"I know you have concerns," Michael said with a smile. "Parker, Neil, and Wilson, the three major shareholders of your company, are very keen on selling their shares. They have had several rounds of discussions with my representatives, and this transaction will soon be finalized. Otherwise, I wouldn't be meeting with you."
Garcia also smiled but did not respond to Michael's remark.
Michael continued calmly, "Don't worry, you won't become a department of Seashore Entertainment, and you won't be demoted from a company executive to a department manager."
Garcia's eyebrows raised; this was what he truly cared about.
Michael went on, "Embassy Pictures will remain Embassy Pictures. It won't be merged into Seashore Entertainment. Like Seashore Entertainment, it will become a subsidiary of my newly established company."
Hearing this, most of the psychological pressure Garcia had imagined disappeared.
"After the acquisition, all employees' salaries will increase to varying degrees, and the management will get a ten percent raise," Michael observed the change in Garcia's expression. "I will try to retain all employees; experienced distribution staff are valuable assets."
He paused and then added, "I want a company with complete staff and channels, not a fragmented one."
Garcia couldn't hold back any longer and asked, "What about the management?"
"For the first six months, there will be no changes," Michael said straightforwardly, considering he was dealing with a businessman. "As long as they prove their ability, their positions and salaries won't be an issue."
Garcia sighed in relief. The conditions were quite favourable.
Michael concluded the meeting, saying, "Mr. Garcia, think it over."
In the following days, the pace of acquiring Embassy Pictures accelerated. Robert was responsible for contacting the three major shareholders, while George maintained contact with Embassy Pictures' management.
Michael, meanwhile, went to Delaware and, with the help of a professional team, registered a new company there – Relativity Entertainment.
If all went well, this company would become the holding company for both Seashore Entertainment and Embassy Pictures.
Upon returning to Los Angeles, Robert and George were still negotiating. Michael signed an agency agreement with Shengzhi Law Firm, the best in the industry, to assist with the acquisition of Embassy Pictures.
For transactions involving millions of dollars, the services of a professional team were indispensable.
Soon, Robert brought back mixed news. The three major shareholders, holding ninety percent of Embassy Pictures, were willing to sell their shares but at a steep price of $35 million.
Their reason was solid; Embassy Pictures not only had a complete distribution system but also the rights to over forty films in their library.
However, these films were all low-budget indie productions from overseas, with the highest individual acquisition cost being less than $200,000.
Michael proposed a solution to exclude the film library from the acquisition...
To be honest, with limited funds, this would strain his liquidity.
The negotiations saw a brief tug-of-war. When the price dropped to $30 million, the three shareholders refused to budge.
Michael knew that factors outside the negotiations could also influence the outcome.
Since the beginning of 1999, Nasdaq seemed to be on a crazy upward trend, with internet stocks soaring.
Scott maintained contact with Wilson, visiting him several times and even inviting him to Merrill Lynch's Los Angeles branch.
On a day when the stock market was booming, Scott revisited Wilson after work.
"Everyone who has entered the market has made a lot of money," Scott said, sitting on the sofa. "Yahoo's stock price increased by $35 today alone..."
Hearing about a $35 increase in a single day, Wilson felt like he was watching countless dollars fly away, barely hearing Scott's subsequent stock data.
Scott understood this was initially a private job for Michael Davenport, but seeing the potential for more profit, he aimed to make Wilson a significant client!
How much commission could such a client bring?
So Scott put a lot of effort into this private job.
When Wilson regained his composure, Scott added, "I don't understand, Mr. Wilson. From our conversations, I see you have a sharp investment sense and an accurate market analysis. You even predicted significant increases in some stocks, but do you only intend to be a bystander?"
Wilson had never intended to be a bystander.
Scott glanced at him and continued, "Last year, one of my major clients invested over $10 million. His wealth has nearly doubled. This is a feast, a veritable wealth feast."
Regret was seeping into Wilson's heart.
Scott reiterated, "Mr. Wilson, an investor as wealthy and wise as you will lose astronomical profits by delaying entry even for a day."
Wilson rubbed his chin, seriously contemplating. He had no doubts about Scott, as wealthy potential investors like him naturally attracted investment managers.
"The timing isn't right yet," Wilson tried to stay calm as if everything was under control. "I'll enter the market when the time is right."
Scott smiled and stopped pressing, instead discussing recent market changes.
In the following days, Michael joined the negotiations with Embassy Pictures. The problematic negotiations became smoother, and Embassy Pictures agreed to sell without the film library.
The dozens of low-budget foreign films were not short of buyers. Some companies were willing to purchase them to bolster their libraries.
If Michael had more funds, he would have bought them too.
But he needed to maintain a healthy cash flow.
After Seashore Entertainment held a press conference for "Final Destination," Michael and the three major shareholders and management of Embassy Pictures reached an agreement in negotiations.
His newly formed Relativity company acquired the shares of Embassy Pictures for $25 million, paid in full.
Embassy Pictures became a subsidiary of Relativity.
As agreed with Garcia, Embassy Pictures remained stable internally. Employees were happy to see the company acquired by a wealthier owner.
Most people prefer a better financial future.
Subsequently, with the help of a legal team, Michael transferred Seashore Entertainment to Relativity.
Of course, Seashore Entertainment and Embassy Pictures remained utterly independent companies.
Michael had a deep conversation with Robert, who transferred from Seashore Entertainment to Embassy Pictures as Vice President.
To make the horse run, you have to feed it. Michael once again raised the compensation for the three veterans and promised stock options.
Seashore Entertainment remained stable. After the equity change, Embassy Pictures needed an adjustment period.
However, Embassy Pictures could function more quickly and effectively than building a distribution system from scratch.
Acquiring Embassy Pictures, with its complete theatre, VHS, and DVD distribution channels, gave Michael initial market control.
Then, while slowly adjusting and taking control of Embassy Pictures, Michael also officially joined the "Final Destination" crew, leading the film's preparation.
Having worked together successfully before, many crew members were from "The Purge," though some special effects positions needed to be rehired.
On the acting front, the $15 million public budget attracted many agents.
And unlike "The Purge," those with professional insight could easily see that "Final Destination" was a big-budget horror film.