Hollywood Hunter

Chapter 741 Approval of Acquisition

The wind and snow weather that affected many states on the east coast lasted for three days. Fortunately, only Sunday was overwhelming, and the new week obviously weakened a lot.

Suddenly cold weather hit the public's enthusiasm for watching movies, making Hollywood studios generally lower their recent North American box office expectations.

However, many recent news hotspots, whether it's the Victoria's Secret Show, the good news of the new technology industry, or the upcoming IPO of Igret, etc., have continued to arouse widespread debate. The media and the public are concerned about last week's mid-term elections. So it becomes less and less.

This is not over yet.

On November 16, the day before the third TV show, the North American media was once again detonated by a heavy news: after more than a month of negotiation and review, it agreed to split the TV business that did not meet the federal media regulations After waiting for some assets, the US Department of Justice formally approved the French Vivendi Group's acquisition of Disney.

One stone stirred up thousands of waves.

Seventh in Hollywood, Disney has a certain native American cultural attribute far more than Columbia, MGM and Paramount, which were previously acquired in overseas capital. Disney’s 2D classic animated film is not only the childhood memory of many Americans, but Disneyland is still Important American cultural symbol.

The sensitive moments at this stage are ultimately things that have nothing to do with them. Simon did not deliberately guide public opinion.

As a result, from the evening of the announcement to the newspaper on November 17, the newspapers were overwhelmingly criticized and even abused by the Federal Department of Justice, senior officials in Washington, and the power of the board of directors that promised to sell Disney.

One of the most intense "Washington Post" reporters even criticized the Ministry of Justice for approving the transaction as a betrayal.

Then the spearhead was again directed at the Democratic Party that had just lost in the midterm elections.

Faced with public accusations, the White House responded in a timely manner.

Mr. President personally explained the inside story at a press conference on the morning of November 17th. The Ministry of Justice is not the White House’s appointed Attorney General Janet Reynolds, but a seven-member committee is responsible for reviewing the transaction. Four of the seven are Republicans.

Therefore, the decision-making power of this matter is actually in the Republican Party.

For the explanation of Mr. President, the media did not buy it. Everyone is concerned about how to ban the transaction.

A reporter asked on the spot whether Mr. President would use a presidential decree to send the transaction back to the Justice Department for review. Clinton only said very smoothly that the White House was still discussing the matter, and at the same time hinted that there was no violation of the law in this transaction. Unless the buyer voluntarily gives up, this transaction is difficult to be rejected.

After the White House expressed its position, a spokesperson of the French Ministry of Foreign Affairs quickly made an open response to this time, stating that the French side is very optimistic about the development prospects of the entertainment industry.Vivendi's attitude is even a little tough, saying that the group has invested a huge amount of money in this acquisition transaction, and the US Department of Justice has also approved that if it goes against it, Vivendi will protect its own interests through litigation.

Then news came out.

In order to ensure that there will not be too many changes in the transaction process, especially in order to avoid Vivendi's midway withdrawal, the company's stock price has fluctuated greatly. Therefore, a high break-up fee of up to 3% of the total transaction amount was established.

Large mergers and acquisitions have similar break-up fee clauses.

According to the transaction volume and the negotiation between the two parties, the breakup fee is usually between 1% and 5%. Of course, there is a higher ratio or no breakup fee at all. All rely on the game between the two parties.

The core of the break-up fee clause is to avoid a sudden breach of contract after some twists and turns, causing huge losses to the other.

Therefore, this breakup fee is actually two-way.

In the agreement reached at the end of September, the transaction price of both parties was finally $9.7 billion, and the 3% breakup fee was $291 million.

291 million US dollars, whether it is for Vivendi or Disney, is definitely not a small sum of money.What's more, judging from Vivendi's tone,

So, no need for Simon to do anything, Disney's dry shareholders began to quietly send messages to Washington.

It's very interesting.

The two most important shareholders of Disney, one is the Bass family in Texas, the other is the Disney family in California, one supports the Republican Party, and one supports the Democratic Party, which happens to be on both sides.

