Chapter 650: Why Did You Betray Me

[Chapter 650: Why Did You Betray Me]

When Elisabeth pressed further for answers, Eric shook his head and said, "Let's not talk about that right now. It's a complicated situation. But Marvel is a big deal. Firefly certainly can't handle it all on their own, and in the end, everyone will get a share."

Initially, Elisabeth had intended to drop the subject after listening to Eric's ramblings. However, upon hearing him say that even Firefly couldn't manage it, her curiosity was piqued again. Just how immense was Marvel's potential?

Just as she was about to ask more, a waiter hurried over and whispered something in Eric's ear.

Eric nodded at the waiter and turned to Elisabeth. "Come with me; we need to greet our guests."

Elisabeth stood up and asked, "Who is it?"

Eric raised his arm for her to link hers through, saying, "Terry Semel from Warner Bros., so make sure to act friendly."

Elisabeth quickly guessed Eric's intention. If they appeared close, Terry Semel would surely reassess Fox's competitive edge when he arrived with the Disney animation department, likely leading to a better offer for Firefly.

"Wow, you're using me," Elisabeth half-heartedly complained but still leaned closer to Eric as they went out to greet the guest.

...

Terry Semel had gray hair and wore rimless glasses, giving him a scholarly and sophisticated demeanor. Although just over fifty, he had been with Warner for nearly twenty years and was one of Steve Ross's key successors.

However, ever since Steve Ross's passing and with Terry's ascension to CEO of Time Warner through intense internal competition, life hadn't been easy for him. Broadly speaking, after Firefly's acquisition of ABC, Warner had been knocked off its long-held pedestal in the media industry. On a smaller scale, during this blockbuster summer filled with box-office records, Time Warner's film division was going through a downturn, hitting rock bottom in years. This had resulted in immense pressure on Terry Semel, as he faced immense scrutiny from various sectors on an almost daily basis.

When he heard that Firefly was about to sell the Disney animation department, Terry Semel immediately recognized it as a golden opportunity to pull himself out of his current predicament. The starting bid of a billion dollars offered by Firefly was nothing compared to Time Warner's multi-billion-dollar valuation. Yet, if he could secure the animation production division, it would allow Time Warner to burst into an untapped market it had never managed to penetrate successfully. This was major news for him personally.

As Terry stepped out of his car and saw Eric approaching, he was about to greet him but noticed Elisabeth beside Eric. In recent years, Murdoch's remarkable daughter had made significant strides in Hollywood. Terry Semel had vaguely heard about the close relationship between Elisabeth and Eric. But as Eric's status rose, so did the media's wariness to cover his personal life, leaving Terry unsure of what their relationship truly was.

Seeing Elisabeth affectionately link arms with Eric, Terry's eyes narrowed. If Eric and Elisabeth were romantically involved, that could throw a wrench into Warner's bid for the Disney animation department; after all, Fox definitely wouldn't let this opportunity slip by.

...

Noticing the change in Terry Semel's expression, Eric smiled and extended his hand. "Mr. Semel, welcome to Liberty City."

Terry Semel quickly tucked away his thoughts and responded warmly to Eric while greeting Elisabeth too. The three of them then headed inside the villa.

"Eric, can we talk privately?" After mingling with the guests in the hall, Terry leaned in and quietly spoke to Eric.

Eric understood that Terry simply wanted to secure the animation department before the public auction and might even attempt to negotiate on the rights for films like The Lion King. Ultimately, though, the animation department was Firefly's private asset, and the terms of sale hinged entirely on Eric's discretion.

However, the animation department was merely bait to draw attention from Hollywood, and he had no intention of getting tangled up with the other big players until he secured Marvel. Just as he was looking for a reason to decline Terry Semel, he received news that Paramount's CEO Sherry Lansing had also arrived.

"Sorry, Mr. Semel. I need to go greet someone. Perhaps we can reschedule?" Eric apologized and left the villa with Elisabeth once more.

...

In the cutthroat world of business, there were no eternal enemies. Although the tensions stemming from their previous competition with Disney meant that Summer Redstone didn't show up personally, he still sent Sherry Lansing, the Paramount CEO, to this particularly sensitive party for many attendees.

After Sherry Lansing, many other significant figures from Hollywood began to arrive. With everyone holding their own agendas, nobody managed to engage Eric directly.

...

Even though the party hadn't invited the press, the competitive atmosphere quickly made headlines the next day. Subsequently, Eric had someone publish the list of assets related to the upcoming auction of the animation department on Yahoo, which sparked another round of debate.

The media focused on the seemingly low $1 billion starting bid. After all, just one film -- The Lion King -- would likely bring Firefly no less than $1 billion in net profit over the next few years.

"--Selling the Disney animation department to fend off outside capital, Eric Williams has undoubtedly made a crazy, reckless, and foolish decision. Although the box office value of the Disney animation division accounts for a very small portion of the overall revenue stream of Firefly Group, it's crucial to remember that Disney's theme parks, retail stores, and licensing businesses all rely on the animation's pulling power. The success of The Lion King further illustrates the infinite economic potential of Disney animation. It's hard to imagine what will happen to the Disney brand after losing its animation department."

