Chapter 557: Braveheart

[Chapter 557: Braveheart]

Eric's assurances held no weight in Rupert Murdoch's eyes. Even with a renewed contract, half of the copyrights for The X-Files and Who Wants to Be a Millionaire remained firmly in the hands of Firefly Films. Once Firefly completed its acquisition of its own television network, there was a real risk that The X-Files and Who Wants to Be a Millionaire could turn into competing programs for Firefly's channels. Who could guarantee that Firefly wouldn't secretly make some moves? Murdoch still vividly remembered the disastrous failure of Cutthroat Island two years prior, and he had heard some internal details from his daughter. This one film not only incurred losses exceeding $100 million but also severely undermined the confidence of Disney's shareholders in the management team. Otherwise, the acquisition of Disney by Firefly back then would have been a much smoother process.

With concerns weighing on him, Murdoch said, "Eric, how about this? What if you sold the other half of The X-Files and Who Wants to Be a Millionaire's copyrights to Fox?"

Eric had anticipated Murdoch's request. Losing Friends was already a significant blow to Fox's television network, and if Firefly withdrew its investment, there would no longer be any direct conflict of interest. Firefly would still hold the rights to the remaining two shows, essentially laying all his vulnerabilities out for the competition to see.

Though both The X-Files and Friends were cultural phenomena of the 1990s, their audiences were vastly different. The X-Files appealed mainly to a younger demographic, primarily those in their twenties, and while it had many die-hard fans, the audience size inevitably had limitations. Friends, on the other hand, was a sitcom that catered to all age groups, placing no restrictions based on viewer age. Consequently, Friends wielded much more influence compared to The X-Files.

With plans underway to reclaim Friends' airing rights, Eric had mentally prepared himself to relinquish The X-Files, realizing that its copyright could be used as a crucial bargaining chip. As for Who Wants to Be a Millionaire, its straightforward format inevitably led to viewer fatigue after several years on the air. Ratings for the program in North America had started to decline. However, due to its success in the U.S., many foreign networks were inquiring about rights to the show, providing a stable income with virtually no costs. Selling half of its copyright to Fox would bring a price far lower than the future earnings of the program. Eric urgently needed money for the network acquisition but was not desperate enough to part with it easily.

"Rupert, as long as the price is right, I could transfer The X-Files' rights to Fox, but I won't budge on the half of Who Wants to Be a Millionaire's rights. You must know why. Of course, if you're worried that Firefly will meddle too much in the production of Who Wants to Be a Millionaire, Firefly could pull out of production and only invest, sharing in the profits. Additionally, Firefly could extend the originally five-year agreement in advance."

Murdoch was more worried about Friends than anything else. Nevertheless, upon hearing Eric insistently present these terms, Murdoch felt a bit surprised that Eric would so easily let go.

Noticing Murdoch's surprised expression, Eric clarified, "Of course, that comes with conditions."

Feeling the atmosphere shift back to normal, Murdoch asked, "What do you want?"

"I need Fox to complete the buyback process for the shares Firefly holds within a month. To ensure News Corporation's cash flow isn't impacted, the buyback funds could be paid in installments over the following six months," Eric said, ignoring the grim look on Murdoch's face. "If we can't reach an agreement within that month, then the terms I just mentioned will be null and void!"

It dawned on Murdoch that Eric was even more anxious than he had imagined. Although Firefly held only 10% of Fox, that share made them the second-largest shareholder behind Murdoch's family. Theoretically, Firefly held considerable power in Fox, a fact Eric had abstained from using.

Rights often came with corresponding obligations.

Under U.S. federal antitrust laws, Firefly's significant influence as a major player in the fourth largest television network in the U.S. prevented them from easily engaging in acquisitions of other national networks. Otherwise, there was a strong possibility that any acquisition attempt would be met with scrutiny by the SEC and FCC, leading to even more complications if outside forces intervened.

Thus, Eric was eager to handle the Fox shares within a month, allowing Firefly to pursue acquisitions of other networks without running into similar legal complications.

Of course, Murdoch wasn't primarily concerned with antitrust issues. The U.S. antitrust regulations contained room for maneuver, often a reflection of the balance of power between various interests. The media industry's antitrust limitations had been loosening in recent years. Murdoch was more focused on limiting the negotiation period to within a month. As it stood, Fox didn't seem to hold an advantageous position, implying that News Corporation would have little leverage regarding the offering for Firefly's shares.

A few years back, Eric had personally acquired that 10% stake for $80 million. Now, Firefly submitted a withdrawal proposal for $800 million. Although this sum wasn't far removed from Fox's current market value, the tenfold difference left Murdoch feeling quite uneasy.

"Eric, if you want to withdraw from Fox within a month, $800 million simply won't cut it," Murdoch said after a moment of contemplation. "I can only offer you $600 million at most, and I would need to extend the payment deadline by at least a year."

Eric chuckled, saying, "Rupert, you know my personality isn't well-suited for negotiating these matters."

Murdoch looked puzzled, and Eric continued, "How about Carson would represent Firefly in the talks with Fox?"

