HPDBC Chapter 971 1983, Hollywood Target!
Chapter 971 1983, Hollywood Target!
Lin Haoran stayed in Li Guowei's office for about an hour and a half, during which he made phone calls to his parents, Guo Xiaohan, Guan Jiahui, Cui Zilong, Ma Shimin and others in Hong Kong.
Because he knew that due to the time difference, they had already crossed into the new year and officially entered 1983.
Not long after he finished the call, John Reed's secretary came to inform him that John was looking for him.
Presumably, the information they needed has been compiled.
He immediately said something to He Shanheng, turned around and walked out of the office to John Reed's office.
As soon as I entered, I saw a neat stack of documents on the desk. Without a doubt, it was all the detailed information on the eight major Hollywood studios.
When John Reed saw him arrive, he immediately stood up, picked up the stack of documents, walked around the desk, and handed them to Lin Haoran with a smile: "Lin, everything you wanted is here."
Information on eight major film studios, including MGM, Columbia, Universal, Paramount, 20th Century Fox, Warner Bros., Disney, and Orion, is all here.
I haven't looked at the specific details, but the information should be quite complete. You can take your time to filter and study it. If you find anything of interest, let me know, and we at Citibank will assist you. This will make the negotiations much easier.
Lin Haoran took the thick stack of documents, opened the first page, and quickly scanned it.
MGM's financial situation, shareholding structure, operating data for the past three years, list of major shareholders, potential sale intentions...
Each item was clearly labeled, and even included professional opinions from Citi's internal analysts.
He nodded in satisfaction, closed the folder, and smiled, "John, this information is very detailed. Thank you for your hard work."
“It’s a piece of cake, it’s just a matter of giving an order,” John Reed laughed.
Lin Haoran glanced at his watch; it was almost 5 p.m.
So, he decided not to keep it any longer. After putting the documents into his briefcase, he said to John Reed, "I'll head back now if there's nothing else. Happy New Year in advance!"
John Reed smiled and nodded, saying, "Happy New Year, Lin. I'm also going home to spend time with my family after get off work."
Lin Haoran nodded, picked up his briefcase, and walked out of the office.
Passing by Li Guowei's office, he asked He Shanheng inside, "Uncle He, would you like to go back to the hotel together?"
He Shanheng shook his head and smiled, "No rush. It's a rare opportunity to come to Citibank headquarters. I need to learn about the world's top bank management concepts. You should go back first."
Lin Haoran laughed and said, "Uncle He, your dedication to learning is truly admirable. Okay, I'll be going now. Don't stay out too late. It's New Year's Eve tonight, and all sorts of weirdos and monsters are out in New York City. It's probably going to be a bit chaotic!"
"I know, I don't plan to go anywhere tonight either." He Shanheng waved his hand.
Lin Haoran, carrying a briefcase, called over Li Weidong and Li Weiguo, who were in the rest area, and walked out of the Citibank headquarters building.
He wasn't in a hurry to look at the documents; having come all this way to New York, he really should enjoy himself.
Of course, his idea of "having some fun" didn't mean going to Times Square to squeeze in with hundreds of thousands of people to watch the crystal ball drop. Instead, he planned to open a bottle of good wine in his hotel room, quietly watch the fireworks outside the window, and welcome the arrival of 1983.
Back at the hotel, Liu Xiaoli was already in her room.
"You didn't go out today?" Lin Haoran asked in surprise.
"Boss, I went to the Statue of Liberty today and took some photos. Look!" Liu Xiaoli excitedly shared several photos with Lin Haoran.
Lin Haoran took the photo and looked at it.
In the photo, Liu Xiaoli stands at the foot of the Statue of Liberty, wearing a red coat and a white scarf, with a bright smile.
In the distance lies the Manhattan skyline, a forest of skyscrapers that, even in the gloomy weather after the snow, remains magnificent.
"Great photos." Lin Haoran smiled and handed the photos back to Liu Xiaoli. "Looks like you had a lot of fun today."
