American Entertainment: Starting with playing the role of Little Beaver

Chapter 132 Forming Alliances and Changing Mindsets
The meeting between Ted Turner, Steve Case, and Carl Icahn took place at the latter's mansion on New York's Upper East Side.

Although this is just a detached villa with dozens of rooms, in terms of area, it can't compare to Ted Turner's small estate, and it can't even match the hilltop villas of many Hollywood stars in Beverly Hills.

However, not everyone can buy a house here.

When this place is inhabited by either industrial or financial tycoons, and everyone is involved in banking, energy, military, or pharmaceuticals, Hollywood stars want to buy property here? Sorry, those people aren't even qualified to be gatekeepers.

To put it bluntly, Leonardo DiCaprio is super A, right? But even he can only afford a small apartment on the outskirts of the Upper East Side.

Those who cannot control the means of production cannot enter the core area.

Of course, gatherings based on status are merely the most discreet symbol of identity.

The outward presentation is the decoration of the luxury home.

Carl Icahn's home is like a small museum. In the corridors, paintings by Picasso, Monet, and Van Gogh are everywhere, and even a sculpture casually placed in the corner is the work of a master. If I had to describe it...

If you don't have enough artistic cultivation, everything around you will make you look like a country bumpkin.

Yes, what Lao Qian was really appreciating in his art appreciation wasn't art itself, but people.

Because art doesn't need to be learned. When your life is filled with rare and priceless artifacts that people talk about, you will naturally understand what kind of style a certain painter has. Just like Puyi said, you'll get it by playing with it a lot.

So, if you start a discussion about a work of art by immediately mentioning references? Sorry, you're clearly not an insider.

When a true friend speaks, the first thing they usually say is, "I have his things in my house too."

Power is only ever held in a supreme position!

It is impossible for it to look at any object on an equal footing!
Guided by a waiter, Ted Turner and Steve Case entered Carl Icahn's mansion's living room.

The extravagance they had witnessed along the way left the two somewhat wistful. They were also wealthy, but their wealth was different from Carl Icahn's. Their net worth was mostly composed of stocks, which were essentially beautiful bubbles before they were actually liquidated.

The appearance of the two men caused Carl Icahn, who was leaning back on the sofa, to rise slowly, make a welcoming gesture, and shake hands with them with a smile. "Oh Ted, Oh Steve, it's a pleasure to meet you today—of course, what makes me happiest is actually receiving your invitations. Can you believe it? I was incredibly excited when I learned that you wanted to meet me."

"Oh—really—"

Ted Turner smiled and said happily, "Karl, it is truly an honor to be valued by you."

“Carl, I’m really excited that you accepted the invitation.” Steve Case and Carl Icahn shook hands firmly. “You’ve always been my idol, seriously.”

"Hahahaha~" Carl Icahn laughed heartily.

With a wave of his hand, he invited the two to sit down.

When asked what they would like to drink, and learning that they had no dietary restrictions, Carl Icahn had the butler bring out a few bottles of wine.

While waiting for the bottle to be opened, they chatted briefly with the two men. After the butler left, the group, having finished tasting the treasured wine, also put away their idle chatter, as their time was very precious and their purpose was very clear.

Ted Turner spoke first: “Carl, I believe you know why we’re here, so… let’s talk about your plans? And then see if we can come together?”

"no problem."

Carl Icahn smiled and nodded, saying, "My goal is simple: I will acquire a certain number of Time Warner shares on the market, then seek a seat on Time Warner's board of directors, and then break Time Warner into five companies: AOL, representing the internet business; Time Warner Cable, representing the broadcasting business; Time Publishing, representing the publishing business; Warner Bros., representing the film and television business; and Warner Music, representing the music business."

"I wonder if... you would be willing to support me?"

Although Carl Icahn is known in the underworld as the Wolf of Wall Street, this only describes his bloodthirstiness and ruthlessness. Once he sets his sights on a company, he will stop at nothing to devour it.

And when making a move...

Wolves are social animals.

He also has allies.

Or rather, the reason Carl Icahn was able to dismantle international giants time and time again was not because he controlled immense wealth, nor because his understanding of finance had reached a state of perfection, but because he was actually playing a game of human nature.

The companies he targeted were all companies riddled with problems.

It is only when the shareholders of a company become dissatisfied with the company, dissatisfied with the stock price, dissatisfied with the operating conditions and business direction, that Carl Icahn will step in and become the leader who unites the shareholders, becoming the savior in the eyes of countless small and medium-sized shareholders in the name of helping the shareholders. Only after gaining the support of countless shareholders can he frantically amass wealth.

