The Best Entertainment Era

All kinds of information were quickly collected in Ronan's hands. After Robert Lee confirmed that Hollywood Video was indeed in private contact with REO, Ronan was also making various preparations, especially in terms of funding.

In the past two years, Relativity Entertainment has achieved great success in film production and distribution. In addition to the funds necessary for the normal operation of the Embassy Films and Sand Sea Entertainment, it has accumulated a liquidity of up to 200 million US dollars.

Two hundred million dollars is a lot to say, but Relativity Entertainment first purchased Netflix, and then injected capital into Netflix. To maintain the normal operation of the company, it needs to reserve emergency funds. If it really bids for Ruiou with Hollywood Video Company, it will inevitably lead to Liquidity is severely strained.

So Ronan walked into Bank of America's Los Angeles branch once again.

Unlike the previous application for a personal loan of 35 million US dollars, Ronan came to make a loan in the name of Netflix this time.

Judith receives Ronan in the VIP lounge.

The young deputy director of the bank's credit department smiled brightly: Good morning, Ronan.

Ronan shook her hand: Hello, Judith.

Judith exchanged pleasantries with Ronan, and asked tentatively, Are you here this time, do you want to handle bank loan business?

Ronan handed over the relevant materials he had prepared to Judith: I acquired an Internet company called Netflix in December, and now Netflix is ​​preparing to participate in the acquisition of another company, and the funds are a bit tight.

With our good cooperation and your credit rating, the loan is not a problem. Judith said: You are one of the customers with the highest credit rating of Bank of America Los Angeles Branch.

Ronan half-jokingly said: In order to maintain the good cooperation between us, more than half of my personal income this year will be used to repay the loan, and the quality of life has seriously declined.

After the 9/11 incident, he borrowed 35 million US dollars from the Bank of America, which was invested in the stock market by his personal foundation, and he used his income in the next few years as collateral.

Knowing Ronan and the development of Relativity Entertainment, Judith said, This loan is too easy for you.

Ronan turned to the topic: This time I applied for a loan from Bank of America in the name of Netflix.

Judith said without hesitation: No problem. She then asked: What's the amount?

Ronan thought for a while,

Said: The amount has not yet been determined. The maximum may be 100 million to 120 million US dollars, and the less is about 30 million US dollars. This loan is used by Netflix to acquire the copyright of a company or some of their works.

Judith asked again, What time?

It won't be more than one month at the latest. Ronan said directly: I need Bank of America to prepare funds in advance. Once Netflix confirms the loan amount, it can handle the relevant procedures as quickly as possible.

Since the two parties have cooperated many times, Judith didn't need to think too much, and said directly: There is no problem with these. She reminded: A quick loan requires proper collateral.

There are not many things that Netflix itself can mortgage, and the most valuable thing is equity, but it is impossible for Ronan to pledge equity.

Ronan was already prepared, and said: Among the companies acquired by Netflix, there are 18,500 rental and sales copyrights of film and television works. This acquisition is very likely to succeed. If possible, Netflix will use the future rental Copyright as collateral.

He pointed to the information: There are detailed instructions here.

Judith opened it and looked at it briefly, and said, I will submit it for review as quickly as possible. As long as it can pass, these are not problems.

Netflix needs a loan only after the acquisition is successful, and these 18,500 film and television works will naturally belong to Netflix, which also meets the mortgage conditions.

Once the acquisition is unsuccessful, Netflix naturally no longer needs a loan from the Bank of America, and only needs to pay a handling fee to the bank.

This requires the customer to have a good credit rating and a deep cooperative relationship with the bank.

Judith was well aware that Ronan was perfectly qualified for Bank of America in these respects.

The preliminary procedures of the loan were handled very quickly, and Ronan received the support of the Bank of America, and he no longer worried about funding issues.

Robert is also further inquiring into the contact between Hollywood Video Company and Ruiou to learn more details.

While Relativity Entertainment kept in touch with Rio, Stewart Coleman didn't ignore Hollywood Video.

Mr. Marquez, I've always had a soft spot for Hollywood videos.

In the meeting room of Ruiou Company, Stewart Coleman said to Marquez Perlman, the senior vice president of Hollywood Video Company: BestCard is the overlord of the industry, and it spares no effort to suppress other video chain companies. Hollywood Video It is the banner against the arrogant Blockbuster, and it has won a lot of benefits for small companies such as Ruiou.

