGM pay off its debts within five years and turn it into a profitable company.
Once the company becomes profitable, it will no longer lack funds to invest in other projects.
Secondly, currently Guess What Pictures and MGM Pictures lack film projects to build theme parks, but this may not be the case in the future.
In the next few years, Guess Pictures will shoot a number of fantasy and science fiction films, including the "Pirates of the Caribbean" series, the "Lord of the Rings" series, the "Fast and Furious" series, and the "Harry Potter" copyright is also in the company's hands. The "Final Destination" series, the "Scream" series, and the "Interstellar" series are also suitable for being built into a horror-science fiction theme park.
In addition, Pixar Animation Studios continues to produce animated films, including the "Toy Story" series and the already completed "A Bug's Life".
From these points of view, the company has the ability and conditions to build a theme park in the future.
But what Joe Fillem said is also true. Several hotels and resorts under the MGM Group are in Las Vegas, and they are not suitable for transformation into theme parks or theme hotels.
After acquiring MGM, the company can dispose of this part of the industry and buy land around the world to build theme parks or hotels when it has money.
"Boss, I also have a suggestion. After acquiring MGM Pictures, we can merge the company's commercial film production departments and let MGM Pictures serve as the distributor. We can also merge the independent film departments and let Guess What Pictures distribute them. This will also make management easier."
Daniel DeVito suggested.
Daniel's proposal was supported by most people present.
The main reason is that the name of Guess What Pictures is too casual and somewhat informal compared to the Big Seven Pictures. Since 1994, some people have proposed to change the company's name to a more impressive one, such as Pacific Pictures, New World Pictures, etc.
But Link disagreed.
Now that we have acquired MGM and own the old brand, it is appropriate to change the name.
Link thought about it and didn't refuse. The name of the company was not important to him. As long as he could make movies and make more money through the film company, he didn't need to care about anything else.
In addition, MGM is an old brand with global influence. Using MGM to distribute commercial films may have better results, while Guess Pictures continuing to produce and distribute independent films can also maintain Guess Pictures' reputation and influence in the independent film industry.
"There is no rush for these things. We will gradually implement them after the acquisition is successful. The main task now is to successfully acquire MGM."
"Yes, boss!"
More than a dozen senior executives, including Michael Leeson, echoed the sentiment.
Since acquiring MGM was a long-term task and Link had to make new movies and had no time to take charge of the specific work, he handed the task of acquiring MGM over to Joe Fillem, James Shams, Liu Xiaoli and others.
"Boss, I'm in charge of the public relations department. The acquisition of MGM has nothing to do with our department. Why do you want me to join the acquisition team?"
After the meeting, Liu Xiaoli followed him to the office.
"The acquisition of MGM involves many things, such as public opinion. After the acquisition is exposed, this matter will attract attention and discussion from all sides. Maybe someone will interfere and use the media to attack Guess What? Pictures. At this time, your public relations department will be needed to coordinate. In addition, you are my wife. With you in charge of the acquisition team, everyone will be more active and complete the work with a more responsible attitude. The last point."
Link held the beauty in his arms, caressing her soft curves and said, "You have worked in the public relations department for more than four years and have done an excellent job. After the acquisition of MGM, I need you to take on more work. By joining the acquisition team now, you can also take the opportunity to learn more about MGM, which will be more convenient when you take over new work in the future."
"Well, after all, you just don't want to see me idle, so you want to assign me more work? Are you treating me like a beast of burden?"
Liu Xiaoli pursed her lips in pretending to be angry, and her slender index finger was about to poke his face.
"Of course not. I just think that you are very talented, Xiaoli. It's unfair for you to just do PR work. I want to give you a bigger platform to give full play to your talents and let the world know that you are a gentle, beautiful and very capable woman. Then more people will admire and respect you. Isn't that good?"
"No! You just want me to be your slave, you are so mean."
Liu Xiaoli punched his chest muscles and her cheeks turned red like jade.
Link held her soft fingers, "Well, if you don't like being a slave, we can find someone else."
"No! I want to go myself. I don't trust others." Liu Xiaoli said with a cold face.
Link smiled gently and whispered a few words in her ear. The woman's cheeks and ears turned red. She twisted her waist and asked him to let go so that she could go back to the office to work.
But at Link's request, she left half an hour later with a happy face.
(End of this chapter)
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