Chapter 403: Delisting

"Lionsgate Changes Hands!"

"Boxing Champion Link Successfully Takes Over Lionsgate, How Far Can Lionsgate's Film Journey Go?"

"Harvey Weinstein and Other Film Executives Say Lionsgate Enters Bankruptcy Countdown."

After Link took over Lionsgate, hundreds of media outlets, including the Los Angeles Times, The Hollywood Reporter, and USA Today, reported extensively on the matter.

More than 90% of them were pessimistic, with the remaining 10% just watching the spectacle. The mainstream media's view was that Link, as a boxer and singer, knew nothing about managing companies or investing in film production. Having an outsider lead Lionsgate was destined to end badly.

Many media outlets criticized Link's acquisition of Lionsgate as an extremely wrong decision, one that would not only lead to a significant decrease in his net worth but also cause Hollywood to lose a promising film production company.

Due to the collective negative outlook from the media, Lionsgate's stock price plummeted on the New York Stock Exchange, falling from a high of $10.2 per share to $6.8, with the market value dropping below $600 million, a 30% decrease compared to the previous month.

Faced with this situation, Lionsgate decided to delist from the New York Stock Exchange and restructure. Link announced that he would acquire the remaining Lionsgate shares at $7.2 per share within a month. After this deadline, the company would no longer subsidize any losses, and shareholders would have to bear them themselves.

The news of Lionsgate's delisting attracted much attention in the entertainment industry and on Wall Street. For a listed company to announce delisting had serious consequences, as it would lose a stable source of funding. If Lionsgate wanted to make movies or acquire other companies, it could no longer obtain financial support from the stock market, weakening its ability to withstand risks.

Moody's, a renowned investment rating agency, downgraded Lionsgate's rating, and its market value fell from $600 million to $520 million, reflecting only the value of Lionsgate's assets.

During Link's acquisition of Lionsgate, the company's market value had reached a peak of $850 million. After the acquisition, it instantly dropped to $520 million, a nearly 40% decrease. After deducting the $180 million debt, the net asset value was only $340 million.

In the past month, Link had spent over $300 million in cash and 5.2% of Twitter's shares to acquire 87.7% of Lionsgate's shares, with a total transaction value of nearly $700 million. To buy back the remaining 12.3% of shares, he would need to spend about $85 million more.

Based on this calculation, in just over a month, he had lost more than $300 million on Lionsgate. And the rumored reason for all this was to help his rumored girlfriend, Jennifer Lawrence, get a movie role.

"Lost $300 million? Haha, that's not much. Link Baker is worth billions. Three hundred million is nothing to him," Harvey chuckled, puffing on his cigar.

"Harvey, I heard this whole thing was caused by you. You made Link lose $300 million with just a few words. That's impressive," Matt Damon said with a smile.

"Haha, don't say that. This has nothing to do with me. I just made a small suggestion to the 'Hunger Games' crew. Who knew Link would do something so stupid? Hehe, young people care too much about face," Harvey grinned, feeling smug, especially when he heard Matt Damon say that he had caused Link to lose $300 million with just a few words.

"Harvey, are you going to continue fighting Link? Now that he has Lionsgate, its production and distribution capabilities are no less than The Weinstein Company's. It might be difficult to continue fighting," Ben Affleck said.

Harvey chuckled disdainfully, holding his cigar. "Ben, do you think Link is qualified to fight me? No, I don't think so. Lionsgate's production and distribution capabilities are good, but it depends on who's in charge. It was okay under Feltheimer, but Link is different. Can an outsider like him manage Lionsgate and make competitive films? Impossible. If any outsider could come to Hollywood and make money, this place would have become a paradise for capital. But in reality, this is a graveyard for capital. Only those who understand the rules of the film industry can make successful movies. Link definitely doesn't have that ability."

Harvey waved his arms, speaking confidently.

Ben Affleck, Matt Damon, and the others nodded in agreement. In Hollywood, money alone wasn't enough; connections were also needed. For example, if Harvey had a good script and wanted a specific director and actors, he only needed to call their agencies. The agencies would immediately cooperate, adjusting schedules and making concessions on fees, no matter how busy the director and actors were.

The reason was simple: Harvey was the Oscar maker. In the hundred-year history of the Oscars, the films Harvey Weinstein had produced and distributed had received over 300 Oscar nominations, including four Best Actors, four Best Actresses, fourteen Best Supporting Actors and Actresses, and four Best Directors.

When an agency's artists won Oscars or other film awards, their fees would increase significantly, and the agency would earn more from them. This mutually beneficial relationship was one of the reasons why major agencies valued Harvey.

For example, CAA, the largest agency in Hollywood, was a close ally of Harvey.

