"This place is truly beautiful. Daenerys Film City is definitely the most unique film studio I've ever seen".
On the second level of Daenerys Film City in Malibu, CNN reporter Dana Logan walked side by side with Amy Pascal in an office loft, surrounded by lighting, photography, and other crew members. They were recording an interview.
Strolling through the open corridor outside the office area, Amy smiled and said, "Simon designed it himself. It's said to be modelled after many old factory buildings in Manhattan's SoHo district where artists gathered".
Dana Logan looked at the busy staff in the open-plan office area and nodded, "If I could work here, I'd be willing to work overtime every day".
"We have always tried our best to create the most comfortable working environment for our employees", Amy said, then slightly composed herself and stated solemnly, "However, I must reiterate that Daenerys Entertainment never forces any employee to work overtime".
Dana Logan didn't shy away and pressed, "So, Amy, how do you explain the recent lawsuit by the three major unions on this basis?"
Amy thought for a moment and said, "I think this is due to the natural ambition of a new company. Everyone is working for Daenerys Entertainment to develop faster and better. Moreover, it's not just the comfortable office environment in the studio; employees of Daenerys Entertainment receive at least 20% higher basic salaries than other companies in the same industry. Therefore, I believe the accusations and lawsuits from the three major unions against Daenerys Entertainment are very unreasonable".
Dana Logan nodded slightly but immediately asked a somewhat pointed question: "But, Amy, how do you explain the memorandum of cooperation Daenerys Entertainment just signed with Australia? If Daenerys Entertainment acquires MCA and its market share increases again, does that mean more job opportunities in Hollywood will be lost overseas?"
Amy didn't answer directly but looked at Dana Logan and said, "Dana, if you received an invitation for a job with a more generous salary and excellent benefits, would you accept it?"
Dana Logan paused, then said, "Probably".
"That's the logic. Employees have the freedom to choose better jobs, and similarly, companies have the freedom to move to a more relaxed business environment. If unions abuse their power and pressure companies too much, it's inevitable for companies to leave. It's not just Daenerys Entertainment; over the years, many production studios have been continuously moving film production overseas due to the numerous restrictions in the California film industry".
Dana Logan couldn't help but say, "I suddenly thought of Detroit".
"Indeed, the decline of Detroit is a very regrettable thing, and unions really bear a great responsibility for it. Just like some Latin American countries, their politicians, in order to win over voters, constantly promise high welfare without regard for a country's economic capacity, leading to economic collapse, and ultimately it is the ordinary people who suffer".
"Amy, are you implying that the three major unions' lawsuit is an abuse of their power?"
"As one of Hollywood's production studios, we strictly adhere to the basic agreements of all major unions. Even after acquiring MCA, this situation will not change. Any union member who cooperates with Daenerys Entertainment will receive due salary, insurance, and a series of welfare benefits, even higher than what they would get from other production studios. We have fulfilled all our obligations, yet the three major unions are still obstructing Daenerys Entertainment's acquisition of MCA. I find it hard to imagine any other reason besides the abuse of their power".
The interview recording took two hours, and Amy and Dana Logan's footsteps covered the entire Daenerys Film City.
Finally, the interview ended. After temporarily arranging for the CNN team to rest, Pat Kingsley, who had been acting as a public relations consultant by Amy's side, walked over, flipping through a memo, and said, "There's a bit too much talk about Simon, which can distract the audience. I think all the initial conversations in the administrative area can be cut, and we can start directly from the scene in the office loft".
Amy looked at Kingsley's memo, pondered for a moment, and nodded, "No problem".
Pat Kingsley added, "Also, the comments about Latin American countries are somewhat inappropriate and could easily be exploited. Daenerys Entertainment has a lot of business in Latin America, so there's no need to provoke resentment from those in power".
Amy recalled the recent situation and said, "Does this segment need to be re-recorded?"
"No, just make sure the editing is done well".
Kingsley shook her head and brought up other issues.
The two discussed for more than ten minutes. Kingsley went to discuss the interview editing plan with the CNN team, while Amy rushed to a meeting in the administrative area. The meeting's agenda was Daenerys Entertainment's media public relations and counterattack strategy regarding the three major unions' lawsuit, aimed at shifting public opinion in their favour as much as possible.
After Thanksgiving, Simon briefly returned to Los Angeles for a few days before heading back to the East Coast to focus on the Bell Atlantic acquisition.
The acquisition of Bell Atlantic was much smoother than MCA's. Simon intended to swiftly secure this company. To this end, he arranged for Amy to amplify the public discourse in Hollywood as much as possible, attracting more attention to reduce potential public resistance to Westeros Company's acquisition of Bell Atlantic.
Today's interview was just one of Daenerys Entertainment's frequent publicity arrangements recently.
Amy's persistent focus on the three major unions' "abuse of power" during the interview was also a carefully considered media public relations strategy.