Because he needs the support of the target company's shareholders for every move he makes, he is now openly discussing his plans with Ted Turner and Steve Case.

His thoughts, however, were conveyed to the two of them as a clear series of numbers—

Time Warner's current market capitalization is approximately 1000 billion.

If split into five companies, based on past experience, the total market capitalization of the five companies could rise to approximately 1500 billion.

In other words, if Carl Icahn succeeds, he could reap up to $15 billion in rewards from this raid.

Uh……

That's right.

Even if Carl Icahn didn't explicitly state how much Warner stock he would buy, his returns could still be calculated.

Because the U.S. Securities Act also has the concept of shareholding disclosure, when an investor holds a certain number of shares in a company, he must disclose his existence to the U.S. Securities and Exchange Commission.

Then, the investor's trading of the company's stock will be subject to regulation.

This is disadvantageous for those who want to cash out freely.

Therefore, most of the time, even if a financial wolf wants to attack a company, it is impossible for it to give up liquidity and buy shares to the threshold for disclosure. Under the restrictions, no matter how much Carl Icahn buys in the market, he will only buy a maximum of 3% of the shares. 3% of 1000 billion is 30 billion, and after it increases to 1500 billion, it becomes 45 billion. Subtracting the two, it is 15 billion.
This is the simplest calculation problem in the field of finance.

It is also an essential skill for all kinds of wealthy people when they are increasing their capital.

It can be used in both takeover battles and anti-takeover efforts.

Therefore, in just a few breaths, Ted Turner and Steve Case figured out Carl Icahn's plan.

then……

The two fell silent.

This is not to say that they cannot accept Carl Icahn's target earnings.

Rather, it was Carl Icahn's breakup plan that didn't suit their tastes.

Right now, all they want is to break up AOL; they want the television network, the film industry, the publishing industry, and the music industry.

and so……

“Okay, this is a very ambitious plan.”

The two looked at each other.

Steve Case smiled and said, "Before we continue, Carl, may I ask you a question?"

“Of course you can,” Carl Icahn said, interlacing his fingers in front of him. “I’ve always believed that people who can get together are friends, so Steve, you can ask me anything.”

"Oh, I admire your magnanimity!"

Steve Case offered a compliment, then said, "Carl, I'd like to know, when did you first set your sights on Warner?"

Was it a sudden whim?

“Of course not.” Carl Icahn raised an eyebrow, crossed his legs, and said in a slightly condescending manner, “I’ve actually had my eye on Warner for a long time. If I had to give a specific time, I would say it was when you merged.”

“Steve, I don’t mean to belittle you, but I’m saying that AOL doesn’t deserve to acquire Time Warner.”

"Your financial report from back then... was really bad..."

“Your AOL only makes a few billion dollars in profit a year, but you have a market value of hundreds of billions. Oh, come on, I don’t believe you don’t know that there is a very, very big bubble in this.”

"In my opinion, your merger between AOL and Time Warner will only end in failure."

"So, I had my eye on you back then, and I knew your shareholders would definitely be angry."

"And the truth... is it as I thought?"

“Hahaha~” Carl Icahn’s merciless words made Steve Case look embarrassed.

Ted Turner smirked and continued, "So, Carl, why did you make your move at this time?"

“Oh, Ted, it’s a bit hypocritical of you to ask that question,” Carl Icahn said, leaning back on the sofa with an air of nonchalance.

The smile on his lips deepened. "I have great respect for Mr. Rockefeller, and I think you all feel the same way, don't you?"

Upon hearing this, Ted Turner's face broke into an even wider smile!

Yes!

They all deeply respected the Rockefeller family!

but……

The third patriarch of the Rockefeller family has passed away.

Lawrence Rockefeller officially passed away on July 11, 2004.

He passed away at the age of 94.

His departure signifies the official end of the third generation of Rockefellers!
This also means that Richard Parsons has lost his backing!

Of course, this doesn't mean they can get rid of Richard Parsons. No one would be so foolish as to target the Rockefeller family. Rather, Richard Parsons is currently preoccupied with Time Warner.

While Lawrence Rockefeller was alive, Richard Parsons only needed to do his job, but with his passing, a servant like Richard Parsons would certainly do everything in his power to help his young master seize the family business.

Take Citigroup for example.

This is the Rockefeller family's business; those who know, know the value of a bank.

For example, Lawrence Rockefeller was particularly fond of investing in high-tech industries. He had a dedicated investment company called Wenlock in the Stanford campus in Palo Alto, California.

