I am Hollywood

Chapter 171: Chapter 171: We don't have much time left

Chapter 171: We don't have much time left

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[Chapter 171: We don't have much time left]

"I can assure you that thirty percent is out of the question," Eric leaned slightly forward, gazing at Robert Shea and shaking his head gently. Before Robert could rebut, Eric continued, "If I had to give away thirty percent of my shares just to acquire a distribution company, then I wouldn't even consider it.

That wouldn't be worth it for Firefly. I could easily use that stake to partner with several major studios. With Firefly's current momentum, I'm confident that none of the seven major studios would turn me down. I could even exchange that thirty percent for ten percent of MGM's shares, the weakest among the big seven."

Once Eric finished, Robert Shea immediately shot back, "But, Eric, you won't actually do that. Once Firefly becomes a subsidiary of a film giant, it'll lose any chance at developing into a true competitor. These big companies are notorious for controlling second and third-tier firms through acquisitions to prevent them from growing large enough to threaten their positions. I've seen it too many times in Hollywood over my twenty-plus years."

"I wouldn't do that, of course. I was merely suggesting a possibility. If I had to give up thirty percent, I'd rather do a cross-share exchange with the giants. So, I have my limits, Robert. The most I can offer you is ten percent of my shares, which is already a tough concession for me. I believe it's quite substantial, considering Firefly will surely bring in more collaborators in the future," Eric stated.

"Ten percent is far too low," Robert Shea responded. "New Line has developed under my leadership for over twenty years; I regard it like my own child. If it merges with your Firefly, thirty percent is still modest. I won't settle for less."

Eric almost chuckled out loud, "RKO was established even earlier and has since faded away. United Artists also got off to a great start, only to end up as a subsidiary of MGM. Robert, time doesn't say much. In 1981, United Artists was absorbed by MGM due to massive losses. Hollywood was left with only six major studios: Warner, Universal, Paramount, MGM, and Fox. But look at us now; since Michael Eisner took over Disney in 1984, the big six have become seven in just five years."

Robert Shea's face flushed slightly, as Eric had subtly compared him to Michael Eisner. Though he recognized that Eisner was more skilled, hearing it from someone thirty years younger stung a bit. In a moment of frustration, he retorted, "Whatever you say, Eric. I'm insisting on thirty percent."

Seeing that Robert was getting anxious, Eric quickly reassured him, "How about this, Robert? Since we're both showing interest, let's discuss this in more detail moving forward."

"No need," Robert Shea refused. "If you don't agree to my terms, there's no point in discussing any specifics."

Eric felt a flicker of irritation. He tapped his fingers lightly on the table, but the tablecloth muffled the usual sound. "You need to understand, Robert, that we don't have much time left."

Robert was puzzled by Eric's seemingly strange comment. Out of fear of losing respect, he resisted asking for clarification. Eric didn't beat around the bush and continued, "Thanks to the rapid growth of video tapes and cable TV, movies have stepped out of the limited profit circle of just box office revenue, becoming increasingly significant in the media industry. I believe that during the next decade, most Hollywood giants will be acquired by media conglomerates, becoming part of a massive industrial chain.

Once this trend sets in, studios with media backing will no longer need to worry about bankruptcy from failed investments. They will solidify their positions through vast media resources. At that point, if a second or third-tier studio lacks extraordinary luck, it won't be able to shake the dominance of media-backed giants. Their fate will either be acquisition, just like you mentioned, completely losing their opportunity to be one of the big players, or scraping by from the leftovers after the big studios take their share."

Robert Shea fought to suppress his surprise, not revealing his astonishment on his face, and began to counter, "Even if you have a point... it's going to take years. I believe New Line still has opportunities, as long as..."

"No, you don't have opportunities," Eric interjected firmly. "Actually, the trend began a few years ago when News Corp acquired 20th Century Fox. This year, Sony acquired Columbia, reducing the big seven to six. Moreover, I've seen in the papers that Warner plans to team up with Turner Broadcasting to form a media group. If that becomes a reality, we're looking at seven becoming three. How long do you think the remaining four studios can hold out?"

Robert Shea fell silent. Eric pressed on, unrelenting, "Robert, this is our final opportunity. The clock is ticking -- less than ten years, perhaps only five. If we miss this window and the industry landscape is finalized, even if you could turn New Line into a first-class studio by sheer luck and years of hard work, you'd still be stuck in the second tier. The giants will be so intertwined with their media partners that no standalone film company could compete with them."

At this point, Eric recalled Lionsgate. Although it had surpassed two old-school studios in profitability with just a couple of franchises, the other six studios had already mixed with media giants, making it nearly impossible for Lionsgate to match the comparison. "What you're saying... it's all hypothetical, isn't it?" Robert Shea couldn't help but add in.

Eric could see that Robert was starting to soften, his tone growing milder. "Robert, even if it's hypothetical, with your twenty years of experience in Hollywood, you can surely discern the plausibility of such hypotheticals, right?"

Robert looked down at his nearly-empty coffee cup. "But ten percent is still too little..."

"Michael Eisner holds less than ten percent of Disney shares and doesn't have much more wealth than you. Yet he ranks in the top three in Hollywood power, admired and envied by over ninety percent of the industry. Robert, you've also stated that money isn't our biggest lure anymore. Just think about it: after Firefly acquires New Line, you could be CEO of Firefly. You surely won't doubt the profitability of the films I produce. In a few years, we could make it to the ranks of movie giants. By that time, your ten percent could be worth over a billion. If you keep managing New Line independently, how long will it take to reach a billion-dollar valuation?"

"Twenty percent, Eric; I'll go with twenty percent, and it can't be less," Robert Shea said, moved by Eric's vision.

A subtle smile of triumph appeared on Eric's face. Since Robert Shea had finally let go of his rigid insistence on thirty percent, they could continue negotiations. He snapped his fingers to summon the waiter, slid his credit card to settle the bill, and then turned to Robert. "Robert, we can't make any decisions right now, and it's getting late. Let's discuss all this in a more

formal setting."

The moment Robert said "twenty percent," he regretted it. He realized he had been swayed by this young man while feeling foolish for momentarily losing his composure. He considered reprimanding himself for that, but it would have been inappropriate at the moment. It seemed like he'd already made several mistakes tonight, which made Robert think twice about underestimating Eric. He resolved that during formal negotiations, he would definitely not confront Eric directly; perhaps hiring a skilled negotiator would be wise. Noticing that Eric didn't push further to lower his offer, Robert quickly nodded. "Alright, it is late, and I should head back."

As they said goodbye at the restaurant entrance, Jennifer Aniston suddenly wrapped her arms around Eric's as she stood on tiptoes, grinning, "Wow, Eric, you were amazing just now! You totally had Robert spaced out."

Eric reached out with his other hand to brush some hair away from her face, chuckling. "What about you? Did you suddenly feel like bowing down and kissing my shoes?"

*****

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