Chapter 17 The Role of 17ak Film and Television

Chapter 17 The role of film and television

In the United States, acquiring a listed company is very troublesome, with complicated procedures and lengthy processes that often take more than half a year or even longer.

But MGM has its own special characteristics. It is a listed company, but 92% of its shares are concentrated in the hands of Kerkorian, and only 8% of the shares are actually circulating in the market.

Of the 8% of shares, MGM's middle-level executives account for another 5%. For example, Charlie Cooper holds 1% of the shares. In fact, only 3% is actually in the hands of retail investors.

And just after the fiasco of "Windtalker", 3% of the retail investors in the market have been sold off, all of which were silently eaten by dad at the first time. So in theory, Charlie Cooper can now be regarded as MGM the second largest shareholder.

As for the stocks held by the rest of MGM's middle and senior management, Charlie Cooper definitely couldn't buy them. He had conflicts with that group of people, but if he couldn't do it, Kerkorian could.

So within a short period of time, Kerkorian increased his stake to 96%, and the two actually held 100% of the shares.

Then there is delisting. This is the real purpose of gathering equity, so that MGM can be delisted and privatized.

In the end, it was sold directly to the Coopers and Sons, which saved a lot of acquisition time and could resolve the battle within a month at the earliest.

Although listed companies can raise funds for development, this is compared to ordinary companies. Eric, who has the advantage of foresight, does not need it at all. Going public will only drag him down.

Moreover, MGM is in such a bad situation now that it is already very unfavorable by the market. Even if it goes public, it will only raise less than a few dollars and it will cause trouble. It is really unnecessary.

As for the government departments, it is no longer a problem. Money can lead to gods, and the process is unexpectedly smooth!

As US$2 billion gradually arrived, news that MGM was to be acquired also spread in the market.

At this time, the company was still depressed because of the box office failure of "Wind Talker". Suddenly hearing the news, some middle and high-level executives began to investigate the acquirer's information, but there was no reaction from the grassroots.

Whoever you love has little to do with them anyway. No matter who takes over, they will still have to use them. If they dare to fire them, they will cause trouble. The union is not a living wage.

The ones paying more attention than a few senior executives are actually Sony and Warner.

The two families had long wanted to own MGM, and they had had many private conversations with Kerkorian, but the results were not satisfactory.

The reason is also very simple, not enough money!

Sony and Warner were only willing to pay US$400-500 million in exchange for part of MGM's shares, thereby obtaining the operating rights of MGM.

These two major companies believe that with their own strength, they can bring MGM back to life, and then slowly dilute Kerkorian's equity, thus eating up MGM at a relatively small price, but it will take a long time. That’s all.

But Kerkorian doesn't accept this at all. He only wants cash, enough cash, and anything else is nonsense.

Kerkorian is not interested at all in the IP, studio, director, special effects and other plans that Sony and Warner talked about.

In the eyes of this casino tycoon, acquisitions that do not involve giving cash are just hooligans and free prostitution.

So when Sony and Warner found out that the acquisition amount was as high as 2.8 billion US dollars, which was still in cash, they stopped thinking about getting involved midway.

2.8 billion US dollars, even if the two companies split it equally, each would have to pay US$1.4 billion, not to mention that it is impossible for them to share it equally.

The most important thing is cash. No matter how many fixed assets you have or how big your IP is, it doesn't matter. It's not cash.

No one made any trouble, and the delisting was completed in just one month. The subsequent acquisition process also went smoothly, and major Hollywood companies and even some forces on Wall Street set their sights on the Cooper family.

No one thought they could suddenly get 2.8 billion US dollars. In the eyes of the market, the two fathers and sons should be acting as the white gloves of a certain funder father.

But no matter what, Eric suddenly became a hot favorite in Hollywood, and Charlie Cooper's status rose to a higher level.

In the past, he was just the CEO of MGM, an insignificant wage earner under Kerkorian.

Now he is still the CEO of MGM, but his identity has changed into a movie giant boss with billions of wealth.