Wenlock has invested in almost every well-known tech company in Silicon Valley, including Intel, Apple, and 3Com.

The scariest thing is that other investment companies invest in technology to make money, but the Rockefeller family didn't lack money.

Or, to put it another way, the value of the stocks held by Lawrence Rockefeller could easily crush Berkshire Hathaway.

When all the truly valuable things are up for grabs, why would Richard Parsons care about Time Warner?
This isn't Rockefeller's business! It's precisely because the Rockefeller family is having problems that Ted Turner and Steve Case are now considering taking control of Time Warner. If Lawrence Rockefeller were still alive, they wouldn't dare to even entertain such a thought.

And the same goes for Carl Icahn.

He has money, but who dares to compete with a conglomerate in terms of wealth?
Now that everyone has spoken frankly, then...

“Okay, Carl, as you said, we do have the potential to become allies.” Ted Turner glanced at Steve Case, then smiled and said, “But your proposal is too wild; we can’t accept it.”

“Yes,” Steve Case nodded, “we can only accept the model from five years ago.”

“The model from five years ago?” Carl Icahn turned slightly, smiling at Steve Case. “Then I’d like to ask you, Steve, do you want AOL from five years ago or Time Warner from five years ago?”

"You don't actually want to go back to being the chairman of AOL, do you?"

“…” Steve Case pursed his lips.

He was speechless when Carl Icahn asked him a question.

This situation made Carl Icahn chuckle.

He made eye contact with the two men for two seconds, instantly dispelling the awkward atmosphere in the meeting room. "If you only want to split Time Warner into two companies, then you need to buy back at least 20 billion US dollars worth of stock and drive up the stock price."

"I believe you have already calculated my profit target, which is my bottom line."

Carl Icahn's concession brought a sigh of relief to the two men.

Although buying back company stock would impact the company's liquidity—a terrifying prospect when they take over a new company—this option is still acceptable compared to splitting Time Warner into five companies.

If you want to gain power, you definitely have to pay a price.

Even if they could accept Carl Icahn's proposal, they wouldn't immediately cooperate with him.

With a smile, they indicated that they needed to go back and discuss it before giving a reply.

Then, the two changed the subject and brought up their own demands.

“Karl, we want complete control of Time Warner, whether you’re here or not.”

Carl Icahn understood what they meant.

He smiled and swirled the wine in his glass, the clear liquid turning into a vortex with his movement.

“There’s a guy in Marvel named Kevin Feige, who works for Richard Donner, and he has a big idea: to connect all the Marvel characters into one super-sized movie series.”

"Because Ronald Perelman and I fought so fiercely back then that we both lost our board seats, I don't know exactly how far Kevin Feige's idea has progressed, but I would say that they are buying back the copyrights."

"It is said that what they most want to buy back is Iron Man."

"So, if you're willing to accept one of my two proposals, I can arrange for you to sit down and have a meal together. I believe that if Isabella really likes Marvel, she probably won't reject Kevin Feige's idea."

"Then, I can also be frank with you that I'm not interested in Marvel, and Ronald Perelman isn't interested in Marvel either, so if we could really work together..."

“I can’t handle Universal, you guys figure out the Hulk yourselves, Sony is difficult to deal with too, Spider-Man and the others are not going to sell, as for Fox… I don’t have any plans to dismantle Fox for the time being, but I can put pressure on Lionsgate to hand over all the Marvel rights and buy them before Kevin Feige.”

"By then..."

“If we were allies, then all of these things would be yours.”

"Isabella can only join the project if she stands with you."

Carl Icahn raised his glass in a simple gesture.

Then he raised his head and drank the wine inside in one gulp.

The lighthearted words made the two of them burst into laughter. "Oh—Karl—your information network is unbelievable!"

Now that both sides have exchanged their needs, today's private conversation can come to an end.

However, perhaps it's because there's not much work around Christmas?

After chatting for a while, Carl Icahn took the initiative to invite the two to stay for dinner.

Neither Ted Turner nor Steve Case refused.

They didn't leave until 2 p.m.

After seeing them to the door, Carl Icahn turned and went back inside as the taillights disappeared.

He went into the study, took a cell phone from the drawer, and dialed a number.

After two beeps, a warm greeting came from the other end of the phone.

"Hi Carl, good afternoon."

“Hi Michael, good afternoon.” Carl Icahn, leaning back in his chair, smiled and said, “Ted Turner and Steve Case just came from here. As you might expect, they’re ready to make a move.”

