Chapter 492: Assembling the Puzzle
The Continental Airlines Arena in East Rutherford, a small town in northeastern New Jersey, was the home of the New Jersey Nets.
Charles Capet's CSE company spent $300 million in cash to acquire the Nets. The first order of business was to fire the original CEO, Brett Yormark, and replace him with Thomas Wayne, a close associate of Charles, to oversee the entire business operations of the Nets and the future Brooklyn Arena.
Charles did not make any changes to General Manager Rod Thorn or Head Coach Lawrence Frank.
In the Nets' office located in East Rutherford, Charles held a meeting with Thomas Wayne, General Manager Rod Thorn, and Head Coach Lawrence Frank.
Brett Yormark was replaced because he was associated with Bruce Ratner, and Charles feared he would incline the Nets' operations too much toward Forest City Enterprises.
General Manager Rod Thorn's abilities were commendable. He drafted Kenyon Martin, acquired Jason Kidd and Richard Jefferson to form a trio that reached the finals.
Later, when Kenyon Martin was traded away, the Nets got Vince Carter to form a new trio.
However, Richard Jefferson left the Nets a couple of years ago, Jason Kidd left last year, and now Vince Carter was also set to leave this year!
Currently, the only notable player remaining on the Nets was Brook Lopez, who was acquired in last year's draft.
"If all goes well, the new arena in Brooklyn will commence construction this year, and we can move to New York in 2011. Negotiate well with Barclays; we need a naming rights fee of $10 million per year for 15 years, but I want them to advance funds for the arena's construction!
Since the team is starting a rebuilding plan, trade Vince Carter for some good assets. The Magic want him, right? Ask for draft picks as part of the deal but don't take someone like Rafer Alston. Our draft luck wasn't great this year, so we're picking at 11th. See if we can get Stephen Curry."
Charles handed over the Nets' affairs to Thomas Wayne and didn't bother to worry too much himself.
"Understood. Once we move to New York, I'll establish our own culture. New Jersey is part of the New York metropolitan area, but it's still far behind New York City," Thomas, who previously worked at CSE, was not familiar with basketball but was competent in business operations.
"Alright, I'll head out now. You guys prepare well for the draft!"
Getting the 11th pick in the draft for a team in rebuilding wasn't too exciting for Charles. They just hoped to avoid being utterly terrible that season.
...
On June 10, Charles visited General Electric's headquarters in Fairfield, Connecticut, located in southeastern New York, near Long Island Sound.
Charles met with GE Chairman Jeff Immelt at a golf club.
"Charles, that was quite a quick move. But your valuation of NBCUniversal at $27 billion is too low," Jeff Immelt shook his head. "The board won't agree!"
Charles smiled, put down his club, "We can also take on about $7 billion of NBCUniversal's debt.
The key assets of NBCUniversal are its cable networks, which include USA Network, Syfy, Bravo, CNBC, and NBC (Microsoft National Broadcasting News Network). NBC TV and Universal Studios currently contribute very little to the Group's performance.
With this acquisition, Capet Group can offer at least half of the payment in cash, and the rest can be settled through a share swap."
Jeff Immelt frowned. Half of the payment would be nearly $15 billion in cash, and Capet Group's shares were also highly valued now.
The acquisition plan of the Comcast Group clearly couldn't match Capet's. Comcast hoped to first acquire NBCUniversal's operating control with more than 50% of the shares.
Moreover, Comcast could only offer $6-7 billion in cash and then merge its cable network with NBCUniversal to get 51% of the new group's shares.
"We at GE have already started negotiations with Vivendi to acquire NBCUniversal shares from them for no less than $5.5 billion," Jeff Immelt suddenly stated.
Jeff Immelt was aware that Charles had contacted Vivendi but had not yet reached an agreement on price.
At least $5.5 billion to acquire Vivendi's 20% NBCUniversal shares?
This was a move to drive up the price since GE genuinely wanted to sell NBCUniversal.
"Charles, Universal also has a library of over 4,000 movie titles, Universal Studios Hollywood, Universal Orlando Resort, Universal Studios Japan, and the ongoing construction of Universal Studios Singapore..."
Charles responded, "Except for Universal Studios Hollywood, Universal Orlando Resort is partially owned by Blackstone Group. Universal Studios Japan and Universal Studios Singapore are just licensed out, earning a licensing fee each year, with little connection to Universal.
Moreover, aside from Universal Studios Hollywood being profitable, Universal Studios Singapore is still under construction, and both Universal Orlando Resort and Universal Studios Japan are losing money.
Universal Studios hasn't updated its attractions in years. You know the IPs we own, like Marvel, the hugely popular Transformers, Twilight, and Saw can all be developed into attractions.
Capet Animation's Illumination Entertainment's first 3D animated feature, Despicable Me, will also be released next year, and I'm confident about it!
Besides strong cash flow, Capet's strength comes from its powerful IP monetization capabilities and a robust lineup of IPs.
After the Bourne series ended, Universal only has the Fast & Furious franchise left. Can it compete with our Transformers series or the now-popular Twilight?
The Hangover just premiered, grossing $45 million in its opening weekend, with a production cost of only $35 million. A sequel is already in the works.
Capet's foundation is Marvel Entertainment, and aside from Warner Bros. Batman, it has no rivals.
Mr. Immelt, Capet acquiring NBCUniversal is just assembling the puzzle pieces!"
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