Chapter 374: Chapter 374: The Hearst Family
Every branch of the DC Universe, even if it only reached half the box office of "Batman: Battle Time," would be enough to sustain a major production studio. Thus, the executives of Daenerys Entertainment and Time Warner Group personally handled the casting decisions for these projects.
The roles in these series represented a significant opportunity for many actors, and all of Hollywood—actors and agencies alike—eagerly awaited any news from Daenerys Film City.
When the news about the casting of the leads for "The Flash" was announced, not only were the actors themselves overjoyed, but the attention of countless others in and outside Hollywood instantly focused on Jason Jedrick and Robin White, both in their mid-twenties, who became the center of attention within hours.
Daenerys Entertainment and Time Warner Group allowed actors under long-term contracts for the DC Universe to participate in other film projects, albeit under strict restrictions. Even before formal contract negotiations began, many studios had already sent a flurry of offers to the agents of these two actors, hoping to secure their availability outside of their commitments to the DC Universe.
The main roles for "The Flash" were confirmed in the morning, and by the afternoon, the key supporting characters were also finalized. While these actors didn't command as much attention as the leads, they were nonetheless closely watched.
The casting process for the DC Universe differed significantly from traditional Hollywood methods. Typically, Hollywood projects would slowly assemble their teams through ongoing discussions with various film professionals. In contrast, the producers of the DC Universe held all the decision-making power and didn't actively seek out top-tier stars since the superhero characters themselves—Batman, Superman, The Flash—were already 'stars' in their own right.
Once casting began, actors had to sign a letter of intent after passing the initial selection, which included terms like accepting a long-term DC Universe contract, salary rules, and image rights. If an actor was unwilling to agree to these terms, there was no point in further discussions.
This streamlined process meant that once an actor was chosen, the formal contract could be quickly finalized without lengthy negotiations over contract details. If any actor tried to renegotiate after being selected, they risked being dropped immediately and facing substantial claims for damages.
With the main cast of "The Flash" confirmed, the next steps of signing contracts and arranging for the actors' physical and performance training were handled by others.
Simon saw Terry Semel and others off, and upon returning to his office, his assistant informed him that James LeBeau had called about an important matter.
Without moving to his office chair, Simon sat at the desk and gestured for his assistant to dial the number.
As Jennifer expertly dialed, a hand reached out to her. After a playful struggle, she gave up as Simon started talking to her father on the phone. The hand then let her go.
With a smile, Simon watched his assistant pretend to tidy his desk with a blush, but his expression soon turned serious as the conversation continued.
The discussion revolved around the 20% stake in ESPN mentioned at last Saturday's party by Robert Iger.
After returning to New York, Iger had quickly compiled a preliminary briefing for Simon. ESPN, established 11 years ago, now boasted over 57 million subscribers and annual revenues of $500 million, with last year's net profits at $51 million.
Simon initially wondered why the Metropolitan/ABC Group didn't repurchase this 20% share themselves, as they had the advantage over any other buyer due to the major shareholder's veto rights. Moreover, following the success of "Who Wants to Be a Millionaire," the Metropolitan/ABC Group's financial state had been robust enough to afford the purchase.
Iger's briefing revealed the reason.
The conservative chairman of Metropolitan/ABC, Tom Murphy, and major shareholder Warren Buffett were unwilling to pay a high price for the shares. The valuation of $200 million for the 20% stake, nearly a 20 times earnings multiple, seemed too high to them; they were only willing to offer a 10 times earnings price.
Additionally, ESPN had recently signed a four-year, $400 million broadcasting deal with Major League Baseball. With annual revenues of $500 million, this $100 million annual increase in content costs due to the deal posed a significant risk to ESPN.
If this risky venture failed, ESPN, which had been performing well, could potentially decline.
Since Metropolitan/ABC wasn't willing to purchase the shares themselves, Simon thought his intervention would be almost certain to succeed, so he delegated the task to James.
However, an unexpected complication arose.
James informed Simon that the acquisition was initially progressing smoothly. He had discussed it with Tom Murphy, who was happy for the Westeros Company to acquire the shares, and had also received positive feedback from Reynolds Nabisco.
But this morning, Murphy suddenly called James to say that Metropolitan/ABC might not accept Westeros Company as a shareholder in ESPN, as another partner of Metropolitan/ABC was interested in the shares.
Upon
further inquiry, Murphy revealed that it was the Hearst family, who had been aiming to enter the cable TV industry in recent years, who wanted to purchase the 20% stake in ESPN.
The Hearst family, like the Newhouse family, was an entrenched supermedia dynasty in America.
Although this year's Forbes 400 list of America's richest did not include any members of the Hearst family, only the Newhouse brothers, the Hearst family's wealth was comparable to that of the Newhouse family. The dispersion of the Hearst family wealth among William Hearst's six children had led to excessively fragmented ownership.
The Hearst family had been influential for over a century. William Hearst, through his nationwide media network, had infamously stirred up the Spanish-American War, a move still criticized today but indicative of the family's profound influence on American media.
Now led by the third generation, the Hearst family still wielded significant influence through hundreds of newspapers, weeklies, and magazines across North America, with the influential San Francisco Chronicle among their properties.
Though Simon's personal wealth was several times that of the Hearst family, James felt it prudent not to provoke a family capable of instigating a war.
