Chapter 497: Public Acquisition

When Charles Capet came to France, he went straight to negotiate with Vivendi. Supported by the Vivendi Group and BNP Paribas, Capet openly offered $6 billion in cash to acquire Vivendi's 20% stake in NBC Universal.

Very quickly, France's Le Figaro and Le Monde first disclosed Capet's offer.

Soon after, the Associated Press, Reuters, Bloomberg, The Wall Street Journal, Forbes, and The Washington Post all reprinted the news of Capet's NBC Universal acquisition.

In Connecticut, at the General Electric headquarters office, a board meeting was being held:

General Electric chairman Jeff Immelt looked at the board members and said, "You all heard from Bob, Capet bid $6 billion to buy Vivendi's 20% NBC stake. Charles values GE at $30 billion, and he won't go any higher. American Cable Company has already filed an unfair competition lawsuit against Comcast. Some congressmen also don't support Comcast entering the content creation field, thinking it will make customers pay more for TV subscriptions!"

As for why Time Warner Cable didn't sue, it was because the Time Warner Group saw Capet as a future rival. Even if Comcast acquired NBC Universal, the threat would be much smaller than Capet merging with NBC Universal.

Moreover, Capet already owned 10% of an American Cable Channel, making it easier for the American Cable Company to intervene. The channel was now the company's flagship business point.

"What's Comcast's take? Are they willing to pay more?" a board member asked.

"Comcast can value NBC Universal at $30 billion too, but they don't have that much cash on hand. Their plan is to acquire 51% of NBC Universal's shares to gain control," Jeff Immelt continued.

"They are willing to offer $6.5 billion in cash plus their cable TV station!" Immelt directly pointed out.

"I support Capet's proposal, $15 billion in cash plus a 50% share swap," said Bob Wright, who was very familiar with Charles Capet's abilities, having served as the chairman of NBC Universal.

"But, Comcast could buy the remaining 49% of NBC Universal's shares at a higher price in the future!"

"No way. If Comcast gains control, how would they resist Capet's blow? Universal Pictures is already performing poorly..."

"We could also talk to Capet and let them take over the control. We can sell the remaining shares within five years..."

"That would be tough. Charles won't agree. He has strong control and doesn't like dissent within the company. Even if BNP Paribas or Bank of America, Vanguard Capital, and BlackRock Funds get shares, they don't have much voting power!"

Jeff Immelt frowned as he looked at the bickering board. The NBC Universal acquisition was now known to everyone.

After all, following the financial crisis, this was the first large-scale acquisition near $40 billion!

"Warren Buffett said on CNBC that he supports Charles Capet taking control of NBC Universal. He believes professionals should do professional work. Who in Hollywood can match America's idol, the 'Son of Hollywood,' Charles Capet?" Bob Wright also supported Capet's leadership.

"Let's meet Comcast's chairman Brian Roberts. If he doesn't have a better offer, we'll allow Capet to first acquire Vivendi's 20% stake in NBC Universal," Jeff Immelt said.

None of those present were fools. Even if Capet acquired 20%, NBC Universal would still be under General Electric's control. They could continue talking to either Capet or Comcast about the acquisition.

Although Capet would have the advantage, Comcast could still gain control if they bought more than 50% of NBC Universal's shares from General Electric.

...

Capet's formal public acquisition of NBC Universal caused a sensation in the entertainment industry. A valuation of $30 billion plus $7-8 billion in debt made it the largest acquisition at that time!

Cable TV operator Comcast, eager to enter the content field, was not willing to be outdone and competed with Capet for NBC Universal. The market was buzzing with excitement.

In Paris, Charles' team also started negotiations with BNP Paribas. The bank offered $6 billion to help Capet acquire Vivendi's 20% stake in NBC Universal.

Of this, $3 billion was a loan to Capet Entertainment, and another $3 billion was converted into preferred stock convertible bonds!

For this, BNP Paribas specifically arranged a financing plan using Capet's debts and equity to attract French capital involvement.

...

While waiting for news in Paris, Charles called Liu Yifei, inviting her to come to Paris for a few days.

Charles arranged for Liu to stay at the Pullman Paris Eiffel Tower Hotel, a high-end hotel near the Eiffel Tower and the Seine River, not far from the Four Seasons Hotel on George V Avenue, which of course is also close to the Champs-Elysees.

"Wow, this place is nice," Liu Yifei commented upon arriving at the hotel, where she could clearly see the Eiffel Tower and overlook the Seine River.

From behind, Charles hugged her, pointing at the Eiffel Tower and smiling, "I've already reserved a spot at the restaurant at the top of the tower. We'll have dinner there tonight!"

"You know how to enjoy yourself. I've never dined up there before," Liu Yifei laughed.

"Hehe, it's alright. Anyway, I think this iron lump is really ugly. But because it's the tallest building in France and famous..." Charles shook his head, not seeing any beauty in the Eiffel Tower.

"A lot of people want to come and see it for themselves, but you're calling it an iron lump," Liu Yifei said, snuggling into Charles' arms.

"I won't stay long in France. I need to return soon for Bulgari's centennial event, and then I have to shoot Painted Skin 2!"

"Don't worry, it won't delay anything," Charles said, kissing her on the face and moving to her lips, which she eagerly returned.

"It's still early. Let's rest for a bit before we head up the Eiffel Tower later."

"Okay," Liu Yifei nodded.

With that, Charles picked her up and carried her straight to the bedroom...

*****

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