Link, on the other hand, was a newcomer to Hollywood, with no connections or significant achievements, and couldn't enjoy such treatment.

Besides connections, there was also funding, publicity, distribution, media relations, film critics' circles, various film unions, the MPAA, and film rating websites, all of which played a crucial role in film production and distribution.

These factors favored established filmmakers and were disadvantageous to newcomers. This was why many billionaires came to Hollywood with money, hoping to woo women and make a fortune, but ended up losing everything.

This was also why many veteran filmmakers were pessimistic upon hearing that Link was taking over Lionsgate. The longer one stayed in Hollywood, the more they saw and experienced, the more they understood the risks involved. As for Link's actions, they could only sigh and say, "Fools rush in where angels fear to tread."

"Catherine, did Link really buy Lionsgate?" Emma Stone asked, flipping through a magazine on the sofa at Palm Beach Pictures' headquarters.

"Isn't it in the newspapers? Why are you asking me?" Catherine glanced up from the new script she was reading.

"I heard Link spent $800 million to buy Lionsgate for Jennifer. That's crazy," Emma Stone said in disbelief.

"Not $800 million, it was over $700 million including stocks," Catherine corrected with a smile.

"That's still a lot. The news says Link is an outsider who doesn't understand movies. Lionsgate will definitely go bankrupt after he acquires it. Once it goes bankrupt, all the investments will be wasted. Even for Link, it would take a long time to earn $700 million," Emma Stone shrugged.

Catherine smiled slightly. Before Link decided to acquire Lionsgate, he had consulted with her, Mandy, and Ivanka.

Initially, she hadn't been in favor. Link already had Palm Beach Pictures, and if he wanted to invest in films, he could do it through that company. There was no need to acquire a large company worth $600-700 million. Link didn't have the ability or the time for that.

But Link insisted, and she didn't say much more. He was only 22 years old and already worth over $2 billion, all earned within three short years. Even if he lost $700-800 million in this investment, it wouldn't be a big deal. He was still young, and experiencing failure once would be beneficial for his future development.

"Are you done filming your movie?" Catherine asked, standing up.

"No, I just happened to be passing by the company and came to see you. Are there any new roles in the company recently? Any role, lead or supporting, is fine. I have three months of free time this year and can take on one or two more roles," Emma Stone said with a smile, her green eyes sparkling.

"You can take more time to rest. You're in a rising phase of your career now. Be cautious when choosing scripts and don't accept just any role," Catherine advised, asking her secretary to bring them two glasses of iced tea and sitting down on the sofa opposite Emma.

"I know, but I think taking on a few more roles for practice would be beneficial," Emma Stone said.

Catherine smiled at her, guessing her thoughts. Emma had been the top actress at Palm Bay Agency, and last year, with the success of "Easy A," her popularity had soared, rivaling A-list stars. Now, hearing that Link had bought Lionsgate for Jennifer Lawrence, she must be feeling a sense of crisis.

Catherine understood her thoughts but wouldn't tell her that Link's purpose in buying Lionsgate wasn't to promote Jennifer Lawrence. Emma and Jennifer were both artists under Palm Bay, and a little competition between them would make them work harder. Besides, when employees competed, it made management easier for the boss.

"There's a script here for Joaquin Phoenix's new movie. They lack funding and approached Link, who didn't refuse and handed the investment over to Palm Beach Pictures. There are two or three supporting female roles in this script. Take a look and see if you're interested. By the way, the director of this film is Paul Thomas Anderson, and he's very strict with actors. If you want to audition, whether you pass or not depends entirely on your performance," Catherine said, taking out a script for "The Master" from her desk. The film had a budget of $23 million and was originally planned for production in 2010, but it almost fell through due to funding issues.

Joaquin Phoenix, the lead actor, had approached Link, who took on the project after seeing the promising script.

"Okay, I'll definitely prepare well," Emma Stone said excitedly, taking the script. She had only intended to come for a visit and casually ask about roles, but she didn't expect to be so lucky and get one right away.

After sitting in the office for a while, Emma Stone left with the script. Catherine continued to look through the scripts on her desk. These scripts had been screened and recommended by the production and screenwriting departments. If they passed her review, they would move on to the investment and production stage, so this step was crucial.

She carefully reviewed the eight scripts. Remembering Link's positioning for Palm Beach Pictures as a studio for female-themed films with production budgets under $30 million, she selected a script called "Beasts of the Southern Wild," which told the story of a six-year-old black girl named Hushpuppy and her father living in isolation.

This script didn't have the commercial appeal of mainstream films, but the storyline was moving enough, and the budget was low, only $1.2 million. The company currently had two films in production and two more awaiting release, so funds were tight, and they couldn't afford a big-budget production at the moment.

She picked out two more low-budget scripts and took them to the production department for a meeting to discuss which project would be the most suitable for the company's next venture.

