America: Starting with the acquisition of MGM...

Chapter 24. You covet my money, but I covet your body too.

Upon hearing this, Eric frowned. Hasbro was being greedy, asking for 20% right off the bat. Did they really think money grew on trees?

However, he felt helpless about this, since the copyright was in the hands of others, and even if they didn't cooperate with him, they could cooperate with the other six major companies.

Even without collaborating with the other six major studios, they can still partner with established independent production companies; such big IPs have no shortage of buyers.

The success of the X-Men series and Spider-Man, in particular, has made more companies realize the potential of comic book adaptations.

MGM had anticipated Hasbro's exorbitant demands and had prepared a series of contingency plans.

In business, you can't beat the arbiter who asks for the sky and haggles on the spot!

"Mr. Hassenfield, I have a question. Why did Hasbro decide to make a Transformers movie?"

Hasenfield didn't answer, but just looked at Eric, wanting to hear what he had to say.

"In my opinion, it's nothing more than expanding influence, or injecting fresh blood into Transformers, but the real purpose is to sell merchandise and toys, since that's your core business, isn't it?"

"That's right, Mr. Cooper, what exactly are you trying to say?"

Eric took a deep breath: "Then I have a suggestion, how about we sign a betting agreement?"

Hasenfield paused, somewhat taken aback, and asked, "A betting agreement? What do you want to bet on?"

"It's very simple. We'll bet on the impact of the movie's release on toy and merchandise sales, and link sales volume to profits."

"If the movie has no impact on toy sales, and sales increase by less than 10% within a year, then MGM will pay Hasbro twice the copyright fee, which is $100 million."

"If Transformers toy sales grow by more than 50% within a year, then MGM will pay Hasbro 1.5 times the royalties, which is $7500 million."

"If toy sales grow by more than 100% within a year, then MGM will pay Hasbro $5000 million in royalties."

"If toy sales grow by more than 150% in a year, then MGM will only pay Hasbro $2500 million in royalties."

"If toy sales grow by more than 200% within a year, MGM will still only pay Hasbro $2500 million in royalties, but Hasbro will have to pay MGM 10% of its toy profits."

"Finally, if toy sales grow by more than 300% within a year, MGM will still pay Hasbro a $5000 million royalty fee, but Hasbro will have to give up 3% of its equity to MGM, or pay 40% of the toy profits."

"Of course, this is just a rough idea of ​​mine. We can discuss the specific details further, but I hope Hasbro can see our sincerity."

That's right, Eric's idea to propose this betting agreement was indeed on a whim.

You covet my money, but I covet your body too.

In 2002, the American toy market was in a three-way battle for dominance, with Hasbro, Mattel, and Lego holding the mainstream market share. Other smaller companies could only tremble in fear, not knowing when they would face bankruptcy or be acquired.

People in China are most unfamiliar with Mattel because their main product is the Barbie doll series, and Barbie dolls are not a mainstream item among Chinese people.

Of these three giants, if we follow the historical trajectory, LEGO undoubtedly took the right path, relying on various superhero and Disney licenses to develop a large number of film and game merchandise, and becoming the world's number one toy manufacturer.

However, looking back at 2002, Lego was at a disadvantage, with Hasbro and Mattel having a larger market share.

Eric's idea was simple: to enter Hasbro's management without bloodshed and then gradually gain a voice.

If he could become a decision-maker, with his foresight, it wouldn't be impossible for him to defeat Mattel and Lego in the future. Even within the scope of laws and regulations, an acquisition might not be a dream.

If they then invade Japan and take over Bandai Namco, they can say that they will dominate the global toy market and establish an absolute monopoly.

What in this world could bring greater profits than a monopoly? Of course, this is just a nice idea.

Back in 2007, because of the popularity of "Transformers," my little nephew kept pestering me to buy him toys, so I bought him an official movie Optimus Prime, which was incredibly expensive.

He then took a look at Hasbro's financial report from that year, and found that Transformers toy sales had soared fivefold, making a fortune and far exceeding Paramount's profits.

So he really hoped Hasbro would sign the performance-based agreement, and was even willing to make even bigger concessions, as long as they signed.

"Mr. Hasenfield, I hope you will seriously consider this betting agreement. I think it's more worthwhile than increasing the copyright fee by 20%."

Inside the meeting room, Hasbro's side fell into complete silence, and not only them, but MGM's side was also in a state of bewilderment.

Volvo was practically screaming in his head, "Can't you at least consult me ​​before making this decision? We're supposed to catch others off guard, not ourselves!"

After a moment of silence, Hasenfield checked the time: "Mr. Cooper, although you are very young, I must say that your proposal is very bold!"

"However, this is not a decision I can make alone; it requires the board of directors to consider it. I think we should stop here for today, since Hasbro has already seen your sincerity."

"It's getting late, why don't we take a break? We've been talking about work for so long, it's time to talk about other things like friends."

Eric knew the other party couldn't make the decision, and besides, the details still needed to be finalized, so he laughed and said, "Then I'll accept it without further ado."

At 2:30 p.m., Eric and Chen Xing boarded a flight back to Los Angeles.

Inside the first-class cabin, a beautiful flight attendant in uniform approached the two of them with a smile and offered her service.

"Sir, would you like something to drink?"

"I'd like a glass of ice water, please."

Eric rubbed his slightly dizzy head. Hasenfield had been very hospitable at lunch.

Despite the age difference of more than ten years, the other person seemed genuinely interested in Eric, and the two chatted quite a bit.

When the mood strikes, you naturally drink a lot of alcohol. Don't assume that there's no drinking culture abroad. As a result, the effects of the alcohol are kicking in, and I'm feeling a bit thirsty.

"Just give me a Coke."

The flight attendant quickly returned with the tray and, seeing Eric's dazed appearance, asked, "Sir, are you feeling unwell?"

He grabbed Eric's hand and asked, "Should we call a doctor?"

Shaking his head, Eric felt an itch on his hand and then carefully examined the flight attendant in front of him. She looked remarkably like Brooke Shields.

It's important to know that, unlike China Express Airlines, American Airlines' flight attendants are almost all middle-aged women, and you're only likely to encounter young women in first class; the chances of meeting a beautiful woman are not high.

"I think so, but not as a doctor. Can you help me?" Eric said, heading towards the bathroom.

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(End of this chapter)