Exploiting Hollywood 1980.

Chapter 1072 The Waiting Hunter
Ed Basty found his partner, Ms. Zhang, and went through the financial data of the "Daily News" given by James Wells overnight.They showed Ronald and Douglas Jr. a pie chart on a computer screen.

The business of "Daily News" can be divided into three parts, the sales revenue of newspapers, the advertising revenue of newspapers, TV stations, and radio stations, and the rent of the Daily News Building.

Among these three pieces, the price of the newspaper is now negative because it was lowered by the former boss to increase circulation.The downward trend of advertising revenue in the past few years is obvious.The biggest support for the operation of this group is real estate.

The essence of the problem that the newspaper office is facing now is that the real estate business is booming, and the shareholders do not want to subsidize the newspaper every year, because the newspaper business has not made any contribution to the increase in real estate income.

The advertising revenue of radio and television stations is also shrinking rapidly.The media in New York is very competitive. In the past few years, the three major wireless TV stations have been accumulating strength to acquire or sign contracts with local TV stations.National syndicates purchase programs at much lower prices than local TV stations and can attract much larger advertisers.

Coupled with the rapid growth of cable TV stations, WPIX would have been finished if it hadn't been backed by New York, the most developed city.The main income supporting the TV station is now relying on their TV broadcast contracts with the New York Yankees baseball team and the New York Giants football team.

Radio ad revenues declined more slowly, but firmly.The number of listeners who keep listening to the radio every year is inevitably shrinking year by year.

"It doesn't look like a good business?" Douglas Jr. was a little disappointed. He wanted to be in a newspaper capable of winning the Pulitzer Prize, not a tabloid like the Daily News that lost 100 million a year...

"Whether it is worth investing in is related to the personal valuation of the business. For the same business, some people feel that the future is hopeless, and some people think that the future is bright. They also have different views on how much the company is worth..." Ed Bastian answered with a smile.

"What do you mean?" Little Doug didn't understand.

"You have to ask Ronald, he is the master of investment." Ed Bastian didn't want to overwhelm the host.

"He means that if I can find a way to make money, then the newspaper and TV station will not lose money in my hands, and it will become a profitable business." Ronald replied with a smile.This is the same as Buffy's vision of the Washington Post becoming famous in World War I. When everyone felt that the newspaper was losing money, only he saw the irreplaceable status of the Post.

Of course, from the perspective of Ronald and Buffy, it is also the same goal by different routes.Ronald smiled triumphantly and explained to Fa Xiao.

"For example, the broadcast content, I found that New York TV stations and late-night theater programs are relatively old, and they are all Hollywood black and white films. If we can purchase more Xiangjiang martial arts films and Coleman-type B-level exploitation films, there will be a lot more potential audience. And the cost is not high.

You know, those who watch movies on the TV in the middle of the night are not here to enjoy the classic Hollywood classics.They just want to..."

"I just want to see beauties and violence, right?" Little Doug recalled, isn't this a coincidence? "There is also Staten Island. Although the purchasing power is not as good as Manhattan, it has a large population and there are not many TV stations on the island. As long as WPIX TV station is introduced to the island..."

The two good friends laughed wickedly.It seems that the deal is still done.

"In addition to movies, we also need to stabilize the broadcasting contracts of the two major professional sports leagues. I also found a phenomenon that last year's strike has deeply hurt the TV stations. Everyone is afraid of the TV dramas that were devoted to family fun in the past.

On the one hand, the average household TV ownership has exceeded 1, and it is even worse in New York. More young people no longer watch a TV with their parents.On the other hand, TV stations are also afraid of another strike, and the ratings of several evergreen TV series have plummeted this year. "

Ed Bastian clicked the computer twice, and another histogram appeared on the screen.Family Bonds, Growing Pains, Blue Moonlight Detective Agency, these evergreen dramas all fell out of the top ten ratings this year.

"What's your idea?" Ronald looked closely at the chart, and Ed Bastian obviously came prepared.This is beyond the scope of an accountant's work.

"I noticed that there are some so-called reality shows, which are used by TV stations to test the waters. There is no detailed script for this kind of show, and it depends largely on the performance of the participants, and the cost is also low. There are also such talk shows, not No longer limited to male late-night hosts, some TV stations are aiming at the market for various scenes, and are also launching various female hosts' probing shows..."

Ed Bastian did some more analysis for Ronald.

