Chapter 389: Chapter 389: Counterattack
On Monday, November 19, the three major Hollywood unions simultaneously filed a lawsuit in the federal court of Delaware, attempting to block Daenerys Entertainment's acquisition of MCA. The entire Westeros system was busy dealing with this, but it didn't hinder the arrival of Thanksgiving.
This year, Thanksgiving was on November 22.
Snow had just fallen on the East Coast, and Simon Westeros enjoyed the snowy atmosphere during the holiday season. He and Janet spent Thanksgiving together at their Greenwich estate.
After Thursday came another box office weekend.
From November 16 to November 22, the first week of the Thanksgiving period, Stallone's new movie "Rocky 5" successfully captured the weekly box office crown.
However, this action movie series, once a box office miracle, was no longer as popular as before. It only garnered $19.6 million in its opening week and received mediocre critical reviews, with an average media score of about 5 points. The industry generally predicted a second-week drop of between 40% to 50%, with North American box office expectations under $50 million. The production company could only hope to recoup costs through international box office and other channels.
Daenerys Entertainment's "Dances with Wolves" ranked second, grossing $12.67 million in its massive opening week, a remarkable achievement given its 1,031 screens and the movie's three-hour duration, averaging over $12,000 per venue.
Including earlier limited screenings, "Dances with Wolves" had accumulated a total of $17.3 million in box office revenue in three weeks, nearing its production budget of $20 million.
The Halloween release "Critical Condition" saw a 22% drop this week, failing to bounce back during the Thanksgiving period, which was somewhat disappointing. The film earned an additional $6.87 million over seven days, bringing its four-week total to $43.99 million.
Disney's "Three Men and a Baby," confirmed for release on Wednesday, November 21, garnered $5.32 million in just two days, buoyed by positive reviews and the holiday spirit, hinting at potential as a dark horse.
Another Disney production, the 2D animated film "Rescue Heroes," earned $4.79 million in its opening week, ranking fifth.
Beyond the top five, the list was mostly filled with older films.
On November 23, the second week of the Thanksgiving period saw three new releases: Daenerys Entertainment's collaboration with Columbia Pictures, "Pink League," Fox's "Predator 2," and Warner Bros.' 2D animated film "The Nutcracker Prince."
Both "Pink League" and "Predator 2" opened in over 2,000 screens, while "The Nutcracker Prince" opened in 906 screens, a standard distribution pattern for 2D animated films of that era, comparable to Disney's "Rescue Heroes."
Inside the Greenwich estate to the north.
Aside from the main roads, the rest of the estate remained untouched by any snow clearing.
Sophia Igneel parked her car outside the main villa, opened the back door, and her two eager children ran towards Janet who was coming to greet them.
Today was Sunday, November 25, a clear and sunny day at ten in the morning, though the air was still cold, the sun was brilliantly shining.
Sophia typically came from Europe to visit her children on weekends, and neither Simon nor Janet had left the East Coast after Thanksgiving.
After greeting Janet and watching her children chatter with Janet before running off to build a snowman, Sophia entered the villa.
The villa was warm. She took off her coat and handed it to Lady B, Becky, who informed her that Simon was upstairs in his study. Sophia ascended the stairs to the second floor.
Simon was on the phone, surrounded by scattered documents. Hearing the knock, he casually responded, inviting Sophia in after seeing her hesitant entrance. He smiled reassuringly, and she stepped inside.
Trying to appear casual, Sophia walked to the opposite side of Simon's desk, casually straightening out some documents while he spoke on the phone.
The discussion was about the recent MCA acquisition.
Concerning how to handle the lawsuit from the three unions and subsequent issues, these were not matters to be discussed casually in front of others, yet Simon didn't lower his voice or avoid her, warming Sophia's heart.
After arranging several documents, she walked to the bookshelf, pretending to examine the books. Her back turned to Simon, she wondered if he was watching her.
After a while, Simon's call still hadn't ended.
Walking from one end of the shelf to the other, she couldn't remember any content she glanced at.