Time came to mid-August. After a busy month and a half, and after sending out more than 8 million US dollars to establish relationships, the acquisition was finally settled, and the speed was miraculous.

In Charlie Cooper's opinion, there was really no need to be in such a hurry. That was eight million dollars, enough to make a B-level movie.

But Eric insisted on hurrying, because the post-production of "Red Dragon" and "Barbershop" has been completed and will be released soon.

These are two big-money movies. The lack of guarantees will give Kerkorian some ideas, such as a temporary price increase. Similar things are not uncommon.

Moreover, Eric is not at ease with the other major film companies. In short, things will change later, so it is better to be safe.

At night, a party was being held at Cooper's house. Not many people were invited, only Eric's four best friends and a few of his father's friends.

The reason for inviting these people is naturally to make a major change in the top management of MGM.

The structure of a film and television company is very complex, including marketing, production, creative, administrative, financial, script and other departments. Each department has multiple branches.

For example, the publicity department is responsible for art, poster production, advertising, etc., and has more than 2,000 employees.

Including the number of people in other departments, MGM employs more than 3,000 employees, and monthly salary expenses are as high as millions of dollars.

But don’t think that 3,000 people is a lot. Compared to Warner Disney, MGM is just a dwarf, because Warner has more than 80,000 employees around the world, which is very scary.

Among the seven major Hollywood film and television companies, MGM has the smallest number of employees, reflecting the most depressed situation.

However, even with more than 3,000 people, there are many obstacles inside. Although Charlie Cooper is the CEO, he cannot control the overall situation. There are many people in the company who oppose him.

So at the beginning of this acquisition, my father contacted several executives of small companies and invited them to join MGM to replace the disobedient guys.

As for Judy, Warren, Bordeaux and Billy, it is too early for them to take charge now. They should learn from them first and wait until they are able to take charge of their own affairs.

Gathering around the barbecue grill, Eric took a sip of beer: "I've been very busy recently. Now things have finally come to an end. Are you ready to enter the industry?"

Hearing this, the four of them immediately started talking.

"We have come this far, is there any better choice? Hahaha"

"That's right, I paid 3 million US dollars anyway. Although it's just a fly's leg, I can still be regarded as a shareholder."

"In the film and television industry, I seem to have seen the call of countless beauties."

"Seriously Eric, what position are you going to put us in?"

Eric turned over the grill: "Let's go to each department to study first. It will take two months. I want you to be familiar with the various tasks of this department within two months. I need to know what you are best at, of course. , and also do other tasks assigned by me.”

"What job?"

"Many, such as discovering and purchasing copyrights, including potential comics, novels, games, etc."

"For example, "Spider-Man"? So far, it is the box office champion in North America!" Warren said.

"Also "Resident Evil" is also good. Although I haven't played the game, the movie is very good. Milla Jovovich after the infection is so hot! And the box office is also very high."

Eric nodded: "That's right. Zombies are a very marketable subject. I also plan to shoot a TV series. I need you to do a market survey to ensure that there will be no problems with the copyright. After you join the job, you will work with the marketing department. Good thing."

"In addition, Transformers also has great potential for adaptation, but the copyright is in the hands of Hasbro. This is a piece of fat, and we need to win it."

"There is a writer named George Martin. He has a very good work called "A Song of Ice and Fire". He has worked in Hollywood. No matter what method I use, I want to get his copyright."

"There's another very important thing. Which of you likes to watch bad movies?"

The four of them looked at each other, not understanding what it meant.

"It's the kind of movie that has simple special effects, low cost, a lousy plot, and a very low rating. Movie theaters won't show it."

Warren swallowed a piece of barbecue and said vaguely: "Discs? As long as there is an exciting cover, there are many such movies in the disc market. My dad likes them very much. He bought a lot of them. , I’ve seen a lot of them too.”

Eric's eyes lit up: "Yes, the TV and disc markets are indeed the main areas for bad movies. Warren, are you interested in helping me manage a bad movie company?"

"What?"

Warren choked and looked out of breath.

