Hollywood Director 1992.

Chapter 459 Acquisition of MGM Studios

Jingle bell~
While I was busy, the phone on the table rang. It was Greg Davis calling to say that Kirk Kerkelian had accepted his previous offer and was willing to sell MGM to Guess Movies for $42 billion.

"Link, how are you?"

Greg asked.

"Not bad, we can start acquisition negotiations."

Link put down the phone, patted the woman's big buttocks to wake her up, and then asked Aishwarya to notify the board of directors and senior executives to hold a meeting to discuss the acquisition of MGM Studios.

Because Guess Movies had performed very well in recent years, the company's shareholders had great confidence in his abilities, and after he proposed to acquire MGM Studios, the proposal was unanimously approved by the board of directors.

At a high-level company meeting, Michael Leeson, Jon Gordon, Joe Ferrer, and others became extremely excited when they heard that the company had officially acquired MGM.

Founded in 1924, MGM Studios is one of the pioneers of the Hollywood film industry and a symbol of the industry. It has released hundreds of classic films and television series, including famous IPs such as The Wizard of Oz, Gone with the Wind, Tom and Jerry, Singin' in the Rain, One Flew Over the Cuckoo's Nest, The Graduate, Rocky, and the James Bond series.

MGM is also an industrial conglomerate with subsidiaries including MGM Entertainment, MGM-United Entertainment, MGM Studios, Modern Times Films, D'Arcy International Cinemas, Comcast television channel, and the operating rights to eight star-rated hotels and resorts, including MGM Grand, MGM Grand Hotel, and Mandalay Bay Hotel.

If the acquisition of MGM Resorts International and its subsidiaries is successful, it will undoubtedly be a qualitative leap for Guess Movies, transforming it from a single film and entertainment company into a large-scale conglomerate involved in multiple fields such as film, television, cinemas, animation, real estate, catering services, and tourism.

The total market value will exceed $100 billion.

But guess what? It won't be easy for the film studio to swallow up MGM, this behemoth.

First, the group was in poor financial condition. Around 1970, Kirk Koccorian acquired MGM Studios and West Airways with debt.

In order to pay off his debts, Kerkorian treated MGM Studios as a bloodsucker, constantly draining MGM Studios to pay off his debts, or mortgaging MGM shares for other investments.

This led to MGM's increasingly poor performance, and despite releasing blockbuster films such as One Flew Over the Cuckoo's Nest, The Graduate, Rocky, and the James Bond series around the 007s, it was not able to turn the tide.

Starting in the 1990s, MGM faced difficulties surviving due to pressure from newcomers such as Guess Movies, Miramax, and New Line Cinema, and its box office revenue worsened.

It used to be ranked last among the seven major film studios, but now it sometimes ranks ninth, tenth, or even outside the top ten.

MGM's debt gradually accumulated from tens of millions to a staggering $38 billion.

Even though MGM Resorts International's subsidiaries generate hundreds of millions of dollars in revenue annually, they still cannot afford to pay the bank interest.

Faced with such a huge burden, Guess what the future holds for the film company. If not handled properly, it could be dragged down by this massive debt.

Therefore, Guess the Movies must plan carefully when acquiring MGM to avoid the acquisition affecting the company's development.

“Boss, MGM hotels and resorts are not our company’s main business. I suggest that we sell this part of the business after the acquisition to raise funds and alleviate the company’s debt pressure.”

At the meeting, Joe Ferrame, Chief Operating Officer of Guessing Movies, made the suggestion.

"Could we follow Disney's example and build MGM Resorts in hotels and resorts? Our company has many film projects that are suitable for building theme parks, and perhaps more in the future."

Link asked.

"It will be very difficult. First of all, investing in and building a movie theme park requires a lot of money. After we acquired MGM, the company's funds will become tight, and we will not be able to make investments outside of movies in the short term."
Secondly, MGM's eight hotels and resorts are primarily located in Las Vegas, with their main businesses being dining and gambling. If they were to build theme parks, they wouldn't need eight. Furthermore, Disney and Universal Studios are far superior in building movie theme parks; we lack a competitive advantage.

"Joe Ferrer said."

Link nodded, agreeing with Flamel's opinion, but not entirely agreeing with him.

From the current perspective, Guess What Film Studio does not have much of an advantage in this regard. One is that it lacks money and manpower, and the other is that it lacks suitable projects for development.

