Chapter 154: The Acquisition Begins (Part 1)
[Chapter 154: The Acquisition Begins (Part 1)]
Sony Pictures, CEO's Office.
Howard Stringer sat in his office, looking at the man across from him, Nobuyuki Idei. He was the well-known chairman of Sony, an influential figure. The elder man had a head full of gray hair and a furious expression.
However, Howard wasn't intimidated. He shrugged and said, "The wager was decided by the head office, not me." He had completely checked out.
If he couldn't push back against Nobuyuki Idei, he would have to deal with Ian Carr instead. The latter was a tough opponent!
Nobuyuki Idei glared at Stringer. "But you didn't stop him! Look at what he's done during this time!"
Howard chuckled coldly, "Chairman, you're dealing with the most formidable journalist on the planet. He can interview terrorists while a plane explodes, race after thieves to ask questions, or interview someone burning alive!"
He shook his head. "Do you still not understand who you're dealing with? He's not just a standard businessman... His journalistic instincts overshadow his business acumen! He fears nothing; he will do whatever it takes to achieve his goals! A savvy businessman isn't frightening, and neither is a brave soldier. But a cunning businessman who's also fearless, unfazed by the law, and has extraordinary abilities, now that's a real threat -- an American hero... very terrifying!"
He added, "His assets may only be a drop in the bucket compared to yours, but the damage he can inflict could surpass even that of ten Sonys combined. Right now, he's only targeting Sony Pictures and its subsidiaries; tomorrow, he could go after the entire Sony. Mr. Idei, you need to take his threat seriously!"
"Baka!" Nobuyuki Idei's anger flared up, "Sony doesn't accept threats!"
Howard shrugged. "You can refuse, but the consequences are not my concern."
Nobuyuki Idei's face twisted in frustration. "I cannot accept his demands! I don't believe he has more to offer!"
Though Howard didn't care, he simply replied, "Then I'll respond accordingly."
...
Ian didn't care about the negotiations breaking down. He never truly expected the deal to go through; after all, shorting Sony would yield greater profits. However, in business negotiations, opportunities must be given.
February 4.
The Los Angeles Herald, Los Angeles Times, LANN, CBS News, and various television and radio stations released evidence of Sony Entertainment's tax evasion simultaneously.
The market erupted with outrage!
The IRS descended on the situation like sharks smelling blood. Two million might not matter, but hefty fines definitely did.
On this day on Wall Street, Sony Pictures' stock price plummeted. If this were the only news, perhaps the impact on Sony wouldn't have been catastrophic. The problem was that over the past month and a half, they'd been entangled in too many negative headlines, leading to a very poor public perception of Sony.
Harming others was an art. Continuous light jabs might not knock an opponent down but could earn points. And delivering a lethal blow while an adversary was on edge could shatter their confidence completely.
Sony's market confidence had already been battered by ongoing negative reports and declining stocks, and the tax evasion news only made matters worse.
It was disgusting that Ian had arranged for an interview with a key IRS official, Deputy Commissioner Ib Wade. This man was a friend of Californian Senator Isolt Cherry, who also happened to be Ian's friend -- key points being Ian had slipped a $100,000 check to Wade.
Who isn't a friend of money?
So, Ib Wade announced directly: he would not spare Sony and would thoroughly investigate the accounting assets of Sony Entertainment, requiring all back taxes and hefty fines owed over the years.
His tone suggested that if Sony didn't bleed out three pints, he was unqualified to serve as deputy commissioner.
Although Sony had connections to smooth things over, panic had already settled in; people began to sell off their Sony stocks, and the price kept dropping, plummeting 15% in just a few days.
For a large corporation, that was quite a significant blow.
...
With the leverage from his funds, Ian stood to gain about $220 million from this short. However, he wasn't satisfied with that.
So, Ian announced that the media scrutiny on Sony would continue; the Japanese wouldn't be able to act so boldly on American soil. Observers could wait for more big news to drop.
What a guy!
He was clearly robbing money yet was still playing the patriotism card?
It worked surprisingly well.
Everyone knew Ian had Sony in his sights. The loss of future confidence led to continuous stock declines.
...
At this point, Sony's headquarters panicked and finally agreed to negotiate.
Howard Stringer was ordered to talk to Ian again. With insider support, they finally came to an agreement.
Ian wouldn't target Sony anymore and would persuade Ib Wade to show some leniency; fines were a given, but they could be lessened.
Meanwhile, Sony Pictures agreed to sell the rights for Spider-Man, Resident Evil, and Men in Black to Lockbridge Productions for a mere $25 million. The Spider-Man movie in production would also accept Lockbridge's investment, while Carr Media would take over most of the marketing.
Additionally, Ian would still let Sony keep the production rights for Spider-Man and Resident Evil so they could obtain the licenses cheaper and encourage them to produce quality work.
