Chapter 402

In the evening, at a cocktail party held at the Chateau Marmont in West Hollywood, stars, movie executives, bankers, and various industry professionals smiled at the party but couldn't hide the worry in their eyes.

Charles Capet moved through the crowd with Scarlett Johansson on his arm. Due to the bankruptcy of Lehman Brothers, many banks had gone bankrupt one after another, making it clear that Wall Street was pulling out of Hollywood.

To maintain revenue, movie companies had to open up new sources and reduce expenses, such as lowering production costs and implementing layoffs.

"Charles, let's have a drink together!" Jeff Zucker, the chairman of NBC Universal Entertainment, invited Charles.

"Sure," Charles nodded. He whispered a few words into Scarlett Johansson's ear, and she walked away with a smile.

They headed to the outdoor bar connected to the hotel and found a table to sit down.

"Wall Street banks are preparing to pull out of Hollywood, and DVD sales are down. It seems like Hollywood is in serious trouble," Jeff Zucker said, clinking his glass with Charles's.

At that time, Hollywood revenues came from 30% box office, 40% DVD market, 15% pay-per-view, and the remainder from free-to-air TV, online streaming, and other sources.

DVD sales, whether Blu-ray or standard, had declined. Previously, the DVD market had accounted for more than 50% of movie income.

"Maybe, but this could also be seen as a test for Hollywood studios," Charles laughed and took a sip of his drink before asking, "Is Universal planning to take over DreamWorks' live-action film distribution?"

Steven Spielberg had secured funding from Reliance Entertainment in India to break away from Paramount, and DreamWorks was looking for a new distributor for their live-action films.

Jeff Zucker shook his head. "Steven does want that, but he's asking for more production funds than Universal can provide. The GE board can't approve it. Without a distribution department or their own film library, and having lost the distribution rights to DreamWorks Animation, Spielberg alone isn't worth that big of an investment!"

Charles smiled. This split between DreamWorks and Paramount wasn't as beneficial as in a previous life where they had successful franchises like Transformers.

This time, DreamWorks left Paramount with help from Reliance Entertainment's funding, essentially starting from scratch.

Their only asset was Steven Spielberg, who desperately needed new loans and a new distribution company.

But from Jeff Zucker's words, it seemed Universal still had a business-as-usual approach.

"Charles, aren't you interested in Steven Spielberg?" Jeff Zucker asked, inquiring about Capet Pictures' stance.

"Me?" Charles put down his glass and slowly said, "Capet Pictures doesn't need a flag bearer who's unruly and low-return. Let the struggling studios seek him out!"

Jeff Zucker shook his head, thinking that the struggling studios were likely Disney and Universal.

"And in my film projects, directors and actors won't earn more than the studio itself!" Charles added.

"Yeah, Viacom's chairman, Philippe Dauman, also said that losing anyone won't affect Paramount's plans. Major Hollywood studios should have the mindset of big movie companies," Jeff Zucker agreed.

"So, considering GE's losses in its finance division, what's the group's plan for NBC Universal?" Charles inquired casually.

Jeff Zucker looked at Charles and said, "GE's plan for NBC Universal?"

"You're interested in NBC Universal?" Zucker asked.

Charles nodded confidently, "Of course. Capet Entertainment's movie business is booming. If we could integrate NBC Universal's resources... Who could compete with me in the media world?"

Jeff Zucker squinted. Charles's ambition was tempting, and who in Hollywood wasn't envious of Capet Pictures?

Wherever Charles Capet went, he would undoubtedly become the leader of a media conglomerate. Clearly, he had investigated GE's condition.

"NBC Universal isn't a core asset for GE. Its main revenue comes from the NBC network. If Capet Entertainment wants to get involved, it'll need a substantial investment."

"But first, we need to settle with Vivendi, who holds 20% of NBC Universal!" Jeff continued.

Charles nodded and smiled, "Capet Entertainment is stronger now than Viacom was when they acquired Paramount and CBS. The future is tough, and resource integration is crucial.

Capet Entertainment, as a new Hollywood force, has gaps compared to long-established studios. But media group development requires adaptation. Many have turned to dust in the history books!"

Jeff Zucker was silent for a while, looking at Charles Capet, acknowledging his promising future.

Capet Entertainment's assets included the core Capet Pictures Group, owning Marvel Studios, and the online streaming/DVD rental Netflix.

It also had Capet Records, Capet Television, and Pacific Theaters.

Capet Entertainment's valuation, including debt, exceeded $13 billion, but acquiring Capet for that amount was out of the question.

"Charles, you have competition. Doncaster approached Disney's former chairman Michael Eisner in '04, seeking to acquire Disney, and has since been looking to enter Hollywood. You know they partnered with Sony to control MGM. If GE sells NBC Universal, Doncaster will definitely be in the game!"

Charles just nodded. Competing for NBC Universal would indeed be a tough battle.

Doncaster, America's largest cable TV operator and the second largest internet provider after AT&T; not to mention France's Vivendi, and GE as the controlling party.

"Thanks, but who knows how it'll end until the very last moment?" Charles smiled, stood up, and shook Jeff Zucker's hand.

*****

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