Hollywood What If

Chapter 311

Chapter 311

Dealing with something as big as the acquisition of a billion-dollar company was something to be taken seriously.

Kazir knew how important this venture was. He was tired of trying to find a distributor every few years. He wanted a stable partner to distribute his films worldwide.

Honestly, sometimes Kazir thought about buying distribution channels instead so that his problem would be gone. But he also knew that this was just a dream. First of all, acquiring and maintaining distribution channels costs a lot of money.

Not even Grey Pictures or Kazir Grey had the financial means to do that. Unless they got a loan from the bank, but that would be detrimental to their upcoming plans. Remember, Grey Pictures wanted to make two successful Cinematic Universes. The first was the CCU and the second was the MCU.

The MCU was actually only a second thought. But it seemed that Kazir was now interested in making it happen.

The competition for Grey Pictures intensified now that 20th Century Fox had entered the fray.

That fact alone increased the net worth of Grey Pictures to $8 billion. And why? Because 20th Century Fox made them a higher offer than the others could match.

Previously, Sony-Columbia had been willing to trade 2.3% of its stock for 30% of Grey Pictures.

But 20th Century Fox was different, they would pay $300 million to buy 3.75% of Grey Pictures. Not only that, but 20th Century Fox would exchange 3.38% stock for another 30% of Grey Pictures.

The net worth of 20th Century Fox was $71 billion. That means that 3.38% of the stock was worth $2.40 billion.

If the deal went through, 20th Century Fox would own 33.75% of Grey Pictures.

If this was a normal acquisition, 20th Century Fox wanted to buy the company outright, but they knew that would be detrimental to their plan because the real value of Grey Pictures was Kazir Grey. So they stopped at that amount.

"So I get $300 million and 3.38% stock?" Kazir asked curiously. That was not bad. Especially when 20th Century Fox promised that Kazir would get $300 million in cash in one payment...

He really didn't know what to do with that amount of money. Maybe he would invest it in stocks... Or maybe buy a mansion or an island in the Pacific.

"That's right." Vance Goodhood nodded. He had been Kazir's financial advisor long before the dot-com bubble burst. Vance worked for Goldman Sachs now, and Kazir was still his client.

For this job, Vance and his small team of elites would receive a 4% commission when he closed the deal.

Kazir would be a major shareholder in 20th Century Fox, if this acquisition went through. He had the power to be part of the board of directors and make a decision for himself and 20th Century Fox.

The largest shareholder was still Rupert Murdoch, and the guy had just bought Marvel Comics last week.

"Vance, I think we know where this is going," Kazir grinned.

"I understand." Vance understood immediately.

20th Century Fox was lighting the dynamite, and that dynamite would affect the other major studios. Even if one of them was interested and increased the offer, it would be great for Grey Pictures.

"Secretly spread the word that 20th Century Fox is willing to buy 30% of Grey Pictures for $300 million and 3.38% stock. I know Goldman Sachs had their ways of making it look like this information didn't come from us."

It was actually 33%, but that little difference didn't matter, did it?

"I understand."

The two shook hands. This was an important deal that Vance didn't want to miss.

Just three days after 20th Century Fox extended its willingness to partner with Grey Pictures, rumors began to circulate in Hollywood that 20th Century Fox was willing to buy 30% of Grey Pictures for $350 million and 3.50% of the stock.

Apparently, Goldman Sachs upped the ante for their own agenda... Bigger numbers mean bigger commissions.

Kazir just chuckled when he heard the news and decided to go back to bed. Angelina, who was in bed, giggled when she saw how active Kazir was lately. The guy was satisfying her in and out of the bedroom.

As everyone expected, one of the Big Six also made an offer. It was none other than the desperate Walt Disney. This company had lost a huge amount of money this year, but it seemed they were willing to bleed even more just to acquire Grey Pictures.

Chairman Eisner called Kazir personally. The old man offered him a seat on the board, he would also receive $375 million and 2.4% of Walt Disney stock. Keep in mind that Walt Disney's net worth was $105 billion.

Those 2.4% shares were worth $2.52 billion.

If Kazir's calculation was correct, then Walt Disney's offer was higher.

20th Century Fox offered only $300 million plus 3.38% stock ($2.40 billion).

As for What Disney, it was ready to give Kazir $375 million plus 2.4% shares ($2.52 billion.).

Now, 20th Century Fox could withdraw from the competition because something happened and their offer was leaked. But it seemed that 20th Century Fox was also serious about Grey Pictures.

Instead of stopping, they continued to contact Grey Pictures and Goldman Sachs about the matter.

......

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...

While this was happening, November was slowly passing by. 8 Mile starring Eminem was released on November 8th and did well.

8 Mile grossed $51.24 million in its first weekend. By that time, The Revenant had already grossed $95.70 million. The Revenant was close to $100 million.

However, a lot of people knew that The Revenant's third week gross would be affected. Why was that? Because Harry Potter and the Chamber of Secrets would be released on November 15th.

That movie was one of the most anticipated movies of the year. Surely the sequel would make a lot of money at the box office.

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[Author's Note: I know that my pricing for the net worth of the Big Six are far from reality. Sad to say, I can't edit it anymore because the whole math-thingy in the next 50 chapters will be affected.]