Across America, Starting with the Boxing Champion

Chapter 510: Acquisition of Summit Entertainment

 “This **** Link, I’m going to kill him.”

In the Weinstein Films conference room, Harvey picked up the documents on the table and smashed them against the wall. Dozens of white papers in the folder floated up with a clatter, and then scattered on the floor, everywhere. .

Bob Weinstein, publicity director Jon Gordon, production department director Mickey Rourke and others looked at the angry Harvey helplessly.

Originally, they were discussing cooperation with the executives of Summit Entertainment, and planned to acquire Summit Entertainment for US$280 million + 45% of Weinstein Pictures shares, for a price of approximately US$420 million.

After the company merged, the top executives of the two companies jointly presided over the work of the new company. Summit was mainly responsible for commercial films, and Weinstein was responsible for art films.

Join forces to create a new situation in the film industry.

After more than three months of negotiations, when it was almost successful, Summit Entertainment suddenly announced that it would suspend negotiations and postpone the signing.

At first, they were confused about the situation and thought that Summit Entertainment was not satisfied with the price and was planning to use this method to ask for more money.

They sent people to investigate the matter and see how much money Summit Entertainment wanted to add.

As a result of the investigation, it was found that it was not Summit Entertainment that wanted to increase the money, but Lionsgate Pictures sent people to contact Summit Entertainment again to prepare to restart the acquisition plan.

Compared with Weinstein Pictures, Lionsgate Pictures has great advantages in terms of market value, operating status, capital chain, and management.

The current market value of Lionsgate Pictures is as high as 1.6 billion U.S. dollars, with a debt of 300 million U.S. dollars. Because the movie box office is good, Wall Street's valuation of Lions Gate is getting higher and higher. A lot of capital wants to invest in Lions Gate at a premium, but there is no chance.

The Weinstein Pictures has a market value of only US$300 million and a debt of US$160 million. Due to the sluggish movie box office this year, it has been severely challenged by Lionsgate Pictures in terms of Oscars. Moodys’ valuation of the Weinstein Pictures is also lower and lower.

In terms of film management, Lionsgate Films owns blockbuster movie series such as "The Hunger Games", "The Expendables", "Saw" and "Dark Lady". The brand value is very high, which also shows the development potential of Lionsgate Films. It's huge, and Weinstein Pictures doesn't have that kind of movie.

Lionsgate also owns shares in Netflix, as well as TV series production units and TV Guide shares, as well as a massive film library. These are all very valuable assets.

In any case, it is more valuable than the Weinstein Films, which was established less than 5 years ago.

In addition, in terms of management, Eva Ka demonstrated excellent management skills during her tenure as chairman of Link Music and Lionsgate Pictures.

Jon Fillame, Steven Bickers, Michael Burns, Brian Goldsmith, Jamie Jones, Stacey Schneider and others are also elites in the film industry Character, very capable at work.

Weinstein Pictures mainly relies on the Weinstein brothers to manage the company. The two are very strong at work. Harvey in particular has a bad temper, is difficult to cooperate with, and is difficult to get along with. It is no secret in the industry.

Comparing the two sides, Lionsgate is more suitable for cooperation than Weinstein Pictures in every aspect.

Summit Entertainment probably thought the same way, so when they saw Lionsgate sending people to propose marriage, no, to discuss cooperation, they immediately suspended negotiations with Weinstein Pictures and actively contacted Lionsgate Chief Strategy Officer Michael Byrne. The acquisition team led by Si.

This is in line with the rules of business negotiation for Summit, but it is very unfriendly to the Weinstein Films.

The two families had been talking very well before, and the atmosphere was very harmonious, as if they wanted to become a family. For this reason, Harvey put on a smile every day to face the people in Summit Entertainment.

I originally thought that we could become a family with Summit Entertainment and join forces to deal with Lionsgate.

But when the two companies were about to complete their 'marriage', Lionsgate Pictures suddenly came over to hook up with Pinnacle's young lady. As soon as Pinnacle saw 'Top Rich and Handsome' Lionsgate coming to propose marriage, they immediately took the ugly Weinstein movie With his career forgotten, he turned around and hooked up with Lionsgate, looking like he couldn't wait to devote himself to Lionsgate.

This is tantamount to a slap in the face of Weinstein Pictures, and it also makes Weinstein Pictures boss Harvey lose face.

After hearing the news, the grumpy Harvey naturally couldn't help but get angry. He got furious in the conference room in public and threatened to kill Link.

