章 163: Chapter 163: The Power of Influence
Hardy had enlisted Andy to evaluate his financial situation in order to gauge his capacity to acquire ABC Broadcasting Company. Andy, confident in his expertise, confirmed that Hardy's financial standing was clear from his tax returns.
As Hardy reviewed the details, he saw that many of his ventures, including HD Security and HD Film Company, were operating at a loss. However, there was positive news: the Barbie doll toy factory was profitable, and "Playboy" magazine generated substantial revenue. Still, these profits were tied up in company accounts, and withdrawing them would trigger high personal income taxes.
Hardy had a modest personal income, which kept him in the lowest tax bracket—an advantage he valued. He was careful to ensure all his financial activities were legal, knowing that tax evasion in the U.S. could lead to severe consequences.
Andy assured Hardy that his financial team, including former IRS accountants and financial lawyers, ensured full compliance and minimized tax liabilities.
Despite owning various assets, Hardy was personally in significant debt. He wanted to acquire ABC Broadcasting Company and needed to understand how much capital he could mobilize. Andy explained that Playboy's valuation alone could secure over $20 million in loans, and combining all his assets could yield up to $40 million in loans.
Henry, who had conducted a thorough investigation into ABC and its owner, Edward Noble, reported back with detailed findings. Noble, who owned a confectionery company, had bought the Blue Network for $8 million after World War II. However, he was left with only equipment and a networking agreement after the National Broadcasting Corporation took away the core staff. Struggling with the TV station's operations, Noble had cut costs drastically.
Initially, Noble's asking price for ABC was $20 million, which was later reduced to $18 million and then to $15 million due to declining profitability from his candy business and the burden of maintaining the TV station.
Hardy viewed the acquisition of ABC not just as a financial investment but as a strategic move to enhance his public influence. Owning a nationwide TV network would significantly amplify his ability to shape public opinion.
Despite the high asking price, Hardy was determined to proceed. He directed Andy to negotiate the best possible deal with Noble, emphasizing that acquiring the network was a top priority. Hardy understood the challenges of running a broadcasting company, including the need for substantial investment to attract advertisers and achieve high ratings.
Andy, while understanding Hardy's strategic perspective, cautioned about the complexities and financial demands of operating a TV network. Nonetheless, Hardy remained resolute, focusing on the power and influence that owning ABC would confer.
With a clear vision of the strategic advantages, Hardy prepared to advance with the acquisition, fully aware of both the financial and influential stakes involved.
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