Putting down a Lara Croft figurine she'd been handling, she turned and saw Simon just hanging up one call, only to start another.
A hint of frustration crept in.
Then she felt hopelessly attracted to this younger man, after all, he was... so much
younger.
Simon multitasked, flipping through a document and discussing over the phone. He glanced up, noticed Sophia's expression, paused, and gestured for her to come over.
What for? As she thought this, Sophia still walked over.
Just reaching his chair, Simon pulled her into his lap.
She stiffened, struggling lightly, not daring to use much force.
What if he let go?
She also didn't dare speak since he was on a call.
And since he was just holding her, he hadn't done anything too inappropriate.
When she had entered, it seemed he had casually locked the door.
Finding enough reasons, she let her guard down and comfortably sat on his lap.
Watching Simon multitask, she turned to help hold the phone to his ear. With one hand free, he touched her earlobe, gently removing the silver earring she had worn specifically today, casually tossing it on the desk.
So, he didn't like women wearing earrings.
Silently noted.
Next time, switch to different earrings, hmm, maybe he doesn't like those either. Probably best not to wear any.
So, she decided not to wear any at all.
After another ten minutes, Simon finally put down the phone, and the study quieted down. Children's laughter from outside momentarily made Sophia tense, worried he might take advantage at this time.
It was almost noon.
She quickly brought up a topic, asking, "Is the MCA thing really troublesome this time?"
Simon rested his chin on her shoulder, inhaling her pleasant scent, picking up a document from the desk to continue reading, and said, "If the three unions are just making trouble, it indeed would be troublesome, but once you understand what they want, it gets a lot easier."
She had overheard him discussing that the unions' main dissatisfaction with Daenerys Entertainment was likely Simon moving many film productions overseas.
This resulted in a loss of jobs for domestic film workers in the US.
Thinking this, Sophia casually said, "So, the next Batman movie, is it going to be filmed back in the country?"
Simon chuckled, "If I give them what they want before they even ask, it would only lead to more demands. For those deliberately making trouble, I prefer to make them lose even more."
She vaguely remembered him discussing airing a promotional clip on ABC next week.
If only she had listened carefully, now she wouldn't know how to continue the conversation.
Luckily, the hand Simon had around her waist began to wander under the hem of her clothes.
They stayed for lunch at the estate. Little Gemma, very attentive, asked her mother if she had lost her earring. Sophia acted as if she had just realized it, then nodded regretfully. The little girl wisely consoled her that it was okay to buy another, but to be more careful next time.
Of course.
Then the child persistently asked if her mother was hot, why her face was a bit red? Sophia quickly diverted the conversation.
Noticing the pained expression on the young man's face across from her, not sure if he had been stepped on or pinched, it seemed very painful.
She felt no sympathy.
Even though it was almost noon, even though she had resisted so much, he still acted mischievously.
As a new week arrived, the public, still focused on Daenerys Entertainment's acquisition of MCA, was greeted with another sensational news.
Westeros Corporation suddenly announced it had reached an $8.7 billion cash acquisition agreement with Bell Atlantic, a telecommunications operator on the East Coast, with $7 billion in cash and the assumption of $1.7 billion in Bell Atlantic's debts.
Bell Atlantic's board announced a special shareholder meeting on December 3 to vote on the acquisition.
However, according to a subsequent report by The Wall Street Journal, while obtaining board approval, Westeros Corporation had already secured about 25% of the major shareholders' support, almost ensuring the shareholder vote would pass.
Westeros Corporation needed only the approval of the U.S. Department of Justice and the Federal Communications Commission.
As if to pave the way for approval from these two regulatory bodies, The New York Times then reported that if the acquisition was approved, Simon Westeros would repatriate $8 billion in funds stored overseas to cover the acquisition costs.
At a 28% capital gains tax rate, this would mean over $2 billion in taxes.
In a time when the U.S. economy was deteriorating and government deficits were rising, a one-time tax payment of over $2 billion was undoubtedly significant for the federal government.
