Chapter 105: Matrix Pictures

In the living room on the second floor, Charles, Evelyn, and Dona were sitting on the sofa watching CNBC news: General Electric completed the acquisition of Universal Entertainment and merged NBC Network and Universal to form NBCUniversal Entertainment.

"GE Chairman and CEO Jeff Immelt announced that GE Vice Chairman and Chairman and CEO of NBC Television Group Bob Wright would become Chairman and CEO of the new company NBCUniversal," the news anchor said.

"Universal Studios' top executives remain unchanged," Charles noted, watching the screen. "Ron Meyer and Stacey Snider are still in charge of Universal Pictures."

Another giant had appeared. NBCUniversal included one of Hollywood's six major film studios, Universal Pictures, as well as Universal Studios and Resorts, and the NBC broadcast network along with networks like USA Network, Syfy, CNBC, NBC News, Bravo, and the Spanish-language channel Trio.

"Vivendi initially asked for $14 billion for Universal Pictures Group, but that was too high. GE's acquisition cost around $12 billion," Dona explained.

Vivendi still held 20% of the new NBCUniversal, while GE controlled 80%. However, Vivendi still managed the world's largest music entertainment group, Universal Music Group.

Currently, Universal Music Group was undoubtedly the largest of the world's five major music groups, being the result of a merger between PolyGram and the old Universal Records.

Even the upcoming merger of Sony Music and BMG to form Sony BMG would only make them the second largest.

Alongside Warner Music Group and EMI, these five groups accounted for over 80% of the global music market.

"Finally, all the major film studios have become part of media empires," Charles said as he stood up and walked to the floor-to-ceiling windows, watching the Hudson River flow gently. He lit a cigarette.

NBCUniversal was valued at about $30 billion, and with debt, the total acquisition cost was nearly $40 billion.

Jeff Immelt, the new GE Chairman who succeeded Jack Welch, seemed to have some ambition.

"Dona, how much of Marvel does Carpe Pictures own now?" Charles asked, feeling the need to hasten his plans.

"Just under 10%, but only by a bit. The current price is somewhat overvalued," Dona Williams quickly responded. "We spent around $15 million on small-scale acquisitions from the market, so not many people noticed."

"Are there any major shareholders looking to sell their Marvel shares?" Charles asked again.

Dona shook her head, "Isaac Perlmutter and Avi Arad together own over 56% of Marvel. It's tough to get control without them!"

"Yeah, you're right! But I met Marvel COO David Maisel in Manhattan, he seems to be courting Wall Street investment firms, probably hasn't given up on developing his own movies," Charles remarked, though not too worried. Characters like Iron Man, Captain America, and Thor were already within the Carpe Pictures domain.

"Boss, I heard in Los Angeles that Marvel Chairman Isaac Perlmutter and Marvel Creative Officer Avi Arad, who's also the president of Marvel Studios, aren't getting along lately. They have some irreconcilable differences," Phyllis Jones chimed in.

Charles nodded. To acquire Marvel, Carpe Pictures needed to persuade Isaac Perlmutter to sell his shares. Avi Arad's shares were merely complementary.

"Oh, by the way, Phyllis, I discovered a new project recently, Eli Roth's horror thriller Hostel. His film Cabin Fever from two years ago had some audience. Hostel seems similar, support its development!"

It was another low-budget horror film with a budget of $4.5 million, not much.

"Hostel!" Phyllis Jones shuddered at the name. It sounded as disturbing as Saw.

"Boss, using Carpe Pictures' label for such films might not be quite appropriate," Dona Williams suggested.

Charles found sense in that. Such niche B-movies should have their own dedicated production and distribution label.

"Alright then, when you get back, register a subsidiary under Carpe Pictures called Matrix Pictures to handle the production and distribution of horror, thriller, and gory B-movies," Charles instructed Phyllis Jones.

"Starting from Saw II this year, the third film next year, and this Hostel, let's use the Matrix Pictures label for them," Charles added.

This approach prevented companies from being typecast.

Even Disney refrained from using its label for anything beyond G-rated movies. Touchstone Pictures, Hollywood Pictures, and Miramax all released their non-animated films through Buena Vista International.

Carpe Pictures should focus on developing commercial and art films. As it grew, Charles planned to create an independent label specifically to handle indie films.

After all, while major companies concentrated on blockbusters, indie films had lower production costs and higher artistic value, complementing commercial blockbusters.

"Boss, you're not going back to LA?" Phyllis asked Charles.

Charles shook his head and exhaled some smoke, "I need to stay in New York for a while longer."

Dona Williams tugged on Phyllis's arm, "Darling, I'll book your ticket and take you to the airport."

Phyllis pouted but knew she had to finish her work first.

That afternoon, Dona drove Phyllis to Kennedy Airport. Sitting in the passenger seat, Phyllis handed Dona a gift, "Dona, this is for you, a Chanel scarf!"

"Hey Phyllis, got a lot of goodies from the boss these days, right?" Dona teased as she glanced at the scarf while driving.

"He gave me perfume and a bag. Want them? They're quite pricey!"

"Keep them, Phyllis. The boss already has us two. We should make sure to keep him happy so other young, pretty girls in the company don't steal him away," Dona suggested, forming an alliance with Phyllis.

Phyllis quickly nodded in agreement with Dona's idea!

*****

https://www.patreon.com/Sayonara816.