"Harvey, don't be angry. This has already happened. All we can do now is wait and see how the talks between Lionsgate and Summit go. If the two companies don't reach an agreement, we still have something to do. Opportunity.”

Bob took a step forward to persuade.

Other senior executives in the company knew that Harvey had a bad temper and would sometimes hit Bob when he got angry, so every time when Harvey got angry, everyone stayed far away to avoid being affected.

After hearing Bob's persuasion, Harvey became even more angry.

What do you mean you can only wait now? What does it mean that the two companies have not reached an agreement and Weinstein Pictures still has a chance?

They are all movie companies, so why can Lionsgate negotiate with Summit Entertainment first, while Weinstein Pictures waits in line behind like a taker?

So insulting.

In all his life, Harvey had never encountered such a blatant insult except the time he was scolded by Link.

Especially for someone who is the king of Hollywood and is insulted like this, it hurts twice as much.

Harvey's face was sullen, and his pitted face became more ferocious. He glared at Bob and said, "Go tell Robert Friedman that Lionsgate doesn't really want to cooperate with Summit Entertainment. The reason why Link did this is If you want to destroy the cooperation between our two companies, you must not be fooled. Tell Robert that if he is willing to give up the negotiation with Lions Gate, we can increase the price by .4%.”

Robert Friedman is the founder, chairman and majority shareholder of Summit Entertainment.

"Harvey, we don't need to remind Summit Entertainment about this matter. They also know that there is a 4% increase in price. We don't have that money."

Bob said politely.

In fact, he did not approve of the acquisition of Summit Entertainment from the beginning.

The Weinstein Pictures has only been established for less than five years, with a market capitalization of just over 300 million, and a foreign debt of 160 million. Now to acquire Summit Entertainment, which has more than 400 million, will undoubtedly make the Weinstein Pictures' financial situation even worse. will bear a heavy burden of foreign debt.

Once there is a financial crisis, or the movie box office suffers losses, and the capital chain is broken, the Weinstein Films will face the risk of bankruptcy.

Harvey knew this too.

But Harvey saw that Lionsgate Pictures was getting stronger and stronger, already far behind Weinstein Pictures in terms of market value and box office, and Link's power in Hollywood was also growing. In last year's "Hollywood Power Rankings" On the list, Link's name is not yet visible.

This year, Link and his wife joined forces to join the list, ranking third and fourth on the powerful list.

If Harvey wants to take revenge on Link, suppress Lionsgate Pictures, and stabilize his status as the 'King of Hollywood,' he cannot rely on Weinstein Films alone.

So after hearing that the negotiations between Relativity Pictures and Summit Entertainment had broken down, Harvey tried his best to persuade the Weinstein Films board of directors to raise funds and prepare to acquire Lionsgate Pictures to accelerate the development of Weinstein Pictures.

The major shareholders on the board of directors have little interest in increasing investment. Only shareholders such as Ivy Niwo are willing to raise US$120 million.

In order for the company to complete the merger and acquisition, it needs to borrow a large amount of money.

This is too much pressure and too risky for Weinstein Films, which already has 160 million in debt.

Not a good idea.

Bob tried to persuade Harvey many times, but Harvey couldn't listen and insisted on going his own way.

Bob is almost dying of grief these days. Suddenly I heard that Summit was abandoning Weinstein Pictures and preparing to cooperate with Lionsgate.

Bob didn't feel insulted at all. Instead, he was very relaxed and looked forward to the cooperation between Lionsgate and Summit so that the company would not have to bear huge debts.

What he has to do now is to persuade Harvey to put this matter aside and work on movies without worrying too much about the fame and power.

Rather than being given frivolous titles such as 'Golden Producer' or 'King of Hollywood', he would rather be a billionaire, worth billions, and be on the "Forbes Rich List", just like Link.

"We have no money to borrow. We have the support of Warner Pictures. As long as Summit Entertainment is willing to cooperate, we will definitely catch up with Lions Gate within three years."

Harvey shouted confidently.

"Warner Pictures?"

Bob shook his head. Although Warner Pictures agreed to invest 300 million US dollars to jointly produce 5-6 movies with Weinstein Pictures, this cooperation method is dominated by Warner Pictures. Even if the movie makes money, it is Warner Pictures. To make money, Weinstein Pictures can only earn a little production funding.

Although the risk is lower, the profit is also less. It is better to make more niche art films such as "The King's Speech", "The Iron Lady" and "The Artist" each year to make more money.

In addition, even with the financial support of Warner Pictures, it is impossible for Weinstein Pictures to catch up with Lionsgate Pictures within three years.