Moreover, while the federal government has many restrictions on the telecommunications industry, acquiring a regional telecom operator posed few regulatory hurdles unless deliberately challenged.
However, Motorola, which had significant grievances with Westeros Corporation, immediately stepped forward.
Citing provisions from the 1984 Telecommunications Act enacted during the AT&T breakup, Motorola pointed out that Westeros Corporation owned a telecom equipment company called Nokia, although based overseas, still violated the act's provisions
prohibiting telecom operators from venturing into telecom equipment production.
Moreover, Motorola's retired former chairman, Robert Galvin, appeared on a CBS news interview program, vehemently criticizing Simon's private luxury lifestyle and stating that the federal government should take steps to prevent the emergence of another capital oligarch, asserting that America did not need a second Rockefeller family.
Simon ignored Robert Galvin's accusations. However, Westeros Corporation responded promptly to Motorola's demands, stating that Nokia's operations would be limited to Europe. Once the acquisition of Bell Atlantic was completed, Nokia would withdraw all its nascent North American operations, including a technology research institute established in Silicon Valley.
With media outlets exchanging barbs, many spectators remained somewhat confused.
What exactly was happening?
Wasn't Daenerys Entertainment seeking to acquire MCA? How did it suddenly turn into Westeros Corporation acquiring Bell Atlantic?
Or was Simon Westeros initially planning to acquire Bell Atlantic, with MCA just a decoy?
That didn't make sense either.
For the MCA acquisition, Daenerys Entertainment had ousted Panasonic from the competition with a very favorable agreement. If they so easily gave up, even Panasonic would not agree.
Or maybe,
Was Simon Westeros operating on two fronts?
Launching two acquisition deals at once?
This…
While the spectators were merely watching the excitement, the share prices of Bell Atlantic and MCA reacted most directly to the unfolding events. With agreements between them nearly finalized, the following days saw a market drop with Bell Atlantic's share price rising only 8%, while MCA's shares fell a full 11%, sliding from a high of $69 to $61.
For MCA, some were indifferent or even pleased, hoping Daenerys Entertainment would give up on the acquisition.
But many shareholders looking to cash out at high prices were unwilling.
Some even threatened collective lawsuits if Daenerys Entertainment easily abandoned the acquisition.
The sharpening Hollywood unions were also somewhat perplexed; their strike seemed to have inadvertently triggered an acquisition of Bell Atlantic.
As many were still reeling, ABC suddenly began airing an advertisement—a promotional video from the Australian government for the film industry, showcasing Australia's cities, prairies, deserts, snow-capped mountains, and jungles, along with various incentives for foreign filmmakers.
In a seemingly coordinated move, Daenerys Entertainment announced it had signed a memorandum of understanding with the government of Victoria, Australia, for six movies valued at $300 million. The Victoria government would provide a unified 20% tax rebate for Daenerys Entertainment.
In exchange, these six films would be produced entirely in Australia over the next three years, including post-production, with over 70% of the crew hired locally. This plan would directly and indirectly create tens of thousands of jobs in Victoria.
Furthermore, both parties declared that more extensive cooperation was expected in the future.
The fundamental purpose of the major Hollywood unions was to secure a range of work-related rights for their members.
By moving film production overseas, Daenerys Entertainment was cutting the ground from under the unions' feet once again.
With no jobs, there were no work rights to protect.
Following the Australian film promotional ad and the $300 million memorandum, news followed that Daenerys Entertainment's CEO, Amy Pascal, and the president in charge of TV operations, Robert Egger, had personally visited Toronto, Canada, after Thanksgiving to scout and contact local government officials about building another film production base there, primarily for television production.
After years of patient development, Daenerys Entertainment had already become a formidable supplier of TV content. If billions in annual TV production investments moved overseas, the U.S. domestic entertainment industry would certainly lose a vast number of job opportunities.
Therefore, this news was undoubtedly another heavy blow to the three major unions.
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