However, in the long run, that may not be the case. After acquiring MGM Studios, he was confident that he could help MGM pay off its debts and become a profitable company within five years.

Once the company becomes profitable, it will no longer lack funds to invest in other projects.

Secondly, while Guessing Movies and MGM currently lack film projects for theme park development, this may change in the future. In the coming years, Guessing Movies will be producing several fantasy and science fiction films, including the *Pirates of the Caribbean* series, the *Lord of the Rings* series, the *Fast & Furious* series, and the *Harry Potter* franchise, as well as the *Final Destination*, *Scream*, and *Interstellar* series, all of which would be suitable for developing into thriller-science fiction theme parks.

In addition, Pixar Animation Studios continues to produce animated films, including the Toy Story series and the already completed A Bug's Life.

Based on these points, the company has the capability and conditions to build theme parks in the future.

However, Joe Ferrer is also right. Several MGM hotels and resorts are located in Las Vegas, which is not suitable for conversion into theme parks or themed hotels.

After acquiring MGM, the company can dispose of this part of the business and then use the money to buy land around the world to build theme parks or hotels.

“Boss, I also have a suggestion. After acquiring MGM Studios, we can merge the company’s commercial film production divisions, with MGM Studios acting as the distributor, and merge the independent film divisions, with Guess Movies handling the distribution. This would also make management easier.”

Daniel DeVito proposed.

Daniel's proposal was supported by the majority of people present.

The main reason is that the name "Guess What Film Studios" is too casual and somewhat informal compared to the seven major film studios. Since 94, some people have suggested changing the company's name to a more impressive one, such as Pacific Film Studios or New World Film Studios.

But Link did not agree.

Now that they've acquired MGM and own the established MGM brand, it's the perfect time to rename it.

Link thought about it and didn't refuse. The company name wasn't important to him. As long as he could make movies and earn more money through the film company, he didn't care about anything else.

Furthermore, MGM is a long-established brand with global influence, and distributing commercial films through MGM might be more effective. Meanwhile, Guess Movies' continued production and distribution of independent films can maintain its reputation and influence in the independent film industry.

"These things are not urgent. We can implement them gradually after the acquisition is successful. The main task at present is to successfully acquire MGM."

"Yes, boss!"

Michael Leeson and more than a dozen other senior executives echoed his sentiments.

Given that acquiring MGM was a long-term project, and with Link busy making a new film and unable to handle the specifics, he delegated the acquisition of MGM to Joe Fullerme, James Schamus, Liu Xiaoli, and others.

"Boss, I'm in charge of public relations. The acquisition of MGM has nothing to do with our department. Why do you want me to join the acquisition team?"

After the meeting, Liu Xiaoli followed him to his office.

"Acquiring MGM Studios involves many things, such as public opinion. After the acquisition is exposed, this matter will receive attention and discussion from all sides. There may even be people who try to sabotage it and use the media to attack our Guess Guess Studios. At this time, your public relations department is needed to coordinate. In addition, you are my wife. With you in the acquisition team, everyone will be more proactive and complete the work with a more responsible attitude. Lastly."

Link held the beauty in his arms, stroking her soft curves, and said, "You've worked in the public relations department for over four years and done an excellent job. After the acquisition of MGM, I need you to take on more responsibilities. By joining the acquisition team now, you can also take this opportunity to learn more about MGM, which will make it easier for you to take on new tasks in the future."

"So, all you're saying is that you don't want me to be idle and want to give me more work? Are you treating me like a beast of burden?"

Liu Xiaoli pouted, feigning anger, her slender index finger almost poking his face.

"Of course not. I just think that you are very talented, Sister Xiaoli. It's too much of a waste for you to only do public relations work. I want to give you a bigger platform so that you can give full play to your talents and let the whole world know that you are a gentle, beautiful and very capable strong woman. Then more people will admire and respect you. Wouldn't that be better?"

"Oh no! You've been trying to make me work like a slave, you're so mean."

Liu Xiaoli punched his chest muscles, her cheeks turning a deep rosy red.

Link held her soft fingers. "Okay, if you don't like being a slave, we'll find someone else."

"No! I want to go myself. I don't trust anyone else," Liu Xiaoli said with a cold expression on her pretty face.

Link chuckled softly and whispered a few words in her ear. The woman's cheeks and ears turned red, and she twisted her waist, begging him to let go, as she wanted to go back to her office to work.

But thanks to Link's persuasion, she stayed for more than half an hour before leaving with a beaming smile.

(End of this chapter)