On November 6th, after the financial audit for October, Danelys Entertainment Group released its annual financial report for the 1995 fiscal year, coinciding with the reopening of its stock on the same day following its merger with Metropolis ABC Group.
The purpose was clear.
From October 1994 to September 1995, Danelys Entertainment Group's total annual revenue was $27.617 billion, with a net profit of $3.723 billion, achieving a profit margin of 13.5%.
After its IPO last year, Danelys Entertainment adjusted its fiscal calendar to start in October, making year-to-year comparisons possible only by looking at the previous four quarters: from October 1993 to September 1994, when the company had generated $20.561 billion in revenue and $2.319 billion in net profit.
Thus, in the 1995 fiscal year, Danelys Entertainment's revenue grew by 34.3%, and net profit soared by 60.5%.
Although many understood that the financial report was somewhat tailored to reflect the impact of the company's recent expansion, such as the merger with Metropolis ABC Group, it was undeniable that Danelys Entertainment had a formidable ability to generate profit. The $3.723 billion in net profit, while possibly incorporating some delayed payments and financial strategies, still had very little padding.
After all, the success of Danelys Entertainment's ventures in film, television, and gaming was evident to all.
This wasn't a case of inflated earnings; rather, the company had historically suppressed its profit margins by reinvesting heavily in expansion. Now, this report served as a showcase of its profitability.
While $3.723 billion might not seem particularly eye-catching at first glance, when compared with other companies, the strength of Danelys Entertainment's earning power became apparent.
According to financial reports from various U.S. companies as of September 1995, only six companies were expected to surpass Danelys Entertainment in annual net profit: General Motors, Ford, ExxonMobil, General Electric, Philip Morris, and AT&T.
These six companies were all long-standing corporate giants, some with legacies stretching back decades or even centuries. Even the top earner, Ford, was projected to make only about $5.3 billion in net profit, not far above Danelys Entertainment.
Danelys Entertainment wasn't just the seventh most profitable company in the U.S. in 1995—it had also broken into the top 30 in terms of total revenue, with $27.617 billion.
And all of this had been accomplished in just nine years.
In contrast, companies like General Motors and Ford had largely lost their long-term growth potential. Especially in the automotive industry, the downward trend had become pronounced due to the competition from Japanese car manufacturers. This decline was inevitable, as evidenced by the failed automotive trade negotiations between the U.S. and Japan earlier in the year, making the rapid decline of the U.S. auto industry all but certain.
Meanwhile, Danelys Entertainment, now the clear leader in the media and entertainment industry, was still full of vitality. Its film, television, gaming, and music divisions were all thriving, and despite entering the billion-dollar revenue club, it continued to grow at a robust annual rate of over 30%.
Moreover, even after leaving its competitors far behind, Danelys Entertainment showed no signs of slowing down. It had just completed the acquisition of Metropolis ABC Group and had immediately announced the $2 billion Rome Universal Studios project.
Given the company's steady momentum and the success of its Osaka Universal Studios project, most media outlets had gradually shifted away from the pessimism caused by Disneyland Paris's failure, now viewing Rome Universal Studios with optimism.
As a result, on November 6th, despite an initial market capitalization of $216.6 billion, Danelys Entertainment's stock remained highly sought after by the capital markets.
On its first day back on the market, Danelys Entertainment's stock surged from its pre-halt price of $83.375 to $93.25, an 11.8% increase.
This wasn't the 11.8% rise of a small company worth a few million or even a billion dollars—this was an 11.8% increase for a corporate giant valued at over $200 billion. By the end of the day, Danelys Entertainment's market cap had skyrocketed to $242.1 billion, with shareholders collectively gaining $25.5 billion in just one day.
The New York Times described the event with a single word on its Tuesday, November 7th headline: "Crazy!"
It was the only word that fit.
Ford, the company expected to lead in net profits for the year, closed on November 6th with a market value of just $38.1 billion. Despite generating $120 billion in annual revenue and over $5 billion in profit, its market value was just one-sixth that of Danelys Entertainment, with a price-to-earnings ratio of only 7x.
Yet even value investors like Warren Buffett wouldn't buy Ford stock now, as the U.S. auto industry, having failed to pressure Japan into submission, was destined to decline like the semiconductor industry.
The meager 7x price-to-earnings ratio reflected the fact that the U.S. auto industry had largely lost its long-term investment value.
In contrast, even with a price-to-earnings ratio of 65x, Danelys Entertainment remained a favorite in the market. Despite some capital turning from investment to speculation, one thing was clear: Danelys Entertainment was still worth holding for the long term.
Simon returned to Los Angeles on November 5th.
He resumed his usual work routine, spending his mornings in the office and evenings at home, occasionally attending events and parties that he couldn't avoid.
In reality, Simon had been gradually delegating more of his work.
If not for the opposition from Danelys Entertainment's board and senior management, Simon would have stepped down as chairman of Danelys Entertainment after the Metropolis ABC merger. Even if he retreated behind the scenes, with over 90% of the company's voting rights, he would still be in absolute control.
However, no one agreed to this.
Simon's symbolic importance to Danelys Entertainment was far too significant. Even if he rarely attended board meetings due to his involvement in other Westeros system affairs, his mere presence as chairman reassured both the company and its investors.
If he were to suddenly resign, it could bring unnecessary risks to the company.
No matter how much it was explained, a sudden resignation would inevitably cause a sharp drop in stock prices.
Perhaps Cersei Capital could short the company in such a scenario.
But in reality, it would be the SEC benefiting most from the fines that would follow.
Returning to Los Angeles, Simon focused much of his attention back on Danelys Entertainment's film projects.
