I am Hollywood

[Chapter 1042: Here is Hollywood]

After a moment to gather his thoughts, Nobuyuki Idei finally spoke, "Eric, are you saying that as long as Sony is willing to sell its movie division to Firefly at your quoted price, Firefly Electronics can authorize Sony to use the relevant patents for digital players?"

Although Sony was not satisfied with Eric's offer of $2,992,500,000, Nobuyuki understood that considering Sony Pictures' current state, Eric's offer was still relatively reasonable.

Even if Sony tried to negotiate, they wouldn't be able to increase it by much. If they could sell Sony Pictures while gaining access to the technology for digital music players, Nobuyuki believed this deal would be worth it.

Eric nodded and said, "That's about it. However, Firefly Electronics does not intend to unilaterally authorize this; Sony needs to exchange its existing technology patents."

Nobuyuki immediately felt a surge of caution. "Eric, what specific technology from Sony is Firefly Electronics interested in?"

Eric replied, "Digital cameras."

Nobuyuki instinctively retorted, "That's impossible."

Cameras and camcorders had always been among Sony's most important products. While the industry was still in the film era, most could see the future development trends of digital camera technology. In this respect, Sony had already accumulated a wealth of technology.

Although Sony was envious of Firefly Electronics' technology for digital music players, Nobuyuki firmly believed that the patents for digital music players simply couldn't compare to Sony's digital camera technology. He was also aware that the Sony board shared this view and would never approve an exchange involving Sony's digital camera technology so easily.

Eric seemed shocked by Nobuyuki's vehement reaction and shrugged innocently, saying, "Okay, Nobuyuki, maybe I didn't explain it clearly. Firefly Electronics is not looking for all of Sony's digital camera technology. We are only interested in the micro-camera module that Sony is developing for use in mobile devices like phones. Firefly Electronics has no intention of entering the digital camera market."

Nobuyuki relaxed slightly but quickly stated, "In that case, Eric, this is actually a separate matter from what we are supposed to discuss today. I think we should return to the topic of the movie studio."

"If that's how you feel, that's fine," Eric replied. "However, while I'm the boss, I can't just do whatever I want. It took a lot of effort to convince Firefly Electronics' higher-ups to agree to a technology exchange with Sony. If we miss this opportunity, I can't guarantee they'll be on board next time. Furthermore, Firefly Electronics will not be lenient regarding Sony's MD players."

"Eric, you're like that, and so am I. If Firefly Electronics is intent on a technology exchange with Sony, we can always discuss it later. For now, let's talk about the movie studio. As I mentioned earlier, given the current economic climate in North America, the price of Sony Pictures is at least $5 billion, so your $3 billion offer is simply too low."

Eric corrected him seriously, "It's $2,992,500,000."

Nobuyuki glanced at the visibly distressed and angry Howard Stringer. "Alright, if you insist, but Sony will definitely not agree to that price. Moreover, Firefly Group's actions have severely violated U.S. antitrust laws, and if Sony wishes, we can file a lawsuit in federal court at any time."

"First of all, everyone knows the Nasdaq market is currently filled with bubbles, so valuing based on the current market situation won't work at all. I've already made a very sincere offer," Eric rebutted and continued, "Secondly, Firefly Group does not intend to block Sony Pictures. What you heard are merely rumors spread by some people with ulterior motives, and this situation has seriously damaged Firefly Group's reputation. We are currently investigating this matter, and once we find the source of the rumors, we will also file a lawsuit to make them pay the price."

Eric's words nearly caused Howard Stringer to jump out of frustration; it was utterly shameless.

Nobuyuki smiled in anger.

Only Bill Mechanick twitched his lips slightly, barely managing to maintain a calm demeanor.

As tensions rose, a restaurant waiter timely knocked on the private room door, asking if they could serve the food. Nobuyuki waved his hand to indicate consent.

Once everyone's lunch was served and the waiter left, the atmosphere slightly eased.

However, after taking a few uneventful bites, Howard Stringer could no longer contain himself. "Eric, since you say Firefly is not targeting Sony, why did Qualcomm suddenly stop collaborating with Sony? And what about the negotiations regarding Firefly Group's RealD system projector purchases?"

Eric explained earnestly, "Qualcomm has its arrangements, and I rarely get involved in Qualcomm's management. As for the RealD system projector purchases, I believe the prices Sony is asking for their projectors are simply too high. If Sony is willing to offer a suitable discount, then the deal can continue. So, Howard, Firefly has never taken any action against Sony; this is strictly business."

"Then," Howard Stringer faltered, "what about the $2,992,500,000? Isn't that clearly a targeted move?"

"Of course it is," Eric nodded, watching Howard Stringer's expression. He continued, "However, this is merely targeted at you personally and not related to the two companies. Howard, do you have any idea how much impact it would have on Hollywood to purchase a script for $7.5 million? In recent years, the cost control of Hollywood films has been nearly out of control, and your behavior will further drive up the overall script prices in Hollywood, which is detrimental to the entire film industry."

"That's just your opinion," Howard Stringer immediately retorted. "Moreover, as far as I know, your earnings as a screenwriter from many films far exceed $7.5 million."

As soon as Howard finished speaking, Bill Mechanick felt an unbearable sense of discomfort; didn't he just serve himself up for a beating?

