[Chapter 652: This Isn't About Professionalism]
The black limousine cruised through the bustling studio lot of Firefly Films, where Ron Perelman stared vacantly out the window at the crowd, contemplating what might happen next. The car stopped in front of the administrative offices, and the driver opened the door. As Ron stepped out, he spotted three people not far away, with a young man in a white shirt, surrounded by well-dressed men and women, standing out prominently.
"We finally meet, Mr. Perelman," Eric Williams smiled, shaking hands with Ron as he approached. He then introduced, "This is Mr. Frank Wells, the president of Firefly Group, and this lady is my personal assistant, Miss Kelly Haynes."
Ron immediately sensed a familiar "good cop, bad cop" routine in Eric's perfectly timed demeanor. Jeffrey Katzenberg had undoubtedly played the 'bad cop,' but recognizing this little act eased Ron's heart somewhat, contrasting sharply with the turmoil he had faced just a week prior.
"It's nice to meet you, Mr. Williams," Ron mustered a somewhat warm tone as he shook hands with Eric, Frank, and Kelly.
After the introductions, Eric said, "I assume you haven't had a chance to have lunch yet. There happens to be a nice little place nearby."
Ron certainly didn't refuse, and he and his assistant joined Eric and the others at the restaurant where Eric often dined within the studio lot.
Given that both parties had just experienced a conflict, the simple lunch merely alleviated some of the discomfort between them.
After instructing the waiter to clear the plates and bring coffee, Eric finally got to the point. "Ron, since you wanted to talk to me directly, I'm sure you must have a solution in mind regarding the Marvel situation, right?"
A bittersweet sensation welled up in Ron, but he nodded. "Yes, Eric," he replied, hesitating slightly, unwilling to give in. "I more or less agree with Firefly Group's debt-to-equity strategy. However, one condition remains: the compensation for Marvel's shareholders needs to be solely borne by Firefly Group. My bottom line is simply to get my Marvel shares out."
Eric showed no signs of Katzenberg's impatience and calmly replied, "But that would be incredibly unfair for Firefly. We're already weaker creditors than Marvel's shareholders. If Firefly -- or rather, Frank and I -- shouldered that loss, our situation would just worsen."
Although Eric's argument was logically valid, Ron still found it absurd to connect 'Firefly' with 'weaker.' "Eric, I know you care deeply about Marvel. Its value is likely to surprise everyone. Having lost this round, I don't intend to hold onto anything further. The terms I stated earlier are my final offer."
Eric pondered for a moment, looking at Kelly. "How much would it take to redeem all the outstanding Marvel shares on the market?"
Kelly nearly rolled her eyes at Eric's acting but responded efficiently, "Marvel's stock has been extremely volatile lately. Based on the average price over the last seven days, it'd take around $72 million to buy back all the outstanding shares."
"$72 million -- that's not a huge sum," Eric turned to Ron, ignoring the glint of relief in Ron's eyes. "Considering Marvel's current situation, if Firefly doesn't intervene, it'll be a year at most before Marvel has to file for bankruptcy protection in federal court. I suspect at that point, resolving this mess won't just take $72 million."
Ron, mistakenly thinking Eric was willing to cover that expense, felt gratitude surge initially. But with Eric's next words, disappointment set in, and he tried to play hardball. "Eric, my company is out of cash. I assume you wouldn't want this dragged out any longer, would you?"
Eric shook his head. "No, you have cash. Everyone knows you bought $400 million in Firefly bonds. I suspect a long-term holding strategy isn't aligned with your investment principles. So, Firefly could redeem those bonds now, in full or in part. Of course, Firefly won't lowball you like a Wall Street investor would; we can redeem them at face value."
Ron hadn't expected Eric to know he had been pressured to lower his bond price by industry peers. While he kept his composure outwardly, he mentally cursed a few times. Eric was right; Ron had no intentions of holding onto the Firefly bonds long-term. His plan had been to retain a few to maintain his status as a creditor while selling the rest after getting a seat on the Firefly board.
Given the long-term popularity of Firefly bonds, he could easily make several million dollars in profit even with just a few months of holding. Even if he couldn't sell immediately, the $400 million in bonds still provided a stable annual interest dividend of $22 million.
Eric's seemingly generous redemption option would still cost him at least a few million dollars.
Noticing Ron's internal struggle, Eric didn't rush him. Seemingly recalling something, he whispered to Frank Wells by his side.
At that moment, Ron truly felt torn. He realized that he was cornered into accepting the first solution that Katzenberg had proposed over a week ago. The only difference was that Eric's approach was much gentler, without a trace of Katzenberg's aggressive demeanor.
But what could this mean? If it meant earning a hefty sum, Ron wouldn't mind greeting the person he despised most with a friendly face.
After Eric finished talking with Frank, he turned back to Ron, and Ron knew he had no other option left. "Eric, only $72 million. If Marvel's stock price goes up after that, I won't spend another dime."
Eric nodded, not worrying about those small details anymore. He trusted that Ron wouldn't be foolish enough to drag this out, responding, "No problem."
After a moment of thought, Ron added, "I also hope Firefly can assign someone else to handle this matter."
"That's exactly why I brought Frank along," Eric said with a smile, gesturing to Frank Wells beside him. "From here on out, Frank will be fully responsible for this matter. You two can have your discussion now. I have work to attend to. Excuse me."
...
After saying goodbye to Frank Wells and Ron Perelman, Eric walked away with Kelly toward the Victoria's Secret photography studio. He noticed his female assistant casting him curious looks and said, "If you want to say something, just say it."
"Nothing, I just think your approach to handling this situation is entirely that of a seasoned middle-aged person. Wait, that's not quite right..." Kelly shook her head. "You've always been like this. It's strange. I rarely see you energetic and impetuous."
Eric glanced around, moved a bit closer to his assistant, and quietly said, "How about pulling a late-night shift tonight? You can see my 'energetic' side firsthand."
Kelly blushed and pushed Eric away. "I promised Nina I'd have dinner with her. Why don't you go charm some of those young models in the studio? They'd surely be delighted."
Eric shook his head. "I usually don't get involved with my leading ladies." Seeing the disdainful glances from Kelly, Eric awkwardly added, "At least not while shooting a movie -- that's true."
"Didn't expect you to be so professional," Kelly teased with a laugh.
"This isn't about professionalism," Eric countered, shaking his head. "You know, I can be a pretty considerate guy. If my leading lady slept next to me last night and then performed poorly on set the next day, it'd be tough for me to criticize her without holding back. That kind of pent-up frustration is genuinely uncomfortable."
Kelly shot a playful glare at Eric and said in a mockingly affectionate tone, "Alright, I take back what I said earlier. You're just a little thug with violent tendencies."
*****
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