"Oh, thank you for the news! I'll treat you to a meal sometime!"

"No need for a meal. If you really want to express your gratitude, you can donate some money to my foundation."

"Hahahaha—Karl—you're so blunt—"

In Washington, Michael Eisner, enjoying the winter chill at his estate, smiled and said, "No problem, once I get my compensation from Disney, I'll definitely subscribe to your fund..."

That's right~
The news that Carl Icahn was eyeing Time Warner was deliberately leaked to Ted Turner and Steve Case.

While it's true that people like them need to coordinate with shareholders when they act, he hasn't even established a position yet, and he's already leaking the news? If anything goes wrong because of this, what's the point of his robbery? Right?
The reason he chose to release the news ahead of time was simply because his friend Michael Eisner needed it.

They've known each other for a long time.

Or rather, compared to Michael Eisner, Carl Icahn is also a new money.

Even when dealing with this kind of person, he has to flatter him. The reason Michael Eisner had Carl Icahn release the information is simple: he can lose, but the winner can't have it easy!
Since Ted Turner and Steve Case will continue to fight Barry Mayer, Michael Eisner can rest assured.

Because after doing this, he could happily and cheerfully resign...

Friday, December 17, 2004.

Michael Eisner announced in a post that he will officially leave Disney next March.

The following day, his ally George Mitchell also submitted his resignation to the board.

He indicated that he would also leave Disney after the Disney shareholders meeting in March next year.

These two official announcements signify the formal end of the Eisner era at the Walt Disney Group, and at the same time…

“Personally, I think Robert Iger can become the new leader of Disney.”

December 22, 2004, North American time.

In a media interview, George Mitchell said with a smile, "Robert Iger is an exceptional talent. Under his leadership, Disney's broadcast television business and live-action film business have both seen significant growth."

"His introduction of 'Who Wants to Be a Millionaire' and 'The Voice' made ABC the dominant force among the three major television networks, while 'Pirates of the Caribbean' filled the void that Disney had in live-action films."

"I believe that if he were to become the chairman and CEO of Disney, Disney would have a very bright future, a future that would shine even brighter than the fairytale kingdom created by Michael Eisner..."

“Oh—Fxxk—Michael Eisner, you beast—”

The sudden recommendation enraged Robert Iger upon hearing the news!
He's not stupid; of course he understands that Michael Eisner is trying to provoke a fight between him and Roy Disney!
This kind of thing is absolutely disgusting to him!
Because if Michael Eisner doesn't make everything clear, he can have a proper talk with Roy Disney, and at that time, even if Roy Disney really wants to be the chairman, he can accept it!

The reason is simple—

That means he's still young right now!

He was born in 51, so he's only 53 years old this year!
Roy Disney is 30 years old and is 74 this year!
With a 21-year age gap between them, even if Roy Disney were to regain control of Disney, how long could he stay in that position? No matter how power-hungry he is, he will eventually have to step down!
In that case...

To be honest...

From some perspectives, Roy Disney becoming the chairman of Disney was actually a good thing for him.

With such a highly respected but eventually retiring figure holding the fort, he could confidently replace all the important positions in the group with his own people. And after Roy Disney retired...

Who else in the entire Disneyland can say no to him?

At that time, the power he wielded would be even more terrifying than that of Michael Eisner!
what?
Some people ask what Roy Disney would do if he put his own child into Disney.
That kind of thing doesn't exist!

The current situation of the Disney family and the Rose family is the same: they lack capable individuals!
Or rather, if there were any capable people, Roy Disney would have promoted his own people long ago!

Therefore, if outsiders perceive no conflict between Robert Iger and Roy Disney, his interactions with various parties within Disney will proceed smoothly. However, once conflict arises…

Let's not talk about anything else.

At least those who are loyal to the Disney family will be wary of him.

Once this fact comes to light, he will no longer be able to control those people.

Those people with even a little ambition would use their relationship with Roy Disney to seek opportunities to climb the social ladder.

"Oh! Sxxt! Oh! Sxxt!! Oh! Sxxt!!!"

After confirming that George Mitchell had indeed spoken to the media recommending himself.

Robert Iger immediately felt like his hair was about to catch fire.

This is angry.

He paced angrily back and forth in his office.

The "drip drip drip" sound was like water droplets in a dark room, making the secretary standing to the side speechless.

I don't know how much time passed, maybe an eternity, before he finally stopped.

"No! The plan has changed!"

"We can no longer seek copyright from Isabella!"

"We need to change our approach! Let's find a way to demolish Disney headquarters!"
-
(End of this chapter)