Chapter 115: From Enemies to Allies (Part 2)

[Chapter 115: From Enemies to Allies (Part 2)]

The surge in profits represented a rise in industry valuation, which meant easier access to financing. If a business could make ten million, it could borrow a hundred million. With Gaskill on board, they could even secure two hundred million.

Advertising was the lifeline of the media, and although the price for ad space remained relatively constant, negotiations were always on the table. Plus, there was room to increase advertising space.

"Collecting ad fees seems like a perfectly reasonable way to do business," Boyle immediately stated. "Etna could pay Carr Media ten million in advertising fees each year for five years, but you can't settle for tiny ad spaces. They need to look respectable."

Ian shook his head. "I don't think I'm making much money. I have complete confidence in my company's future expansion!"

Boyle chuckled wryly. "Aren't you planning to acquire CBS? If you can pull that off, ad rates could increase to fifty million a year without blinking, and that would give you leverage in negotiations with CBS."

Fifty million a year over five years was a significant sum.

Still, Ian wasn't satisfied. He shook his head again. "Advertising resources come with costs. You're offering too little... you have to understand, I'm risking a lot here."

Boyle sighed, speechless. "How do you plan to approach CBS for a partnership?"

Ian responded, "With my news and available capital."

Boyle was not surprised. "A gamble then?"

"Absolutely, there'll be a wager involved," Ian grinned.

"Then let's make a wager here too. If you can manage a deal with CBS, Etna can provide the funds for the acquisition, but it can't be interest-free -- just low-interest at 3.8%! We can create a special financing agreement where, for five years, you're only paying interest, but you'll need to use CBS shares as collateral. You must ensure those stocks don't devalue, or you'll need to add more collateral. Etna can't show visible losses, but we can provide low-cost insurance for your employees, which you can deduct from their expenses."

Typically, financing companies wouldn't allow interest-only payments for that many years; this needed special treatment, and it was a privilege.

Fortunately, Ian Carr had proven his business acumen, and with some leverage, he was an exception. For the insurance company, avoiding visible losses trumped all else.

After all, advertising costs were normal expenses. The current 3.8% low interest was still yielding modest profits, and low-cost medical insurance could be profitable as well. With the gamble in place, Etna could justify their benefits without worrying about procedural concerns.

In some ways, Etna Insurance had hardly spent anything, but Ian had hit the jackpot.

He secured massive ad fees, skyrocketed profits, boosted company valuation, secured funding for the CBS acquisition, and eventually reduced internal operating costs. And the price? He had to promote Etna Insurance!

What kind of profit could be made without compromising one's conscience?

"Etna Insurance, your life guarantee!!!" What a marvelous tagline!

Ian thought for a moment and then said, "First, we need to sign separate contracts. For Herald and Times, eight million each year and two million for WND, with the possibility of raising the price based on performance."

He made this request because he intended to merge WND with CBS later on; he couldn't afford to leave too much profit for CBS. After all, two million was still a significant amount.

"No problem," Boyle responded with a smile.

Ian continued, "This deal needs to be wrapped up immediately!"

To ensure there were no backups of recordings, he had to be right there with Boyle. When would the contract be signed?

"Sure!" Boyle assured him. "I can draft an initial agreement right now and arrange for them to prepay the first year's ad fees. The money will be in your account in an hour, and we can finalize the formal agreement later. This is within my jurisdiction, as long as they don't fire me before I finalize it! If the board tries to play tricks, it would be like giving you an easy ten million while risking your leaks.

We're also betting... betting that your business will thrive and that your ads will justify our investment! If you fulfill the wager, we'll keep acquiring CBS stock in the market to help boost your stock price, which can also serve as leverage in your negotiations."

In some sense, insurance companies were also gambling establishments, risking lives! So their bet was quite reasonable... and Boyle had hit the nail on the head. Ian's media business was indeed expanding rapidly, and his ad revenues weren't reflecting his growth properly, resulting in perpetually cheap advertising rates.

Etna was offering him exorbitant ad fees, and if Ian could maintain this pace of growth, everything would balance out, ensuring their high ad rates didn't result in losses. Ian couldn't refuse such an enticing offer.

Moreover, the deal he was about to strike with CBS included raising CBS' stock price; when Etna acquired their shares, it could help Ian fulfill his wager while also netting a profit for themselves -- if done right, it'd be win-win! Even Ian was impressed.

Rich people were incredible! They knew how to play the game!

With money as the driving force, enemies turned into allies like that!

Ian nodded, "Can we raise the ad fees to fifteen million?"

Boyle chuckled. "At least let me have some room to maneuver in the board meetings. For now, my staying at Etna only benefits you, not detriments."

"True enough," Ian smirked.

It was surprising that Ian, with his persuasive skills, was actually swayed by Boyle's words. It turned out that professional skills occasionally outshone sheer ability!

...

At three in the morning, everything was finally settled. With an extra ten million on the books, Ian felt satisfied as he headed home to sleep with Jessica and Helen.

On the way back to their room, Helen asked softly, "If he wouldn't back down, would you really throw him under the bus?"

Everything before had seemed staged, so Jessica and the others weren't really afraid.

But Helen asked the crucial question at this moment.

After pondering, Ian answered, "No matter what, I wouldn't drag you into a murder case. That'd be irresponsible towards you."

Helen understood.

She felt a mix of fear and happiness.

When they returned, Amanda, Barbara, and Kelsey were still waiting for him and had not fallen asleep.

Ian held the girls close and asked gently, "Why aren't you all resting?"

Amanda clung to Ian tightly. "Mom told me to come home; she found out about me and is very worried."

"Are you guys leaving?" Ian was surprised.

What about their plans in the entertainment industry?

Amanda kissed Ian passionately. "We'll come back, but I have to focus on school for now and can only visit during breaks. Besides, your film company won't be launching for a while, right?"

Ian sighed softly. "Yes, what about the rest of you?"

Barbara and Kelsey answered in unison, "We too; we'll show up whenever you need us."

Helen Berry and Jessica declared, "We're staying put; it's great that you're only ours now!"

Ian sighed.

That wasn't necessarily true -- what about Lena, Scarlett, and the others? Kate was still out filming, and Scarlett would be back soon.

My goodness!

But thinking about the girls leaving, Ian felt a desperate urge to please them.

So Ian gathered Amanda and the others and said, "No sleep tonight!"

The girls excitedly looked at him, their eyes glimmering with desire.

*****

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