Chapter 566: The Split of AOL Time Warner

In April 2010, besides Capet's preparations for the Shanghai Universal Studios Resort in China and the impending auction deadline for MGM, another media giant in Hollywood, Time Warner, successfully spun off its subsidiary AOL, making it a standalone publicly traded company. This was similar to when Viacom split into two independent companies, Viacom and CBS. At the same time, former Time Warner CEO Jerry Levin made a rare TV appearance to apologize for the huge losses resulting from the merger at that time.

In 2000, the tech company AOL, inflated by the dot-com bubble, merged with Time Warner. It was the biggest deal of its time, valued at over $350 billion. Jerry Levin, CEO of Time Warner, was the main driver behind this disastrous deal.

In an office at Capet Tower in Burbank, Los Angeles, Charles leaned back in his chair watching Jerry Levin's interview on CNBC.

"Is this the tenth anniversary of the AOL-Time Warner merger?" Charles laughed. The honeymoon between AOL and Time Warner was very short, but at that time, it was unquestionably the world's number one media group.

Phyllis Jones poured a glass of wine for Charles and said, "It seems like a late apology from Jerry Levin."

Jerry Levin stated, "Apparently, I orchestrated the worst deal of the twentieth century. For those impacted by the merger, I believe it's time to step up and say: you know what, I am solely responsible. I ran the show. I deeply apologize for the pain and losses I caused, and I take responsibility."

He added, "This isn't the board's fault, nor is it the fault of my colleagues at AOL Time Warner."

Jerry Levin had been in charge of Time Warner since it merged with Warner Brothers in the early '90s. He then brought in stakeholders like Western Digital, Toshiba, and Itochu Corporation. He later acquired TBS, which owned CNN and TNT, and eventually facilitated the merger with AOL at the turn of the millennium. The new group was dubbed AOL Time Warner, with AOL's CEO Steve Case as the chairman and Jerry Levin continuing as CEO of the new group.

Unfortunately, the Internet bubble burst, triggering a financial crisis. AOL's market value plummeted by 90%, evaporating over $200 billion of the merged AOL Time Warner's value. In May 2002, Jerry Levin resigned as CEO, and in January 2003, Steve Case stepped down as chairman. Following that, Time Warner's CEO and chairman roles were taken over by Richard Parsons, the current chairman and CEO of Citigroup.

"Boss, it's surprising to see Jerry Levin apologizing for the merger after all this time," Phyllis Jones was puzzled, "Previously, he had always avoided apologizing for the massive losses caused by the deal."

Charles shook his head, "Perhaps it's because we've just gone through another financial crisis, and Time Warner has just spun off AOL again."

Having spoken to CNBC's financial news show, Jerry Levin not only apologized and took responsibility but also called for other renowned business leaders from the past decade to follow his example: "Company leaders should stand up, take responsibility for what has happened, and take action to make amends and compensate."

"Boring," Charles turned off the TV. "Are things going smoothly with NBC's acquisition of Microsoft's half share of MSNBC News?" Charles asked as he stood up.

Phyllis Jones nodded, "Microsoft seems to have lost faith in traditional television news. They sold their 50% share in NBC News to us for a billion dollars, although they're keeping half of MSNBC's news website."

Charles waved dismissively, "No big deal, Microsoft is an internet technology company. It's natural for them to favor the internet over traditional television news."

Looking through the window at the ongoing construction of the NBC tower headquarters, Charles felt a rush of pride. "The skyscraper project on Leonard Street in Downtown Manhattan needs to get started soon. That's the future East Coast headquarters of Capet Media Group."

"Understood," Phyllis Jones knew that her boss was urging them to hurry up.

...

In the plaza in front of Los Angeles City Hall, one of the California governor candidates, Jerry Brown, was giving a public speech.

In a building across from City Hall, Charles was holding Ivanka Trump from behind while standing by the window. "Are you helping Jerry Brown campaign for governor too?"

"Yep, Ms. Huffington says Jerry Brown has a good chance of winning. Lots of people are supporting him, so I'm learning from the campaign team," Ivanka said, snug against Charles's chest, her breath quickening with the surge of hormones.