---

Emma Stone returned to Palm Bay Agency with the script, intending to ask her agent to contact the "The Master" crew about an audition. However, she bumped into Jennifer Lawrence in the hallway.

Jennifer was dressed in a white T-shirt and denim shorts, showing off her long legs, keeping a low profile.

However, Jennifer's name had been appearing frequently in recent industry rumors, and she was surrounded by gossip. Some people even asked Emma about the gossip.

Jennifer had been busy filming "Silver Linings Playbook" and rarely came to the company, so Emma hadn't had a chance to ask her about the rumors. Now that she had finally run into her, she couldn't let the opportunity slip away.

"Hey, Jennifer, got a minute? How about we grab a cold drink in my office?" Emma Stone waved and greeted her enthusiastically.

"Emma, is something up? I have to go to the club for archery practice later," Jennifer Lawrence asked, stopping in her tracks.

"Are you preparing for the role of Katniss in 'The Hunger Games'?" Emma had read the novel and knew that Katniss was portrayed as strong, brave, skilled in both combat and archery, and slightly cold.

The role didn't quite suit Emma's style, or she would have auditioned for it. Jennifer Lawrence, on the other hand, seemed more fitting. With her slightly chubby cheeks and a cold, unsmiling expression, she looked like the type who was gentle on the outside but tough on the inside.

"Yes, the film starts shooting in June, and time is limited, so I need to prepare in advance," Jennifer said.

"Congratulations. 'The Hunger Games' is a great project," Emma said with a smile.

"Thank you," Jennifer replied with a forced smile.

Emma Stone wanted to ask her about Link's acquisition of Lionsgate, but seeing her low spirits and lack of interest in conversation, she decided against it. Their relationship wasn't close enough for casual jokes.

She could only suppress her curiosity and wave goodbye to Jennifer Lawrence, returning to her office to read the new script and see if she had a chance to land another role.

Jennifer breathed a sigh of relief as Emma left. She had come to the company today to sign an acting contract, and her biggest worry was being surrounded by people asking about Link buying Lionsgate for her.

Recently, Link's acquisition of Lionsgate had been the biggest news in Hollywood, even overshadowing the news of Arnold Schwarzenegger's housekeeper giving birth to his illegitimate child.

Jennifer's name had appeared frequently in related news, and when tabloids mentioned Link's motive for acquiring Lionsgate, they also brought up the conflict between Link and Harvey Weinstein, with her as the cause.

Some news outlets claimed that Link had spent $800 million to buy Lionsgate in a fit of rage, just to stand up for her. They also said that Link, the playboy, would lose $800 million because of a woman.

These news reports brought her a lot of attention but also immense pressure. Last week, when Link spent the night at her place, she had advised him to be cautious and not act impulsively.

Link had assured her that it was okay and told her to focus on preparing for her role and not worry about anything else.

Jennifer didn't know how much of Link's acquisition of Lionsgate was for her, but it was true that he had stood up for her and protected her from being bullied.

She was deeply touched. Link was gentle, considerate, and kept his word. She felt safe around him, and it was fortunate to have met him.

"Jen, why are you so late? Did someone pester you with gossip?" her cousin and executive agent, Clausen, asked from the car parked in front of the company.

"No, I ran into Emma Stone and chatted for a bit," Jennifer got into the car and blew on the air conditioner. It was April, and the weather in Los Angeles was getting hotter. Even a short walk would make her sweat.

"You should try to avoid public appearances as much as possible. Or, like now, keep a straight face and look like you don't want to talk. If you show even a hint of willingness to chat, those women will drown you with rumors," Clausen said, starting the car.

Jennifer shrugged nonchalantly, propping her shapely legs on the seat. "If they want to ask, I have nothing to hide. Link bought Lionsgate for me. Even if it wasn't entirely for me, it was because of me. I have nothing to be ashamed of."

"You seem quite proud of it," Clausen teased.

"Of course. I think many women would be envious and jealous of me in this matter," Jennifer said with a slight smile, taking out her script and opening it on her lap.

"Yes, ordinary women would be happy with a gift of one or two thousand dollars, but Link spent seven or eight hundred million dollars for you. That's definitely something other women would envy. However, Link's actions are still too risky. He's an outsider who doesn't understand movies, yet he came to Hollywood to invest in a major studio. Many people in the industry are now discussing when Lionsgate will go bankrupt and waiting to see you and Link become a joke," Clausen said.

Jennifer silently recited her lines, then thought for a moment and said, "Don't worry, Link isn't the impulsive type. He has his reasons for buying Lionsgate. He has done well in boxing and music, so he won't be too bad in film. I believe in him."

Clausen glanced at her through the rearview mirror. "You seem to be more and more infatuated with Link."