Liu Xiaoli nodded and smiled, "Yes, Miss Wu is a local and very familiar with New York. She took me to see some of the most popular attractions and told me a lot of stories about the Statue of Liberty."
It turns out that this statue was a gift from France to the United States and is over a hundred years old.
She also took me to see the Charging Bull on Wall Street, saying that touching it would bring good luck.
Ms. Wu was a tour guide that Lin Haoran had Citibank find for him, so that she wouldn't have to follow him around and get bored.
"Well, then you didn't come to New York for nothing. Let's not talk about that anymore. Tonight is the last night of 1982. What do you want to eat?" Lin Haoran asked.
Liu Xiaoli thought for a moment and said, "Boss, why don't we eat in the suite and have the hotel deliver the food? We can have a quiet New Year's Eve without going out to join the commotion."
Although she also wanted to go to Times Square to see the ball drop, she knew that such places were crowded and dangerous, and Lin Haoran was a public figure who was known by many people even in the United States, so going to such places would definitely not be safe.
Lin Haoran nodded and smiled, "Okay, that's what I was thinking too. There are too many people in Times Square, hundreds of thousands of people crammed together. If something happens, there's no way to escape. Besides, it's so cold outside, I don't want to stand in the snow and freeze into an icicle."
"Then I'll ask the hotel to prepare dinner for us, and I'll take a shower and get ready," Liu Xiaoli said.
It was a rare opportunity to spend time alone with her boss on such a special day as New Year's Eve, so Liu Xiaoli naturally knew to seize the chance.
Lin Haoran nodded and let her go.
With Liu Xiaoli's help, Lin Haoran took a hot bath, changed into comfortable pajamas, and sat on the bed to read a book.
When he heard Liu Xiaoli's call, he came out and saw a coffee table already set on the balcony outside the living room. Dinner delivered by the hotel was laid out on it, the candlelight flickered, and the red wine had been decanted.
The television was also moved by Liu Xiaoli to the center of the hall, facing the balcony, which was obviously a special arrangement by Liu Xiaoli.
Outside the window, the bustling heart of Manhattan is clearly visible, with Times Square just over a kilometer away.
Liu Xiaoli changed into a burgundy velvet dress, her hair was styled in an updo, revealing her slender neck, and she wore a pair of small diamond stud earrings, making her look dignified and elegant.
Seeing Lin Haoran come out, she stood up, twirled around, her skirt fluttering gently, and smiled, "Boss, does it look good?"
Lin Haoran looked her up and down, nodded in satisfaction, and smiled, "Beautiful. Tonight's dinner is worthy of such a beautiful lady."
A blush rose on Liu Xiaoli's face as she said, "Boss, please have a seat. I'll pour you some wine."
The two sat on two small stools. Lin Haoran picked up his wine glass, swirled it gently, and then took a sip.
The wine unfolds on the palate with complex aromas of black cherry, cedar and vanilla, with fine tannins and a long finish.
"What year is this bottle of Latour from?" Lin Haoran asked.
Liu Xiaoli said, "Boss, it's from 1961. The hotel said it's the best red wine in their cellar."
Lin Haoran nodded. 1961 was a great year for Bordeaux, and the quality of Latour that year was excellent.
However, to be fair, this year's wine is actually quite good, after all, he had heard a lot about the 82 Lafite in his previous life.
"Boss, cheers." Liu Xiaoli raised her glass, looking at Lin Haoran with tenderness in her eyes.
Although she was a mistress, she was willing to be one, and there was no risk of being caught cheating by the wife, because she knew that Lin Haoran's wife, Guo Xiaohan, tacitly approved of the relationship.
Lin Haoran clinked glasses with her and said with a smile, "Cheers."
The crisp sound of glasses clinking echoed in the quiet room.
The two ate dinner while watching the live broadcast of the New Year's Eve countdown event in Times Square on TV.
On the screen, the host is excitedly introducing tonight's performers, while the camera pans across the dense crowd.
Some people waved glow sticks, some wore exaggerated headdresses with the number "1983" written on them, and every face was filled with anticipation and joy for the New Year.