Carson's hard-nosed style was well-known. Eric recalled that in the original timeline, he was the one who negotiated between Disney and Jobs regarding Pixar. The terms they settled on were that Pixar's animated features would not receive any cut of the profits from Disney's merchandising rights, nor from box office profits. Pixar would only secure a flat commission for each of their 3D animated films. Ultimately, Toy Story became a massive hit, but Pixar gained little financial reward, prompting Jobs to hastily take the company public as soon as its performance improved.

Murdoch knew all too well who Carson was. The nickname "raging golden retriever" was hardly a misnomer.

With a wry smile, Murdoch said, "Eric, few years ago when you obtained those shares for $80 million, do you really think an $800 million offer is fair?"

Without a hint of embarrassment, Eric replied, "If it weren't for Firefly producing several successful shows that helped Fox rapidly expand, that 10% stake would still only be worth $80 million. So, if Fox's current market value is what it is, I actually think this offer is quite low. I believe it's very reasonable." At this point, Eric couldn't help but shake his head. "Rupert, I think Fox's production team has been facing issues. For a full four years, not a single show with impact comparable to The X-Files has been developed. You should consider changing the head of that team."

Murdoch chuckled bitterly to himself. It wasn't that simple in the U.S. television industry. Each year, thousands of original dramas were produced, but the survival rate for shows that garnered sufficient impact was alarmingly low. This wasn't just a problem for Fox; the other major networks faced similar challenges. If producing a program with a 20 million viewership was so easy, networks wouldn't have to offer million-dollar paychecks per episode just to retain their star leads.

"Eric, even if I agreed to an $800 million price, I doubt the board would approve it easily. I think you should consider budging a little; otherwise, in a month, it will be tough to reach an agreement."

"I'm sticking with my earlier standpoint," Eric replied stubbornly. Everyone understood that although the Murdoch family didn't have absolute control over News Corporation, few dared to challenge Murdoch's authority over the years. He clearly maintained that control. As he observed the cunning gleam in Murdoch's eyes, Eric suddenly added, "Rupert, you should know that the longer this negotiation drags on, the more it could impact Firefly's image, but not nearly as much as it would affect you. Don't forget, Firefly isn't a publicly traded company, but News Corporation is."

Murdoch was taken aback; he hadn't expected Eric to bring this up, assuming he hadn't thought about that angle at all.

What Eric said rang true. Had it not been for Firefly providing high-rated shows to help Fox break into the scene, Fox would not have experienced such rapid growth in recent years. At the same time, the capital market was acutely aware of Firefly's significant role as the second largest shareholder in Fox, which was a subsidiary of News Corporation.

So, if this withdrawal dragged on too long and was made public, with the media inflating the disagreements, the newly thriving Fox would surely suffer a setback, and the stock price of News Corporation would take a significant hit.

Seeing Murdoch fall silent, Eric pressed on, "That's why we should work to conclude this matter quickly. That way, Firefly's withdrawal from Fox can be executed quietly, inflicting no impact on News Corporation whatsoever. And should this come to light later on, with the conditions I previously mentioned, I'm confident that News Corporation's shareholders won't lose faith in Fox. Besides, Firefly can collaborate on public relations activities in the future."

Murdoch sank into brief silence.

Eric glanced at his watch; it was already 2 PM. He stood up voluntarily and said, "Rupert, there's no need to rush on this. You can take your time to think it over. I have to head back to work; I still have a few things to take care of this afternoon."

Murdoch noted Eric's change in demeanor. While his face remained a bit tense, he stood up alongside Eric. "Then I'll take my leave for now. I'll get back to you as soon as possible."

"I look forward to your good news," Eric politely escorted Murdoch to his luxury car. Once Murdoch's vehicle departed, Eric strolled back to his office in the administrative building with a large file tightly in hand.

...

As soon as he sat down behind his desk, Firefly's temporary secretary entered, placing a document in front of Eric. "Mr. Williams, this is a note from Mr. Fisman. He has already spoken with Mr. Mel Gibson, and there is also a script included."

Eric nodded in acknowledgment. Once the secretary left, he opened the folder, revealing a movie project proposal prominently titled: Braveheart.

This film turned out to be quite successful in the 1990s -- an epic that, while not breaking box office records, still turned a profit and garnered a slew of significant Academy Awards, including Best Picture, Best Director, and Best Actor.

Of course, Eric wasn't solely focused on those accolades. His interest in this film mainly stemmed from his recent encounter with Sophie in France. There was no better way to bring that French rose to Hollywood than through this very movie.

In the 1990s, Mel Gibson's status in Hollywood was not much inferior to that of Harrison Ford and Kevin Costner. Had it not been for a series of self-sabotaging behaviors in the new millennium, based on his accomplishments in box office success and awards, Mel Gibson would certainly have secured his legacy as one of Hollywood's legendary figures.

Eric wasn't too concerned with Gibson's controversies; after all, similar issues haunted many Hollywood stars. Gibson's scandals had simply been exaggerated.

*****

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