Asking too much could turn a production into trash -- a movie's success often depended on who was behind it; if something went wrong with the talent, the outcome could easily become garbage.
So, for those great-selling films, Ian intended to let whoever originally created them continue doing so, aiming not to interfere in the production process to avoid turning hits into misses -- after all, although Spider-Man 3 eventually had its issues, it still raked in money, right?
For Ian, acquiring the rights not only meant fewer restrictions but also smoother incorporation into Marvel with Spider-Man in the future. There would be changes, but only favorable ones.
And hopefully, Sony would convince Nomura Securities to help persuade Madoff to stop causing trouble.
Business is all about connections; it's about mutual aid.
Even though Nomura was seeking Madoff's help to turn a profit, they still had leverage -- a nuance, especially because Madoff's high-profile persona was simply a facade.
After learning Ian had made a hefty profit from shorting Sony, Madoff understood his plan to outfox Ian had totally failed. To prevent Nomura from pulling back their $500 million investment, he had no choice but to accept this outcome.
Thus, the loan withdrawal from Lino Bank became a resolved issue.
It was interesting: as Ian became wealthier, Lino backed off from pulling loans.
Ian finally let go, choosing not to release any more dirt on Sony.
Previously, had Ian been more shameless, he could've cleaned Sony's slate while completing his short and snatching some shares.
But doing so would tarnish his reputation -- Ian wasn't interested in that.
Influence was a double-edged sword; it could help Ian make a fortune, but neglecting it could cost more in lost trust.
Hence, after completing this transaction, Ian Carr refrained from further actions, ending this short-selling battle.
However, for Ian, the war was just beginning.
That old bastard Madoff was the real culprit, and now many knew that Madoff and Ian were bitter enemies -- his capitulating was merely because Ian had made money; whether to let go was mere water flowing downstream.
---
Carr Media Group, President's Office.
Today, Ian met with a distinguished guest: Boyle, a director at Etna Corporation.
After the last incident, Ian and Etna had reached an understanding; due to the rapid expansion of Carr Media Group, Etna Insurance barely incurred losses from the ordeal.
Advertising fees were worth it.
CBS's stock had also recovered its losses from low-interest loans.
As for providing low-cost insurance to Carr Group employees... that was a small matter, actually even profitable!
So the two businesses were getting along fairly well, and Boyle had managed to keep his position.
In fact, Boyle was now one of Etna's representatives on the CBS board, attending board meetings where Ian sat with him for chats. The moment he had once been threatened to be thrown out of a hotel now transformed into a fondly remembered and joking moment shared between them.
"Ian Carr, we've really formed a strong bond here!"
"Actually, I always figured that not throwing you out of the building was a missed opportunity for a good story."
"I should have fucked your woman."
"Don't even think about Jessica! You can try beating me instead."
That was how their banter flowed.
It's said that one must engage in combat to conduct business!
At that moment, Ian personally poured tea for Boyle. "This is premium Darjeeling from India. Coffee is acidic; tea is alkaline. It's good to have some tea to balance things out for your health."
Boyle gratefully accepted, smiling.
He set down the teapot and sat down in front of Boyle, saying directly, "I brought you here because I need your help with something. I need to acquire another $500 million loan from Etna. Of course, it won't be at low interest; it will go through standard processes, but I will only pay interest within five years... I trust Etna will help me with this."
Getting five years of interest-only payments was a special privilege, yet Ian had always enjoyed such perks.
That was merely the norm!
Boyle was unsurprised by this: "What's it for?"
Ian answered, "I want to take over Lino's shares."
Boyle blinked at him, surprise filling his expression. "What did you say?"
Ian looked serious. "I need to deal with those shareholders at Lino; those bastards must be out!"
"Wow," Boyle laughed, "So you're planning to acquire Lino Bank?"
"Yes!" Ian confirmed earnestly. "Of course, I won't be the one in charge; Gaskill will still be the chairman."
Boyle understood. "You and Gaskill have a solid friendship."
Ian shrugged. "In this world, a few good friends always matter."
He looked at Boyle, "I know you have clients with shares in Lino; I need you to help convince them to sell me those shares. I can offer a premium."
It was normal to pay a premium for acquiring profitable companies, and the negotiation would determine how much.
Boyle replied, "So Etna needs to persuade its clients and also lend you money to purchase Lino's shares? What about the acquisition?"
"How about I borrow money from Lino Bank to buy Etna's shares later on?" Ian suggested with a smile.
Boyle laughed heartily, "No problem at all!"
Ian's methods were quite ruthless; cooperation was the best option for someone like him.
Boyle added, "I can help persuade those individuals; however, they only hold 8% of the shares in Lino, so it won't be enough to overturn the situation."
Ian smiled slightly. "Leave the rest to me... you know I'm good at influencing people."
Boyle raised an eyebrow. "I believe you; I've seen it firsthand."
They exchanged glances, breaking into laughter together.
*****
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