Chapter 162: Paramount Communications

Arthur's Bel Air estate was nestled in the hills of Bel Air, overlooking the Bel Air Country Club below. Further down was UCLA's Westwood campus and the sprawling 40-acre Los Angeles Country Club.

In the morning, in the bedroom of the Bel Air estate, Arthur was playfully teasing Sophie Marceau, who lay beneath him.

"Arthur, look at these red marks. If they don't fade, I won't be able to wear low-cut tops," Sophie said helplessly, looking at the kiss marks dotting her fair chest. She reached out and scratched Arthur's back.

Arthur laughed. "They'll fade," he said, continuing to kiss her chest.

Sophie held Arthur's head, licking her lips, savoring his attention.

Suddenly, the phone on the bedside table rang. Sophie tapped Arthur. "Arthur!"

Arthur rolled off, leaned against the headboard, and picked up the phone. "Hello, this is Arthur Smith."

"Arthur, it's Amy. I'm at the Galaxy Tower office in Manhattan," said Amy Pascal. Arthur had renamed the former Puck Building to Galaxy Tower after buying it, and his penthouse there was nearly finished with renovations.

"Ah, Amy, it's the weekend. What's up?" Arthur said as he pulled Sophie into his arms.

Sophie took the opportunity to kiss and tease Arthur.

"Do you know Sumner Redstone, the chairman and CEO of Viacom?" Amy asked.

"Sumner Redstone? Of course, I know him. Four years ago, he took National Amusements, a chain of theaters, and used it to leverage a buyout of Viacom for $3.4 billion. He became a big name in the media world, appearing on the cover of Entertainment Weekly with Rupert Murdoch of News Corp and Steve Ross of Warner Communications."

Sumner Redstone, at 68 years old, was indeed a major figure in media and entertainment. Viacom had originally been a television distribution company spun off from CBS. It grew into a well-known TV media group.

In 1985, Warner Communications (before merging with Time Inc. to become Time Warner) sold MTV, Nickelodeon, VH1, and other cable channels to Viacom due to heavy losses in the video game sector. Viacom already owned channels like Lifetime and Showtime.

The acquisition turned Sumner Redstone from the head of a local family business in Boston into a media tycoon.

"Redstone values content highly because of the licensing fees cable networks pay for Viacom's TV content," Amy explained.

"Yeah, with the rapid growth of cable TV, Viacom's market value has increased significantly," Arthur replied. "I remember his famous slogan from last year. It's one I really agree with."

What slogan? The famous "Content is king," of course.

"Right, so Sumner Redstone has been eyeing major Hollywood studios to cement his status as a media mogul like Rupert Murdoch and Steve Ross."

"That's no secret," Arthur said, then paused as Sophie slid under the covers. He exhaled and continued, trying to remain composed. "Columbia TriStar was bought by Sony; MCA Universal by Panasonic; MGM/UA by an Italian-French consortium. 20th Century Fox belongs to News Corp, and Warner Communications merged with Time Inc. to form Time Warner. Disney has never been for sale. That leaves Paramount."

Last year, Paramount's parent company, Gulf and Western, renamed itself Paramount Communications. Paramount Communications had significant assets, including Paramount Pictures, Simon & Schuster publishing, a 50% stake in USA Network (the other half owned by MCA Universal), and Madison Square Garden Group, which owned the New York Knicks, the New York Rangers, and Madison Square Garden.

Arthur knew Sumner Redstone was eyeing Paramount Communications, planning another leverage buyout to acquire a larger entity.

Amy Pascal was silent for a moment on the phone. "Arthur, I got a message from a Viacom executive this morning."

Arthur was surprised. "They're not interested in Galaxy, are they?"

"Exactly. While Viacom's main target is a major studio, Galaxy's performance this year has caught their eye."

Arthur chuckled. "Interesting. Turner Broadcasting and TCI have also shown interest in Galaxy. Now Viacom too. Unfortunately for them, I have no intention of selling Galaxy. But I am very interested in their cable networks."

The '90s were a golden era for both Hollywood films and cable TV. Viacom's MTV had a successful global strategy.

The Soviet Union was about to collapse, making the U.S. the sole superpower, free to push its globalization strategy with cultural exports at the forefront.

"Alright then. Galaxy is still small. These big fish won't waste much time on us. Viacom's focus is still Paramount," Amy said, unconcerned. "As long as Galaxy has financial backing, it'll be fine."

"Right. We'll handle things our way, no matter the storm outside," Arthur said, then hung up, deep in thought.

Soon after, Sophie emerged from under the covers, wiping her mouth. "What are you thinking about? Not satisfied?"

"No," Arthur replied, brushing Sophie's hair. "It was fantastic."

*****

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