James had intended to gather more specifics before discussing the matter with Simon, but this afternoon, William Hearst III, a third-generation heir, contacted them with an invitation for Simon to attend a Hearst family party the following evening.
The purpose was clear.
After discussing with James for over twenty minutes, Simon hung up as his assistant left. He leaned on his desk, contemplating the situation.
During his recent time in New York, Janet had mentioned that it would be beneficial for the Westeros system to foster relationships with American media dynasties like the Newhouses and Hearsts, who controlled the country's media narratives.
However, as a newly risen magnate, Simon found it challenging to penetrate these established circles. Although America lacked a formal nobility, its old family dynasties were steeped in a tradition of exclusivity that could rival Europe's aristocracy.
Simon had his pride; if not welcomed, he wouldn't lower himself to fit into these circles.
Yet, an unexpected opportunity had now presented itself.
Families like the Hearsts, Newhouses, and the Grahams controlling The Washington Post might still dominate American media, but Simon knew that with the advent of the internet age, these traditional media dynasties would gradually decline.
In the new century, many venerable yet currently untouchable newspapers and magazines like The Washington Post, Los Angeles Times, and Time would sell for pennies on the dollar to new wealth, merely to ensure their survival.
Simon quickly recalled a piece of information from his memories.
After the decline of the print media industry in America, the Hearst family's 20% stake in the ESPN network accounted for over half of the Hearst Group's annual profits.
After acquiring MCA, if the timing was right, Simon's next target would be the Metropolitan/ABC Group, which owned ABC and ESPN.
Letting the Hearst family have the 20% stake in ESPN now could mean that in a few years, as ESPN rose and print media declined, the Hearst family, heavily reliant on that stake, might become a vassal within the Westeros system.
Even if only a small portion of their vast network of newspapers, weeklies, and magazines remained, it would still represent a significant force in public opinion.
Jennifer knocked and entered again, holding several documents. Noticing the smile on Simon's lips, she asked, "What did your dad say?"
Simon briefly explained the content of the phone call. Of course, he didn't disclose the events that hadn't yet occurred.
After listening, his assistant frowned slightly, "If that's the case, we should probably let go of this share. It would be troublesome to clash with the Hearst family."
Simon nodded but added, "However, the Hearst family can't expect me to withdraw from the competition just for a party. They need to offer something substantial."
His assistant thought for a moment, "The San Francisco Chronicle, owned by the Hearst family, could be a good trade. Perhaps we can negotiate a content partnership between the Chronicle and the Igraine Portal."
Igraine Portal had already established a partnership with Murdoch's News Corporation, which provided European and Australian news content. However, Murdoch was only willing to share this news and did not extend support from his North American outlets like the New York Post, likely due to his cautious nature.
Currently, Igraine Portal's North American news primarily came from a small local paper in San Francisco, and the quality was hardly satisfactory. Gaining content from the San Francisco-based Chronicle would be ideal.
"A very good idea," Simon nodded, pulling his assistant closer with a smile, "But for now, let's consider where to spend the night."
His assistant nestled against Simon's stubbly chin, saying, "Janet was quite unhappy on the phone recently. She
mentioned bringing a bottle of wine spiked with chili water."
Simon chuckled, "Just don't drink it."
His assistant nodded seriously but mischievously added, "She said it was for you."
Janet had been in Europe last week, successfully acquiring Latour Vineyard for $120 million. She had also attended this year's Fall Fashion Week in Milan and planned to return to North America tomorrow. Their Boeing 767 had already flown to Europe to pick her up.
Tonight, Simon would fly to San Francisco on Daenerys Entertainment's Falcon jet with Janet, then return his assistant to Los Angeles the next morning before continuing to the East Coast.
Everything was already scheduled.
Around four o'clock East Coast time, Simon arrived in New York. After waiting less than half an hour at Kennedy Airport, Janet's Boeing 767 landed.
This time, Janet wasn't the only one returning. Sophia Fieschi would also be coming, along with her family, including her parents and two children.
In a recent call, Sophia expressed her hope for her children to study in the United States and intended to have her parents stay with them.
Simon had yet to meet Sophia's children but knew she had previously arranged for them to study at a private school in Geneva, Switzerland.
Switzerland's excellence in private education was well-known, and studying there wouldn't pose a significant language barrier. Sophia's sudden decision to move her children to North America made Simon suspect other motives, possibly involving her ex-husband wanting the children back.
However, Sophia hadn't elaborated, and Simon didn't press for details.
At Kennedy Airport, Janet emerged from the plane and rushed into Simon's arms, only letting go after playfully biting his lip when she heard footsteps behind her.
Simon also saw Sophia and her group approaching.
Sophia Fieschi wore a white business outfit, looking both intelligent and stunning. She held one child's hand on each side. The boy, about ten, seemed shy, while the seven or eight-year-old girl boldly sized Simon up with sparkling blue eyes.
Behind Sophia, a couple with graying hair seemed somewhat awkward as they nodded to Simon.
Given Sophia's parents were present, Simon initially intended only a handshake with the executive, but Sophia released her children and hugged Simon warmly before introducing her family.
The children were Daniel Fieschi, ten, and Gemma Fieschi, seven.
Sophia was less warm when introducing her parents.
Though it was their first meeting, Simon sensed the couple was very accommodating towards their daughter. However, despite bringing them to the US to see the children, it was clear there was a significant distance between Sophia and her parents.
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