Arthur Smith's Hollywood Odyssey

[Chapter 570: Yahoo Japan]

Under the discussions among Masayoshi Son, Jerry Yang, and Arthur Smith, they confirmed the equity distribution of Yahoo Japan. Yahoo, SoftBank, and West Pacific Investment Company owned 30%, 40%, and 30% shares respectively, with SoftBank as the major shareholder, contributing $100 million alongside West Pacific Investment Company to establish Yahoo Japan!

After the meeting, Arthur directly called Emily Shead to discuss the Yahoo Japan situation. West Pacific's total investment in Yahoo had topped $20 million, merely to maintain that 40% stake!

Compared to SoftBank, however, it was still a better position, as SoftBank had spent $20 million this year just to purchase a 5% stake in Yahoo. Before going public, Yahoo's last financing round this year valued the company at $400 million.

...

Back in his hotel suite, Norika Fujiwara approached dressed in a traditional kimono. "Did everything go smoothly?"

She promptly helped Arthur take off his jacket. They settled onto the sofa, where she poured Arthur a glass of wine. "The SoftBank Group has made several acquisitions since its IPO two years ago," Arthur leaned back on the sofa, savoring a sip.

"Mr. Son is quite a well-known figure!" Norika Fujiwara said, kneading Arthur's shoulders on the sofa.

This year, SoftBank spent $800 million in cash to acquire a stake in the Comdex Expo in Las Vegas. Founded by Sheldon Adelson, this sale was also for the construction of his Venetian Resort.

Arthur hadn't anticipated that Yahoo would be going public so soon.

Later that evening, while lounging on the bed, he was on the phone with someone in the States. The Galaxy Center in Los Angeles had officially opened, and the Galaxy had relocated from Anaheim's Honda Center.

"By the way, did they draft that high schooler Kobe Bryant this year?" Arthur asked on the phone, all while enjoying Norika Fujiwara's attentive service; he stretched out a hand and gently caressed her.

"Yeah, he went 11th overall; the Lakers were really hoping to snag him," replied Joe Petri, the Galaxy Club General Manager, with a chuckle over the phone.

Arthur shrugged, "Isn't Shaquille O'Neal on his way out of Orlando? Haven't they finalized anything?"

"I know everyone is waiting for college star Tim Duncan, but that guy is definitely going first overall," Joe continued.

"Even if the Galaxy tanks this year, they might not get the first pick; it would be a big cost to bring in Shaquille O'Neal!"

Joe sighed, "Many teams are chasing him, the Lakers have been competing with us, and we've already released starting center Danny Manning to clear up salary cap space. Sir, how much are you willing to spend?"

Arthur grinned, "How much? I can easily handle a contract over $100 million! And besides, the Galaxy's performance over the years has outshone the Lakers; the Galaxy Center is the most luxurious venue in the nation, how could the Lakers compete with me?"

"Alright, I understand," Joe concluded, relieved that Arthur had made his decision.

Breathing a sigh of relief, Arthur hung up, thinking about Shaquille O'Neal. "Come on, Shaquille, don't you want to join me?"

"Arthur," Norika Fujiwara said, resting her head on his chest and blushing, "do you like it?"

Arthur smiled, "Very much..."

...

With the imminent U.S. elections, Arthur returned to Los Angeles.

At the same time, Galaxy MGM acquired Marvel Entertainment for $66 million and assumed $200 million in debt. The Galaxy Club also lured Shaquille O'Neal from Orlando with a $70 million contract!

Near downtown Los Angeles, the Ritz-Carlton hotel opened its doors in conjunction with the Galaxy Center's inauguration.

...

[Chapter 571: Los Angeles Galaxy Center]

Los Angeles, downtown, Galaxy Arena.

Arthur Smith sat in head coach Greg Popovich's office, wearing a big smile. "Everyone knows Tim Duncan's talents. Just look at how many teams are tanking this season. The Galaxy's chances seem slim. Now that we have a superstar like Shaquille O'Neal, and we're also bringing in prime All-Star caliber players like Eddie Jones and Ron Harper, things are looking better. This year's rookie Kobe Bryant is also promising. Just look at how outstanding last year's rookie Kevin Garnett performed!"

Greg Popovich took a sip of coffee and looked at Arthur. "Arthur, no coach wants their team to tank. Signing O'Neal is definitely going to elevate our game. This year, we'll go further!"

The Galaxy had been eliminated in the second round of the playoffs by the Utah Jazz, but the ultimate champion turned out to be the Eastern Conference Chicago Bulls. Michael Jordan's first full season back was truly remarkable, and the Bulls posted an incredible regular-season record of 72 wins and 10 losses -- setting the record for the most wins in the regular season and becoming the first team in history to achieve 70 wins!

