Chapter 167: Bids for ESPN

"From the look on your face, it seems like Billy Bathgate didn't do so well, huh?" Arthur brought Nicole Kidman to the penthouse of the Milky Way Mansion, seeing her all glum.

Nicole Kidman took off her coat and leaned straight on the sofa. "Billy Bathgate only made $4.8 million at its premiere, and its reviews aren't good either. Even To Die For made $6 million at its premiere!"

Arthur chuckled. The production budget for Billy Bathgate was $48 million, while To Die For only cost $12 million to make.

After nearly a month in theaters, To Die For grossed over $18 million, at least maintaining a decent reputation.

In comparison, Billy Bathgate would be hard-pressed to hit the $20 million mark by the time it exits theaters.

"Alright, gangster films just aren't that influential anymore. Look at the global box office for The Godfather: Part III; it was only a few hundred million dollars," Arthur knew long ago that Billy Bathgate would be a big loss.

Initially, when he wasn't selected in the audition, he didn't know if it was a good or bad thing.

"Well," Nicole Kidman leaned into Arthur's chest and kissed his neck. "Jessica said she's coming to New York to see you tomorrow night. Lately, she's mentioned helping you acquire some book rights. Is the Milky Way Corporation planning any big moves?"

"What big moves? The biggest thing for now is the plan to acquire a 20% stake in the ESPN channel," Arthur said, caressing the woman's face.

"So far, next year's biggest project is still Speed, with lots of explosions and thrilling action scenes!"

"I'm really excited, but isn't the director a rookie? Can he handle it?" Nicole Kidman lay down on Arthur's chest, lifting her long legs onto the sofa.

Then she took Arthur's hand and placed it inside her neckline.

"Don't worry. The plot of Speed is very straightforward, focusing mainly on action and explosions. Jan de Bont was an assistant director on Die Hard and The Hunt for Red October," Arthur explained, feeling Nicole Kidman's breast.

"Okay," Nicole Kidman was just casually asking, and then she tilted her head up and actively kissed Arthur...

Meanwhile, at The Plaza Hotel, William Randolph Hearst III was having dinner with George Roberts, Co-Chairman of KKR Capital.

"William, KKR is selling ESPN shares to free up some funds. Many companies are interested in these shares. And what we're looking for now is cash. At 4 PM today, the Galaxy Corporation came back with a new offer: $150 million!"

"$150 million?" William Randolph Hearst III kept his expression neutral, but he was a bit surprised; Hearst Group's highest planned offer was only $100 million!

It seemed that Arthur Smith wasn't kidding when he mentioned possibly bidding $200 million; he truly wanted these shares.

"But the Galaxy Corporation, a newly established film company just two years old, does they really have that much cash?

This year, they've acquired an animation studio, shares of an African American entertainment TV network, part of a chain theater's shares, and the Galaxy Building in New York. They're also building new studios and investing in film projects."

George Roberts chuckled. "The films from the Hollywood golden boy aren't just ordinary movies; they're high-grossing blockbusters. Many banks and funds are willing to provide loans or guarantees for him. The film business won't lack cash flow!"

Moreover, if the Galaxy Corporation wanted to, large sums of cash from Las Vegas would continue to flow in.

Hollywood has never lacked mysterious funds.

"George, if the Hearst Group bids $200 million, I don't think the Galaxy Corporation will go any higher."

William Randolph Hearst III didn't want to lose to an independent Hollywood film company.

George Roberts was internally surprised but outwardly said, "Of course, if the Galaxy Corporation's price isn't higher, the 20% stake in ESPN will belong to the Hearst Group!"

The next morning, Jim Colt visited Arthur at the Milky Way Mansion. "Hearst bid $200 million."

Arthur was silent for a few seconds. "The $100 million from Bertelsmann and Siemens isn't enough; I need more funds. Use the Galaxy's assets as collateral - movie rights, the mansion, cable TV shares, they're all available!"

Jim Colt nodded. "Galaxy's movie assets are very popular. Bertelsmann and Siemens have partnerships with Deutsche Bank, which is eager to integrate with Wall Street. Moreover, Deutsche Bank is very willing to work with Galaxy. Using equity as collateral, they can easily provide another $200 million in loans!"

Then, the acquired ESPN shares would also be Galaxy's assets, similarly available as collateral.

"I was originally planning to visit KKR Capital," Arthur shook his head. "Forget it. Just submit the bid. I don't want to collaborate with Hearst. I want all of KKR's 20% stake in ESPN. Since Hearst bid $200 million, Galaxy will offer $250 million directly!"

"$250 million?" Jim Colt frowned slightly. "KKR's 20% stake in ESPN isn't worth that much."

In Jim Colt's mind, $200 million should be the highest bid; if Hearst bid $200 million, just let them have it.

Arthur smiled. "Don't worry, I'm optimistic about ESPN's future. The sports market is huge."

"Galaxy's Orion subsidiary has at least six or seven movies coming out next year. A $400-$500 million loan is no problem. And beyond films, the company's other assets are appreciating too!"

Take the Galaxy Building, for example. Acquired six months ago and remodeled, Arthur could easily sell it for $30 million now.

The grand opening of Hollywood Galaxy Studios next year would certainly trigger a theater revolution. An 18-screen multiplex would definitely grab attention. Galaxy also owns 45% of Carmike Cinemas. Bringing Carmike into the multiplex market would significantly boost its valuation!

And of course, the biggest source of revenue: Arthur's movies often raked in at least $100-$200 million at the box office.

Annual interest payments of $20-$30 million aren't much. Although Orion's loan of $100 million is due next year, paying it off isn't hard.

Arthur knew Wall Street looked down on Deutsche Bank. Most financial moguls on Wall Street are Jewish.

Deutsche Bank, this European behemoth, grew strong due to Germany's development. In the previous life, Deutsche Bank often bailed out the frequently bankrupt "Wall Street scumbag" Trump, which was a rather helpless situation.

Moreover, Deutsche Bank paid high salaries to attract Wall Street talent!

*****

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