Chereads / After Acquiring Marvel, I Became the King of Hollywood / Chapter 67 - Chapter 67: Kevin's Fortune

Chapter 67 - Chapter 67: Kevin's Fortune

In Hollywood, acquiring shares of a film company like MGM at the level of MGM is not as easy as one might think.

Most of the shares of major studios are controlled by conglomerates behind the scenes, making it nearly impossible to acquire them as a part of the complete industry chain.

Even for the next tier studios like MGM, acquiring shares requires a cash payment significantly higher than the stock price.

However, someone like Kevin, who has become indispensable to MGM, can purchase shares at a normal price. In other words, Kevin is acquiring shares worth over $100 million for the price of $90 million, which can be considered a steal.

Kirk Kerkorian looked at Kevin with an unpredictable expression, gazing at him for a while. Several minutes later, when he saw that Kevin showed no signs of fear, he suddenly burst into laughter and wore a very amiable expression.

"Kevin, I believe in you. I can sell you 10% of the shares directly, and I can also give Warner Bros. 20% of the shares. You can purchase them at the current stock price, but Warner Bros. must purchase them with a 30% premium. I value you, not them."

Finally, Kevin's face revealed a look of joy. Don't underestimate owning only 10% of MGM's shares; this is an achievement that countless directors can't reach in their lifetime.

This success meant that he had surpassed the achievements of countless directors and become one of the major shareholders of MGM.

From then on, his position in Hollywood would be different. At the most basic level, he could use MGM's connections to promote his films for awards.

As long as his films reached a high enough level, age or other factors wouldn't hinder him.

As the founder of the Academy Awards, MGM could leverage its connections and influence, and even the Oscars couldn't refuse.

If anyone thought the Oscars were not influenced by external factors, Kevin could only say that person was still too young.

Of course, even MGM was just a stepping stone in Kevin's heart. In the future, his Dawn Films Entertainment would utilize the resources of MGM, Warner Bros., and the vast number of IPs provided by Marvel, following the development path of future Disney, becoming an absolute giant in Hollywood.

However, before he truly grew, he still needed the protection of MGM, as a large umbrella to shelter him from the wind and rain...

...

One day later, Kevin declined Kirk Kerkorian's invitation to gamble in his casino. He had an absolute aversion to gambling and drugs and would never touch such things.

The three of them returned directly to New York. As Kirk Kerkorian's contact person, Reed went to negotiate the sale of shares with Warner Bros., while Kevin focused on managing his assets in preparation for purchasing 10% of MGM's shares.

Acquiring 10% of MGM's shares at a price below the current market value, without any premium, for a mere $90 million was undoubtedly a huge profit for Kevin.

In his memory, ten years later, a nearly bankrupt MGM could sell itself for over $3 billion.

However, MGM was unwilling to sell at that price, which led to its bankruptcy.

Even now, the true value of MGM's 10% shares was at least double the price. If it weren't for MGM's current need for Kevin, he would never have been able to acquire the shares at that price.

Kevin went straight to Dawn Films Studio. He flirted with the two receptionists, listened to their compliments, and took them out for a nice meal before returning to the office to meet with Dawson.

"Dawson, how much liquid capital does the company currently have, and how much income can we expect in the future?"

Dawson nodded and called in a female finance executive whom Kevin didn't know, an average-looking woman wearing glasses, to count the figures in front of them.

After some calculations, the woman with glasses raised her head and said, "Currently, the company's revenue mainly comes from the profits of Get Out and the subsequent sales of copyrights, totaling $61.85 million. After deducting expenses, we have $58.43 million left."

"As for the future, Mission Impossible has already reached $150 million at the North American box office, and there is still one to two weeks before it goes offline. We estimate the North American box office will be around $160 million, bringing in approximately $30 million in revenue for the company."

"The international box office revenue is expected to be quite substantial, possibly reaching hundreds of millions of dollars, and there are also future income from copyrights..."

Kevin interrupted her. "That's enough. It seems that after Mission Impossible goes offline, I will have enough funds."

The woman adjusted her glasses and said, "Boss, we have to pay taxes in April. After the operations with the charity fund and other aspects, you only need to pay about 15% of your annual income. But it's best to reserve that money in advance..."

Kevin slapped his forehead. He almost forgot about that. In the United States, the tax authorities were the ultimate authority. Compared to the FBI or SHIELD, they were small fries. The tax authorities even had their own armed forces.

No matter how wealthy a person was, once they were involved in tax evasion, the tax authorities wouldn't let them off. It was okay to engage in legal tax avoidance, but tax evasion was not an option.

Kevin didn't have the courage to challenge the tax authorities. As for further tax planning, some methods couldn't be employed by film companies. At the moment, it seemed difficult to lower the tax rate any further, so he would need to hire professionals to study it in the future.

It seemed that there was still a gap in his funds, Kevin silently calculated. But this matter wasn't urgent, as he could delay the payment for several months. Right now, he was more concerned about how Reed's negotiation with Time Warner was progressing.

On the other side, Reed and Robinov were having a pleasant conversation while enjoying coffee in the president's office at Warner Bros.

Robinov pondered Reed's words and was somewhat tempted. The most valuable asset of a film company was its film library, and MGM, being one of the oldest and most prestigious film companies, had an extensive collection of films that were priceless in the hands of Warner Bros.

By investing only 20% of the shares, they could gain access to MGM's film library. Although they would still have to pay for it, it would still be a profitable deal.

Especially since Mission Impossible was still in theaters and MGM's stock hadn't reached its peak value yet, acquiring the shares now, even at a 1.3x premium, would not result in losses for Warner Bros.

Moreover, the key point was that Steve Kevin was going to purchase 10% of MGM's shares. If Warner Bros. didn't join in, it would be difficult for them to participate in Kevin's other film investments. This was something they couldn't accept.

Escape from Get Out and Mission Impossible had both brought them considerable profits, leaving them wanting more.

Considering all these factors, although Reed didn't have decision-making power, he had already decided to persuade Warner Bros. to acquire 20% of MGM's shares. Of course, it wouldn't be unacceptable if Warner Bros. and MGM exchanged their respective shares.

This will depend on the needs of the major stakeholders behind MGM, whether they prefer to cash out a portion of their shares or continue to have faith in the entertainment industry.

If the big bosses behind MGM believe that it's the right time to cash out and realize their investments, they might be inclined to sell a portion of their shares.

On the other hand, if they have a positive outlook on the entertainment industry and believe in the long-term potential of MGM, they may choose to hold onto their shares.

Ultimately, the decision will be influenced by their assessment of the current market conditions, their financial goals, and their strategic vision for MGM's future.