After The Conjuring 2's success over Halloween, the next big release was the 3D animated film Beauty and the Beast on November 17th for the Thanksgiving season, followed by Batman v Superman: Dawn of Justice on December 22nd. In addition to these blockbusters, Kathryn Bigelow's Detroit and other awards season contenders were also slated for release by year-end.
These were just the completed projects.
There were many more films still in production.
Danelys Entertainment's three labels were producing over 40 films annually, and while Simon personally approved every project, he could only focus on a select few due to time constraints.
With 1995 drawing to a close, most of the major films for Danelys Entertainment's 1996 lineup had already secured release dates.
The first significant release of the new year was Rush Hour, starring Jackie Chan, set for February 9th, the weekend before Valentine's Day.
While Rush Hour was a huge success in Simon's memory and worthy of a summer release, the summer of 1996 was already too crowded. Shifting major projects to off-peak times was a strategy Danelys Entertainment had begun implementing in recent years, with the success of Broken Arrow last year proving its viability.
Following Rush Hour was the Easter season, which featured two sequels: Jim Carrey's comedy Ace Ventura: When Nature Calls and The Haunting in Connecticut 2, the fourth installment in the Conjuring Cinematic Universe.
After Easter came the summer, where three of Danelys Entertainment's major releases were expected to dominate: Mission: Impossible 2, The Mummy, and Sleepy Hollow.
Mission: Impossible 2 and The Mummy were co-productions, distributed by Paramount and Fox, respectively, while Tim Burton's Sleepy Hollow was fully produced and distributed by Danelys Entertainment.
Also in the summer lineup was MGM's latest 007 film, Spectre—the 18th installment in the series.
Though not funded by Danelys Entertainment, Spectre was part of the MGM spy film universe that Simon had orchestrated. While it shared some story elements from the 2015 Spectre, Simon had made significant changes to fit the broader spy universe.
The original Spectre had been delayed until 2015 due to a long-standing dispute over the rights to the Spectre organization. With Simon's influence, MGM had now fully resolved the issue.
After Timothy Dalton stepped down, Pierce Brosnan was chosen as the new 007.
Brosnan, after gaining fame by replacing Richard Gere in Pretty Woman, had suffered from a string of poor role choices, with Simon subtly pushing him back down the ladder. When MGM extended an offer for 007, Brosnan ultimately accepted the role.
Under Simon's guidance, MGM offered Brosnan $5 million for his first 007 film, higher than his market value after his
recent decline. In exchange, Brosnan signed a five-film deal, with pay raises capped at 35% per film and a maximum salary of $15 million.
If the spy universe proved successful, MGM would provide additional box office bonuses, but these terms were left out of the formal contract, much like the flexibility in the DC Cinematic Universe contracts.
After the summer, Danelys Entertainment planned a Halloween release for a new spinoff in the Conjuring Cinematic Universe: Annabelle, a film hinted at in The Conjuring 2.
Closing out the year were three blockbuster films scheduled for the holiday season: Wonder Woman 2, Charlie's Angels, and Jumanji. Per the original agreements, Wonder Woman 2 would be distributed solely by Danelys Entertainment, while Charlie's Angels and Jumanji were co-productions with MGM and Warner Bros.
As for other high-priority projects like Twister, Independence Day, and Titanic, their release dates would be pushed back.
Additionally, while most of these films were major blockbusters, Danelys Entertainment's three labels had many more smaller and mid-budget projects in development. Some of these could turn out to be surprise hits, or Simon might select another standout film, like The Man from Earth earlier in the year, which became a box office phenomenon despite its low budget.
During his first week back in Los Angeles, Simon spent most of his time overseeing these film projects, whether it was working on post-production for The Mummy, visiting the set of Charlie's Angels, or spending a morning in a conference call with the Jumanji team, which would begin filming immediately after the Victoria's Secret Fashion Show in Australia.
At the same time, there were many other tasks across the Westeros system that required Simon's attention.
Last month's labor dispute at Amazon's Wisconsin distribution center had dragged on for over half a month before being resolved.
Eaglet Corporation ultimately severed ties with the three contractors and selected new logistics companies to handle deliveries from the Wisconsin center.
Currently, trucking still accounted for over 80% of land-based deliveries in the U.S., but the industry hadn't yet reached the point of severe driver shortages caused by the rise of e-commerce two decades later. There were still plenty of unemployed truck drivers, and labor was abundant.
As a result, Eaglet had significant leverage.
Despite pushback from the trucking unions and contractors, Eaglet remained firm.
Since the union didn't openly acknowledge its role in the dispute, Eaglet didn't escalate the issue but instead aggressively promoted its narrative in the media. The company maintained that the decision to drop the contractors was not due to worker strikes for better wages, but because the contractors failed to manage their employees properly, causing significant financial losses for Eaglet and harming Amazon's customers.
The fault lay with the contractors.
Moreover, Eaglet continued to pursue financial compensation from the contractors based on their agreements. Unable to afford the legal battle, all three small companies declared bankruptcy, leaving the striking drivers unemployed.
At this point, Eaglet chose not to press further.
As for the various lawsuits surrounding the Wisconsin center, they posed no real threat. If people wanted to fight, Eaglet was ready.
Given its size, Eaglet could handle any type of legal challenge.
On the other hand, the truck driver strike gave Simon the idea to urge Amazon's management to explore other transportation methods in its logistics network. To avoid being held hostage by trucking unions once e-commerce expanded further, diversification was essential.
Further automation and mechanization of logistics centers were also inevitable steps in Amazon's growth, and this no longer required constant reminders from Simon.
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