Chapter 504: United?

In late July, Charles left London and returned to New York. The Brooklyn sports arena, built by Forest City Group, was officially named the Barclays Center.

The Barclays Center was scheduled to break ground in October with funding of $1.2 billion provided by Barclays Bank and $800 million from CSE Company, making up a $2 billion budget.

The NBA also approved the New Jersey Nets' move to New York two years later once the Barclays Center's construction was complete. Thus, starting from the 2011-2012 season, the team's home games would be held in New York.

In midtown Manhattan, Charles was interviewed by a beautiful blonde-haired, blue-eyed reporter for Time magazine in Capet Tower. They discussed the current buzz around the acquisition of NBC Universal and the booming state of the Hollywood movie market this year.

Charles sat on the couch while the interview was recorded by a nearby camera.

"Combining NBC Universal is crucial for Capet Entertainment's future. NBC is the third-largest broadcast TV network in the U.S., and CNBC is one of the top three financial news channels here.

Universal is one of the oldest American film companies, established in 1912, along with Paramount. It has a rich library of films and a well-developed international network and film industry chain, which will greatly supplement Capet.

Since 2007, Hollywood's movie market has flourished. Despite the writers' strike and the subprime mortgage crisis affecting things, history tells us that economic downturns are often when the movie industry thrives.

This year, I am very sure that the North American market will enter the $10 billion era!"

Reporter: "The $10 billion era? Many in the industry speculate that, and Capet's summer performance has been impressive, with over $1.3 billion in North American box office sales. Do you think Capet could make history and reach $2 billion in North American box office revenue this year?"

Charles nodded with a smile, "I am very confident about this because Capet still has big releases like The Twilight Saga: New Moon and The Incredible Hulk coming up. Capet's Matrix Pictures is also releasing some B-movies like Saw 3D, Piranha 3D, and Paranormal Activity that are sure to hit the market. At Capet, we love making history!"

The reporter's eyes sparkled as she asked, "Currently in Hollywood, the only ones who can compete with Capet are Warner Bros. and 20th Century Fox. If Capet merges with Universal, won't this expansion in market share trigger a coalition of other film companies?"

Charles laughed, looking calmly into the camera, "America values a free-market economy, and Capet's success will naturally impact our competitors. Capet never fears competition."

Reporter: "Charles, many people are also curious about your private life..."

...

In a meeting room at the Los Angeles Country Club in Beverly Hills, several people were watching an interview on TV about Charles Capet.

Present were Warner Bros. Co-CEO Alan Horn, 20th Century Fox Co-CEO Tom Rothman, Sony Columbia Co-CEO Amy Pascal, and Paramount Chairman Brad Grey.

The heads of Hollywood's four major film groups watched Charles Capet's eloquent speech with mixed feelings.

"How's everyone's take? Capet might make history with $2 billion in North American box office, owning over 20% market share alone. Any thoughts?" Alan Horn of Warner Bros. asked.

Tom Rothman of 20th Century Fox, a bit resigned, said, "If Capet merges with Universal, won't they have over 30% market share?"

The statement made Brad Grey of Paramount and Amy Pascal of Sony Columbia flinch.

"30%, my God, is Capet planning to dominate Hollywood?"

"Universal is currently organizing a team to evaluate Capet's assets. Disney's live-action head Dick Cook just left, and Hollywood is indeed in turmoil," said Amy Pascal, who had risen to the top of Hollywood, an achievement not many women could boast.

Moreover, MGM's mess also troubled Sony Columbia. The ongoing decline in the DVD market made Sony's investments hardly worth it, especially considering the high costs involved in securing Hollywood studio rights.

Brad Grey added, "Although we stopped Capet from becoming an MPAA formal member last year, if Capet merges with Universal, they will directly inherit Universal's MPAA seat. This path is a dead end."

Following Sumner Redstone's mediation, MPAA did not accept Capet as a member this year, leading to a direct confrontation between Charles Capet and Sumner Redstone.

Viacom, CBS, and Paramount faced retaliations from Capet, which halted several film productions and advertising collaborations.

Brad Grey feared that with Viacom possibly reconciling with Capet, Paramount would become the primary target.

If Capet merged with Universal, the UIP (United International Pictures) channels in Europe, shared by Paramount and Universal, would likely disintegrate.

Universal's self-established UPI (Universal Pictures International), combined with Capet International Pictures (CIP), could easily phase out the remaining UIP branches.

Alan Horn nodded, aware of Paramount's situation due to their frequent collaborations in recent years.

"Folks, Capet merging with Universal can't be stopped, and Hollywood's $10 billion era is approaching. If Capet takes one-third of the cake alone... The five of us, along with Lionsgate, Legendary, Relativity, Summit, and various smaller distributors, would have to split the remaining 70%. Do you see any issues with that?"

After Alan Horn's words, the others pondered. The pie was only so big, and the more Capet took, the less there would be for everyone else.

Tom Rothman of 20th Century Fox, currently strong, responded with a smile, "Alan, are you suggesting we team up against Capet?"

"Don't forget, Charles Capet isn't known for his good temper, and he's currently the wealthiest man in Hollywood. His assets surpass both Mr. Sumner Redstone and Mr. Rupert Murdoch combined."

Tom Rothman's message was clear: in any other game, Charles Capet could outplay them.

Alan Horn scanned the three, "Do any of you have a different idea?"

*****

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