Chapter 182: Marvel Acquired

At the Los Angeles Country Club in Beverly Hills.

The date was July 3rd, a Sunday.

Just as Simon stepped out of his car in the parking lot, a young man dressed in a white shirt, looking like an assistant, approached him respectfully and said, "Mr. Westerlo, Mr. Welch and the others have been waiting for you. Please follow me."

Following the young man into the largest golf course in Los Angeles, Simon quickly spotted three people chatting at the edge of the course. Upon noticing Simon's arrival, the trio walked over to him, one of whom was the current Chairman and CEO of General Electric, Jack Welch.

"Hello, Simon, it's great to see you," Jack Welch greeted Simon with a warm smile and a firm handshake before introducing the other two men, "This is Robert White, who is currently in charge of NBC. And this is Larry Koopin, a major shareholder of New World Entertainment. You must be aware of that."

Surprised by Jack Welch's invitation, Simon had prepared for this meeting in advance and thus recognized the other two.

Robert White, formerly the head of the financial services group within General Electric, was now the CEO and President of NBC. Frankly, Simon considered Jack Welch's appointment of him as nothing short of disastrous, a classic case of a layman leading experts.

Of course, this was an internal matter for General Electric, and Simon had no intention of commenting on it.

Larry Koopin was a major shareholder of New World Entertainment, owning over 40% of the company with another partner, Harry Sloan.

After exchanging greetings with each person, they all entered the golf course together.

With the purpose of the meeting clear to all, they didn't rush into business discussions, instead casually talking about recent events while playing golf. Being an election year, the upcoming presidential election naturally became a hot topic.

"The article in 'The New York Times' about 'Who Wants to Be a Millionaire' was very interesting. I think it would be a good idea for both Bush and Dukakis to participate in the show," Jack Welch said, swapping his golf club and looking at Simon seemingly offhand, "Speaking of which, Simon, between Bush and Dukakis, who do you support?"

The candidates for the two parties had been decided in May: Vice President George Bush and Massachusetts Governor Michael Dukakis.

Noting Robert White and Larry Koopin's subtle glances, Simon shrugged nonchalantly, "As a Californian, I naturally support Dukakis."

"And if Bush wins?" Welch asked after sinking a putt.

Simon, watching Larry Koopin approaching with his golf club, made room for him and said, "In that case, I would invest as much as possible in defense and oil stocks."

This comment caught the attention of Robert White and Larry Koopin, given Simon's rapid accumulation of a $2 billion fortune in just two years. Despite his casual tone, they made a mental note to thoroughly investigate his advice later.

Hiding his inner turmoil, Welch watched Koopin miss his shot and inquired, "What do you mean, Simon?"

Simon looked regretfully at Koopin's shot and explained, "It's simple. Bush's presidency likely means war, and war is the fastest way to drive up oil prices."

"If you made these views public, it would surely spark controversy," Robert White interjected.

"Which is why I won't," Simon replied, leading to light laughter from the group.

As they played and chatted, Welch, waiting for Simon to broach the main topic, realized Simon's patience might exceed that of the three middle-aged men. He finally steered the conversation to business, "Simon, regarding New World Entertainment, I still hope you'll consider my proposal from a while back."

Standing on the green, Simon glanced at Welch and asked, "Jack, don't you think it's time to adjust your offer?"

The recent success of "Who Wants to Be a Millionaire" was expected to generate hundreds of millions in profits for Daenerys Studios. Had it been a public company, even a 10x earnings valuation would put its worth over a billion dollars.

Welch had previously proposed exchanging New World Entertainment shares to invest in Daenerys Studios, valuing it at roughly $200 million, a figure Simon found astonishingly low.

"Your ability to generate profit is truly remarkable," Welch conceded, "But, Simon, I've heard that Daenerys Studios and ABC haven't agreed on profit sharing and are at an impasse. The project's future seems uncertain."

"I've offered ABC a profit share that exceeds their recent earnings from all their shows," Simon countered.

Welch continued, "Yet, Daenerys Studios demands more. Aren't you worried ABC might abandon the project? According to the contract, Daenerys Studios can't transfer the project to another network."

Simon responded, "If ABC is upset about the profit share and decides to drop the project, that's their loss, not ours. It wouldn't significantly impact Daenerys Studios. In fact, it might be beneficial, as it would show our competitors that we won't back down easily."

"But you do want New World Entertainment, don't you?" Welch pressed. "To get what you want without paying a fair price isn't feasible."

"If I don't bid, New World Entertainment's likely outcome is bankruptcy. Your $220 million loan would barely be recovered. My offer ensures General Electric gets their full investment back. That's my contribution."

"You seem resistant to partnerships, Simon. Even General Electric often forms joint ventures," Welch remarked.

Simon, walking off the green with the others, asked, "Why do you partner with other companies?"

"To leverage each other's resources for mutual benefit," Welch explained.

"Exactly," Simon agreed. "So, what can General Electric offer if we partner with Daenerys Studios?"

"We own NBC, which could distribute Daenerys Studios' TV shows. We also have significant capital for your expansion."

Simon smiled, "But Daenerys Studios doesn't lack buyers for its shows. It's a seller's market. And while many Hollywood companies struggle financially, Daenerys Studios isn't one of them. My personal wealth and the studio's profitability ensure easy access to loans. General Electric's financial advantage doesn't appeal to me."

Welch sighed, "You're young, Simon. Things aren't always as simple as they seem."

"Only those lacking strength complicate matters to gain an edge. Daenerys Studios doesn't need that. I'm open to partnerships that benefit both sides, not selling my rapidly growing company cheaply for resources I don't need."

"Well, Simon, General Electric will then have to protect its interests," Welch indicated, revealing that General Electric had negotiated with Larry Koopin to acquire 90% of New World Entertainment through debt-to-equity conversion, with a signing planned for next week. "If Daenerys Studios wants our shares, our price is $300 million. Additionally, NBC wants rights to 'Survivor' and 'Big Brother.'"

Simon, undeterred, valued New World Entertainment for its Marvel Entertainment subsidiary, aiming to own a comic book company. He found the rest of New World's assets useful but not essential, believing General Electric would struggle to manage them effectively.

"I won't accept that offer. $250 million is my final offer for the entire company, not just the 90% you hold."

Welch, unaware of Simon's determination to acquire Marvel, found his assessment of New World Entertainment accurate.

After considering Simon's counteroffer and discussing it with Koopin, Welch extended his hand, saying, "Then, Simon, we have a deal."

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