"Continue..." Ronald listened fascinatedly, and Buffet told him the secret of investment.Investors and managers are always two kinds of people. It is impossible for you to buy a company and run it yourself. Before buying a company, you must first ensure that their management team is excellent and stable.

"As for the radio station, I have noticed some recent advertisements in New York City. There are two markets worth noting...One is classical music. The loyal audience listens to it for a long time every day, and their purchasing power is attractive enough for advertisers .

Another similar industry is a radio station that broadcasts traffic conditions. Many people who need to commute will pay attention to it on time every day when commuting..."

"What about the newspaper? What do you think?" Ronald asked again.

"I want to do the opposite, increase the selling price of each newspaper and reduce the cost of color printing. Such readers will have enough money to buy advertisers' products. Instead of reading amazing stories every day It's lost..."

"Puchi" Ronald couldn't help laughing.The "fantastic story" he said was the nickname given by New Yorkers to the fake news compiled by the Daily News.A typical story is that a multi-millionaire drowned mysteriously, his family property disappeared completely, his daughter was desperate, and suddenly a handsome young man knocked on her door.

"How much will it cost us to buy all the media businesses of the Daily News?" Little Doug began to calculate.In this transaction, Ronald is responsible for solving the TV station's program problems. He is responsible for solving the broadcasting tower of the TV station and radio station on Staten Island, because his family is a landowner, and many TV station facilities suitable for construction are his family's land.The joint venture between the two and the introduction of some familiar Wall Street capital are secondary to making money from trading. Increasing the media influence of the two cannot be bought with a lot of money.

"If we divest the real estate and sell it now, it may cost 5000 million to [-] million." Ed Bastian pressed the keyboard, and an acquisition plan appeared on the last page, giving an estimated price.

"Is that so?" Ronald thought for a while. If the two of them wanted to raise enough money, they would have to sell some assets, or find a Wall Streeter like Bannon for a loan.

"Of course, a better way is to be a patient hunter and wait for the right time..." Ed Bastian turned another page.

Among the three media, the most valuable is WPIX TV station.His broadcast contract with the two major professional sports teams in New York is about to expire.If there is a problem with the renewal of the contract at that time...

"But in that case, will there be any competitors?" Little Doug asked.

"No... Not every operator has such a forward-looking vision. The Daily News has been begging for so long before..." Ronald looked at the partner of the Price Waterhouse Certified Public Accountants New York branch, and said to himself Accountant Ed Bastian.He had also rejected a job offer from PepsiCo before, and it seemed that he didn't just dislike the fact that his income was not high enough...

"Let me talk to Ed alone..." Ronald gave little Doug a wink.

Ed Bastian also winked and told his assistant, Ms. Zhang, to leave.

"After the merger and acquisition, you are invited to be the new general manager of Daily News, are you willing to accept?" Ronald put forward the invitation straight to the point.Ed Bastian has excellent professional ability and became a partner of PricewaterhouseCoopers at the age of 31.Moreover, he has an excellent character, and a bunch of moths were found out during the internal review, otherwise he would have become a partner a few years earlier.

Such an outstanding talent, since he has done so much homework, it is conceivable that he has ambitions for this.It just so happens that the characters in Ronald's pocket are mainly artists, and there is a shortage of such operational talents.

"Of course, I thought I needed to introduce myself..." Ed laughed.

"One of the advantages of talking to smart people is that you don't need to worry about all kinds of politeness. I'm curious, why are you not interested in the vice president that Pepsi invited you to be? Instead, you are interested in my newspaper here."

"If you hadn't been my client, I might have accepted that invitation..." Ed Bastian smiled and said his thoughts.One is that Ronald brought him a lot of income. He is the eldest son of a family of six children and wants to give his younger siblings a chance to receive a good education.

Secondly, PepsiCo is already a well-established large company. If you go there to be the vice president of a certain international business unit, you will be parachuted by an accounting firm, and you will be constrained in many places.How can Ronald, the general manager of the media company here, feel comfortable?
"I will give you the highest treatment in the industry. If you manage well, you will also have options for the company. You continue to improve the ideas of running the company. As for the timing of the acquisition, we have to wait patiently..."

Ronald and Ed Bastian negotiated terms of cooperation.The other party happily shook hands with Ronald again.He will now prepare for the investigation of various acquisitions, and the preparation of the subsequent business route.

"By the way, what is your software for displaying pie charts and bar charts?" When sending him out, Ronald pointed to the software on the computer and asked him. This feeling is very familiar.