Speaking of which, this most eye-catching building in Times Square right now will soon become his property.
Citibank is now helping him make negotiations.
Before I knew it, it was midnight.
On the television screen, the host began the final countdown: "Ten, nine, eight, seven..."
"Three, two, one! Happy New Year!"
As the giant crystal ball descended slowly amidst the star-studded crowd, fireworks suddenly burst across the sky, illuminating the entire Manhattan night. Deafening cheers erupted from the television screens, as people embraced, kissed, and celebrated the arrival of the new year.
Lin Haoran turned his head to the side, and Liu Xiaoli had already walked up to him, looking at him expectantly with her face flushed.
"Happy New Year!" Lin Haoran said with a smile, pulling Liu Xiaoli over and making her sit on his lap.
"Happy New Year, boss!"
Their lips were pressed tightly together without them even realizing it.
Fireworks burst open one after another outside the window, illuminating the entire Manhattan night sky.
The cheers on the television were deafening, but on this balcony, everything fell silent, leaving only the breathing and heartbeats of the two people.
It's unclear how much time passed before the two finally parted ways.
Liu Xiaoli's cheeks were as red as ripe apples, her eyes were full of tenderness, and she said softly, "Boss, this is the best New Year I've ever had."
Lin Haoran smiled, reached out and put his arm around her slender waist, his gaze falling on the fireworks outside the window.
1982 has become history, and the curtain is rising on 1983.
And he officially entered the sixth year after transmigrating to this era.
……
Before I knew it, the morning had passed.
Early in the morning, perhaps due to his biological clock, Lin Haoran woke up around seven o'clock as usual.
Liu Xiaoli was still fast asleep beside him, and her naked body aroused him.
Last night, the two of them tossed and turned on this two-meter-wide bed for more than an hour. Liu Xiaoli was exhausted and finally fell into a deep sleep.
Although Lin Haoran was also a little tired, he felt exceptionally refreshed.
He got up quietly without waking her, put on his bathrobe, walked out of the bedroom, went to the balcony, and stood by the window.
Manhattan outside the window was shrouded in a thin layer of morning mist, and the distant skyline was faintly visible.
After a night of heavy snowfall, the city was as clean as if it had been washed.
Looking at the city that was awakening, Lin Haoran felt a sense of calm satisfaction.
On the first morning of 1983, the sun shone brightly and the air was fresh.
After breakfast, Lin Haoran went straight into the study, opened his briefcase, and took out the stack of Hollywood documents.
Last night I was so busy celebrating the New Year that I didn't have time to watch it.
Now that I have the time, I can take my time to study it.
The first document I opened was from MGM.
Citigroup's document is very detailed, including not only financial data, equity structure, and operating conditions, but also a detailed assessment of the value of the MGM film library.
Lin Haoran flipped through the pages one by one, his gaze pausing occasionally in thought.
In 1981, MGM completed its full acquisition of United Media, and in 1982, they officially merged into MGM/United Media Entertainment. Kirk Corrian held an absolute controlling stake of 47% in the company and was the sole decision-maker.
As early as 1979, Kirk Corrian publicly announced that MGM was already a hotel company, and its core profit focus had shifted entirely to the Las Vegas casino hotel business.
This has led to the complete marginalization of the film industry sector, which is now used only as a bargaining chip in capital operations. The annual production volume is only 3 to 4 films, relying solely on a few IPs such as "Rocky III" to support the business. The performance is weak, and there is no long-term holding plan.
Citigroup rated the acquisition of MGM as easy because it only required securing Kirkko Corian to gain absolute control of the entire MGM/United Artists Entertainment company. There were no disputes among dispersed shareholders, no class-action lawsuits, no anti-takeover clauses, and Kirkko Corian himself had no interest in film operations.
MGM's current overall valuation is between $10 billion and $12 billion, which is indeed very attractive as one of the eight most influential giants in Hollywood.
Furthermore, analysts at Citigroup estimate that the long-term value of MGM's film library alone exceeds $15 billion, including classics such as "Gone with the Wind," "The Wizard of Oz," "Tom and Jerry," the "007" series, and numerous others from United Artists such as "Rocky" and "The Pink Panther."
