Chapter 162: The Hearst Group

Because Arthur was optimistic about ESPN's future, he sent Jim Colter to negotiate with KKR Capital and compete with the Hearst Group. 

The value of the 20% stake in ESPN soared from millions to billions, and with KKR demanding a cash transaction, it was clear that neither Galaxy nor Hearst intended to give up.

In New York, Manhattan, at the Galaxy Tower, Arthur sat in his office chair. Jim Colter looked frustrated. "If this keeps going, the price might exceed 2 billion dollars."

"I've already talked with William Randolph Hearst III from the Hearst Group. It would be better to collaborate," he said.

Arthur put down the documents he was holding. William Randolph Hearst III was the eldest son of John Randolph Hearst, the second son of William Randolph Hearst, one of his numerous grandchildren.

"They have a large family, with six children and dozens of grandchildren and great-grandchildren," Arthur said, looking up at Jim Colter. "What about the 100 million dollar loan from Merrill Lynch and Goldman Sachs?"

"It can be transferred anytime," Jim Colter assured Arthur.

"Let's meet this third-generation heir of the Hearst family tomorrow," Arthur said. His bottom line was to acquire at least 10% of ESPN shares. With the growth of the economy, Arthur knew how valuable sports entertainment would become. Owning 10% of ESPN shares would be a cash cow for him.

In his previous life, the 20% ESPN stake provided nearly half of Hearst Group's profits!

That night, Arthur picked up Winona Ryder from John F. Kennedy International Airport. She had returned to promote a movie. Initially, Arthur thought it was for Father of the Bride, but it turned out to be for Night on Earth.

The top-floor apartment of the Galaxy Tower had become Arthur's residence after being newly renovated. Winona Ryder lounged on the sofa, saying, "I took a movie in Europe, working with veteran actors like Meryl Streep and Glenn Close. It's a drama called The House of the Spirits. I'll probably be in Europe for a while next year!"

Arthur smiled. "I heard you turned down Martin Scorsese's adaptation of The Age of Innocence starring Daniel Day-Lewis and Michelle Pfeiffer."

The Age of Innocence was a novel by Edith Wharton, a famous 19th-century American author.

"I read the script. It's about the love lives of the upper-class in 19th-century New York. Scorsese's vision relies heavily on elaborate costumes and settings," Winona Ryder shook her head.

"It's similar to Emma, and since it's just a supporting role, it doesn't matter."

Arthur sat next to Winona Ryder. "Now you see how stunning your period looks are?"

"Both Francis Ford Coppola's Bram Stoker's Dracula and Scorsese's The Age of Innocence were attracted by your classical appearance."

He caressed Winona Ryder's delicate face. Her fair skin and red lips were indeed captivating. "You turned down invitations from two top directors in the same year."

Winona Ryder smiled. "But in Night on Earth, I play a taxi driver with no particular image."

"Night on Earth has a very limited release. Why did you come back to promote it?" Arthur asked, puzzled.

"I want to support these independent films. Many of my early works were not mainstream. Now that I have some fame, I want to give back," Winona Ryder said directly.

Arthur nodded. Emma, Night on Earth, and The House of the Spirits are all independent films!

"So, you won't be staying long this time?"

"Yeah," Winona Ryder snuggled against Arthur's neck. "The crew is currently shooting in the Cotswolds in England. It's incredibly beautiful there, with many traditional buildings and rich pastoral scenery. It's very comfortable and serene!"

"You really like it there?" Arthur ran his fingers through Winona Ryder's hair. "If you find any estate or farm you like, just buy it. We'll vacation there when we have time."

He then kissed Winona Ryder's red lips. She responded passionately, taking off her coat as she did. 

Arthur felt her unbuckle his belt, her soft, warm hand slipping inside his underwear.

Winona Ryder, filled with passion, nibbled on Arthur's neck. "When I return to England, I'll look into estates in the Cotswolds, and then we'll buy a country farm for our vacations there."

"Alright, you decide," Arthur said, matching Winona Ryder's movements as he caressed her chest...

The next evening, at the Carlyle Hotel on the corner of 76th Street and Madison Avenue on Manhattan's Upper East Side, Arthur met with the Hearst Group's chairman, William Randolph Hearst III.

William Randolph Hearst III, 42 years old, was a prominent third-generation member of the Hearst family, very focused on expanding the Hearst Group's cable TV business. The Hearst Group currently owned several local TV stations and was increasing its investment in TV station operations.

"Arthur, transitioning to TV is the Hearst Group's established strategy. We are very optimistic about ESPN's future," William Randolph Hearst III said directly. "Hearst Group doesn't lack funds either."

Arthur smiled. "I know Hearst Group isn't short on money. Since we both see the value in ESPN shares, why not cooperate? KKR Capital wants to sell a 20% stake in ESPN. How about we each take 10%? After all, the controlling stake belongs to ABC Network."

With a hint of disdain, William Randolph Hearst III said, "Hearst can easily acquire these shares on its own. Why should we cooperate?"

Arthur shrugged. "Then Galaxy will immediately raise the price to 2 billion dollars and compete with Hearst. Right now, many banks and funds are optimistic about Galaxy. They are willing to support me financially. You can check the profits from Galaxy's movies."

Arthur continued, "KKR Capital has always been interested in investing in Hollywood, and Galaxy has plenty of leverage to attract them. I could even offer incentives to get ABC to support Galaxy. I have established Galaxy Television to develop TV series. Believe me, TV series produced by Galaxy will be top-notch, and ABC will be interested!"

Arthur didn't like the condescending attitude of these people. Hearst's peak was in the 1920s. Now, the Hearst Group wasn't even among the top in American journalism; it was transitioning from print media to diversified media.

If it were The New York Times Company, Tribune Company, Gannett Company, or Condé Nast, Arthur might be more restrained. But Hearst? Now only "Harper's Bazaar" had some fame!

"Whether to cooperate or continue competing, Mr. Hearst, you need to think carefully," Arthur said. It wouldn't take many years for Galaxy to surpass the Hearst Group. Hearst's biggest success was acquiring a stake in ESPN.

After Arthur finished speaking, William Randolph Hearst III stared at him. The maximum price the Hearst Group was willing to pay for the 20% ESPN stake was 200 million. From Arthur's tone, Galaxy was determined to get the shares.

"The board needs to discuss this first," William Randolph Hearst III knew about Arthur Smith's current fame in Hollywood. If Arthur reached some cooperation agreement with KKR and ABC, Hearst would be in trouble!

Arthur nodded. "I'll be in New York for a while, but you should decide soon..."

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