Looking at the beautiful rise and fall of her chest with her breaths, Charles unbuttoned her blouse and caressed her 34D. "So, which cities will you go to next, or what's the plan?"

"Well, next we're heading to the Bay Area and then to the capital, Sacramento, for more events. Most of the time, it'll be mainly about publicity. After all, Jerry Brown has experience as governor of California," Ivanka said with a smile. "Lots of celebrities are supporting him, and with Hollywood's favorite son backing us up, our confidence is pretty strong!"

"Ha," Charles kissed her face, feeling quite spirited. 

Ivanka leaned softly into Charles, enjoying the moment and smiling as she caressed his face. "Tonight we're having a fundraising dinner at the SLS Hotel. Back to Oakland tomorrow."

"So, no wasting time," Ivanka said before turning to kiss Charles.

This year's Californian election, Jerry Brown's biggest opponent was eBay's former CEO, Meg Whitman; Jerry Brown was older but experienced and frugal, contrasting with the wealthy but inexperienced Meg Whitman - this was his biggest advantage.

California's substantial budget deficit, a significant problem left by Arnold Schwarzenegger, had to be resolved by the next governor!

"Recently, I bought three golf clubs in South Korea. The equipment, facilities, clubhouse, and lounge are all pretty nice. Want to check them out?" Charles asked.

"Golf courses? You actually went to Asia to manage these," Ivanka laughed and laid on Charles's chest. "In Doral, northwest of Miami, there's an 800-acre country club for sale. It has a large resort hotel and the Blue Devil course!"

"Interested?" Charles asked, caressing her 34D.

Ivanka nodded, "I heard from the company that the Blue Devil course is a regular venue for the World Golf Championship, not far from Miami International Airport either. Though it's a bit old, if we buy it and refurbish, it can definitely regain its vitality!"

"Estimated price?" Charles asked.

"Between $100 million to $200 million, depending on negotiations. What do you think?" Ivanka kissed his chest.

"Sure, you go discuss it. It'll give you a business to manage," Charles didn't mind. Ivanka's fashion business wasn't going anywhere right now.

"My dad will only support me with at most $50 million," Ivanka said, looking up.

"Don't worry, I won't let you suffer a loss," Charles smiled. "Just go for it boldly!"

Previously, when shorting the euro, Charles had invested $200 million cash, but also used a lot of funds from Japan's Nomura Securities as capital; Perhaps in a few months, Charles would finally reap the rewards!

...

With the summer blockbuster season approaching, Hollywood was gearing up for another fierce box office battle.

Universal's Thor 2 and Robin Hood were both releasing in May!

Robin Hood was coming out in early May, while Marvel Studios' Thor 2 was scheduled three weeks later.

Eva Green, apart from preparing for the promotion of Thor 2, had also participated in several film festivals with the drama film Cracks, which premiered in the UK last year!

Backstage at the premiere of Cracks.

"This month, we've been to the Boston International Film Festival, the Seattle International Film Festival, and the San Francisco International Film Festival," Eva Green followed director Jordan Scott, traveling to many places.

"Last year, didn't it get a lot of praise at the Toronto Film Festival? Why is it only now being released in North America!" Charles wouldn't have remembered this film if it wasn't for Eva Green.

Eva Green smiled, "Focus Features took over the distribution and postponed it until now!"

Charles nodded when suddenly a young beauty walked in, looking a bit flustered seeing Charles Capet and Eva Green chatting.

Eva Green waved, "Maria, come over here. This is Mr. Charles Capet!"

Maria Valverde walked over, "Good evening, Mr. Capet. I'm Maria Valverde, a Spanish actress!"

"Oh, I know you. Your performance in Cracks was seasoned and beautiful," Charles responded with a smile.

"Ah, thank you!" Maria Valverde was slightly flattered.

Maria Valverde, the young actress who had intimate scenes with Eva Green in Cracks!

Though the premiere of Cracks was modest, the attendees were notable, given that the director Jordan Scott was Ridley Scott's daughter.

Ridley Scott had collaborated frequently with Capet Pictures. He was the lead director for the upcoming series A Song of Ice and Fire. The Wolf of Wall Street, starring in and produced by Leonardo DiCaprio, was also directed by Ridley Scott!

*****

https://www.patreon.com/Sayonara816.