"--While we may not know precisely what Eric Williams intended in selling the Disney animation division, the $1 billion auction price underscores Firefly Group's acumen. This low pricing strategy undoubtedly attracted more potential investors interested in acquiring the Disney animation division, likely generating intense competition during the auction process. Currently, the three major Hollywood giants -- Time Warner, Viacom, and News Corp. -- have expressed strong interest in the Disney animation division. French media group Vivendi, along with Canada's Seagram, have also begun close discussions with Firefly management. According to analysts from First Boston Bank, the final auction price for the Disney animation division could exceed $2 billion, more than double Firefly's initial offer."

"--Roy Disney, nephew of Walt Disney, passionately criticized Eric Williams for recklessly undermining the Disney spirit, claiming that the loss of the Disney animation division would also signal the demise of Walt Disney's vision. Walt's daughter, Diane Disney Miller, expressed her extreme disappointment with Firefly Group's decision in an interview with the Los Angeles Times."

"--Eric Williams's business acumen in film and television has been proven countless times, so I believe everyone has ample reason to be concerned about the other matter occurring alongside Firefly's sale of the animation division. That is, why Firefly is making such a significant move to reclaim Marvel Entertainment from investor Ron Perelman. Although most media outlets speculate this is Firefly Group's retaliation against Ron Perelman, given Eric Williams's impressive commercial performance over the past few years, I find it hard to believe this young Hollywood mogul would be so impulsive as to spend hundreds of millions of dollars in retribution against his rival.

Moreover, it's clear that this entire affair has been meticulously planned, with legendary investor Warren Buffett even involved. This evidence suggests it's anything but revenge; perhaps, Eric Williams sees Marvel Entertainment as more valuable than the Disney animation division that created The Lion King. If that's truly the case, any audacious investor willing to pounce on Marvel at this moment would undoubtedly find unexpected rewards."

...

Ron Perelman sat silently in his luxury car, flipping through a thick stack of today's newspapers. Amidst the chatter about Firefly's impending sale of its animation division, he finally found mention of Marvel, and an article in the Manhattan Morning News echoed his recent speculations about Marvel's predicament.

However, Ron Perelman felt no thrill in finding a kindred spirit; just two days earlier, the New York District Court had swiftly granted the forced bankruptcy protection petition filed by Marvel's creditors with astonishing efficiency. Subsequently, with the cooperation of Marvel's CEO Avi Arad, Marvel's creditors, led by Katzenberg, had quickly taken control of Marvel's board.

The luxury car slowly stopped outside Marvel's headquarters on 50th Street in Midtown Manhattan. After getting out, Ron Perelman, accompanied by his assistant, walked into Marvel's office building.

It was just work hours, and a few Marvel employees were waiting for the elevator in the corner of the lobby. Upon seeing Ron Perelman enter, they immediately halted their whispering and tiptoed around him, heading for the safety staircase.

Ron Perelman had long known that most of Marvel's staff disliked him. In the past, he wouldn't have cared about these minor characters. But today, as he watched the Marvel employees maneuver around him like a plague, he felt a surge of intense anger.

Clenching his fist, Ron Perelman said coldly to his assistant, "Neil, jot down the names of those people and notify HR to fire them all."

Seeing his boss nearly beside himself, assistant Neil wanted to say something but was cut off as Ron Perelman bellowed, "Are you trying to defy me too? I'm still the owner of Marvel!"

Neil didn't dare hesitate, quickly heading for the safety staircase.

Upon arriving at the floor where Marvel Entertainment was located, Ron Perelman noticed all the lights in the corridor were still on. Not far away, people were bustling in and out of a conference room loaded with documents. sensing something was off, Ron Perelman quickened his pace and entered the meeting room, discovering Jeffrey Katzenberg, Avi Arad, and others were all present. It was clear from the various reports and financial data being reviewed that they were either lawyers or accountants.

Katzenberg, with faint dark circles under his eyes, looked up from a pile of files when a colleague pointed out Ron Perelman's arrival. For a moment, he looked at his watch in surprise. "It's already nine o'clock."

As he said this, Katzenberg stood up, stretching his body, and instructed his assistant to prepare breakfast for him before heading straight for the door. Ron Perelman had expected that Firefly would target Marvel's financial situation the moment they took control, but he hadn't anticipated that Katzenberg would already be conducting an overnight audit of Marvel's financial documents without any notification to him. This realization reignited his previously suppressed anger. As he saw Katzenberg approaching, Ron Perelman gritted his teeth and said, "You didn't have my permission for this; it's illegal. I'm going to file a protest with the Federal Court. I will do it."

Katzenberg casually moved closer to Ron Perelman and, unfazed by the threat, patted him on the shoulder a few times. "Go ahead and protest, Ron. But before that, I think we need to have a serious discussion, like about that $470 million matter."

After dropping this line, Katzenberg left the meeting room, sending a chill through Ron Perelman. The casual figure Katzenberg threw out was precisely the amount underlying the debt financing Marvel, which could mean that in just one night, Firefly had seized a substantial amount of information. Little did he know, Firefly had already roughly gathered these figures before commencing their attack on Marvel. Without sufficient evidence, the New York District Court wouldn't have granted Marvel's creditors the bankruptcy protection request so swiftly. What Katzenberg was doing was merely looking for precise proof within Marvel's internal documents.

Unable to lash out at Katzenberg, Ron Perelman reluctantly redirected his ire at Marvel's CEO Avi Arad. "Avi, why did you betray me? Don't forget, I supported you getting the CEO position at Marvel!"

*****

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