Bob felt that Harvey must have been so angry that he lost his mind and said such a thing.

"Harvey, the company already has 160 million in foreign debt. If we borrow another 200 million in funds, the interest that the company has to repay every year will be a heavy burden. Once the company's movies suffer box office losses, or the return of funds is slower, and the capital chain is broken, The company will be in danger of bankruptcy, so I hope you will think about it again.”

Bob said.

"Shut up!"

Harvey picked up a folder and threw it on Bob's body. He slapped the table and shouted: "I don't want to hear this. Hurry up and contact Robert Bradman. I must successfully acquire Summit Entertainment before Lionsgate." ”

Bob's eye muscles twitched, he sighed, and left the conference room with his assistant.

When the other people saw Bob leaving, they also left the room with solemn expressions.

Harvey stood alone in the empty conference room, his face becoming even more ugly. Just three minutes ago, he was fantasizing about how to arrange the work of the new company after successfully acquiring Summit Entertainment, how to increase the production volume, and strive to achieve success next year. Catch up with Lionsgate, slap Link in the face, and complete your revenge.

Everything was well thought out, but unfortunately after the people from Summit Entertainment left, the previous fantasy burst like a bubble and turned into a cold and cruel fact - the gap between Weinstein Pictures and Lionsgate Pictures is getting wider and wider. He will also inevitably be stepped on by Link, no matter what he does, it will be in vain.

"Fuck! Fuck! Damn Link Baker, I will never give up, never!"

Harvey roared loudly facing the empty conference room.

—

"Summit Entertainment's offer of US$430 million? Including unreleased movies such as "The Twilight Saga: Breaking Dawn" and "The Informer"?"

Lionsgate, Link asked as he flipped through the documents.

"Yes, but in terms of funding, they hope to get no less than 20% of Lions Gate Pictures shares."

Executive Chairman Steven Biggs, Chief Strategy Officer Michael Burns and Chief Operating Officer Brian Goldsmith were all standing at their desks waiting for his instructions.

Link touched his chin and said nothing.

Unlike Lionsgate, a company that has both film and television production departments, TV channel shares, and strong production and distribution channels, Summit Entertainment's assets are relatively simple, with four main assets.

The first part is the copyright of more than 900 film libraries, worth about US$35 million.

The second part is Summit Studios, Summit Distribution Company, which has approximately US$60 million.

The third part is that the script library has the rights to adapt 12 scripts and novels, worth US$15 million, including "Divergent", "Ender's Game", "The Last Witch Hunter", etc.

The fourth and most important asset is several unreleased movies, including "The Twilight Saga" and "The Informer" and four other unreleased and in-production movies, worth approximately US$300 million. Among them, "Twilight" The price of "City of Light 4" is as high as 200 million US dollars.

Summit Entertainment quoted a price of 430 million, requiring payment in Lionsgate shares and cash.

The current market value of Lionsgate Pictures is US$1.6 billion, including Netflix shares.

20% of Lions Gate shares are worth about 380 million, plus 50 million in cash.

Link thought for a moment and told Michael Burns, who was leading the negotiations, that he would accept Summit Entertainment's offer of 430 million, but only agreed to give 10% of Lions Gate's shares, which was 160 million, and the remaining 270 million could be paid in cash.

If Summit Entertainment wants to get more Lions Gate shares, it needs to buy them at a price of 2 billion. This is also his offer to Wall Street, and Summit will be treated equally.

"Okay, boss, I'm going to negotiate with Summit Entertainment."

Michael Burns nodded.

Link discussed the loan with several executives. Currently, Lionsgate Pictures has 320 million in debt, part of which is debt that was not paid off last year, and part of which is borrowing for this year's production costs.

As the box office and peripheral income from movies such as "The Hunger Games" and "Buried Alive" have gradually recovered, the company now has a balance of almost 300 million US dollars in its account.

But this part of the funds needs to be reserved for filming next year and cannot all be used to pay off debts.

If the negotiations with Summit are successful, the US$200-300 million to acquire Summit Entertainment will need to be borrowed from a bank.

Lionsgate Pictures is currently developing well, has many valuable assets, and has a high degree of credit with banks. It is no problem to borrow another 600-700 million yuan.

There is no problem with funds.

There is also the issue of work after the merger of the two companies. This aspect can be discussed after the negotiations are successful. After all, more than one company wants to acquire Dingfeng.

“That’s it, let’s continue negotiating with Summit.”

"Yes, boss!"

The executives retreated.

(End of chapter)