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Chapter 108 - Chapter 108: Matrix Pictures

On the second-floor living room, Charles and the two women sat together on the sofa, watching CNBC News: General Electric completed its acquisition of Universal Entertainment, merging its wireless television network broadcasting group, NBC Television Group, and Universal to form NBCUniversal Entertainment.

"Jeff Immelt, Chairman and CEO of General Electric, announced that Bob Wright, Vice Chairman of General Electric and Chairman and CEO of NBC Television Group, would become the Chairman and CEO of the new company, NBCUniversal."

"Universal Pictures' top management hasn't changed," Charles said, staring at the TV screen. Ronald Meyer and Stacey Snider were still in charge of Universal Pictures.

Another behemoth has emerged: NBCUniversal includes Universal Pictures, one of The Big Six in Hollywood, Universal Studios and Resort Group, as well as the wireless broadcast television network NBC and its many television networks such as USA Network, Syfy Cable Film Channel, CNBC Business News Channel, NBC News Film Channel, Bravo TV, and the Spanish-language channel Trio, among other cable networks.

"Vivendi initially asked for $14 billion when selling Universal Pictures, but it was too high. General Electric's acquisition was valued at around $12 billion," Donna explained.

Vivendi still holds a 20% stake in the new company, NBCUniversal, while General Electric controls 80%. However, Vivendi also manages the world's largest music entertainment group, Universal Music Group!

Currently, among the world's five major music groups, Universal Music Group is undoubtedly the largest, being a giant formed by the merger of PolyGram and the old Universal Music Group.

Even if Sony Music and BMG, the two major record companies, are preparing to merge to form the Sony BMG group, they can only become the second largest.

Adding Warner Music Group and Pathé, these five major music record groups currently occupy over 80% of the global music market.

"Finally, all the major film studios have become part of media empires," Charles said, standing up and walking to the French window. The Hudson River flowed slowly as he lit a cigarette.

NBCUniversal is estimated to be worth $30 billion. Including debt, the total acquisition value is approximately $40 billion.

Jeff Immelt, the new General Electric chairman who succeeded Jack Welch, still has some ideas.

"Donna, how much Marvel Company stock does Capet Pictures have now?" Charles turned around and asked. Time couldn't always be wasted; he had to accelerate the layout.

"It's still less than 5%, but just barely. The price is a bit inflated right now!" Donna Williams quickly replied.

"It cost around $15 million, all acquired in small amounts from the market. No one will notice such a thing."

"Are there any larger shareholders looking to sell Marvel Company stock?" Charles asked again.

Donna shook her head and said helplessly, "Ike Perlmutter and Avi Arad alone own over 56% of Marvel Company's shares. Without getting them on board, it's hard to gain control!"

"Ah, you're right! However, I met Marvel's COO, David Mesel, in Manhattan. He seemed to be lobbying investment firms on Wall Street, so it appears he hasn't given up on developing movies himself." Charles wasn't too worried, as iron man, captain america, and Thor, among other characters, were already within Capet Pictures' scope.

"Boss, when I was in Los Angeles, I heard that the relationship between Ike Perlmutter, Chairman of Marvel Company, and Avi Arad, Marvel's Chief Creative Officer and President of Marvel Studios, is very bad right now. There are irreconcilable differences between them," Fili Jones also interjected.

Charles nodded. For Capet Pictures to acquire Marvel Company, convincing Ike Perlmutter to sell his shares was the most crucial step.

Avi Arad's shares would be a bonus.

"By the way, Fili, these past few days I've discovered another project: the thriller horror film 'hostel,' written by Eli Roth. His film 'Cabin Fever,' which he directed two years ago, had a certain audience. 'hostel' is of a similar type, so support his development!"

It's also a low-budget thriller horror film, with a budget of $4.5 million, which isn't much.

"hostel!" Fili Jones felt a slight tingle on her scalp just hearing the name, finding it as unsettling as "saw."

"Boss, for this type of film, should we use the Capet Pictures label for distribution? Wouldn't that be a bit inappropriate?" Donna Williams suggested.

Charles heard her and thought it made sense. These specialized B-movies should have a dedicated production and distribution label.

"How about this, when you go back, register a subsidiary under Capet Pictures, to be called Matrix Pictures, to produce and distribute thriller, horror, and gore/violence B-movies," Charles instructed Fili Jones.

"Starting with 'Saw II' this year, next year's third installment, this 'hostel,' etc., will all be operated under the Matrix Pictures label!"

This is also a common practice for companies; otherwise, it would create a fixed impression of the film company.

Disney does not even use the Walt Disney Pictures label for PG-13 films, let alone G-rated films. Touchstone Pictures, Hollywood Pictures, and Miramax, all companies under Disney that produce live-action films, use Buena Vista International Distribution Company to operate and distribute their films.

Capet Pictures is better used for developing commercial films or art-house films. When it grows larger, Charles will also develop a separate independent label to distinguish commercial films and specialize in independent film production and distribution.

After all, the main focus of major companies now is on big-budget commercial film projects. Independent films have low production costs and high artistic value, serving as a complement to major studios' commercial blockbusters.

"Boss, aren't you going back to Los Angeles?" Fili saw that Charles was speaking to her.

Charles shook his head, exhaling smoke. "I'll be staying in New York for a while longer!"

Donna Williams pulled Fili, linking arms with her, and said affectionately, "My dear, I'll book your ticket and take you to the airport!"

Fili pouted. There was nothing she could do. Although she wanted to stay with her boss for a few more days, the work still had to be done.

In the afternoon, Donna drove Fili to JFK Airport. Sitting in the passenger seat, Fili showered Donna with attention. "Donna, look, this is a gift for you, a Chanel silk scarf!"

"Hey, Fili, you've gotten a lot of good things from the boss these past few days, haven't you?" Donna glanced at her, then asked while driving.

"He gave me perfume and bags. Do you want them? They're quite expensive!"

"Keep them, Fili. The boss has enough with the two of us. We need to work harder to please the boss from now on, lest other young and pretty girls join the company and try to seduce him!" Donna Williams was forming an alliance with Fili Jones.

Fili Jones quickly nodded, strongly agreeing with Donna Williams' idea!

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