Sony had caused so much trouble for Tai Hua Holdings, and how can Feng Yu not retaliate? How can he swallow this humiliation?
Although those people had cut ties with Sony on the surface, and there was no direct evidence to link Sony to this incident, as long as one is not blind, they will know that this incident is related to Sony.
Currently, Sony's advantage is PlayStation, digital video cameras, flat-screen TVs, mobile phones, PC, music players, etc. This does not include their movies, songs, and other entertainment businesses.
Sony's movies and songs are also the best in the world. Only by producing better products can Sony defeat them.
Sony's former ace singer, Michael Jackson, has been losing popularity in recent years, and Sony's new leading singer did not reach Michael Jackson's level.
As for movies, with the popularity of the VCD, Sony made lots of money from their movie rights. Luckily, people are more interested in new movies, and Sony Pictures' profits are decreasing.
The best solution is to stop Sony from expanding. At this time, Sony Pictures is looking to acquire MGM Film Company. This is the last independent film company among the top eight Hollywood film companies. This company owns James Bond, Tarzan of the Apes, etc., and a large amount of film and TV rights.
Although there would be very few people interested in these copyrights when they were reissued, there was still a very big use, and that was to take them out and remake them.
Feng Yu remembers many remakes in his previous life, and the box office earnings are always surprising. Also, Feng Yu still has some classic movies in his mind, and he needs a capable company to produce them.
MGM Studios had fallen is because their movies only focus on the plot and not the visual effects. When going to the cinema, people will hope to enjoy a visual feast. As for the plot, why can't they buy the VCD? Or they can go to a video website and pay to watch the movie.
Regardless if it is buying the VCD or paying to watch the movie, it is much cheaper than the movie tickets. Also, it is more comfortable and free to watch the movie at home.
That's why MGM Studios' main income is from selling VCD. But their VCD production is handed over to Sony Pictures because they do not have their own VCD production factory!
Sony Pictures is interested in MGM's movie rights and the appeal of an established film company. That's why they want to acquire MGM Studios. But Sony Pictures does not have enough cash to acquire MGM.
Even if MGM is in dire straits, its copyrights and brand value are worth 4 to 5 billion USD. Of course, it was nothing compared to the tens of billions of USD of other companies.
Sony had invested too much in electronics recently. For example, digital cameras and video cameras. They need to maintain their leading edge. For example, their music player products must catch up with Aiwa. For example, the newly added plasma flat-panel TV camp required a huge investment. For example, mobile phone sales were declining, and they needed to increase investment. Computer sales were declining, and they needed to increase investment.
Even their video game console, which they had dominated for several years, had to invest more in research and development because of the rise of Gbox and Nintendo's upgrading. They wanted to release a new model as soon as possible.
Although Sony's profits last year were not bad, they do not have the funds to acquire MGM.
During the dotcom bubble two years ago, Sony's share prices had plummeted. He had just recovered recently, but compared to his peak, he was still at least thirty percent weaker.
That's why Sony can only acquire MGM through mergers and acquisitions. This is a common method in the US.
Sony's acquisition plan is a special leveraged buyout. MGM's assets will be used as collateral to issue high-risk bonds to get loans from banks or other investment institutions.
For example, Sony needs 5 billion USD to acquire MGM, but the assets they are using might only be 10 million USD. This is the power of leveraged buyouts.
But at the same time, if MGM's business is doing well, and its assets start to appreciate, Sony will not be able to share in the profits. It will be until the loans and bonds are repaid.
Many people like to buy high-risk bonds because the higher the risk, the higher the returns. Sometimes, a junk bond can bring in hundreds of times the returns. Of course, it was more likely that this bond had indeed become trash, a piece of waste paper.
This is a gamble, and some people like it, while others stay away from it. Those who succeed will be overjoyed, and those who fail will not be hurt as long as they do not buy a lot of bonds.
In Feng Yu's previous life, Sony worked with a few investment companies to acquire MGM. After that, they used a series of equity transactions to acquire MGM.
This allowed Sony Pictures to grow, and within a short period of time, Sony had brought in more than 10 billion USD in revenue. This is an unprecedented success.
But this is an overdraft of MGM's brand potential. That's why MGM went bankrupt in the end, and Sony handed it over to the Telescope Company.
Sony wants to acquire MGM not only for the film and TV industries. It also includes hotels, resorts, cinema chains, cafes, etc. Feng Yu is only interested in the film and TV industries and cinemas. As for the hotels, resorts, etc., Feng Yu is not interested and wants to sell them off.
At this time, Feng Yu needs someone who is interested in these industries. For example, Donald.
"Feng, you said you want to acquire MGM? Do you want me to help you complete this acquisition? " Donald is puzzled. He only invests in real estate and stocks and does not invest in film and TV industries.
"Donald, MGM does not only have films and TV industries. They also have resorts, hotels, cafes, etc. Are you interested? The US property market has been rising recently. "Feng Yu asked with a smile.
As the King of Real Estate in New York, Donald's assets naturally skyrocketed as well. Donald was crazy about real estate and property.
Donald's eyes brighten up. There are not many good real estate investments in New York recently, and investing in other areas is a good choice.
"You are saying that after we acquire MGM, we will split off the property business, and you will take over the rest?"
Feng Yu nodded. "Are you interested? You should know that Wind and Rain Holdings does not have any talented people to manage the hotels and other properties. That's why we will not make any losses, but you will surely make money! "
"Feng, when can we meet to discuss this further?"
"I will fly to New York the day after tomorrow, and we will meet in person!"
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