Judy slapped his back with five thunderous moves, and then spit out the roasted meat.

"I understand the company, but what does a bad movie company do?"

"It is a film and television company that specializes in making bad movies. Of course, bad movies are not a derogatory term. What I want is a small investment and a big return. What I am trying to do is use a small amount to make a big gain, just like many B-level movies. Do you understand?"

Warren frowned: "You mean the Blair Witch kind?"

"It's almost the same, but the promotion of Blair Witch is too expensive. We don't want to play that kind of model. I just want the kind of pure bloody, copycat, and vulgar movies. Do you understand?"

Warren hesitated: "I have indeed seen a lot of movies like this, but can it really make money? And is this really a good thing?"

The other three were also speechless: "Eric, making a bad movie is equivalent to destroying your own brand."

"Yes, of course a big company wouldn't do such a thing, so didn't I ask you to register a company some time ago?"

"You mean AK Film and Television?"

"Yes, after I take over MGM, I will select a group of professionals to join AK Film and Television. They will be my white gloves, specially used to make bad movies."

The four of them suddenly realized that nothing happened after Eric asked them to register the company. It turned out that he had already made up his mind.

Of course, Eric's doing this was not a whim, because there is indeed a company in Hollywood that specializes in producing bad copycat movies, called Madhouse Pictures.

The movies it has produced include, but are not limited to, "Atlantic Rim," "Warships," "The Age of the Hobbit," "Avatar vs. Alien," etc. Just looking at the names, they have a sense of authenticity.

Moreover, the cost of a Bedlam movie is generally controlled within 1 million US dollars. You read that right, not even 5 million, only 1 million.

Whether it's the special effects or the way of service, it gives people the feeling of a street stall.

But the strange thing is that every movie of Madhouse makes money, and it has also launched a well-known bad movie series "Sharknado", which has made a great reputation in the global bad movie industry.

Later, as the bad movies were made more and more, a fixed fan group has been formed.

We know you are bad, but we want to see what new heights you have reached this time, and we will buy a set of genuine discs for collection.

This phenomenon of ugliness is quite similar to the release of "Fuchun Mountain Residence" in China. A large number of audiences walked into the cinema with the mentality of ugliness, contributing to a wave of box office.

As for whether such rampant copycats will be sued, the answer is no.

Madhouse Films has embarked on the road of copycats since 2005. By 2023, it has copied more than 300 Hollywood blockbusters. All major Hollywood companies have not escaped the clutches of Madhouse, but they have only been sued twice.

The original company is too lazy to go through legal procedures, because it takes a long time and basically can't win the lawsuit. Have you seen Nanshan Pizza Hut lose?

Madhouse was once sued by Warner for "The Age of the Hobbit", but Madhouse Films said that my hobbit is a primitive race in Indonesia, and also produced various scientific reports, which is completely different from your fictional hobbit.

Because of this, and the fact that Madhouse's bad movies basically don't go to theaters, they are almost all on TV and DVD. Everyone's positioning group is different, and there is no competition point.

Not only is there no competition point, after Madhouse Pictures has made a name for itself, the copycat blockbuster can actually help the genuine product to promote it. It's a win-win outcome, so why not?

In Eric's conception, AK Films and Madhouse are similar and different. The similarities are of course all kinds of big bad movies, and the difference is that AK will also shoot some low-cost B-level movies, which may not be bad enough, but the cost must not be high.

Another important point is that Eric really needs money. He still owes the bank $2 billion. The annual interest is an astronomical figure for ordinary people.

So he needs to make money, desperately, but the film and television industry is a slow-returning business. After delisting, it is impossible to cut leeks from shareholders. The only thing he can rely on is himself.

So money! Money! Money!

Important things must be said three times, Eric must make money like crazy!

He has even turned his attention to the stock market. Although he doesn't know much about this industry, there are several companies that will definitely not lose money.

Besides, AK Films is his white glove, and he can start with the copycat MGM movies.

It's only 2002 now, and Madhouse Pictures has not yet embarked on this path. Sorry, I want to occupy the track in advance.