Chapter 158: Yellow Journalism

At night, in the study of the Bel-Air estate.

Arthur was reviewing the information Jim Colter had sent over about various cable networks, including BET, ESPN, USA, TBS, and Sci-Fi Channel.

BET had developed well over the past two years, thanks to the rise of hip-hop music, with the channel frequently airing music videos of black rappers.

As for ESPN, it was definitely the most sought-after cable network shares for Arthur, now valued at no less than $700 million.

MTV had been expanding its international channels well in recent years, and ESPN had started its international channels even earlier. Given MTV's current valuation, ESPN's $700 million valuation seemed reasonable.

"Arthur, what are you doing?" Nicole Kidman, dressed in a sexy silk nightgown, slowly approached the desk.

Seeing the documents on Arthur's desk, she sat directly on his lap. "My agent told me that you've spent several tens of millions of dollars this year on acquiring theater chains, building multiplex cinemas, purchasing buildings, and buying an animation company."

Arthur smiled and patted Nicole Kidman's thigh. "Do you know what's important when running a company?"

"Um, what is it?" Nicole Kidman kissed Arthur's neck.

"It's better to pay bank interest than high taxes," Arthur said, resting his chin on her fragrant shoulder. "Galaxy's profits are too high. If the money isn't spent, the taxes will be significant."

Last year, during the national annual fiscal budget meeting, President George H.W. Bush, who had promised never to raise taxes during his campaign, raised the personal tax rate from Reagan's maximum of 28% to 31% and increased the corporate tax rate from 21% to 24%.

Bush's "New World Order" plan had been very successful with the Gulf War, Eastern European changes, and the dissolution of the Soviet Union, confirming America's status as a superpower.

However, Reagan's economic development had been achieved through low tax rates and increased fiscal deficits. After taking over, Bush, under pressure from Congress's Democratic Party, broke his campaign promise and chose to raise taxes. The U.S. economy had now fallen into a slump.

In next year's presidential election, Bush's biggest problem would be the economy. He didn't like dealing with domestic economic issues, and ordinary Americans wouldn't care much about international relations and superpower status. Without addressing employment issues and stimulating the economy, Bush's re-election would be difficult.

Arthur knew that Bush ultimately failed to get re-elected, losing to a relatively unknown Democrat, Bill Clinton.

"I know, you business people like to use bank loans for acquisitions," Nicole Kidman said, glancing at the files on the desk. "Why are there only TV network documents and no movie companies?"

Arthur pulled down the strap of Nicole Kidman's nightgown and caressed her soft skin. "Because I'm very interested in TV networks now."

After saying that, Arthur kissed Nicole Kidman's lips.

Nicole Kidman embraced Arthur's neck, responding passionately for a while, then said, "Arthur, let's go to bed..."

With the arrival of November, Columbia's To Die For grossed $6.8 million in its first week, receiving mixed reviews.

Nicole Kidman's femme fatale image was notably well-executed.

However, Arthur was waiting for news from Jim Colter. Acquiring shares in BET was a must.

Finally, a week later, in BET's Los Angeles office, Arthur Smith and Robert Johnson signed a contract to acquire 20% of BET's shares for $22.25 million.

At the banquet, Arthur shook hands with the 45-year-old Robert Johnson. "I hope BET's future development will be better and better. I think it's time to expand into Canada and the UK. The time is ripe for BET Canada and BET UK."

Arthur had no particular thoughts about the future first black billionaire in America, knowing BET would eventually be sold to Viacom, earning Robert Johnson over a billion dollars.

Now, with Galaxy owning 20% of the shares, they could also make a few hundred million dollars when the time came.

Robert Johnson smiled, "I will develop international business. Having Hollywood's golden boy support BET, I think we should have a drink!"

Arthur smiled and nodded, raising his wine glass and clinking it with Robert Johnson's before downing it.

BET was just a small step. The real focus for Arthur and Jim Colter was the 20% stake in ESPN held by KKR.

"Arthur, our biggest competitor now is the Hearst Group," Jim Colter reminded him.

"Another publishing giant," Arthur knew about the Hearst Group, founded by William Hearst. William Hearst had competed and won against Joseph Pulitzer.

However, unlike the respected Joseph Pulitzer, William Hearst had a more notorious reputation. The highest award in journalism, the Pulitzer Prize, was a testament to this.

At the end of the 19th century and the beginning of the 20th century, Joseph Pulitzer's New York World had the highest circulation, popular for its serialized cartoon of a child in yellow clothes.

William Hearst, through unscrupulous means, lured the New York World's editorial team to join his New York Journal, which also started serializing the Yellow Kid cartoon.

At that time, news about the Yellow Kid was called "yellow journalism." To surpass Joseph Pulitzer, William Hearst added sex, violence, and sensational elements, even fabricating news during the Spanish-American War.

Unable to stand it, Joseph Pulitzer exited the "yellow journalism" scene, while William Hearst carried on, turning "yellow journalism" into a term associated with sex-related news.

Despite widespread condemnation, William Hearst's Hearst Group became America's publishing giant.

"Looks like I need to visit New York and talk to Hearst," Arthur was not willing to give up ESPN shares, even considering partnering with Hearst to acquire them.

Currently, the Hearst Group was headed by William Hearst III.

"Merrill Lynch and Goldman Sachs are willing to provide Galaxy with a $100 million loan," Jim Colter gave Arthur another piece of good news.

Arthur nodded, "You start negotiations with KKR. Also, see what ABC Television and Hearst Group think about this portion of ESPN shares."

Hearst had some TV stations besides newspapers and magazines, so if they were determined to acquire KKR's 20% ESPN shares, it would be a challenge.

As for ABC, its parent company, Capital Cities/ABC Inc., wasn't doing well and probably wouldn't want to spend too much acquiring the remaining ESPN shares.

*****

https://www.patreon.com/Sayonara816.