Chapter 456: Chapter 455: Treating the symptoms and the root cause
"I don't know what motivated your father and elder brother to participate in the acquisition of MGM. It is very likely that they were deceived by Sony..."
Barron said calmly,
"This company can only survive on the 007 series now. Its financial situation is extremely poor. If it wants to save itself, it will need a lot of money. But when Sony took the lead in the acquisition, most of the money was given to the original shareholders, and not much was left for MGM."
"I heard that a new 007 movie is being filmed and will be released this year. But as you said, MGM can only survive by relying solely on 007 movies..."
John Smith shrugged and said,
"At least we can get the rights to broadcast those movies in the MGM library."
"This is the only thing you have that is better than other Wall Street capital. Sony will not invest in MGM, but will instead streamline their spending. I believe it is only a matter of time before MGM declares bankruptcy again."
"But these problems can't be solved immediately, right? The first thing to deal with is the bank's debt problem."
Barron said indifferently:
"The debt problem is very easy to solve. If you just want the company's stock price not to fall below $19.5, then we can definitely increase our holdings. But in the words of the Chinese, this is only a 'temporary solution' because, after all, even if you keep these shares, their control is still not in your hands for the time being, and it may even be harmful to you..."
"I know, but..."
John Smith understood what Barron meant. This was the crux of the problem.
If the stock price is manipulated for profit, it will definitely be investigated by the SEC. However, if major shareholders increase their holdings to boost investor confidence, there is nothing wrong with that, and many companies do this.
Therefore, if shareholders including DS Capital agree to increase their holdings in the secondary market, then the share price of Sinclair Group can rise in a short period of time, and at least will not fall below US$19.5.
What really made John Smith hesitate was that he could use this method to keep the shares of Sinclair Group held by the family trust, but the problem was that even after keeping these shares, he still couldn't use them...
Because as long as his eldest brother David Smith "wakes up" in the hospital, he will still control the shares of the family trust with the double voting rights in his hands, and will use it as a tool to oppose John.
If this is the result, it would be very ironic.
As for the "root cause" solution...
Some thoughts, once they appear in your mind, you will be deeply aware of them and will come out to tempt you from time to time.
Just as Barron hinted to John Smith, their father's will only gave David Smith the double voting rights in the family trust, but this double voting right could not be inherited by his descendants. Instead, one of the votes would be given to Julian Sinclair Smith's widow, John Smith's biological mother.
That is to say, if David Smith dies, his children can only have the beneficiary rights of the family trust, and one of them can get one vote.
In this case, John Smith has the advantage in the vote on the family trust.
While Barron didn't imply it too explicitly, it was enough.
Many accidents happen every day - hospital nurses may be negligent, and key equipment may suddenly lose power. This is all very normal, isn't it?
"You can think about it, John. I'll wait for your news."
…
After this conversation with John Smith, Barron left Maryland and went to Los Angeles, a city on the west coast of the United States.
In just over two months, Barron and Rebecca's daughter, Jennifer, his first child, will be two years old.
The little girl has grown into a very cute girl. When Jennifer saw Barron after he returned to his estate in Beverly Hills, she was a little shy at first, but soon she staggered towards Barron and asked for a hug.
At this moment, when Barron held his daughter in his arms, he could feel that everything in the world was no longer important, and only the little elf in his arms was worth cherishing.
Rebecca looked at Barron, who was a noble Duke in the eyes of others, a super-rich man with wealth comparable to that of a country, and who controlled the fate of countless people, and who was playing with her daughter with a doting look on his face. Her eyes were also full of love.
"How's it going, babe."
After Jennifer got tired of playing and began to doze off, Barron handed her over to the care of the servants and took Rebecca to sit in front of the floor-to-ceiling window. The two of them basked in the California sunshine, and Barron asked.
"Summit Entertainment has already started preparing for the filming of the Twilight movie, and I am also learning along the way... I feel that there are still many things to learn, both in front of the camera and behind the camera, and it is very fulfilling."
In the original time and space, the first "Twilight" film, "Twilight", did not start filming until February 2008.
However, before that, they had already started preparing for the film and casting in 2007.
There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!
This is mainly because the film and television rights to Twilight were originally acquired by a large company at the time, and were later handed over to Summit Entertainment for this project.
It is the right time to start filming the first part of "Twilight", "Twilight", because after a year, the popularity of this novel has reached a very high level.
In 2005, sales of the first Twilight novel skyrocketed within just a few weeks of its release. The book then topped the New York Times bestseller list for 56 weeks, becoming the most talked-about bestseller of 2005.
After Summit Entertainment invested 40 million US dollars to launch this project, it has also received a lot of attention.
The film "Original Time and Space" was invested with about 37 million U.S. dollars, which was a low-budget youth film. It eventually earned 390 million U.S. dollars at the global box office. It can be said to be a classic case of making a small profit with a big investment.
Moreover, in the later "Twilight" series of films, although the first one had the least investment, it was the most popular and was considered the most classic one. Therefore, this time the "Twilight" project was still directed by female director Catherine Hardwicke.
They are currently adapting the original novel into a script, and will start casting next.
After discussing this topic, Barron only had a general understanding of the current situation of Summit Entertainment. Projects like "Twilight" are naturally very critical to a small-scale film company like Summit Entertainment.
But in Barron's eyes, it is just a test for the current Summit Entertainment. If he can succeed in this project, it means that the current team of Summit Entertainment can still satisfy him, and then he can invest more resources.
Otherwise, since Blue Valley Capital's current investment in Summit Entertainment is not that large, they can just give up and choose other film companies to try again.
In addition, Barron also has a backup plan in the film industry - the CEO of Blue Valley Capital went to New York to negotiate with Marvel as early as the end of last year.