Chapter 597: Genre Restrictions

[Chapter 597: Genre Restrictions]

Due to concerns about hindering media freedom, the FCC (Federal Communications Commission) imposed limitations on the number of media outlets a single company could own in the same area. In the early days, the FCC even ruled that a television network could not simultaneously own more than one public television station in the same region. However, as time progressed and capital forces pushed for more freedom, these restrictions gradually loosened, leading to the eventual monopoly of major media companies in North America over news channels.

At this time, the FCC's restrictions remained quite strict. The ABC television network covered the entirety of the United States. To receive FCC approval, Firefly Films had no choice but to promise to divest from a public youth television station located in Los Angeles that it had acquired during the Disney purchase.

With those issues resolved, Firefly's merger with ABC quickly received the necessary FCC approvals.

While waiting for FCC approval, Firefly initiated a large-scale debt financing plan. The company had achieved exceptionally high profits over the past two years, but to ensure ample cash flow, Eric Williams planned to withdraw only $2 billion from the company for the acquisition, with the remaining $8 billion raised entirely through bond issuance.

Firefly, along with the future merged ABC network, possessed significant assets, and given the stable operational conditions and profit expectations of both companies, there was no doubt about Firefly's repayment capability. Credit rating agencies like Moody's maintained a high AA rating for Firefly.

As a result, for an entire week, Eric found himself surrounded by executives from Morgan Stanley, Bear Stearns, Merrill Lynch, and investment banks from around the world. After all, with an $8 billion bond issuance at stake, if investment banks secured the deal, the commissions and profit margins earned during the issuance process would likely net them over $100 million in profit -- substantially more than the annual profits of many investment banks in the early '90s, which averaged around $1 billion.

To expedite the fundraising process, Eric followed Chris's suggestion and selected Morgan Stanley and Deutsche Bank as the lead underwriters, taking on $4 billion of the bond issuance each while raising funds from both North America and Europe.

...

After a busy week in New York, Eric found himself inundated with media attention. He had not managed to visit Long Island to see his twins, who were about to turn one, nor could he find time to catch up with Kathryn, who was also in New York.

On March 21, despite the chaos in New York, Eric had no choice but to board a flight back to Los Angeles to attend the 66th Academy Awards.

The private Gulfstream jet he traveled on landed at Santa Monica Airport. Feeling a tap on his shoulder, Eric opened his eyes to see a tall flight attendant in front of him. He nodded gently and stood up.

After a week of restless nights in New York, all Eric wanted was a good night's sleep. He stepped off the plane, pulling along a suitcase. Glancing at his watch, he noticed it was already 5 PM. With the warm sun shining down on him, Eric finally realized the time displayed was Eastern Standard Time; it was still around 2 PM in Los Angeles -- a mere five hours left until the Oscar ceremony began.

As one of the most prestigious film award ceremonies in the U.S. and even the world, stars typically prepared for the Oscars days in advance. Eric thought it was rare for someone in his position to be so unprepared. He had only received the award presenter script from the Academy three days prior but had only skimmed it, as he had been busy discussing bond issuance details with his acquisition team.

Fortunately, he was tasked with presenting the Best Picture award, which meant there wouldn't be extensive restrictions on his comments as the ceremony neared its end. Eric trusted that the Academy wouldn't hold him accountable for it.

Waiting for him at the airport was Kepler. Although Eric's role had long since evolved beyond that of a director, tasks like attending events were still coordinated through ICM.

As they shared a laugh while getting into a van, Kepler joked, "You're probably the only person who could be so nonchalant about the Oscars. Some stars can't sleep for days just knowing they're attending."

Eric lightly gestured at his faint dark circles and replied, "I can't even guarantee I won't fall asleep at the Oscars. By the way, they haven't put me in the front row, have they?"

Kepler assured him, "Who would dare seat you in a less-than-prominent spot?"

"Okay," Eric shrugged. "If I doze off at the Oscars, it might just boost the ratings."

Kepler chuckled for a moment before asking, "By the way, have you kept up with recent Hollywood news?"

Eric shook his head. "No, what happened?"

"Last week, Michael Ovitz sold his shares in CAA. This morning, Panasonic announced he's been appointed president of Universal Pictures. Michael Eisner is about to undergo heart surgery," Kepler paused and added, "Eisner's heart issues are serious; I heard the success rate for the quadruple bypass surgery is only around 75%."

Eric and Kepler didn't have much of a relationship with Michael Eisner, and Eric was already aware of the gravity of Eisner's surgery, so he asked, "Did Panasonic not ask Eisner to step down?"

"Universal's performance has improved over the past two years. Assuming Eisner succeeds with the heart surgery, he should be able to resume his former work status. The Japanese are likely waiting for the outcome, too."

"I think Universal might be in trouble eventually," Eric stated with a smirk. "While Ovitz ran CAA exceptionally well, movie studios are different from agencies. If Eisner doesn't make it through the surgery, it won't be easy for Ovitz to maintain stability at Universal. If Eisner pulls through, things might get even more interesting."

Seeing a hint of schadenfreude in Eric's smile, Kepler asked, "What do you mean?"

"Although Eisner and Ovitz are very close friends, that's only when there's no power struggle involved. Both of them are quite controlling, and if Eisner makes it through, Universal could easily find itself embroiled in an internal power struggle," Eric speculated before suddenly asking, "By the way, did Eisner set up a golden parachute-type agreement for Ovitz?"

In Eric's memory, Ovitz had walked away with over a hundred million dollars in severance after just over a year at Disney, thanks to a lucrative severance agreement Eisner had crafted for him.

"I think that's the case; otherwise, Ovitz wouldn't have so easily given up CAA for Universal. Five years ago, when Sony first acquired Columbia, they approached Ovitz to run the company, but he quickly turned them down."

"Exactly," Eric nodded with a smile. "Let's just sit back and enjoy the show; Universal will be quite the spectacle in the future."

Kepler nodded but appeared a bit troubled.

Noticing Kepler's expression, Eric asked lightheartedly, "You don't want to become a film executive like Ovitz, do you?"

Kepler nodded slightly without denying it.

Eric understood that most executives in talent agencies aspired to climb the ranks at film studios, as it often meant richer salaries and greater authority.

However, even though many agents turned film executives or producers in Hollywood's history, only a few succeeded. In Eric's previous life, the only one who firmly held a prominent position at a major studio was Lew Wasserman at Universal.

Deep down, Eric wouldn't advise Kepler to switch tracks, but he also didn't know how to dissuade him from his aspirations. It seemed the best course of action was to let reality prove him right or wrong.

"Let's talk about tonight's Oscars; I haven't been keeping up. Which categories do you think Pulp Fiction could win?"

"This year, there aren't many big-name directors in competition. I believe Quentin has a good chance for Best Director," Kepler set aside previous thoughts and continued, "But definitely Best Original Screenplay should be a secure win."

Eric remembered that Best Actor that year went to Tom Hanks, but due to Hanks filming Saving Private Ryan ahead of time, the lead actor of Philadelphia was replaced, and Eric hadn't seen Philadelphia nominated for Best Actor at the Golden Globes.

Thinking of another possibility, Eric shook his head. "John Travolta probably has no chance for Best Actor, right?"

Kepler nodded. "Daniel Day-Lewis lost to Al Pacino for Best Actor a few years back for My Left Foot. This year, he received a second nomination, significantly increasing his chances over Travolta."

While Pulp Fiction had amazed both critics and fans alike, Eric ultimately realized that due to genre restrictions, the film's chances of winning major awards like Best Picture were still quite low, a fact that would be proven true in the aftermath.

*****

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