Chapter 295: A Lover
By mid-September, Aaron had returned to Los Angeles.
At Dawnlight's headquarters in Burbank, Aaron held a meeting with the company's senior executives and formally announced his intention to acquire the MCA Group.
Aaron turned to CFO Jessica Parker.
"I've decided to commission the Blackstone Group to handle Dawnlight's acquisition of Matsushita's MCA Universal."
"From now on, you'll need to be based in New York. Work with Blackstone to assess MCA's value and establish contact with Wall Street investment banks and funds. Dawn is going to need a massive amount of financing."
Jessica Parker nodded.
"That shouldn't be a problem. Salomon Brothers, Chase Manhattan, Merrill Lynch, Goldman Sachs, and the other major banks have always been very optimistic about Dawn."
"For this acquisition, we can absolutely approach them for financing."
Aaron tapped his fingers against the table.
"MCA also has a competitor this time. Edgar Bronfman Jr. of the Seagram Company is determined to enter the entertainment industry."
"Michael Ovitz of CAA previously recommended Time Warner to him. Now he's trying to facilitate Seagram's acquisition of MCA."
"Whether Dawn can leap into the ranks of Hollywood's major powers depends on this acquisition, everyone."
Several years earlier, Matsushita had spent $6.5 billion acquiring MCA. After operating the company for several years, however, Matsushita had suffered enormous losses.
MCA's value certainly wouldn't be lower than what Matsushita had originally paid, but exactly how much its value had changed was difficult to determine. A proper valuation would have to be conducted by all the interested parties, and that would take time.
Meanwhile, Forrest Gump had crossed $250 million at the North American box office, while The Mask had surpassed $100 million.
The hugely popular Pulp Fiction had been in theaters for ten days and had already passed $23 million in North American box-office revenue.
Only a few days after Aaron returned to Los Angeles, newspapers began reporting that Jeffrey Katzenberg was leaving Disney.
Having led Disney Animation through one of its most successful periods, Katzenberg's departure immediately became major news throughout Hollywood.
That evening, at the Sunset Marquis Hotel in West Hollywood, Aaron met with MCA Group Chairman and CEO Lew Wasserman and President and COO Sidney Sheinberg.
Lew Wasserman was a veteran Hollywood entertainment mogul who had started his career as a talent agent. He also possessed an enormous network of political connections.
"Aaron, Matsushita won't accept less than $6.5 billion for MCA."
"If you're serious about acquiring it, you'll have to raise that enormous amount of capital as quickly as possible."
Wasserman had very little affection for Michael Ovitz, who was determined to sell MCA to Seagram.
And compared with an outsider like Ovitz, Wasserman naturally felt more favorable toward Aaron Anderson, who was himself deeply involved in the Hollywood industry.
Aaron smiled.
"Financing isn't something I'm particularly worried about. I'm confident we'll be able to raise the money."
"However, Edgar Bronfman Jr. seems extremely determined to enter the entertainment business."
"We all know that Seagram is a major shareholder in DuPont. Edgar Bronfman Jr. has already announced that he intends to sell Seagram's DuPont shares to finance the acquisition of a Hollywood studio."
Aaron's thinking was simple.
Dawnlight could acquire MCA, but he wasn't willing to get dragged into an endless bidding war.
Wasserman and Sheinberg exchanged a glance.
"We both like you, Aaron, but Matsushita is still the one making the decision. Ultimately, the price is what matters."
Aaron frowned.
MCA Universal had suffered enormous losses over the previous few years, and Wasserman and Sheinberg bore considerable responsibility for that.
Now that Dawnlight was trying to acquire MCA, Aaron needed their substantive support, not empty words.
He looked at the two men.
"You both understand MCA Universal's current situation."
"Do you really believe that some incompetent heir with nothing to offer could successfully manage and operate a historic Hollywood studio?"
"Or haven't the lessons of MGM been painful enough?"
Hadn't the state of MGM, after casino tycoon Kirk Kerkorian's involvement, been enough to make them realize what could happen when the wrong people controlled a major Hollywood studio?
Aaron watched Wasserman and Sheinberg walk away.
He casually raised his glass, took a sip, and sighed.
"Two useless idiots."
Aaron could clearly sense that Wasserman and Sheinberg had already lost Matsushita's trust.
Yoichi Morishita wasn't Akio Tanii. Even if Matsushita ultimately decided not to sell MCA, it probably wouldn't be long before the two men were replaced anyway.
Not long afterward, Aaron also left the hotel and headed to Jennifer Connelly's villa in Benedict Canyon, Beverly Hills.
Meanwhile, Michael Ovitz arrived at a beachfront villa in Malibu, where he met with Edgar Bronfman Jr.
"Aaron Anderson?"
Edgar Bronfman Jr., sitting on the sofa, was genuinely surprised when he heard that Aaron's Dawnlight Group intended to acquire MCA.
"Isn't Dawnlight a relatively new company that was only founded a few years ago? It already has the ability to acquire a company the size of MCA Universal?"
Michael Ovitz nodded.
"Dawnlight's valuation is extremely high. If you calculate it based on the annual profits generated by Dawnlight's film business, its valuation is undoubtedly enormous."
"More importantly, Dawnlight's financial position is excellent. Wall Street has tremendous confidence in the company, so if Aaron wants to acquire MCA, he'll have plenty of people willing to support him."
Edgar Bronfman Jr. frowned.
"Right now, I still have to convince my father to agree to selling Seagram's DuPont shares so we can raise the necessary capital."
"Otherwise, Seagram simply doesn't have enough cash. And my uncle is firmly opposed to the idea as well."
As he spoke, Bronfman rubbed his forehead.
Compared with his father, convincing his uncle would undoubtedly be even more difficult.
Michael Ovitz's mind was already racing.
Seagram ultimately belonged to the Bronfman family. Now that Edgar Bronfman Jr. was effectively running the company, Ovitz believed he should be able to convince the rest of the family eventually.
What Bronfman needed now was time.
"Matsushita's valuation of MCA isn't going to be completed that quickly."
"Dawnlight also made a number of major investments last year. They acquired the film libraries of Samuel Goldwyn Productions and Orion Pictures, built a new headquarters in New York, and Aaron diverted additional capital toward constructing the Dawnlight Center sports arena in Houston."
"I doubt Dawnlight has much excess cash flow left at the moment. Aaron Anderson's priority will be securing support from banks and investment funds."
As he spoke, Ovitz looked at Bronfman.
Seagram's greatest advantage was its cash position.
Negotiations with banks and investment funds would take considerable time. Compared with that, Seagram could raise cash much faster simply by selling shares.
For years, the dividends from Seagram's DuPont holdings had been one of the company's greatest sources of income.
DuPont stock was an extremely valuable asset and could be sold whenever necessary.
Edgar Bronfman Jr. nodded.
"Keep a close eye on Dawnlight and Aaron Anderson's moves."
(End of Chapter)
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