Chapter 510: Hulu
"Do you have an interest in MGM?" Charles heard his mother ask this and found it hard to answer.
"Mom, what do you think? Should I be interested in MGM or not?" Charles pulled his mother over to the sofa and gulped down his wine.
Evelyn was slightly stunned. "What do you mean?"
"It's just hard to decide. Of course, I have my eyes on MGM's assets, but it's burdened with almost 4 billion dollars of debt, which is hard to handle," Charles pondered. If he acquired NBC Universal, the new company's debt would reach approximately 15 billion dollars!
"If MGM is still worth 2 billion dollars given its current state, it's indeed not a great deal," Evelyn shook her head and looked at Charles. "But if you can develop some good works from MGM's film or script library, it will definitely be worth it!"
Charles was conflicted. Besides the massive film library that could benefit Netflix, MGM also held the distribution rights to the James Bond and Hobbit film series.
However, current MGM creditors would not accept anything below a 2 billion dollar price tag. Charles remembered that MGM went bankrupt after refusing other offers, went through a restructuring, merged with Spyglass Entertainment, underwent a debt-for-equity swap, and creditors owned 95% of the new MGM.
"A 2 billion dollar purchase price plus MGM's 3.7 billion dollar debt would be tough based on the current situation. Though, it can be done," Charles was actually eager to try. Amazon's future acquisition of MGM would total 8.45 billion dollars, and by then, The Hobbit trilogy would be released, along with several new James Bond films.
A 5.7 billion dollar MGM acquisition would bring Netflix over 4,500 films, and the rise of smartphones would be the bullet train for streaming.
"Are you confident?" Evelyn, recognizing her son's expression, reminded, "You should focus on acquiring NBC Universal for now. Although banks and investment institutions are financing you, Capet still increased its debt significantly!"
Charles smiled, "Capet didn't put up its own cash this time. One-third of the funds are from a European consortium led by BNP Paribas. The remaining two-thirds come from Wall Street banks and investment institutions. Actually, Capet has the strength to swallow MGM wholly!"
"As for MGM's plight," Charles explained with a touch of vanity, "Other people can't compare to me. Film companies need to be strong, creative, and visionary! But I will consider it slowly. The MGM matter won't end quickly. After Capet merges with NBC Universal, there's a lot of resource integration to do. Dismantle what should be dismantled, merge what should be merged, and big personnel changes are on the way!"
Evelyn nodded. The first thing after Capet merges with NBC Universal would likely be massive layoffs.
Given Charles Capet's nature, not many of NBC Universal's old guards would remain.
"By the way, Charles," Evelyn leaned closer to her son and whispered, "A few days ago, heads of several Hollywood studios, led by Warner Bros, had a private meeting at the Los Angeles Country Club. Except for Disney and Universal, the leaders of the other four studios attended!"
Why didn't Disney attend? It was because Disney was in the middle of changing its CEO.
"Ha, those guys kept me out of the MPAA last year, and now they can't hold back seeing Capet's outstanding performance. I don't even need to guess what schemes they are brewing. Sony shouldn't be a worry; it's just a Japanese company. Even if they have the guts, they wouldn't dare make a move!"
Charles thought for a moment, touching his chin, "Right, Disney seems to have become an online video site Hulu's shareholder this year, right?"
"Yes, Disney spent 35 million dollars in April to acquire 33% of Hulu's shares," Evelyn responded.
Hulu was jointly established by NBC Universal and News Corp in 2007 as an online video site, featuring works from NBC and Fox as its main content.
Former Amazon senior VP Jason Kilar was appointed CEO, and Hulu received 100 million dollars in venture capital during its conceptual phase.
With authorizations from NBC and Fox for news, interviews, TV dramas, music, concerts, movies, and other video content, there's no shortage of programs!
Now, with Disney's involvement, this OTT platform that launched just last year has gained ABC TV shows.
'Netflix's transformation has been successful. Hulu is essentially a born-rich online video platform. Are these guys planning on targeting Netflix?' Charles pondered internally.
"What's up? Hulu must be a big competitor for your Netflix," Evelyn chuckled. Netflix's online DVD rental business was still its largest revenue source at that time; streaming subscriptions weren't yet enough to sustain heavy investment.
"Big competitor? Whatever, when the time comes, the whole NBC Universal will be Capet's. I can handle that 33% in Hulu however I like," Charles thought he could even sell off those shares later.
"Alright, just be careful. Capet's fast growth makes it normal to be targeted by competitors. You also have a partnership with Sony now," Evelyn said, looking around the banquet hall, seemingly attracted by something.
"Disney is producing numerous big live-action films, Warner Bros is pushing hard to develop DC Entertainment, and 20th Century Fox is preparing to restart the X-Men series..."
"Don't worry, I know," Charles didn't need reassurance. Was he afraid of them?
Looking in the direction of his mother's gaze, Charles noticed an actress from The Blind Side, Lily Collins, who was there.
She played Nicole Kidman's daughter, was the daughter of British singer Phil Collins, and was dubbed the "Little Hepburn" as a young starlet.
Charles recognized her too. Phil Collins was quite famous, and Lily Collins was a bona fide second-generation star.
"That actress is Lily Collins, 20 years old with a good background. She previously auditioned for the lead role in Twilight and was recommended to The Blind Side production team," Charles suddenly explained.
Evelyn glanced at her son, "I know better than you; I'm a manager, after all!"
*****
https://www.patreon.com/Sayonara816.