"How much?" Charlie Cooper's eyes widened as if he hadn't heard correctly.
"Ten million, to be conservative," Eric said, enunciating each word clearly.
Ten million dollars in 2002 was enough to finance 2-3 low-budget films. Many directors and actors never worked with such budgets throughout their entire careers.
Charlie Cooper finally composed himself, "Son, what the hell are you planning?"
Eric didn't intend to hide his plans from his father, as he was the closest person in the world. Moreover, if he was serious about buying MGM, he would need his father's help.
"Dad, since I'm planning to enter the entertainment industry, what could be better than having my own film studio? You've worked at MGM for so many years; haven't you ever wanted to start your own business?"
Charlie Cooper nodded slightly, "Every employee dreams of becoming a boss, but this industry is very complicated. Mere desire isn't enough for success. Many companies go bankrupt in Hollywood every year."
"Son, I've been in this business for over 30 years and have seen many ups and downs. These days, it's nearly impossible to start a film studio alone."
Eric shook his head, "No, Dad, I don't want to start a new company; it's too troublesome. You have to deal with producing, distribution, and building relationships. I want to buy an existing company, and what better fit than MGM?"
There was a pause, and Charlie Cooper reached out his hand to check if his son had a fever.
"Dad, I'm perfectly fine!" Eric frowned.
Suddenly, Charlie Cooper burst into laughter, his chin trembling with mirth, "Eric, you're asking me to buy MGM? Even God wouldn't dare to joke like that. It's even more unrealistic than creating your own company."
"Although MGM has had problems in recent years, it's a company with decades of history, one of the 'Big Eight'. Do you know how much it costs?"
Eric took the remaining piece of pear and bit into the juicy slice, "Ever since Kirk Kerkorian bought MGM, the company has been declining. By my estimates, their debt ranges from 1 to 1.1 billion dollars."
"As for assets—the studio, film catalog, and equipment—I estimate them to be worth 1.8 to 2 billion dollars. Is that correct?"
Charlie Cooper frowned. As MGM's CEO, although he didn't review every balance sheet entry, he knew that the recent Windtalkers movie had severely impacted the company's finances.
Nevertheless, Eric's assessment nearly matched the latest internal financial reports, which surprised Charlie, as such information was not available to ordinary shareholders.
As of the first quarter, MGM's assets were valued at approximately 1.835 billion dollars, and the debt was 931 million.
Eric had never shown an interest in movies, and in the hospital, he couldn't have obtained MGM's financial information, but his guesses were so accurate that Charlie realized his son had seriously prepared.
"Eric, even if your estimates are correct, that's 3 billion dollars, which is 300 times what you're asking for. What will you do with those 10 million?"
"A lot. I'll make the money work. Besides, to buy MGM, you don't need 3 billion; 1 billion will suffice."
"What do you want to do?" Charlie asked.
"It's simple. I'll try to raise 1 billion, and then I'll need your help."
"You'll need to take out loans from major banks. Given MGM's financial situation, you often deal with banks, so you should be familiar with these processes, right?"
"Using 1 billion dollars as collateral and pledging MGM's assets, we can secure loans for 2 billion. This way, we'll have 3 billion, and the deal will be feasible."
Eric's plan seemed strange—after all, MGM didn't belong to him yet, so why should he use someone else's assets as collateral? But that was the essence of financial games. Charlie understood well that banks had long wanted to get hold of MGM but couldn't find the right opportunity.
If someone offered them such an opportunity, even with a 50% chance of success, they would agree because banks never lose.
If Eric managed to acquire MGM, the 2 billion debt would be paid off over many years, generating huge interest for the banks. If he failed, the banks could take over MGM.
Even if the deal didn't go through, the banks would still earn interest on the short-term loan, and with 1 billion as collateral, they weren't taking much risk.
The main question was where Eric would get 1 billion.
Charlie thought deeply, his expression serious: "Eric, you clearly understand finance well and have a plan. But where will you get 1 billion?"
Eric smiled mysteriously: "Dad, that's my concern. I promise you'll see results in a month."
Eric didn't plan to reveal his betting scheme. His father would definitely think he was crazy.
Besides, there were risks involved. If the bookmakers detected something suspicious, there would be problems, and Eric didn't want to involve his father.
They talked for over three hours, late into the night. Eventually, Charlie agreed.
Of course, the deciding factor was that the family could afford to invest 10 million. As a top executive, Charlie earned enough.
Comparing his income to that of the big businessmen on the Forbes list made no sense, but he earned more than many stars.
Investing 10 million for his son to gain experience was painful, but Charlie was moved by the future Eric described.
Buying MGM and becoming the boss was worth the risk. After all, life is a game, and you have to know how to make bets.
Two days later, Eric was discharged from the hospital, accompanied by his mother. Dr. Charles was still bewildered by such a miraculous recovery and called it a miracle.
The car slowly drove into Beverly Hills. In this city within a city, you could meet movie stars, famous athletes, world-class artists, and countless luxury brand stores.
When Eric opened the door to the house, several claps rang out, and confetti rained down from the ceiling, surrounding him.
"Welcome home!"