America: Starting with the acquisition of MGM...

Chapter 26, Section 28. Since you've already filled in the blanks, then so be it.

Beverly Hills, the Cooper family home.

Mom brought out a plate of apple pie. Eric picked up a piece and put it in his mouth, immediately grimacing from the heat.

Dad looked up and asked, "I heard you're planning to sign a performance-based agreement with Hasbro?"

"Yes, Volvo and Bordeaux should have informed you by now. I made this decision on a whim without consulting you beforehand, I apologize!"

Dad sighed: "You're my son, there's nothing to apologize for, after all, the company is in your name, but what's your purpose?"

"Hasbro's demand for a 20% increase in royalties would only amount to $6000 million, which is within the scope of normal business negotiations. However, the terms of the performance-based agreement require us to guarantee a 100% increase in toy sales in order to at least break even."

"But you should know that movies are high-risk investments, and no one can guarantee that they will always be successful. If Hasbro agrees to sign a performance-based agreement, that will be a huge pressure."

Seeing his father's serious expression, Eric knew that his decision was somewhat sudden and that he should at least have discussed it with his father beforehand.

"Dad, I understand your concerns. This betting agreement was just a spur-of-the-moment decision, and Hasbro can even continue to pressure us on the terms of the agreement. But have you considered what kind of profit we could gain if we succeed?"

"We have the opportunity to get into Hasbro's decision-making level. It's currently the largest toy manufacturer in the country. If we could take over..."

But before Eric could finish speaking, Charlie Cooper waved his hand and interrupted, "Wait, son, everything you're saying is based on the premise that toy sales targets are met, but who can guarantee that?"

"Just like you said, Hasbro will definitely continue to pressure us. After all, they own the copyright and have the upper hand. Before, they might have just wanted an extra $1000 million, but now you've given them a new option."

"In my experience, Hasbro will not be satisfied with 300% of sales; this target will probably rise to at least 350%."

"Do you know how much Transformers toys and related merchandise sell in a year? According to data I got from professionals, it was $2.91 million last year."

"In other words, we need to push this figure to at least $10 billion to have any chance of achieving your bet target. Do you understand how difficult that is?"

Eric rubbed his temples. People without a vision for the future would certainly not understand his ideas, and might even think they were a fantasy.

But this kind of thing can't be explained. You can't just say, "Your son is a time traveler, and you can believe me."

I don't believe you, you idiot. Take him to the hospital to get his nerves checked first.

"Dad, I understand what you mean and I understand your concerns. Actually, I'd like to talk to you about this. But I was in a rush to go to Israel, and my itinerary was already arranged, so I didn't have time."

"Since we're on the topic now, let me tell you my true thoughts. Actually, I not only want to sign a performance-based agreement with Hasbro, but I also want to secretly acquire its stock. This would be a huge pie, and we..."

Just as Eric was about to explain, his father suddenly had a flash of inspiration and exclaimed, "Wait... I see! Stocks! How could I forget about stocks? Son, I understand what you mean. You're playing a long game!"

"We'll first use a performance-based agreement to entice Hasbro to license Transformers to us as soon as possible, even if it means paying a higher price. We want to get the copyright quickly and prevent other companies from even considering it."

"I heard that Paramount is also interested in Transformers. Compared to Paramount, MGM is indeed at a disadvantage, so the only way to beat the competition is through price, since Paramount won't pay such a high price."

"As long as we acquire the copyright, even if sales don't meet expectations when the contract is signed and the movie is released, toy sales will always increase, based on Hasbro's past patterns of releasing animations, although the increase may not be as dramatic."

"The rise in toy sales will definitely drive up Hasbro's stock price. What we need to do is buy retail investors' shares in advance and then make a killing later."

"The price difference is enough for us to recoup the costs of the performance-based agreement, and we might even make a considerable profit. Even if we don't recoup the costs, the fact that it helped us obtain the copyright ahead of time is still worthwhile."

After thinking it through, Charlie Cooper looked at his son with some excitement: "Eric, it seems you're quite good at finance; you've already considered this step."

Eric: "Meow? Have I thought about this much?"

Shari Cooper laughed heartily: "Eric, did you really think about all this on your way to Hasbro? So much in such a short time? Have you planned out your entire future?"

Eric scratched his head somewhat awkwardly: "Why not?"

"Hahaha... Eric, you are truly the pride of the Cooper family. That brat Joshua only knows how to mess around outside. It's up to you to inherit Dad's business."

"Meow..."

"That's indeed a good plan. Let's do it your way. I'll secretly buy up Hasbro stock. Eric, how much do you think we can make?"

Eric stroked his chin: "I think it will be at least over $2 million."

Harry Cooper frowned. "With MGM's current cash flow, the amount we can invest is indeed limited. I need to think of a way to get more money from somewhere."

Seeing his father getting a little carried away, Eric wanted to say a few words of advice, but then he thought better of it. The result was the same as his goal, so what did the process matter?

Please add this to your favorites, follow this story, give it a reward, vote with monthly tickets, and recommend it!

(End of this chapter)