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Chapter 64 The Future of MGM

On December 27th, a letter from an MGM employee demanding resignation exploded like a bombshell, dominating the front pages of major newspapers.

"Your actions make it clear to us that you are completely incapable of leading MGM on the road to revival. If Ernst and Robert Iger cannot be brought back, all those who signed this will choose to resign from MGM."

"If you don't want us to resign, it's only if all current board members resign and agree to our terms, and a new board is elected."

Looking at the list of hundreds of people that took up more than half a page in the newspaper, Wenger's face was filled with pride and satisfaction, as if he were looking at his own child's report card.

"Look at this list of people. More than 70% of MGM's employees have signed their names on it. Through this incident, your influence at MGM has reached a new level, and you have united the employees inside the company."

Ernst calmly shook his head, a smile on his lips that carried a hint of mockery, indifference, and world-weariness. "It wasn't me who united them; it was their own interests at stake."

He knew these American employees all too well. Some would certainly be grateful, but most were simply upset because their own interests had been harmed. Why do you think later tech giants would break with industry tradition and establish year-end bonuses?

It's all because they've made a fortune that capitalists are so afraid that their employees will rebel at night that they have no choice but to reluctantly spend real money to become money-spraying machines and appease everyone's little emotions.

Despite the employees' righteous indignation and self-righteous moral high ground, they have gained the support of the entire Hollywood industry after the report was submitted.

That's because Ernst had someone leak information within MGM that as long as he and Iger returned, they would receive their year-end bonuses as usual, plus an additional Christmas holiday bonus, bringing the total bonus to over thirty million dollars.

"So much money is just going to the shareholders for nothing, don't you feel bad about it?"

The return of the two means they will have to part with the profits from the sequel to "The Man from Earth." Although Ernst is a major shareholder of MGM, distributing this money is like taking money out of his own pocket. Who wouldn't feel the pinch?

Ernst downplayed this, saying, "Sometimes, strategy is more important than money."

Doesn't he know that doing this is harming his own interests? He's desperately short of money right now, but this is already the optimal solution to maximize his benefits.

The way "The Man from Earth" operates is itself illegal.

It wasn't a violation of the law, but rather a breach of Hollywood's rules.

No one could allow Ernst to set such a precedent, whether it was a screenwriter, producer, actor, or director; no one could be above publicity and distribution.

This is touching the interests of the major Hollywood giants at the bottom. It's not just challenging their interests, it's digging up their ancestral graves. If Ernst really does this, the entire Hollywood will become his enemy.

Even within MGM itself, these shareholders will unite to boycott him.

Moreover, Ernst is also a player, and for the sake of long-term interests, he cannot do something that would dig his own grave.

"This is good. We've regained management control and taken control of the board. MGM will now fully enter the Ernst era."

"Moreover, this money is sitting in MGM's accounts and can help MGM's revival. Recreating MGM's glory is not the end goal for MGM. I want to use MGM as the foundation to build a super media giant that involves various industries."

"The right to speak is very important, and we must keep it in our own hands as much as possible."

"Moreover, this is an outcome that is acceptable to both parties."

Ernst got what he needed, and although the shareholders didn't receive dividends, MGM's valuation was definitely higher, which could be considered an increase in wealth.

This was the first time Wenger had heard of Ernst's ambitious plans, and he became interested. "You also want to learn from Disney?"

Last year, The Walt Disney Company made a $190 billion takeover bid for ABC, one of the three major public television networks in the United States, and the acquisition was officially completed this year.

Through this acquisition, Disney not only gained ABC television network, but also 10 television stations, 21 radio stations, an 80% stake in ESPN, and numerous other television channels, magazines, and newspapers, forming the first media monopoly model in the United States that combines content and distribution channels.

"The restrictions of the Telecommunications Law will definitely be relaxed. In the future, the media industry will either expand or die. No media company can remain unaffected."

No one understands the future trajectory of the American media industry better than Ernst. Despite America's constant advocacy of freedom of speech, its people have been manipulated by capital into a Truman Show-like world.

What you can see, what you need to see, what you can do, what you need to do—everything is planned out from the moment you are born.

Capital is like a butcher; everyone is born a piglet to be raised in captivity.

"With the passage of the new Telecommunications Law this year, a new world has been opened for cross-industry restructuring of the media."

"The old Telecommunications Law stipulated that no individual or group could own more than three television stations or more than 25% of the television audience. However, the new Telecommunications Law not only removed various restrictions on cross-industry development, but also increased the limit on the number of audiences that each company could own from 25% to 35%, and also removed the limit on the number of television stations that each media group could own."

Is 35% a lot of audience? In just a few years, that percentage will be raised to 45%.

"Inevitably, the trend of media industry centralization and mega-scale will become the norm in the American media industry." In 1983, the United States had more than seventy large media groups.

And now? Only 23 remain.

Ernst also knew that by 2011, that number would be five.

"Disney is like opening Pandora's box, forcing all media industry capitalists to pursue the same basic goal: to protect property rights, seek new markets, reduce competition to reduce risks and maximize profits."

"These companies have made themselves stronger through mergers and acquisitions. This gives them a stronger shield when entering other competitive arenas in a way that minimizes risk."

"Once a chain reaction begins, when danger comes, everyone will huddle together for warmth; this is human nature."

Wenger was somewhat surprised, not expecting Ernst to be able to analyze things so thoroughly.

Is this really the little guy I know? He seems like a completely different person lately.

"So, in your mind, what kind of entity will MGM be in the future?"

Ernst exuded an aura of dominance, and for a moment, the surroundings seemed to glow with golden light, leaving Wenger speechless at his audacious idea.

"Extending its reach into every branch of the cultural and entertainment industry, from production to distribution to exhibition, it controls the entertainment industry in all aspects."

"MGM will own its own television and film production industry, its own studios to produce them, its own channels to broadcast them, its own cable networks to distribute their videotapes, its own radio and television stations to promote them, and related theme parks, video games, toys, and even clothing, etc."

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