This approach aimed to label the senior leadership of the three major unions as a 'bureaucratic institution' at odds with ordinary union members, subtly implying that union leaders were merely playing power games and not genuinely seeking benefits for their members. This, in turn, served to create divisions within the unions.
In reality, this lawsuit by the three major unions could not bring any direct benefits to their members.
Moreover, it must be admitted that, relying on significantly higher salaries and benefits than the rest of the industry, and more opportunities for fame and advancement, Daenerys Entertainment was undoubtedly one of Hollywood's most favoured production studios in recent years. Entertainment industry professionals at all levels were very inclined to work with this company.
Daenerys Entertainment's previous cooperation agreement with the Victorian government in Australia and its plan to establish a film and television production base in Toronto, Canada, although it caused some resentment among Hollywood professionals, more people also saw that this matter was largely provoked by the three major unions initiating the lawsuit, and Daenerys Entertainment was merely retaliating.
Unlike typical strikes, this lawsuit by the three major unions could not bring direct benefits to their members, but it caused many people to lose countless job opportunities. Coupled with Daenerys Entertainment's deliberate public relations efforts, the pressure faced by the three major unions was imaginable.
Amy's interview appeared on CNN the next day, accompanied by an article in the Los Angeles Times investigating the salary data of Daenerys Entertainment's employees.
The three major unions accused Daenerys Entertainment's acquisition of MCA of potentially leading to industry monopoly and worsening the working environment for industry professionals. However, in reality, whether it was Daenerys Film City, which was far more comfortable and luxurious than other Hollywood studios, or Daenerys Entertainment's significantly higher salary standards compared to other studios in the same industry, both proved that the three major unions' accusations were difficult to substantiate.
Universal Studios, Burbank.
When Barry Gordon, president of the Screen Actors Guild, arrived, Lou Wasserman had just watched Amy's interview video, his face grim.
Barry Gordon's mood was also far from good, but he was relatively lucky.
Two days prior, The Hollywood Reporter exposed a scandal involving George Kirgo, president of the Writers Guild of America, West. A WGA member with voting rights for the Oscar for Best Screenplay publicly accused George Kirgo of personally calling him and asking him not to vote for Simon Westeros during the Oscar nominations for 'Pulp Fiction'.
George Kirgo immediately issued a strong denial, even threatening to file a defamation lawsuit against the screenwriter.
However, everyone knew the truth of the matter.
This matter, of course, didn't arise out of thin air. A series of articles immediately appeared in the media, pointing out that since Simon's debut, he had released excellent works such as 'Run Lola Run', 'The Butterfly Effect', 'Final Destination', 'Pulp Fiction', and 'The Sixth Sense'.
As a result, despite being Hollywood's most outstanding screenwriter, and even receiving recognition with awards for Best Technical Editing and Best Score, the Writers Guild of America deliberately ignored him. Let alone awards, they rarely even gave him a few nominations.
Those in the industry actually knew that the root of this matter lay in the 1988 strike. Daenerys Entertainment's reality shows, which didn't require screenwriters, made that strike very passive, and the WGA eventually had to compromise.
However, under the operation of Daenerys Entertainment, this incident became another clear proof of Hollywood unions 'abusing their power.'
George Kirgo's term began in 1987 and was originally scheduled to end at the end of 1991.
Influenced by the Hollywood Reporter's article, George Kirgo may be forced to resign early from his position as chairman of the WGA West branch.
In fact, what made the three major unions most helpless during this period was Daenerys Entertainment's ability to manipulate and guide media public opinion.
Many careful observers in the industry found that Daenerys Entertainment paid far more attention to cultivating media connections than other studios. What was even more troublesome was that Simon Westeros was also wealthy enough.
Just at the end of the year, the publicity and distribution offensive for a series of films produced by Daenerys Entertainment was significantly stronger than in the past. It is said that Westeros additionally approved a $20 million publicity and distribution budget for several films.
Furthermore, many companies under Westeros, such as Gucci, AOL, and Cisco, suddenly launched another powerful wave of publicity and distribution at the end of the year.
All of these meant large advertising investments.
As is well known, the main source of income for mainstream North American media, whether television or print, is advertising.
Although Daenerys Entertainment's advertising delivery was not enough to cover all types of media platforms, the areas it was involved in were broad enough.
On the other hand, mainstream North American media basically exist in the form of comprehensive media groups, such as the Hearst Group and Newhouse Group, which own hundreds of newspapers, weeklies, and magazines, or the Metropolitan/ABC Group, which owns public television networks, cable TV stations, and radio stations, etc.
Daenerys Entertainment only placed advertisements in a portion of these media groups, which was enough to make these media groups beholden to them.
As a result, the three major unions' attempts to counterattack in the media during these days were largely ineffective. Many articles refuting Daenerys Entertainment's views were even stopped before they could be published.