The copyrights to these old movies alone generate tens of millions of dollars in revenue each year through television broadcasts, home videos, and merchandise licensing.
Moreover, these incomes are very stable and almost unaffected by economic cycles.
Lin Haoran put down the documents and began to think.
Therefore, it seems that acquiring MGM would not be difficult for him.
Moreover, he recalled that even if he didn't acquire the company now, it would have changed hands in 1986.
Although its main business, box office revenue, is only tens of millions of dollars a year, ranking sixth among the eight Hollywood giants, it seems average, but it is actually in a state of serious loss.
But Lin Haoran already knew the reason was that Kirk Corrian himself had no interest in the film industry, only making three or four films a year, focusing on the Las Vegas hotel, resulting in low valuation and marginalization of his film assets.
If he acquires MGM, then reorganizes its resources and increases its production efforts, MGM's film division has the potential to return to its peak.
Moreover, MGM's film library is a gold mine in itself. The copyrights to those classic films will only become more valuable over time. Citigroup's estimate of $15 billion is, in Lin Haoran's view, a serious underestimation.
In addition, MGM's hotel business in Las Vegas is also an asset that cannot be ignored.
MGM's current owner, Kirk Corrian, has shifted his core profit focus to the casino hotel business. While this has marginalized the film division, the hotel business itself is very profitable.
According to available information, MGM owns two large casino hotels in Las Vegas, with annual profits exceeding $100 million and very abundant cash flow.
This means that acquiring MGM is not simply buying a loss-making film company, but rather a complex with stable cash flow, a high-quality film library, and prime real estate in Las Vegas.
The film business can be gradually restructured, but the hotel business can provide hundreds of millions of dollars in profit each year to support the company's operations.
The only thing to watch out for is that MGM's debt is currently quite high.
Currently, MGM's total debt is as high as $750 million, of which approximately $700 million is long-term debt and $50 million is short-term debt.
Of the total debt, approximately $4 million is senior bank-guaranteed debt with an annual interest rate as high as 12%.
Another $3.5 million is subprime unsecured debt with an annual interest rate as high as 15%.
In other words, MGM's interest expenses in 1983 reached more than $94 million, indicating that its debt costs remained high.
This debt is indeed substantial, but considering that MGM's hotel business in Las Vegas generates over $1 million in profit annually, coupled with stable licensing revenue from its film library, it still has the ability to repay the debt.
As long as there is no rush to expand after the acquisition and operations are carried out steadily, the debt can be gradually absorbed.
However, Lin Haoran also sighed, "The loan interest rates are really high now, often more than ten percent."
Unlike later times, when bank loan interest rates were generally only a few percentage points, and high-quality customers could even get lower rates.
However, this was also a characteristic of the times. In the early 80s, the United States experienced high inflation, and the Federal Reserve raised interest rates significantly to curb inflation. The benchmark interest rate once exceeded 20%, and corporate loan interest rates naturally rose accordingly.
Interest rates of 12% to 15% seem alarming in retrospect, but in the market environment at the time, they were quite normal.
Moreover, from another perspective, if MGM weren't so heavily indebted, it wouldn't have been his turn to make the acquisition.
Therefore, MGM is definitely worth considering.
However, he was not in a hurry. Instead, he put the document aside and picked up another document to read.
The second document is from Universal Pictures.
Universal Pictures is currently 100% owned by American Music Company and is the core profit-generating asset of American Music Company. It is firmly controlled by legendary mogul Ruwotherman, with highly concentrated shareholding and an extremely tight anti-takeover system.
In 1982, "E.T. the Extra-Terrestrial" created a global box office phenomenon and is still showing in theaters worldwide.
In this situation, Citigroup analysts believe that the American music company has absolutely no intention of selling its core assets and no room for acquisition. Even if they offered double the market price, the other party might not necessarily sell.
In other words, Lin Haoran basically doesn't need to consider Universal Pictures anymore. (End of Chapter)