Both families have previously felt the obvious decline of Disney. Even if the Disney family is still a bit unhappy, they all understand that it is a very wise choice to accept Vivendi Group's all-cash offer of up to 9.7 billion US dollars.

Otherwise, everyone can only watch this asset shrink step by step, or even go bankrupt.

You know, before Vivendi launched the transaction, Disney’s market value was less than 7 billion US dollars, but it had a total debt of up to 5.3 billion US dollars. In addition to the sluggish movie business, Disney Disney in Paris continued to lose money. It is difficult to say when it was suddenly insolvent. .At that time, if the debtors exert pressure and reorganize their assets, the stocks of these large shareholders may be directly cleared.

Now, with the completion of this transaction, both parties can secure billions of dollars in cash.

In front of interests, culture, feelings, and the like are all floating clouds.

In this incident, the only thing Simon did was once again to make the New York Times, which had a good relationship with the Westeros system, provoke the topic of lifting the media integration ban, accusing the Washington authorities of not being willing to let it go. The industry ban, the Disney deal, should have allowed local giants to come forward to compete, and American cultural treasures will not easily fall into the hands of the French.

In fact, everyone knows that even if the media integration ban is lifted ahead of schedule, apart from Daenerys Entertainment, whose strength has exceeded several orders of magnitude in the industry, no other local giants have ever competed for the high price of Vivendi Group.This does not prevent the proposal to lift the media integration ban quietly suppressed by Congress in the first half of the year to re-enter the media and the public. This time, Washington must also give a satisfactory answer to everyone.

Amid the clamor of public opinion caused by the adoption of the Disney acquisition, on Thursday, November 17, ABC Television officially broadcast the third Victoria's Secret Fashion Show during the prime time of nine o'clock in the evening.

This big show, not only the production budget reached 30 million US dollars, but also the joint publicity investment reached 20 million US dollars.

Prior to the live show on Saturday, the Victoria's Secret brand and Daenerys Entertainment have jointly launched promotional advertisements on major platforms, and the giant billboards in Times Square in New York have been hung for a month.

So, at nine o'clock that night, as soon as it started broadcasting, as "The Phoenix", which first appeared in the audience's ears, sounded, the number of viewers at the beginning of the program directly exceeded the 32 million mark.

Just a rock that is destined to be listed on many lists, this time the Wei Mi show is upgraded to a comprehensive entertainment feast from visual to auditory.Many people are eager to explore the relevant information of "The Phoenix" through the Internet and telephone channels before the first theme is over.

Of course, a group of supermodels that are already popular in the world are still the focus of this big show.

The fashion section of the Igrid portal has opened a special voting interactive topic since it was held on the site of Wei Mi last Saturday, and started a raffle to give 10,000 copies of the 3rd Wei Mi Daxiu Collector's Edition video tape. The popularity of related topics continued to rise, slightly expanding to the 43-person Victoria Secret Army, and the Facebook and Instagram pages of each Victoria Secret Angel increased dramatically in a short period of time.

Eventually, when all the TV broadcasts on the East and West Coast were completed, the Eaglenet portal announced the viewing data of the third Wei Mi show for the first time.

In the third year of broadcasting, the ratings of this big show reached a new high. The peak number of viewers reached 45.6 million, surpassing the 42.1 million in the first Wei Mi show. The data was 3 million, and the average number of viewers reached 37.9 million. , Also a large number of 35.5 million records created by the first Wei Mi.

The six-themed TV version of the Victoria's Secret Show was edited according to the standard 43-minute TV show duration, leaving ABC with 17 minutes of advertising time.

Although only one hour, the total advertising duration is far less than the Oscar award ceremony of the same level of viewing data, but only for these 17 minutes of advertising time, ABC also sold a high price of $1.5 million per 30 seconds, so in just one hour ABC just passed this fashion show which is a super-advertising blockbuster, and the ad revenue reached US$51 million.

In the first Wei Mi, because neither side expected how popular this fashion show would be, ABC bought the broadcast right for only US$5 million, and the price of the in-stream ads at that time was also very low.

This time, of course, it won't be that cheap anymore.

