Heads Up Hollywood

A few years ago, Kirk Kerkorian spent $1.3 billion to re-bought MGM Pictures.

However, the movies produced by MGM are getting worse and losing money one after another, resulting in consecutive deficits.

In the past six or seven years, Kirk Kerkorian invested another US$1.7 billion in order to make up for MGM's shortfall and maintain a stable stock price.

In other words, the current MGM Pictures has no debt.

However, Kirk Kerkorian's total investment in MGM is 3 billion US dollars!

Now, Kirk Kerkorian sold MGM to New Universal for $4.3 billion, which equates to a profit of $1.3 billion.

According to the U.S. tax law, investment profits are subject to capital gains tax, and Kirk Kerkorian needs to pay nearly $200 million in taxes for this.

Therefore, this 80-year-old guy played a trick.

MGM borrowed 1.3 billion US dollars from the bank with assets, and then converted the 1.3 billion US dollars to all shareholders in the name of dividends.

And now the new tax law introduced by the Bush administration, if the company does not make a profit, it must pay dividends, and the dividend tax can be exempted!

In this way, Kirk Kerkorian successfully transformed the capital tax into a dividend tax, thereby avoiding taxes reasonably.

Therefore, the selling price of MGM Pictures is actually 3 billion US dollars, which is the same as the investment amount.

However, New Global has to assume $1.3 billion in debt.

That equates to a total value of $4.3 billion.

Such an operation is not harmful to New Universal. Anyway, with the current financial situation, the acquisition of MGM will definitely require debt, and there is no difference between the first loan and the second loan.

Of course, Kirk Kerkorian can play a trick of perfect tax avoidance, and the financial staff of New Global are not just for nothing!

Brandy Norris, chief financial officer and chair of New Universal's mergers and acquisitions committee, launched a secretive, high-priority project.

This secret project is mainly to confirm the "net present value" of MGM Pictures.

If MGM's price is far lower than the price paid by New Universal, then this valuation can be used to save huge tax dollars.

New Universal's M\u0026A committee, taxation department and financial management personnel, together with MGM's financial department, cooperated with an external third-party consulting company specializing in valuation.

According to the latest internal valuation report Tang En received, the net present value of MGM Pictures is US$1.62 billion.

The calculations are complex, but the report estimates that New Universal could achieve at least $300 million in tax relief, which would go straight to net income.

The specific process is very complicated, and non-professionals can't understand it at all.

Tang En only knew a little about it.

However, who is not happy to be able to avoid taxes?

The top executives of the entire New Global Group are enthusiastic about the potential tax relief.

Barry Diller excitedly declared: "This is one of the smartest ideas I've ever heard."

No matter what, MGM, once the most brilliant film company in Hollywood, will belong to Twain.

...

Hilda Querry is still continuing to accept these new actresses in her hands for Twain.

Even if it is CAA, it is impossible to promote all the newcomers.

At least the dozen or so faces in the past, except for Jessica Chastain, most of them are unfamiliar.

until……

"Huh?"

Tang En's eyes lit up.

Hilda Querry smiled, "This is Marion Cotillard, a Frenchman. She is not a newcomer, she is very famous in France, but she is a newcomer to Hollywood."

To be honest, from a wide-eyed look, she is not more beautiful than those in front of her, and her figure is not outstanding.

But...she seems to have a Mona Lisa-like charm, the more beautiful she looks, the more delicious she looks.

Tang En held her hand and did not let go, looking straight at her.

At this level, some words no longer need to be said.

Not to mention a French actress?

The French are more romantic and open.

The French entertainment industry... Well, if there are still one or two good guys in Hollywood, then the French entertainment industry can catch them all.

Those directors who shout about new wave art, every one of them is an asshole!

The same goes for Luc Besson. A few years ago when Natalie was young, she always praised him, saying that he helped her a lot when she was filming "This Killer Is Not So Cold".

But with the growth of experience and knowledge, Natalie has stopped talking about the French director who once supported her.

That scandal...worse than Harvey Weinstein!

It's just that he is very self-aware. He usually doesn't touch English-speaking actresses, and he only deals with actors from Eastern Europe, Southern Europe, and Asia.

Marion Cotillard grew up in France, and she must have learned a lot before coming to Hollywood.

Sure enough, she looked at Tang En with fiery eyes, and she didn't back down at all. There was a smile on the corner of her mouth, and the words she said were so bold that Hilda Querry was dumbfounded.

"Do you want to go to the bathroom, I'll give you a blow./explosion?"

Tang En was taken aback for a moment, couldn't help laughing, and let go of her hand, "Are you French people so open?"

Marion Cotillard pulled her hair and asked strangely: "Sir, have you never had any contact with French actresses?"

Tang En smiled and said, "I have had contact with Sophie Marceau, and she is also very enthusiastic...but not as enthusiastic as you."

"Sophie...is she out of temper?" Marion Cotillard said with a half-smile.

Tang En said sternly: "You can't say that. Next year, we will launch the "Mr. and Mrs. Smith 2" project. At that time, she will return to the mainstream business."

"Next year... she will be thirty-eight years old."

"oh?"

Tang En glanced at her lightly.

Marion Cotillard met his gaze and said boldly: "She is old, and she has lost the qualification to have an in-depth relationship with you."

"Then who is qualified?"

"Can't I?"

Tang En smiled, "Marion, you're really proactive. I've always been the one who lures others. Why do I feel like I'm being lured in front of you?"

Marion Cotillard took a step forward and whispered, "It's different, you're a man."

Tang En nodded, "Okay, I'll contact you later."

Marion Cotillard looked stunned, "Aren't you taking me back tonight?"

Tang En didn't answer, but asked instead: "By the way, do you know Eva Green?"

Marion Cotillard shook her head.

"Dream of Paris" has not yet been widely released.

Tang En didn't say any more.

Tonight, Monica Cruz and Jessica Chastain are enough.

As for Marion Cotillard, let her hang out for a while.

If you want to get into my bed, you have to queue slowly, okay?

Want to jump in line?

Bring Eva Green over here!

...

On September 26, New Universal held a press conference and announced to the outside world that the acquisition of MGM was officially completed!

New Universal will acquire all the assets of MGM Pictures with a cost of US$3 billion and the assumption of US$1.3 billion in debt.

Because MGM Pictures is a listed company, it will take at least February next year to complete the delisting and formal acquisition.

However, the market reaction brought about by this transaction was reflected on the day of the press conference.

The most direct is the serious decline in Blockbuster's stock price!

MGM owns a huge movie library. Now that MGM belongs to New Universal, how can Blockbuster survive?

In addition, another company owned by Kirk Kerkorian, MGM Hotel Group... the stock price also soared 5.6% that day!

This news made Tang En furious!

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