Jennifer shrugged. "Yes, I realized that as long as I can accept Link's playboy nature, all his other qualities are positive. He's handsome, strong, wealthy, has a good character, and is now the chairman of a major independent studio. He can help and satisfy me both physically, mentally, and in my career. I can't help but be infatuated with such a man. I believe if I leave Link now, thousands of women in Hollywood would pounce on him and take my place."

Clausen heard her words and originally wanted to advise her not to invest too much emotion in Link, but she held back. A man as charming as Link would probably make any woman fall deeply in love with him after spending enough time together.

Jennifer was just a young woman in her early twenties. She didn't see Link as a god yet, and it was quite rational of her to say those things about him.

Besides, as Jennifer said, Link was now the CEO of Lionsgate, and staying with him would bring many benefits. Leaving him wouldn't be a wise choice.

Ring, ring, ring!

Jennifer's phone rang. She glanced at it, said it was Link, closed the car window, and spoke to Link in a gentle voice.

Clausen consciously lowered the volume of the stereo, making Adele's singing even more mellow and melodious.

Never mind, I'll find someone like you

I wish nothing but the best for you

Don't forget me, I beg, I remember you said

"Okay, you go practice archery first. I'll come over later," Link said and hung up the phone.

He drove back to his bayside villa and realized that buying Lionsgate had one obvious advantage: it made his daily commute much easier. Lionsgate was located on East 12th Street in Santa Monica, only a fifteen-minute drive from the Bay Villa area, saving him a lot of time on the road.

Since it was Wednesday, and Ivanka was still in New York, Link had no one to talk to when he got back to the villa. After having lunch prepared by the servants, he went to the study to read, mainly focusing on bestsellers published in the past two years.

He used to read for exams, but now he read to make money. He needed to find familiar and adaptable books from hundreds of newly published ones.

After the success of bestsellers like "Harry Potter" and "Twilight," adapting popular books into movies had become the preferred choice for many film companies. However, the adaptation rights for most past bestsellers had been bought out by major studios, leaving him to choose from recently published ones.

Since many novels changed their titles when adapted into movies, he had to not only look at the New York Times bestseller list but also read the content of these books to see if there were any impressive plots.

It was a big task, but to make money, he had to be patient and read.

In the middle of his reading, his neighbor, Scott Stuber, came over to walk his dog and chatted with him about collaboration.

Stuber was the head of Netflix's film department and a member of Netflix's board of directors.

In recent years, Netflix had been doing well in the film industry. Initially, it was just an online DVD and Blu-ray rental provider, but now it had transformed into a streaming video content service platform and started producing its own movies and TV series.

The company's market value was only $3 billion in 2009, but by this month, it had exceeded $14 billion and was still rising.

Lionsgate and Netflix already had a cooperative relationship, with Lionsgate being a content provider for Netflix. Now that Link had acquired Lionsgate, Stuber hoped to continue and even deepen their collaboration, co-investing in the production of movies and TV series each year, releasing them in theaters first and then on Netflix's streaming platform.

Link understood that this was about producing original online dramas and movies. Web series and online movies were common more than a decade later, but in 2011, they were not widespread, and the market was relatively small.

Not many film companies were interested in them, and serious actors disdained acting in online movies.

Link wasn't sure if it was the right time to enter the web series market, nor did he fully understand the terms of the collaboration. He said they could continue to cooperate, but Lionsgate's current financial situation wasn't ideal. The specifics of the collaboration, including the scale, needed to be studied internally before a decision could be made. He would ask CEO Steven Beeks to follow up on this matter.

After seeing Stuber off, Link continued to browse bestsellers on his tablet while lying on the balcony lounge chair.

In April, "Bridesmaids" was scheduled for release on Friday, May 6th. With a month to go before the release, the film's distribution company began to focus on promotion.

Since the film was completed before Link acquired Lionsgate, Warner Bros. was still the main distributor, with Lionsgate participating in publicity and distribution.

However, when "Bridesmaids" was scheduled for release, The Weinstein Company also started promoting their new film, "This Must Be the Place."

This film, directed by renowned director Paolo Sorrentino and starring two Oscar winners, Sean Penn and Frances McDormand, had received multiple nominations and two awards at the Toronto International Film Festival, garnering positive reviews.

Its release date was also May 8th.

Due to the strained relationship between Link and Harvey Weinstein, which had become even more widely known in Hollywood after Link's acquisition of Lionsgate, the fact that the two were involved in films being promoted and released at the same time was seen as a direct confrontation.

Film magazines like "Total Film" and "Variety" seized the opportunity to hype up the conflict, openly discussing the feud between the two and claiming they were competing for the May box office rankings. Everyone was eager to see which company's film would come out on top.

(End of Chapter)