According to the agreement signed by the two parties, as the copyright owner of Wei Mi, Daenerys and the Wei Mi brand will receive 60% of the advertising share, so the advertising revenue of US$51 million and the US$30.6 million share will directly allow the two to recover this The production cost of the second-dimensional secret show.

What's more, the subsequent sales of video tapes are the big players.

It was also the first Wei Mi. At the beginning, because of the hot sales in the early stage, everyone felt that the total sales of video tapes is expected to reach 15 million. This is already a record. As a result, in a few years, the actual total sales of video tapes for this fashion show reached More than 27 million boxes.

According to the video tape pricing of about $30, 27 million video cassettes have a total sales of $810 million.With this alone, the two who jointly hold the copyright of Wei Mi Xiu received a net income of US$290 million, which is equivalent to the current year's net profit scale of the Wei Mi brand in the pure underwear business.

Records are not always easy to break.

Considering that the viewing data of the second session of Wei Mi did not decline much, but the sales of video tapes were directly reduced by more than half. Based on various factors, the video tapes of the third session of the Wei Mi show can at least reach the level of 10 million boxes. It is about 300 million US dollars in sales and more than 100 million US dollars in net income.

In comparison, the entire $50 million investment in the Wei Mi show is definitely worth the money.

After the Victoria's Secret Show, the Thanksgiving Festival is coming.

From November 11th to November 17th, the first week of the Thanksgiving period was officially closed.

Affected by the wind and snow on the east coast, the North American box office situation has been affected in the past week, and the overall results are still gratifying.

The three new films last week, the most in line with the festive atmosphere of Kim Carrey's new film "Disguised Geek", successfully won the weekly box office champion throne. The first day of the week received $37.09 million, and the museum all exceeded $15,000.

Gefen Pictures produced "Night Visiting Vampire" released by Warner Bros., which lived up to expectations. It followed the "Disguised Geek" with a gap of less than 1 million US dollars, ranking second in the weekly box office list. The box office reached 36.38 million in seven days in the first week. US dollars.However, the number of opening screens for "Visiting the Vampire" is 2,604. It was the largest of the three major new films last week, so the museum only has more than $13,000, which is a clear gap from "Disguised Geek".

MGM's "Terror Zone" ranked third, with a box office receipt of $28.11 million in the first seven days of the first week.

Although it clearly lags behind "Ghost in Disguise" and "Vampire at Night", such a start has already reached MGM's expectations.Considering the fierce competition in the subsequent series of heavyweight films, the start of $28.11 million is not enough to ensure that the local box office broke 100 million, and may eventually be around 70 million.

The production cost of the film is US$30 million, and US$15 million is issued. Even if the local box office is not enough to recover the full cost, relying on the popularity of Sam Neal and Jessica Lange, the overseas distribution is also enough to achieve profitability, let alone There are follow-up video tapes and TV broadcast revenue.

After experiencing a deep drop in the next week of release, faced with the impact of three new films, the Halloween mortuary "Haunted Haunted Event" still fell by as much as 37% this week, with a total of 14.63 million US dollars.Three weeks after its release, the cumulative box office of "The Haunted Morgue in the Mortuary" reached US$83.69 million, and there is still great hope for promotion to the 100 million yuan club.

After the four movies, the other old films were completely left behind, not worth mentioning at the box office.

On November 18, the box office week opened across Thanksgiving.

This week's main new film is still three.

The most important one is undoubtedly "Toy Story 2" produced by Pixar Pictures of Daenerys Entertainment.

After the success of the first film, the production budget of this sequel reached 80 million US dollars, and the investment for the announcement was as high as 50 million US dollars.

The total budget of 130 million US dollars, according to Daenerys Entertainment's strength, you can get a 60% share from the theater, and the local box office also needs 210 million US dollars to pay back.

It is conceivable that the local people will basically not make money.

However, everyone knows that the profit of the "Toy Story" series is no longer issued in theaters, but around toys.

Since the release of the first film, in the past few years, the total sales of toys around the "Toy Story" series have exceeded 3 billion US dollars. The craze is the main source of profits for Daenerys Entertainment.