Sure enough, Eric scoffed, "If my earnings exceeded $7.5 million, it was because the films I produced grossed over $1 billion worldwide. While recent years have seen box office records broken in Hollywood, everyone knows that only one or two films each year reach that $1 billion global box office milestone. Besides, most of those earnings came from profit-sharing, meaning that I shared the risks with the films I produced. If those films failed, I would receive a script fee similar to that of ordinary top-tier screenwriters. So my personal returns still followed the principle of earning more for working more, while you are disrupting the proper order of Hollywood."

Howard Stringer felt flushed from Eric's rebuttal, momentarily at a loss for words.

Nobuyuki had to take the initiative again, "Eric, since both sides are interested in this deal, let's return to the pricing negotiation."

"Of course," Eric readily softened his initially confrontational stance. He stated, "Nobuyuki, my position is clear: $2,992,500,000 is the highest price I can offer."

Nobuyuki replied, "I had someone calculate it -- Sony Pictures currently has debts of approximately $1.9 billion. Without even getting into our transaction prices, Sony's condition is that Firefly must fully assume these debts."

"Nobuyuki, don't forget this is Hollywood; no one knows the conditions of the major film companies better than we do. Sony Pictures' overall debt is definitely more than $1.9 billion. Including some hidden debts, that figure could be close to $2.5 billion," Eric shook his head and said. "Firefly is not opposed to taking on some portion of Sony Pictures' leftover debts, but the upper limit is $1 billion. For the rest, Sony Group had better find a way to handle it themselves."

Upon hearing this, Nobuyuki instinctively glanced at the evasive Howard Stringer beside him, feeling a surge of anger.

With the U.S. stock market thriving, Sony Group's overall market value had surpassed $100 billion. Therefore, Nobuyuki did not care whether Sony Pictures' debt was $1.9 billion or $2.5 billion. What infuriated him was that despite being the chairman, he couldn't even ascertain Sony Pictures' true operating status at this point.

With some shameful family matters in mind, Nobuyuki quickly withdrew his gaze after a brief glance.

However, feeling disappointed, he lost the will to negotiate further with Eric and just wanted to quickly unload Sony Pictures.

One side wanted to buy, and the other wanted to sell. Therefore, after a lunch, they basically agreed on a preliminary transaction price.

The price of $2,992,500,000 was indeed too sensitive, but ultimately, Sony made some concessions, dropping a point to settle on $2,990,000,000. Meanwhile, the acquiring Firefly Investments would assume $1 billion of Sony Pictures' debts, while the remaining portion would be borne by Sony Group.

"Well, I'm glad we reached this deal. And if Sony wants to collaborate with Hollywood on movies in the future, Firefly will definitely cooperate as much as possible," Eric said politely as he shook hands with Nobuyuki, Howard Stringer, and Bill Mechanick in the parking lot outside the restaurant before turning to get into his car, instructing the driver to leave.

...

Watching Eric's luxury vehicle depart, Howard Stringer instructed Bill Mechanick beside him, "Bill, you head back to the studio first. I still have a few matters to discuss with Mr. Idei."

"Okay," Bill Mechanick nodded, recalling the meaningful look Eric had given him when they shook hands. Once Howard Stringer and Nobuyuki got into a car and left, Bill Mechanick quickly jumped into his car and followed the direction Eric's vehicle had just gone.

...

Meanwhile, in the black Mercedes-Benz that Nobuyuki and Howard Stringer were riding in, after the vehicle stabilized, Howard Stringer took out a pocket-sized recorder from his suit pocket but didn't press the play button, simply tossing it aside.

Although he had made the decision to transfer Sony Pictures reluctantly, Howard Stringer didn't intend to go down without a fight. The methods Firefly had employed were too disgraceful, clearly violating federal antitrust laws. However, Howard understood that if it came to a lawsuit, Sony would be left with no evidence.

While rumors circulating in Hollywood had already had a tangible impact on Sony Pictures, they couldn't possibly serve as court evidence. To win a lawsuit, Sony would either need to acquire business contracts evidencing Firefly's intent to oust Sony Pictures or wait for Firefly to actually take action against Sony Pictures in the future.

Both scenarios were obviously unrealistic; in Hollywood's unique business environment, Firefly didn't need to sign any similar non-compete contracts to exclude Sony Pictures. Furthermore, regarding the marketing channel blockade of Sony Pictures' films, if Firefly made a few subtle moves -- like randomly providing limited advertising resources for Sony's produced films -- they could dispel these "rumors." In fact, Firefly could even turn the tables and accuse Sony of intentionally withholding advertising from Firefly's media channels.

Given that these two approaches were unviable, if they could record Eric Williams explicitly intending to block Sony Pictures, although such wiretapping might not be entirely legal, in light of Firefly's recent actions, Sony would still be able to file a lawsuit publicly, at least putting Eric Williams in a very awkward position.

However.

Neither Howard Stringer nor Nobuyuki anticipated the depths of some people's shamelessness. Even in a private setting like this meal, the other party could still speak nonsense with complete seriousness, displaying none of the youthful arrogance one might expect but instead resembling a seasoned business veteran.

Nobuyuki glanced at Howard Stringer's actions, recalling Eric's revelation about Sony Pictures' detailed debt scale, and said, "Howard, by the end of the year, you might as well proactively submit your resignation to the board."

Howard Stringer's lips moved, he sighed, and with a defeated expression, he nodded.

For the sake of its image, Sony, although willing to lower the price, still did not accept the offer of $2,992,500,000. Yet he also knew that Eric Williams had only poured more fuel on Sony Pictures' debt issues, making it impossible to brush this matter under the rug.

*****

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