Chapter 214: pit

Eric gently put down the coffee cup in his hand and looked up and said: "Mr. Murdoch, you must have some understanding of me. I am a very stubborn person. If you let me speak, then the conditions I say will not be There will be another retreat, and if Fox can't accept it, the two sides will definitely be very unpleasant. So, let's talk about it first. If Fox's conditions can satisfy me, I am not an insatiable person."
Murdoch’s heart smacked a small slippery head, which is not greedy, but Murdoch just considered it for a moment:
The cooperation between Eric, Fox and Firefly has always been very pleasant, so it’s not like this, I Replacing the same proportion of fireflies with the 5% stake in Fox Films, you must know the market value of Fox, but the fireflies are very cheap, which can make the cooperation between the two film companies closer. I use this price in exchange for "Friends"'s first broadcast rights in the following four seasons, the 70% of the advertising share just proposed is unchanged, what do you think this time?"
Eric heard the condition that Murdoch proposed, and after a few seconds of temptation, there was no feeling of being cheap.
He heard it very clearly, what Murdoch said was to exchange the shares of Fox Film Company for the same proportion of Firefly, not the shares of Fox TV.
Perhaps the public will think that the two companies are one, but Eric is very clear about the difference. Although it is currently under the control of Barry Diller, Fox Film and Fox TV are completely two. Related companies. Foxfilm's current market capitalization is around $2 billion, and 5% of the shares are worth $100 million, and the 5% stake in Firefly is not so much. According to the price of the merger with the new line, the market value of fireflies is only about 600 million US dollars. In this way, Firefly only agrees to trade with Fox for an equity swap, which is equivalent to earning $70 million.
But things are far from simple.
After the merger of fireflies and new lines. No matter which Hollywood movie giant, you know the possible development potential of fireflies, if the momentum of the Eric movie harvest box office has been maintained. Maybe it won't take a few years, and the status of fireflies can be side by side with the seven major movie companies. Correspondingly, the market value of fireflies will also skyrocket, and may even exceed Fox.
Eric is very confident that if it goes well, the process will not take five years. Eric was willing to pay a 15% stake and a large sum of money to buy a new line some time ago, because it would make up for the shortcomings of the firefly distribution ability and greatly shorten the pace of the firefly's rise.
A 5% stake can already have a certain say in the board of directors. After replacing the shares with Fox, Eric not only did not see much benefit, but would be constrained.
and……
Eric gently twitched his mouth and leaned forward, asking Murdoch to the opposite side: "Mr. Murdoch, how much do you think Fox Film will make a profit this year?"
Murdoch’s heart suddenly jumped, and the heart said that it was broken by this little guy?
However, Murdoch still holding a trace of luck, shook his head and said: "I am not too clear about this matter, I will know until the end of the financial report."
Eric almost sneered out: "Mr. Murdoch. I can calculate it for Fox a little, because Mr. Barry Diller focuses on the development of Fox TV. Fox itself does not have many movies. There is no big film production at the box office. This year, Fox is the main film of my three films, "Wind Beauty", "Seattle Night" and "Little Ghost 2", "Fengyue" has been settled With 210 million in North America and 530 million in the world, Fox will get at least $70 million in profits in addition to the issuance costs. Moreover, I personally feel that the next two films, "Night in Seattle" and "Little Devil 2", can take At least a hundred million dollars in profits, plus other films released by Fox and videotapes and other peripheral income. Ha, really a good year. Perhaps this year can create 300 million US dollars of annual profits may be, almost two years of ordinary years Doubled."
Murdoch heard Eric's summary. It’s hard to avoid a happy heart. If this is the case, this score is definitely ranked first among the seven major movie companies. Even Warner, who made a lot of money this year because of Batman, may not be able to create such a high annual profit. After the end of the financial report, the market value of Fox will certainly usher in a rise.
However, after the surprise, some of Murdoch’s luck was completely shattered. He just asked dryly:
Eric, isn’t that good?


Of course it’s good,
Eric said.
So, let’s calculate the firefly’s profit this year.

