Chapter 452: Setback?

Los Angeles, Century City, in a cafe near the headquarters of 20th Century Fox.

Rupert Murdoch smiled and said, "I heard you went on vacation to the Bahamas. Didn't expect you'd be back in just a week?"

Charles took a sip of coffee, "Yeah, I bought a private island, planning to turn it into a private resort."

"Is that so?" Rupert Murdoch chuckled. He then said, "Lately, it seems like you and Sumner Redstone have had some disagreements."

Charles shook his head, smiling, "It's just normal Hollywood competition."

"The Hollywood pie is only so big. If someone gets a bigger piece, others will get smaller ones. If you can't keep up with the times, you face obsolescence."

"Just like the already bankrupt RKO Pictures, or MGM nowadays, right?"

Rupert Murdoch nodded, "Ever since Viacom acquired Paramount, my struggles with Sumner Redstone began. Then, Barry Diller helped News Corp. establish FOX TV, and Sumner's Viacom acquired CBS. There's competition in movies, TV, advertising, publishing - all fronts. Sumner Redstone is not someone easy to compromise with."

"What do you mean?" Charles sensed that Rupert Murdoch had more to say.

'Viacom's cable networks are getting hit by the internet. Paramount lacks capital support, losing market share without DreamWorks' content. Is there any chance Capet Pictures could fail?'

Charles couldn't see it. Capet Pictures' current IP value was immeasurable, while Paramount was stumbling like an old man, struggling to move.

"Until MPAA declares Capet Pictures an official member, nothing is set in stone!" Rupert Murdoch said, standing up and patting Charles on the shoulder. "Sumner Redstone is lobbying Washington to replace Dan Glickman."

Charles was startled, watching Rupert Murdoch leave. Was someone really trying to replace MPAA's CEO Dan Glickman?

"Does this mean Paramount doesn't agree for Capet to become an official member?"

Things already decided could still be overturned? Universal, 20th Century Fox, Paramount, and Columbia - these four votes were supposed to be solid.

Rupert Murdoch convinced Paramount.

Rupert Murdoch shook his head, "Sumner won't deny something agreed upon. Capet did pass MPAA's internal assessment and vote. The MPAA chairman can extend Capet's candidate membership if needed. Delaying Capet's official membership by a year or two is no big deal!"

When Charles left Century City, he was visibly upset. Capet's official MPAA membership was supposed to be confirmed, just waiting for the announcement in January.

Now, things were messed up. Charles had long known that businessmen could be shameless, and now he truly understood the meaning of the word.

He immediately called Dan Glickman, and the far-away Washington, D.C.-based CEO discreetly indicated that apart from Sony Columbia and Universal, the other four companies supported Paramount's proposal.

Rupert Murdoch did help Charles become a member, just two years late.

"Oh, old friend, our Hollywood golden boy must be pretty upset, huh?" Sumner Redstone spoke over the phone from his villa sofa.

"Sumner, was that really necessary? We initially agreed to it," Rupert Murdoch was on the other end, smiling as well.

Although the original deal with Charles was to safely navigate through Harvey Weinstein's storm,

Rupert Murdoch pulled Sumner Redstone together to support Capet's membership, but Capet's development was astonishing.

"Rupert, we've known each other long enough. I understand you, and you understand me. You know how strong Capet's momentum is. If he becomes an official member, his influence will be different. It'll be even harder to stop him later," Sumner Redstone had been competing with Rupert Murdoch for years, fully understanding his intentions.

"From what I know of Charles, he won't back down. Even if we stop him this time, he'll go all out to acquire NBCUniversal. Then he'll have the seat anyway," Rupert Murdoch sighed.

Rupert Murdoch was teaming up with Sumner Redstone to break the deal, but he still informed Charles in advance, not wanting to sever ties completely.

"Acquiring NBCUniversal?" Sumner Redstone fell silent because he didn't have the capacity to join in. Viacom and CBS's plummeting stock price and rising debt left him overwhelmed.

He didn't have the energy or resources to get involved. Apart from Capet Entertainment, all of Hollywood felt the pressure from the financial crisis.

Capet hadn't accepted piecemeal investment funds. Their films found success through high-value pre-sale international contracts and loans from banks and investment institutions.

"Comcast, AT&T, Verizon, and these telecom and internet companies are also interested in Hollywood assets. It won't be that easy for Capet!"

Though Sumner Redstone was reluctant to admit it, he knew Charles Capet's weight in Hollywood and his allure to film studio shareholders.

"Alright, now Paramount, 20th Century Fox, Warner Bros., and Disney are jointly pressuring Dan Glickman. If he doesn't want to be replaced by Washington, he has no choice but to delay Capet's official membership!"

Rupert Murdoch, sitting in his study, finished his call with Sumner Redstone and began contemplating.

Even though News Corp. acquired Dow Jones Group this summer, its main asset was the Wall Street Journal.

With the newspaper business in decline and the financial crisis impacting stock prices, News Corp. was looking for a buyer for the Dow Jones Index.

20th Century Fox was making big moves too. James Cameron's Avatar was set to release next year.

Avatar's production cost was astronomical, not to mention marketing expenses reaching crazy heights.

Because of this, 20th Century Fox's financial burden was significantly reduced, thanks to two external PE firms covering over 60% of the total cost.

News Corp. owned TV networks and newspapers, allowing them to juggle huge marketing expenses internally.

*****

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