"It's Microsoft's PowerPoint, isn't it very convenient? Ms. Zhang is an expert. Originally, we had to use film to shoot this presentation. At least it won't be ready until tomorrow."

"Microsoft?" Ronald thought he should continue to increase his position.

He invited Douglas Jr. again and told him that he was going to hire Ed Bastian.

"One more thing, I will first agree to the Daily News' call for help, and provide an upfront payment of $50 to allow them to survive the rest of the year. Acquisition of the media requires government approval. Can our friends provide support?"

"In terms of acquisition review, the National Communications Regulatory Commission can ask George Jr. to come forward. As for the local government, I plan to ask the Staten Island Congressman to come forward. Now the mayor's election is very fierce. I don't know who will be the next one. We There may be problems betting now." Douglas Jr. also thought about the route.

"Very well, we will prepare quietly, and when the time is right..."

The acquisition team was quietly being assembled, with Ronald's personal attorney, Lindsay Dole, and Mitch Kanter also involved.In addition, Workman is also interested in this, and privately wants to participate in a small share, and he also used his relationship on Wall Street to secure bank credit.

"TV is the future, Ronald, it's the future." Bannon was very excited. After he entered the film and television industry and successfully shot a movie, his old friends on Wall Street regarded him as a rare banker who understands Hollywood.Many people use him as a broker to find investment targets for the fund.

Wall Street funds seek stable returns.They prefer the steady returns of TV series to the box office gamble of movies.

So Bannon himself also got some TV series projects, and wanted to sell them to the three major wireless TV stations.But so far there has been no success.He was very happy when he heard that Ronald was going to buy a TV station.With an acquaintance in the TV business, things are much easier.

"You don't know how hot TV series production is now. I invested in a comedy TV series, and I think it's very good. The TV station has already asked us to shoot a pilot episode to test the water. Those old TV series are dying slowly, which can be seen. It's coming..."

"I don't know as much about TV dramas as you do now. If our acquisition is successful, you can provide more TV dramas for our TV station to broadcast..." Ronald felt very comfortable seeing the other party's confident expression.Cheaters on Wall Street, you have to be so confident...

"Ronald, do you want us to focus on the case with the Japanese game producer Capcom, or on your future acquisition?"

Lindsay Dole, representing the lawyer, came to Ronald and asked him about his plan.After all, they are still a small law firm, and Mitch Kanter's business strength is not much.If Ronald wants to go both ways, they have to bring in more manpower.

"The acquisition has not yet started, how about we settle the Capcom matter during this time?" Ronald didn't understand, and discussed with his private lawyer.

"Transnational lawsuits consume a lot of manpower. We send one person to Tokyo on a business trip, and it takes a long time to go back and forth. If we don't increase manpower, I think we should focus on solving one first. What is your order?" Lindsay Do Erle's interests are on Ronald's side, and she doesn't want Mitch Kanter's number to increase infinitely.

"Lindsay, according to your judgment, how long will it take for the case with Capcom to make substantial progress? How likely are they to settle?"

"Jurisdiction can last for a year. Their company is not very big. This is their second best-selling game. Of course, I hope it will last as long as possible. The reconciliation may not be great, because Capcom is now , reconciliation means that when the company is developing rapidly, they will bear potential risks. They have more than one game to copy Hollywood...

In addition, the Japanese government is actually quite hostile to our American companies.Their Ministry of International Trade and Industry always hopes to close the domestic market, and the history of our losses has been long since World War II.

So, I don't have much hope for a short-term resolution of this case. "

"Well, then I'll listen to you. The focus is on the acquisition case. Just find someone to go through the normal process." Ronald has great trust in Lindsay's professional ability, and there is such a lawyer from Weishi who helps to watch , so that you will not be deceived too much by other lawyers.

"Okay, then I'll call Gray-eyed Mickey and report your attitude. I have to go, my baby is still being watched by the nanny..." Lindsay stood up and said goodbye.

"Wait a minute, you just said that Capcom is currently in a period of rapid growth, so they are not very strong now, right?" Ronald suddenly remembered something.

"Yes, they have just merged with two other game producers, and the branch in America has not been established for a long time. I guess according to their development speed, if they can still develop such a successful game, they will be eligible Listed on the business sector of the Dongying Stock Exchange.”

"Suoga, is it easier for us to acquire them than to go to court?"

"This?" Lindsay didn't expect Ronald's thinking to be like this. "There are many restrictions on the acquisition of American companies in Japan, but that is for listed companies. Such start-ups have opportunities..."

(End of this chapter)