America: Starting with the acquisition of MGM...

Chapter 4. This is how the financial game is played.

"How much?" Charlotte Cooper's eyes widened, as if she hadn't heard clearly.

"Ten million, to be conservative!" Eric said, enunciating each word clearly.

Ten million US dollars, especially in 2002, was enough to make two or three low-budget films. Many directors and actors never worked on a film with a budget of ten million US dollars in their entire lives.

After a moment of stunned silence, Charlotte Cooper finally reacted: "Son, what exactly are you trying to do?"

Eric didn't intend to hide it from his father, after all, he was his blood relative, the closest person in the world, and besides, if they really wanted to acquire MGM, they would definitely need his father's help.

"Dad, if you're going to enter the entertainment industry, what could be better than owning your own film company? After working for MGM for decades, don't you ever think about being independent?"

Charlie Cooper nodded slightly: "Every employee dreams of becoming their own boss, but this industry is very complex. You can't succeed just by acting impulsively. There are too many companies that go bankrupt in Hollywood every year."

"Son, I've been in this industry for over thirty years and have seen too many ups and downs. In this era, it's almost impossible to succeed in starting a film company on your own."

Eric wagged his finger. "No, Dad, I don't want to start a company, because that's too much trouble. You'd have to handle production, distribution, and all that other hassle, and rebuild relationships all over again. I'm thinking of acquiring an established company, and what company would be more suitable than MGM?"

The air seemed to freeze for a moment. Charlotte Cooper reached out to touch her son's head to see if he had a fever.

"Dad, I'm perfectly sober!" Eric frowned.

Suddenly, Charlie Cooper burst into laughter, his chubby chin jiggling. "Eric, you want me to buy MGM? Even God wouldn't dare joke like that. It's less reliable than starting my own company."

"Although MGM's development hasn't been great in recent years, it still has a history of several decades and was once one of the top eight studios. Do you know how valuable that history is?"

Eric picked up the remaining half of the pear, took a bite, and his mouth was full of juice: "Since being acquired by Kirk Kerkorian, MGM has been on a path of no return. According to my estimate, the debt should be between $10 billion and $11 billion."

"As for the assets, including the studio, film library, and various props, I estimate their value to be between $18 billion and $20 billion, right?"

Harry Cooper frowned. As the CEO of MGM, he hadn't carefully checked every single account, especially since they had just finished filming "Windtalkers," which would definitely have a huge impact on the company's finances.

But hearing his son's speculation still gave him a jolt, because the company's internal financial statements for the first quarter were not much different from this figure, and this kind of information is not something that ordinary shareholders can access.

As of the first quarter, MGM's assets were valued at approximately $18.35 billion, while its debt was $9.31 million.

Eric Cooper had previously had absolutely no interest in movies and no reason to care about MGM's development. Naturally, he couldn't find MGM's financial information in the hospital, but the fact that he could guess so accurately suggests that a bear really was coming.

"Eric, even if you're right, that's 30 billion dollars, a full 300 times! Tell me, what can 1000 million dollars do?"

"I can do a lot. I will make money work for me. Besides, if I really want to acquire MGM, it won't cost 30 billion. 10 billion would be enough."

"Oh? What do you want to do?"

"It's not difficult. Simply put, it's about taking out a loan in the future. My first step is to try to raise $10 billion, and then I'll need you, Dad, to step in."

"You need to take out loans from various banks. Given MGM's financial situation, we deal with these banks quite often, don't we? Dad, you should be very familiar with this process."

"With your connections, starting with $10 billion and using MGM's assets as collateral, we can borrow $20 billion from major banks, giving us $30 billion. I think the acquisition will be no problem."

Eric's idea sounds bizarre, after all, MGM doesn't belong to you, so why should you use someone else's assets as collateral?

But that's the game of finance, and Harry Cooper knew very well that the major banks had long coveted MGM, but had just never found an opportunity to take a bite out of this big pie.

If someone were to take the lead and present an opportunity to them, they would be absolutely willing to lend money, even if there was only a 50% success rate, since banks never lose money.

If Eric successfully acquires MGM, the $20 billion loan will be a long-term process, and the bank can collect huge interest. If Eric fails to manage MGM, the bank can take over this huge piece of the pie.

Even if the acquisition ultimately fails, the bank can still collect short-term interest. With $10 billion as a safety net, they are not afraid of Eric defaulting on his debts.

Worldwide, most people can't outmaneuver banks, since they can't lose money either way. So the key question is, where does this $10 billion come from?

After a moment of contemplation, Harry Cooper's gaze became more formal: "Eric, it seems you've indeed studied finance quite well and have developed a comprehensive plan, but I have a question: where are you going to get $10 billion?"

Eric smiled mysteriously: "Dad, this is what I need to consider. I guarantee you'll see results within a month."

He dared not tell his father that he made money through betting on football; his father would definitely think he was crazy.

Moreover, there are risks involved. If the casino discovers something amiss, it will inevitably cause another big problem. It's best not to involve Dad.

The father and son sat on the hospital bed and talked for more than three hours until late at night, when Charlie Cooper was finally persuaded.

Of course, the most important thing is that their family can afford ten million dollars, and Charlie Cooper has been in an executive position for so many years.

Compared to those big names on the Forbes list, he's certainly not much, but he still earns far more than many celebrities.

Giving his son ten million dollars to practice was a bit of a pain, but what could he do? It was his son, and besides, he was also moved by the future scenario Eric described.

Acquire MGM, become your own boss, take the gamble, isn't life just a gamble?

Two days later, Eric was discharged from the hospital accompanied by his mother. Dr. Charles still looked puzzled, and in the end, he could only attribute this to a miracle in the face of something that defied medical common sense.

The car slowly drove into Beverly Hills, a city within a city in Los Angeles, where you can see stars from the big screen, world-famous athletes, globally renowned artists, and countless luxury stores.

The moment Eric pushed open the door, he heard several loud bangs, and colorful ribbons rained down from the sky, landing on him. A group of people rushed over and surrounded him.

Welcome home!

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(End of this chapter)