I am Hollywood

Chapter 555: Chapter 556: The Old Fox



[Chapter 556: The Old Fox]

Since CAA expanded its scope in the 1980s, introducing more specialized script agents and streamlined channels, Hollywood film companies received thousands of original scripts each year. These scripts were often adapted from various types of screenplays commissioned by film studios. If chosen by a major studio, they could fetch prices as high as a million dollars, dramatically transforming the lives of many emerging writers. As a result, Hollywood referred to these original scripts as "spec scripts." The first script Eric sold, 17 Again, turned out to be a very successful spec script.

In recent days, Eric carried a hefty volume with him wherever he went as he selected projects for DreamWorks, which had recently collaborated with MGM. This thick tome appeared to be a classic novel, but its five or six hundred pages were actually summaries of scripts submitted by various Hollywood agencies.

After announcing his search for scripts, Eric's desk quickly filled with selections. Given his current situation, there was no way he could take the time to review each one. Therefore, he simply instructed his team to prepare some detailed summaries, which were then delivered to him the next day. Each script was condensed into a two or three-page synopsis, with only essential information regarding the author and the storyline.

...

Rupert Murdoch sat in his luxury car on the main road of Firefly Studios, looking at the enormous soundstages and busy crowds around him, reflecting on the day's upcoming meeting. A shadow of worry crossed his mind as he thought about it.

The luxury car passed through the office area and stopped outside a beautifully decorated restaurant inside Firefly Studios. Since it was not yet lunch hour, the restaurant was mostly empty. As Murdoch entered, he spotted Eric in the corner, casually dressed in a simple t-shirt and jeans, engrossed in reading a book, looking like any ordinary young employee at Firefly.

Who could have imagined that a young man not yet twenty-five could, in just a few years, build a fortune by swallowing up Disney and establishing the massive Firefly Studios?

Although the funding for acquiring Disney was considered a miracle, with Jurassic Park now raking in global box office numbers, Murdoch realized that even without the oil crisis caused by the war two years prior, the rise of Firefly Studios as one of Hollywood's major players was just a matter of time.

Out of the corner of his eye, Eric noticed someone entering the restaurant and looked up to find it was Murdoch. He quickly set down his book and stood up to greet him. "Rupert, weren't we supposed to meet at noon? Why are you here so early?"

Murdoch, beaming with a smile, shook Eric's hand. "I was curious to see what you were like at work, so I thought I'd drop by. I didn't expect to find you here."

Eric sat down with Murdoch and explained, "I was just speaking with a director here, and he left not too long ago."

"What was it, Bond or Charlie's Angels? I heard MGM handed you the Bond franchise as well?" Murdoch asked, looking intrigued.

"The Bond project won't even begin until next year, and I'll hardly be involved. I'm focusing on Charlie's Angels for now. Funny enough, I chose the same director for both films -- the one I just met, Martin Campbell."

Murdoch couldn't immediately recall Martin Campbell, but he noted that anyone trusted by Eric with two high-profile films surely had something special about him. He silently made a mental note to investigate further; maybe Fox could strike a deal.

The waiter soon brought Murdoch a cup of coffee. Sipping it, he hesitated to mention the agenda of today's meeting. He glanced at the elaborately-bound book on Eric's table, which had no title, and casually asked, "What are you reading?"

"For DreamWorks business, I've recently received a lot of scripts. I had someone prepare brief summaries, and they're quite interesting," Eric said, pushing the book forward for Murdoch to see.

Like other Hollywood companies, Murdoch envied Eric's plan to produce ten films for MGM through DreamWorks over the next three years. If it were possible, Fox wouldn't mind forging a similar partnership. After all, three high-quality films a year wouldn't overly anchor a major studio to a production company while still yielding significant profits -- something no one could resist. Yet Murdoch was well aware of the complex undercurrents behind DreamWorks' foundation, and he could only watch as the juicy opportunity fell into MGM's hands, the "hick" of Hollywood.

Murdoch casually flipped through the summaries before handing the book back to Eric. "So these are spec scripts, huh? Can you find any good ones?"

The scripts delivered to Eric were undoubtedly decent, but he had his sights set on "finding a diamond in the rough." If he came across a script he recalled being good, that would be ideal. If not, he could treat it as a collection of short stories. If any of the scripts piqued his interest and had a manageable budget, he would pass those on to the production team for consideration.

Of course, Eric didn't focus solely on the original scripts in front of him. He had instructed his team to conduct research based on his past experiences to uncover information about promising films that would emerge in the coming years. If that still didn't suffice, he planned to pick a few blockbusters that hadn't made it to this timeline to produce, leaving the outcome out of his considerations. After all, with DreamWorks' involvement, Firefly's stake was relatively small; as long as a clear majority of the ten films turned a profit, that was good enough for the European investors.

Setting aside the book Murdoch returned, Eric replied, "I've got a good eye for these things." Murdoch genuinely envied Eric's instincts. He had often wished News Corp could rule the world if it could tap into Eric's script-picking talent. Yet he knew this was merely a matter for envy; raising his cup for another sip of coffee, Murdoch remarked, "I thought you'd be writing scripts yourself."

