Domination in America, Starting from being a Boxing Champion

Chapter 468: The Embryo of a Business Empire



The training session ended in the afternoon, and Link drove back to his bay villa.

Last time, he had discussed with Ivanka about buying another large manor-style villa.

Currently, the villa had been decided on, located on the hillside of Santa Monica, by the mountains and the sea, with a good environment and security.

The villa was built in the early seventies, initially one of the properties owned by the world's richest family in the sixties, the Paul Getty family, not far from the Getty Art Center, and also a famous mansion in Los Angeles.

The total land area is about 1.6 hectares, with over 6800 square feet of living space, and the selling price is 48 million US dollars.

Currently, the villa is under renovation and is expected to move into the new home next year.

When he arrived home, Ivanka was sitting on the sofa looking at documents, needing rest due to her pregnancy; she usually doesn't stay long at the company, and many tasks are taken home.

"Look at fewer documents! Leave the work to Steven Bicks and others or you can find me; you need to rest more because of your pregnancy,"

Link put down his training bag and leaned over from behind the sofa to kiss her cheek.

"I'm just looking at the company's weekly report, I'm not doing anything strenuous, you're just worrying too much,"

Ivanka said.

"What's the work at the company this week?"

Link sat down beside her and took a bite of a green apple.

"A lot, 'The Hunger Games' has finished shooting, entering post-production, expected to be released during the summer, 'No Escape' has a North American box office this week of 380,000 US dollars, cumulative 27.23 million US dollars, overseas box office about 1.42 million US dollars, cumulative about 48 million, this movie has almost made a profit of twenty million.

Also, 'The Vow' has started casting, and the production department thinks you are suited for the lead role, are you interested?"

Ivanka put down the folder and asked.

"No, I have a high salary, which would increase the cost. Plus, I am known as a playboy, and playing such a passionate role would make the audience feel disconnected,"

Link said, sitting back on the sofa with his legs crossed.

Ivanka gave a slight smile, not persuading him to take the role.

From Link's current status and influence, such a role wouldn't add much to his fame and would be a waste of time; for Link, every second is valuable.

"Another thing, after we gave up acquiring Summit Entertainment, Ryan Kavanaugh is planning to acquire Summit, reportedly fundraising now. The media's take on this is that if Relativity Media and Summit Entertainment merge successfully, their market value could surpass that of Lionsgate Films, making it Hollywood's eighth largest, potentially creating a three-strong alliance in the independent production sector alongside Lionsgate and Weinstein Company,"

Ivanka said.

In Hollywood, the six major studios are Disney, Warner, Universal, Paramount, Fox, and Sony, including Sony's Columbia Pictures that makes seven major production companies.

Lionsgate Films, once surpassing 1 billion in market value after going public, was also considered Hollywood's eighth major.

Now, with Lionsgate Films delisted, its market value has decreased, its influence in the movie industry diminished, and its position as the eighth major is precarious.

If the two to three hundred million value of Relativity and the over four hundred million value of Summit Entertainment merge, indeed, their market value would not be inferior to Lionsgate's, and their production capabilities would also increase, truly threatening Lionsgate Films' position in the independent production sector.

But Link is not worried; for a film company, regardless of size, the most important thing is to produce profitable films annually.

With more profits, there would be more funds to produce better movies and continue to make big money. It's a production chain; once movies stop bringing in profits, even the biggest companies will be at a disadvantage in market competition.

This year, several movies invested by Lionsgate Films weren't bad, and unless something unexpected happens, the company's profits next year won't be meager.

Unlike Lionsgate, Relativity Media is a much younger film company, valued at two to three hundred million, producing about ten films a year, not even half of Lionsgate's.

Even though recently performing well, the company lacks the heritage and doesn't have the strong film library like Lionsgate Films, depending on Kavanaugh's boastful tactics to pull in investments, resulting in increasingly more creditors for Relativity Media.

Reportedly, Relativity Media now has four to five hundred creditors; too many creditors and the inability to fulfill promised dividends timely are also reasons for Relativity Media's potential financial issues.

For Relativity to acquire Summit Entertainment, which is larger, it would need to amass more funds and gather more creditors, creating a huge debt for Relativity Media.

This situation is akin to a debt-ridden poor man borrowing money to marry.

Not to mention whether the shareholders behind Summit Entertainment would agree; even if they did, the collaboration between the two would not go smoothly.

It would take at least two to three years, or perhaps longer, for the two companies to get through the integration phase and enter a stable developmental period.

By then, Lionsgate Films would likely have already entered a period of rapid growth, and there would be no concern about the two companies joining forces.

In fact, Lionsgate Films' ongoing targets and rivals were the six majors; in the independent production domain, including Weinstein Company, Summit Entertainment, and Legendary Pictures, they are not the competitors to be worried about for now.

"Let's not worry about Summit Entertainment and Relativity for now; for the next five years, the work focus of Lionsgate Films will be on developing its existing movie projects, making more money, accumulating significant capital. With enough money, our acquisition targets would not be limited to small film companies like Summit Entertainment; we could potentially reverse acquire one of the six majors and become the industry leader,"


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