Chapter 316: Irene’s Advantage

Chapter 316: Chapter 316: Irene’s Advantage

After both parties were seated, the waiter served coffee. Webster was the first to speak, getting straight to the point: "Miss Irene, I assume Robert has already told you about MGM’s situation... To be honest, the offer they’ve made is 10% higher than yours, and they’ve promised to retain the company’s original core team."

Irene picked up her coffee cup and took a small sip, not rushing to respond.

Wall Street investors value practical interests the most, but they also don’t ignore long-term value.

"Mr. Clive, I’d like to ask first: are you and the other shareholders selling the company simply to cash out, or do you hope for Future World to have better development in the future?"

Webster raised an eyebrow, seemingly not expecting her to be so direct: "Both. We’ve invested twenty years into it. Naturally, we want it to survive rather than be phased out by the market."

"Then that’s perfect." Irene set down her coffee cup and leaned forward slightly. "You should be more aware of MGM’s current financial situation than I am. Their debt exceeds $800 million. The funds for this acquisition are most likely obtained by robbing Peter to pay Paul. Do you think a company that can barely save itself can provide Future World with enough resources? Retaining the core team seems like a good thing, but should those executive managers who caused the company’s continuous losses be allowed to stay at the helm?"

She paused and continued, "Although Echo Pictures is young, our growth rate is obvious to all. With My Big Fat Greek Wedding, Pirates of the Caribbean, and Million Dollar Baby, we not only produce blockbuster movies but also care deeply about our reputation. Furthermore, we have mature project production capabilities and a clear development plan."

"We are here to seek cooperation. After acquiring Future World and injecting new capital, we will optimize the management team while trying to keep the original staff. Then, we will combine your distribution channels with our production resources. We have several film series waiting for release, all of which will be prioritized through Future World’s channels. I believe that within two years, we can turn the company’s losses into profits."

"And I can also guarantee that the shareholders who wish to stay can continue to hold their respective shares, although their stakes will decrease. Moreover, Echo Pictures and Future World will remain two completely independent entities. We don’t want Future World to disappear. We want it to become better and more perfect."

Webster remained silent, his fingers lightly tapping on the table, clearly weighing his options.

Having worked on Wall Street for many years, he naturally understood that Irene’s words made sense. Although MGM’s offer was high, it was full of uncertainty, while Echo Pictures’ rapid upward momentum made them a more stable partner.

In fact, he had conducted a thorough investigation of Irene Coppola. So far, every project she had handled had been profitable, with no failures.

To the people on Wall Street, this was practically a miracle—and Wall Street is the place that believes in miracles the least. Thus, he was very interested in Irene, which was one of the main reasons they were willing to engage with Echo Pictures.

"The equity you hold is a twenty-year investment," Irene looked at him, her tone sincere. "I hope what you see is not just this 10% price difference, but the long-term value of Future World and Echo Pictures joining forces. We are not just acquiring a company. We are building a win-win ecosystem."

A brief silence fell over the meeting room, with only the sound of the wind from outside faintly audible.

Webster looked up at Irene, the shrewdness in his eyes replaced by a hint of admiration: "Miss Irene, you are more persuasive than I imagined. But this isn’t a decision I can make alone. I need to consult with the other shareholders."

"I understand." Irene smiled and handed over a prepared proposal. "This is our supplementary agreement. It details the capital injection plan, the channel integration scheme, and the commitment to the placement of original employees. You can show it to the shareholders. We are available for further communication at any time."

Webster took the proposal and stated he would discuss it with the shareholders and provide an answer as soon as possible.

Irene didn’t say any more. After expressing her understanding, she left with Robert.

Emerging from the Beverly Hills Hotel, Irene sat in the car. The warmth of the coffee still lingered on her fingertips, but her mind was rapidly organizing a response plan.

Robert started the car and glanced at her: "MGM will likely receive feedback from Webster. If nothing goes wrong, they will continue to raise their price."

"Raising the price is inevitable, but it’s also their Achilles’ heel." Irene’s gaze was sharp. "Wall Street investors understand the balance between ’risk and reward’ best. MGM’s high offer is like a castle in the air. All we need to do is puncture it. Moreover, I could see today that Webster Clive wasn’t averse to our proposal, so I think our chances are quite good."

Back at the Echo Pictures office, Robert immediately pulled up MGM’s financial reports from the past three years and worked with the accounting team to compile key data.

MGM’s current debt default risk rating had dropped to BB, with three records of overdue short-term loans in the last six months. The funds used for this acquisition came from a bridge loan with an annual interest rate as high as 12%.

"I’ve had the lawyers contact several insiders on Wall Street," Robert handed the compiled documents to Irene. "They are willing to confirm anonymously that MGM’s cash flow is only enough to support three months of normal operations. They are completely unable to inject subsequent development funds into Future World."

Irene flipped through the documents, a cold smile appearing at the corner of her mouth: "Turn this data into a streamlined report and send it to Webster and all the shareholders. We don’t need to say much. They’ll calculate for themselves how unreliable MGM’s offer is."

Meanwhile, Irene had Robert rush the production of a "Distribution Revenue Forecast Report."

It listed all their upcoming projects, including the already completed Saw and Little Miss Sunshine, as well as the soon-to-be-published Twilight and Taken. Consistently profitable projects are the important basis for a company’s survival.

"We can promise that for the next three years, all of Echo Pictures’ medium-budget projects will be prioritized for distribution through Future World. At the same time, we’ll offer core shareholders like Webster ’profit-sharing rights.’ If Future World achieves profitability after the acquisition, shareholders can receive an additional 3% dividend for five years."

Just as the two were busy pushing forward with their plan, Webster’s call came through, his tone carrying a hint of hesitation: "Miss Irene, MGM has raised their offer to 15% and promised to take on all of Future World’s outstanding debt. The shareholders are very divided right now."

Irene had anticipated this and responded calmly: "Mr. Clive, I understand everyone’s concerns, but please allow me to bring a ’field verification proposal’ to meet with the shareholders tomorrow."