"If I come across something interesting, I might write one or two, like Charlie's Angels, but my personal energy is still limited," Eric responded, sensing Murdoch wasn't keen to dive into the main topic yet. He wasn't in a rush, as Firefly's exit plan from Fox Broadcasting had already been submitted days prior. Even if this meeting with Murdoch didn't go well, Firefly could still exit the arrangement in accordance with standard business practices -- albeit it might take longer that way.

Time passed quickly, and noon arrived. As the bustling studio had a large staff cafeteria, many employees continued to filter into the restaurant. While they consciously avoided approaching the table occupied by Eric and Murdoch, the formal business discussion had not yet commenced.

After ordering lunch, Eric and Murdoch continued light conversation. Once lunch was finished and the restaurant emptied out, Eric signaled for the waiter to clear the table and bring more

coffee.

Both were busy men, and soon Murdoch stopped discussing trivialities. Eric took the initiative to broach a more serious subject: "Rupert, you've seen the exit plan, right?"

Murdoch nodded, taking a sip of coffee. The bitter taste caused him to frown, prompting him to add more sugar before replying, "Eric, while Firefly has done well these past couple of years, don't you think you're being a bit too hasty?"

"Well, once you see the path ahead, you'd want to get on with it sooner rather than later. It's better to move forward early rather than crowding in later with everyone else," Eric

countered.

The media M&A scene had kicked off this year with Viacom and QVC vying for Paramount, and there were only three major television networks in the country. Slower moves would lead to future competition with other conglomerates, complicating acquisitions and increasing costs dramatically.

"With your character, even if you choose a stock swap for the acquisition, you wouldn't relinquish too many shares. Since you're not planning on taking Firefly public, your only option left would be to issue bonds," Murdoch calmly laid out Eric's proposed plan. "You must know the risks involved. Many formerly thriving companies fell apart during unchecked acquisition sprees, trapped by massive debt. Look at MGM; despite generating some profit each year, they barely scrape by just covering interest on the debt. Aside from shareholders flipping it for quick profits, the company has little real value left. If you blindly expand, Firefly could find itself in a similar situation."

Having made his point, Murdoch took another sip of his overly sweet coffee and continued in

a fatherly tone, "Eric, a simple calculation shows that if Firefly issued five billion dollars in long-term bonds at a 5% annual interest rate, you'd owe 250 million dollars a year in interest alone -- not to mention the five billion in principal. That needs repayment. There's a lot of uncertainty in film investments; profits can't remain high indefinitely, and running a television network is no simple task. If Firefly begins to incur losses, you'll find those once- enthusiastic Wall Street investors will suddenly turn predatory, trying to control your company as creditors. That's something I've personally encountered more than once." Eric had certainly considered these issues multiple times and had a multitude of countermeasures ready in his mind.

At this point, Eric was also aware that Murdoch wasn't truly concerned for him; the old fox merely wanted to maintain their existing relationship with Firefly Studios.

Beyond a few TV programs, the high-quality films produced by Firefly in recent years were primarily aired on the Fox network, which not only brought in strong ratings but also significantly enhanced Fox's brand reputation -- a feat 20th Century Fox had failed to

achieve.

Once Firefly acquired its network, their cooperation would likely dissolve, and they might

even become rivals. Losing Firefly as a film supplier would be one thing, but Fox's core programs -- Friends, The X-Files, and Who Wants to be a Millionaire -- were all closely tied to Firefly. Although Murdoch had created a series of media successes, he wasn't an expert in content; despite shows like Friends holding up ratings over the years, Fox itself failed to develop a blockbuster program fully owned.

The importance of these flagship programs to any network was immense; just consider how much the six leads of Friends earned per episode in its final seasons. Despite his youth, Murdoch wouldn't underestimate Eric as a naive rookie. He knew that if it came down to it, even if Eric might not reclaim all three shows, he would surely be able to eliminate them all if necessary, because Murdoch understood he would do the same if he had to. Besides, with Firefly holding at least half of the rights, they had every right to do so.

After speaking for a while and feeling parched, Murdoch again lifted his coffee cup, observing the indifferent expression on the young man's face across from him. He couldn't help but sigh

inwardly.

Setting down his coffee cup, Murdoch finally asked, "Eric, since you're set on your course, let's talk about Friends. Acquiring a network isn't something that can happen overnight, but after this year, the contract between Fox and Firefly for Friends will expire. Shall we discuss

renewal?"

The rights to Friends belonged entirely to Firefly, while the other two shows had five-year contracts expiring next year. By bringing up Friends first, Murdoch was testing Eric's attitude. Eric wasted no time and stated plainly, "Rupert, Friends will not be renewed. However, I can assure you that after their contracts expire next year, Firefly remains open to renewing with

Fox for the other two shows."n/ô/vel/b//jn dot c//om

*****

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