His expression is full of sincerity: Since I am going to sell Ruiou, the first choice is of course Hollywood Video Company.

Marquez Perlman is a gentle middle-aged man, knowing that Stuart Coleman has not finished speaking, he has no intention of opening his mouth at all.

Stuart Coleman glanced at Marquez, and said: Originally I planned to sell Rio to Hollywood Video, but Netflix under Relativity Entertainment appeared, and Netflix's boss Ronan Anderson offered a I am responsible for all the shareholders and employees of the company, and I can only say sorry for your company's quotation of 80 million US dollars...

Marquez Perlman frowned and said: Mr. Coleman, we have talked for a long time, and the Hollywood video has shown enough sincerity. We don't have to be your company.

Stuart Coleman said with a smile: Rio has no shortage of buyers.

Let's stop here today. Marquez Perlman took the initiative to leave: I hope Mr. Coleman can think clearly.

Stewart Coleman sent two people from Hollywood Video out of the company.

Walking out of the office building and getting into the car, Marquez Perlman said to his assistant: Go and find out what Stuart Coleman said as soon as possible.

He then asked, What about Relativity Entertainment?

The assistant replied: Relativity Entertainment is the holding company of Sandsea Entertainment and Embassy Pictures. It can be said that it is a medium-sized company with relatively good performance in Hollywood.

Marquez Perlman understood: It turned out to be the owner of Embassy Pictures.

The assistant also said: We have business dealings with the Embassy Pictures, and the videotape rental and sales copyrights of films such as The Bourne, Reaper and Human Purge Project all come from the Embassy Pictures. What did he think of, And reminded: Ronan Anderson is the producer of these films.

Marquez Perlman knows the name: Hollywood's youngest billionaire?

Yes, that's him. The assistant said: Relativity Entertainment has developed rapidly in the past two years. It seems that it just acquired a company in December last year, and it is very possible to continue to expand.

Marquez Perlman asked the driver to drive, and then fell into thinking. A few minutes later, he said to the assistant: You try to get in touch with Relativity Entertainment, and test the attitude of Relativity Entertainment.

Also, I will prepare a report and submit it to the company's board of directors. There may be twists and turns in this acquisition.

Marquez Perlman is very pessimistic. Regardless of Hollywood or other business circles, such a situation has a high probability of turning into a bidding acquisition in the end, and the acquirer is likely to pay a price far exceeding expectations.

Acquiring the business of Real Europe is one of the important plans of Hollywood Video Company to expand its own chain leasing business. The chain stores of Real Europe Company in Southern California can effectively help Hollywood Video Company seize the share of the film and television rental market.

In the past few years, Blockbuster seems to be developing very well, but the market analysis department of Hollywood Video has noticed that the almost monopoly status of giants has led to the fact that Blockbuster provides customers with worse and worse services, and the resistance of customers is increasing year by year. Even many customers would rather go to small stores with limited film sources to rent films than deal with the arrogant Blockbuster.

The arrogance caused by the long-term monopoly status has made Blockbuster, a former giant, lack of wit and flexibility.

Although Blockbuster’s performance seems to be still outstanding now, Hollywood Video’s various analysis shows that in the next two to three years, the rental market, where Blockbuster occupies an absolute dominant share, may experience huge changes.

Hollywood video has a good chance of replacing it, as long as it is prepared.

Expanding chain stores and providing better services are all necessary conditions.

Hollywood Video has just completed a new financing and has begun to make corresponding preparations, the key of which is to expand the chain stores to more than 5,000 within three years.

Marquez Perlman suddenly thought of the video rental website of REO, and couldn’t help shaking his head slightly. Originally, REO’s development was not bad, but he wanted to develop this unreliable business, which led to continuous losses since 1998. ...

These are lessons that have been tested in the field.

Hollywood Video is interested, and Relativity Entertainment is also trying. In addition, Embassy Pictures and Hollywood Video have already had business contacts. Layers talked again.

The specific situation was quickly reported to Ronan.

On the other hand, the tentative negotiation between Relativity Entertainment and REO was not smooth, because of the relationship between competitors, Stewart Coleman offered a sky-high price of 120 million US dollars.

Ronan put aside the negotiation with REO for the time being, and after reading the information obtained from the special investigation and Robert Lee's feedback on contact with Hollywood Video Company, he decided to communicate face-to-face with the management of Hollywood Video.

In the acquisition of Ruiou, there is no need for the two parties to become hostile, and there is a possibility of cooperation.