Eric said, erecting a few fingers to count: ""Feng Yue Qiaojia", 105 million; "Dark War", according to the current box office trend, the global box office can still reach about 500 million US dollars, fireflies can again Get about $100 million, at the end of the "Seattle Night Sleep" and "Little Ghosts 2", in addition to cost, fireflies can at least get $100 million like Fox. Don't forget, I have three more At the end of the movie, I was very optimistic about the three movies, but even if the three movies were added together, I could only get $100 million. At the end of the year, when the accounts were split, it was also a 5% stake, and Fox could get 20 million dividends. Fireflies can only get 15 million."
Speaking of this, Eric took the arm in front of him, but his heart was very angry. After Murdoch proposed the condition, Eric had a moment of temptation because of the $70 million share value difference, but After such a sort of combing, he found that this is a big pit dug by the old guy opposite.
The exchange of shares and Fox's first rights to the first five seasons of Friends, it is basically two things, but Murdoch cleverly confused these two things together, giving Eric a Fox is very sincere. The illusion of. However, if Eric really chooses the 5% stake, it may not be able to fall into the end. Instead, it will pay a dividend to Fox every year because of the profit gap. Coupled with this stock must have a long period of limited sales, until the sale can be, perhaps the market value of fireflies has been similar to Fox.
Fox must have the power to take back the shares first. Even if Eric sells the shares back to each other, the final result is that Fox has a stake in fireflies that can pinpoint the fireflies, but the fireflies can't intervene in Fox. Another point, after the share swap, the interests of Firefly and Fox are tied together, even if the heart is not willing, if necessary, Eric has to pinch his nose to choose to cooperate with Fox. It is estimated that this is the main purpose of Murdoch's desire to replace shares with fireflies.
If Eric’s body is still a soul that is somewhat innocent and somewhat weak and somewhat juvenile, perhaps when he thinks about it, he will surely be smothered with tears and screaming:
Too bully, I am not working with you."
To be honest, Eric just thought that because of the thoughts left by the original owner, this kind of impulse filled with juvenile sentiment was indeed produced.
However, now the body is still a dominant soul of more than forty calm middle-aged people, coupled with the special experience of rebirth, Eric has seen a lot of things relatively light, rushing to the crown Money is less likely to happen to him.
Of course, at this time, Eric is still very angry: "Mr. Murdoch, maybe Fox does not want to show any sincerity, then..."
Murdoch showed a faint smile, saying: "Eric, you listen to me, or we..."
"No," Eric immediately interrupted Murdoch's words. He was not sure if there would be any big pit waiting for himself in the conditions that the old guy would suggest. If he didn't respond, he would plant it. "It's still for me. I'm not very interested in the shares of Fox Films, but since I'm negotiating about Friends, let's talk about Fox TV. I want shares in Fox TV. Fox wants to get the first broadcast rights of "Friends" in the next few seasons, then you must transfer 10% of the shares of Fox TV's market value before the "Friends" broadcast."
Murdoch was shocked by Eric's lion's big mouth. Although he is known as a media tycoon, he currently only owns more than 30% of News Corp., and News Corp. only owns about 80% of Fox TV. The shares, folded down, his family's share of Fox TV network is only 24%. If you agree to Eric's conditions, then Firefly will become the second largest shareholder of Fox TV network, the right to speak only after the Murdoch family. If there is a contradiction between the two parties in the future, Eric will be able to take over the ownership of the Fox TV network as long as it is supported by other shareholders.
Fox TV is the most important move that Murdoch has painstakingly made to enter the North American market. In any case, he can't agree to the conditions of Eric.
To be honest, Eric did not have such a big appetite. He originally planned to get a stake of about 5% of Fox TV.
From the collected data, Fox TV is now worth less than 1 billion, far less than the huge size of the three TV stations of 40 to 5 billion.
But Eric knows that after more than a decade, Fox TV will be on the same scale as the three major TV stations, reaching more than $30 billion. Now it only needs to invest less than $50 million. By then, this 5% stake is a value. More than $1.5 billion in huge wealth, and the profitability of the TV network is more stable than that of the movie company. In the future, if he does nothing, he can get a lot of money from Fox TV’s billions of dollars in annual profits. Dividends. (To be continued)