This made the three major unions very passive. Coupled with Daenerys Entertainment's move to relocate film and television production overseas, not only did voices emerge within the unions opposing continued confrontation with Daenerys Entertainment, but even those who initially challenged Daenerys Entertainment started to back down.
Ordinary people always find it difficult to understand the power of capital. Only when they are in the thick of it do they have to admit that a super-rich individual with a net worth exceeding $20 billion, and a rapidly rising and forming business empire, are indeed not so easy to provoke.
Simon handed Barry Gordon a cigar. After the secretary delivered coffee and left, the two old men in the office silently puffed on their cigars.
Lou Wasserman's situation these days was also far from good.
Especially after Westeros Company suddenly announced the Bell Atlantic acquisition.
MCA's shareholders were not too anxious at first, patiently waiting for the management led by Lou Wasserman to secure more benefits for them. However, the Bell Atlantic acquisition made many shareholders nervous, worrying that the MCA management's deliberate valuation delay might lead to the failure of the acquisition.
Or, even if the acquisition was eventually completed, would the transaction price be lower than Daenerys Entertainment's previous offer of $7 billion?
It should be noted that MCA's stock price has been falling continuously since the announcement of the Bell Atlantic acquisition.
Coupled with Panasonic's withdrawal and the disruption by the three major unions, it's hard to say which direction things will go. The shadow of the Gulf War has already enveloped the world, and the U.S. economy is already weak.
Recalling the trauma the Vietnam War brought to the U.S. economy, if this acquisition drags on, and when the war breaks out and the stock market declines, MCA will only become more passive.
These days, Simon Westeros has clearly shifted his attention to the Bell Atlantic acquisition on the East Coast, even stopping contact with MCA. Although he has been uncompromisingly confronting the three major unions in the media, many people feel that Westeros might just be deliberately delaying, hoping for the war to break out.
Starting from 'Misery' on Halloween, and then 'Dances With Wolves' and 'A League Of Their Own', Daenerys Entertainment has had three blockbuster films in this year-end slot, which is enough to show that Daenerys Entertainment is still developing rapidly even without MCA.
Conversely, MCA did not have such confidence.
As of now, Universal Pictures' 1990 films haven't even had one with a box office exceeding $100 million. The best-performing 'Back To The Future Part III' only grossed over $87 million in North America.
Although 'Misery', a collaboration with Daenerys Entertainment, was also a hit, it did not reach the $100 million mark.
Therefore, Daenerys Entertainment's need for MCA was indeed not that urgent.
If the management controlled by Lou Wasserman's persistent delays caused Simon Westeros to lose patience, and he wanted to cancel the acquisition, he would only need to pay a mere $60 million termination fee.
Let alone $60 million, even a bit more, it seemed to Simon Westeros to be insignificant.
As for Lou Wasserman himself, he was now starting to waver.
Some of the chips Michael Ovitz had passed on to him had shrunk too much compared to the agent's initial plan.
Paramount Communications, which could directly counter Daenerys Entertainment, withdrew. Meg Ryan, who could have caused a scandal, withdrew. Hollywood big names like Dustin Hoffman and Tom Cruise, who were originally planning to publicly oppose the acquisition, also backed down.
Now, the three major Hollywood unions, which were most likely to suppress Daenerys Entertainment, were also retreating in the face of the recent public opinion offensive.
Although he still held some trump cards, Lou Wasserman truly lacked much confidence.
He even dared not be sure whether that young man would directly bypass the MCA board of directors and contact shareholders if Westeros was pushed too hard. He understood that the reason Westeros hadn't done so was simply to achieve the goal of acquiring all MCA shares at once through standard procedures such as board approval and shareholder voting.
Directly buying MCA shares from shareholders with cash might easily give Simon Westeros control of MCA, but his desire to buy all of MCA's shares would become increasingly difficult later on.
Many shareholders who held out until the end and did not sell would certainly wait for a higher price, making Westeros pay an increasingly high price.
However, even without directly buying shares from shareholders, Westeros could still convene an extraordinary general meeting of MCA shareholders to vote to dismiss the current board of directors.
At that time, Lou Wasserman would lose his biggest reliance.
Of course, the biggest disadvantage of doing this was that the acquisition would become prolonged.
However, from every perspective, Lou Wasserman did not believe that delaying the MCA acquisition for a few months would be detrimental to Daenerys Entertainment. No one would think that after the war breaks out next year, the US economy would not only not continue to decline but would quickly recover; this goes against common sense.
After silently finishing a cigar, Barry Gordon was the first to speak: "Lou, we plan to reach a settlement with Daenerys Entertainment and withdraw the lawsuit by next week at the latest".
Lou Wasserman just gave a bitter smile upon hearing this.
It was already a lawsuit that was difficult to win, and Daenerys Entertainment was no longer one of those second- and third-tier film companies that the unions could manipulate. Besides reaching a settlement as soon as possible to prevent Daenerys Entertainment from doing more things that would endanger the unions' foundation, the three major unions indeed had no other better choice.