novelraw Chapter 658: Chapter 659: Brief Respite in Expansion
Chapter 658: Chapter 659: Brief Respite in Expansion
Chapter 658: Chapter 659: Brief Respite in Expansion[Chapter 659: Brief Respite in Expansion]
The news that Disney's animation division had been successfully auctioned off for a staggering $2.5 billion reignited a flurry of media coverage. After both parties signed the deal, Summer Redstone seized the opportunity to announce the formation of Paramount Animation, appointing Roger Allers, director of The Lion King, as CEO of the newly established division. Meanwhile, Viacom declared that it would leverage the vast network of Blockbuster stores, along with Paramount Animation, Paramount Pictures, and MTV's programming, to jointly enter the lucrative film and television merchandising industry.
Just a day after securing his contract as CEO of Paramount Animation, Roger Allers held another press conference to announce the simultaneous initiation of three 2D animated projects from Disney: a sequel to The Lion King, Pocahontas, and Mulan. This move clearly aimed at his former employer, Disney.
The influx of good news in quick succession propelled Viacom's stock price up by 7.6%. The rise made the company's shareholders, who had previously criticized Redstone's aggressive expansion strategy, reevaluate their opinions and commend his decisive leadership. However, where there were winners, there were also losers -- most notably, Warner Bros. CEO Terry Semel, who had lost to Redstone in the bidding war for Disney's animation division. Although companies like Seagram and 20th Century Fox, which also lost in the competition, faced some media backlash, the commentary surrounding Warner Bros.' defeat was almost derisive. After all, Warner Bros. had more than double the overall strength of Viacom, and its previous struggles in film left it with ample rationale to seize the Disney animation division. This loss negatively affected Warner Bros. even more than just the defeat itself; many media outlets speculated whether the company was facing a financial crisis. Firefly's unexpected announcement on the auction day to extend the payment deadline disrupted Warner Bros.' carefully considered bidding strategies. While Semel was the head of the company, his authority was significantly less than that of his predecessor, Steve Ross. Consequently, he was unable to recalibrate the strategy quickly in response to Firefly's sudden move, leading to Warner Bros.' eventual failure in the auction.
While the fundamental responsibility for this failure rested on the shoulders of Warner Bros. shareholders and the board's constraints on Semel, it was clear they would never take the blame. Ultimately, Semel bore the brunt of the criticism.
Warner Bros.' stock price had already been suffering from poor box office performance over the summer, and with this auction loss, their hopes of breaking into the animated film sector withered away. The negative impact of this event caused Warner Bros.' stock to dive even lower, reversing a brief recovery following the summer slump.
Under immense pressure, Semel even toyed with the idea of resignation amidst his busy schedule. However, this thought was fleeting. Among the reasons to stay was the lucrative salary the CEO position offered, and anyone who had tasted the power of leading a major media conglomerate would hesitate to give it up. So, Semel had to grapple with the challenges and
"Of course, I've already instructed them," Kelly acknowledged, then continued, "Regarding the Victoria's Secret plans, Mr. Katzenberg's assistant just called. He'll also be heading to New
York tomorrow."
Looking up from a document he was reviewing, Eric asked, "What for?"
Kelly, skipping any playful banter, explained, "Tomorrow is the 19th, Monday, and Survivor
airs Tuesday. Mr. Katzenberg likely wants to see the ratings news for Survivor as soon as possible. If any issues arise, he can make quick adjustments."
Eric nodded in realization. He simply remembered that ER and Friends were set to premiere on September 28th and 29th but had overlooked that Survivor's premiere was a week earlier. Given the strong positive response from its trial run, ABC wasn't overly worried about ER and Friends. However, for Survivor, an innovative reality show format that Eric personally selected, doubts lingered among many. Unique in its format, Survivor couldn't facilitate a trial episode. Thus, it wasn't surprising that Katzenberg wanted to be on hand at ABC's New York headquarters to react promptly to any implications stemming from the show.
In truth, Eric didn't worry too much about Survivor's performance, knowing that the show had proven immensely popular in his previous life -- even years after its launch, a slew of similar reality shows emerged. But he had no intention of interfering with Katzenberg's decisions. Noticing his silence, Kelly passed him a thick file. "This is the information you requested. The radio communication technology company you asked me to look into is developing products that stray too far from the main GSM format. I don't see much investment potential unless you believe their technology can completely replace GSM, which seems unlikely. The first- generation analog signal transmission lasted over twenty years before GSM ousted it; even if this new communication format has more advantages, it seems unlikely to replace GSM quickly. After all, all the mainstream global communication technology companies and mobile device manufacturers currently use the GSM format and have heavily invested in R&D. Those world-class electronic giants wouldn't allow their newly acquired technological
advancements to be easily supplanted."
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