Chapter 493 - 402 Strategy (10/10)_3
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"Harvey?"
Link curled the corner of his mouth, feigning disdain as he sneered, "Is he even worthy to be my opponent? No, he's just an insignificant stepping stone on my path to success, one that I can easily step over."
John Marlon was stunned for a moment, laughed dryly a few times, and suddenly realized he could not read this young man.
Harvey Weinstein is the current number one power broker in Hollywood, known as the Oscars manufacturing machine, a gold producer, and a bigwig who everyone in the film industry pursues.
In Link's eyes, the bigwig Harvey was just an insignificant stepping stone.
This young man was too arrogant.
He would eventually pay for his pride and arrogance.
John Marlon was not Link's elder or friend, nor did he have the obligation to advise him.
He shook his head, picked up the pen, and signed the letter of intent. He greeted everyone and then left, along with his assistant, from Lionsgate Films.
——
"Link, how did your talk with John Marlon go?"
Upon seeing Link walk out of the conference room, Mandy approached and asked.
"It went smoothly, Lionsgate is mine now."
Link shook the documents in his hand.
After several rounds of bargaining, he finally spent 2% of Twitter's shares and 72 million US dollars in cash to acquire John Marlon's Lionsgate shares.
Currently, he personally held 87.7% of Lionsgate Films' shares. Including the 4.7% held by several members of the management team, only 7.6% of shares remained on the open market.
Seeing that the executives were present, Link announced the continuation of the company meeting, with Mandy in attendance.
During the meeting, he listened to reports from several executives of Lionsgate Films.
Lionsgate Films was distributing three movies at the time: "The Expendables," "Sweetheart Spicy Dance 2," and "Miss is Poor," all of which had average box office performances.
Six film projects were in production, including "The Hunger Games," "The Cabin in the Woods," and "The Evil Invasion."
Apart from "The Hunger Games," all the other projects were low-budget productions costing less than 15 million each.
And a TV series, "Mad Men," was in production for its fifth season.
Besides distributing films produced by its own company, Lionsgate Films also participated in the distribution of movies from companies like Relativity Media and Summit Entertainment, currently having four films in distribution.
Lionsgate Films was in debt to the tune of 180 million at that stage, with less than 30 million left for investment in film production.
And the healthy assets of Lionsgate Films primarily consisted of three parts.
The first part consisted of owning the rights to 12,000 movie and TV series episodes through acquisitions of other production and distribution companies. With royalties and other income, this could generate a stable cash flow of around 80 million US dollars annually, but due to debt, this was temporarily mortgaged to the bank.
The second component was the shares and distribution channels of three companies: Triangle Entertainment, Atison Entertainment, and MGM Entertainment, with a market value of approximately 150 million US dollars.
The third part was the Debmar television production department and TV Guide shares, with a market value of about 220 million US dollars.
These three parts were the main assets of Lionsgate Films. If split and sold, they could pay off the loans and leave less than 400 million US dollars.
Less than what Link had anticipated.
But also within expectations, if Lionsgate Films was doing well, the major shareholders would not have agreed to sell their shares.
Link told the executives in the meeting that there would be no changes to the Lionsgate Films management for the time being, and everyone would continue with their duties. After the meeting concluded, they should continue with their work, trying not to let the company's changes affect the production of film and television projects.
The executives sighed with relief upon hearing his words.
Link's second item on the agenda was to take Lionsgate Films off the New York Stock Exchange.
He would continue to invest in the purchase of the remaining shares. Several executives also held Lionsgate shares, and if they were willing to sell, he would buy them at a valuation of 630 million. If they were optimistic about Lionsgate's future and preferred to keep their shares, they were welcome to do so; it was entirely voluntary.
Upon hearing his words, the executives had little reaction. With Link holding 87.7% of Lionsgate's shares, the remaining portion was not substantial. Whether to sell their shares required serious consideration.
"Everyone, any other questions?"
Link turned to the eight core executives and asked.
"Mr. Baker, about the acquisition of Palm Beach Films, if we go for a full acquisition, given the company's current situation, it seems we're not capable of bearing it without leveraging more assets," said President Steven Bicks.
"Then let's wait, we'll talk about it when we have the money," Link said.
Actually, the acquisition of Palm Beach Films was just a tactic used against John Marlon, hoping he would hand over the Lionsgate shares.
Now that he had the shares, the matter of acquiring Palm Beach could be set aside.
He intended to let Palm Beach Films operate independently, focusing on producing low-budget films for women. The movies they produced could be distributed by Lionsgate Films, creating a mutually beneficial relationship.
"Everyone, if there are no further questions, please return to your posts and continue with your duties. What comes next will truly test us," Link stated.
"Yes, Mr. Baker!"
CEO Steven Biggs, Vice President Michael Burns, and the others stood up in unison and acknowledged.
Link waved his hand, declaring the meeting adjourned.
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