Moreover, Michael Jordan's prior contract with the Bulls had ended, and his $3.8 million salary finally wrapped up. After discussions within the NBA, Michael Jordan signed a one-year contract with the Bulls worth $30.1 million -- a deal excluded from the salary cap!

Shortly after, Arthur left the coach's office and chatted with Galaxy chairman Frank Grey, grumbling about David Stern. "I told David before, the NBA needs to establish maximum salaries for rookies and veterans at various stages. He didn't listen, did he? Now, as soon as a rookie shines, we get crazy contracts!"

Frank Grey frowned as he responded, "Looks like the NBA is heading for more problems."

Arthur shrugged, "We're in a big market here in Los Angeles, plus we have the new arena. I'm not too worried. Anyway, the NBA regular season is kicking off next month on the 1st."

Galaxy Arena wasn't just the home of the NBA's Los Angeles Galaxy; it also served as the arena for the NHL's Los Angeles Kings.

...

That evening, at the Hollywood Roosevelt Hotel, Arthur and Winona Ryder attended a DreamWorks party.

"DreamWorks snatched a script titled Mouse Hunt from Disney and 20th Century Fox," Winona Ryder whispered to Arthur.

"I heard Disney had won it in the competition against 20th Century Fox, but Jeffrey Katzenberg came in strong and paid a premium for the script," she reminded him softly.

Arthur chuckled. "Looks like Katzenberg's grudge against Disney hasn't faded at all!"

As of now, Jeffrey Katzenberg's salary lawsuit against Disney was still dragging on.

"If Mouse Hunt releases next year, it'll be DreamWorks' first film," Arthur didn't mind much, considering DreamWorks already had two animated films, The Prince of Egypt and Antz, both in production, with release dates set for the following year.

"Arthur, Mr. Bean just premiered domestically. Although it performed okay, its international reception has been great," Winona Ryder remarked with a smile. "It opened first in Europe, grossing $36 million in Germany, $28 million in the UK, and $20 million in both France and Italy!"

Arthur nodded. "The UK distribution rights belong to Polygram; the rest of the regions are all with us at Galaxy MGM."

Mr. Bean didn't have a huge release in North America, only raking in $7 million after ten days.

...

While Arthur and Winona shared laughs, not far away, Bill Mechanic, president of 20th Century Fox, spoke with his superior Peter Chernin.

Peter Chernin had transitioned from being chairman at 20th Century Fox to becoming the president and COO of News Corporation.

Bill Mechanic was clearly the next candidate for CEO of 20th Century Fox.

Bill Mechanic wore a look of resignation. "As for Titanic, James Cameron has already gone way over budget. He's spent nearly a hundred million dollars, and the film still needs another fifty to sixty million to finish production. Now all the newspapers and media are just waiting to see us fail!"

Peter Chernin frowned as well. The losses from last year's water-themed films, Cutthroat Island and Waterworld, left all the studios fearful of such projects.

20th Century Fox had already invested so much in Titanic, and there were more marketing costs to come -- pouring more money into this project was not an option!

"James is in my office every day asking for cash. It's impossible for Titanic to release next summer," Bill Mechanic sighed.

Peter Chernin asked, "Have you talked to other studios for collaboration?"

"Disney, Warner Bros., and Universal have all expressed disinterest. Paramount and MGM seem a bit interested," Bill replied, glancing at Arthur Smith nearby. "Working with MGM could be the best move. Galaxy's IPO this year is quite successful -- after all, the production budget for Titanic has increased to $200 million. When it releases, the marketing expenses will also be substantial. Any partnering company would likely need to invest over a hundred million dollars!"

Peter Chernin could also see Arthur Smith and Winona Ryder. "Arthur's back in town. I'll go have a word with him about this film."

MGM had just partnered with Paramount on the action blockbuster Face/Off, and still maintained a good relationship with DreamWorks.

MGM wasn't likely to oppose the collaboration too much, especially since Arthur Smith had always sung James Cameron's praises!

Soon, Peter Chernin approached Arthur to discuss Titanic.

Arthur was actually back in the States partly for this film. After all, this movie closely resembled the previous disaster Waterworld, which had suffered dramatically from overspending.

"Titanic production has almost ceased; is James Cameron actually sitting in your office daily asking for cash?" Arthur laughed, considering this guy had not only waived his $8 million fee but was also running to 20th Century Fox to plead poverty?

"Right! That's why we hope to sell the North American rights for this film in exchange for production funds!" Peter Chernin spread his hands.

Arthur paused. North American distribution rights for Titanic? He had learned quite a bit, as they obviously weren't letting go of the international distribution rights.

However, it made sense since for films of this magnitude, international box office draws were what mattered most!

"Let's go sit over there for a while," Arthur thought it was essential to engage in a serious conversation with him...

*****

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