Chapter 400: Shares

Link and Ivanka spent over two hours at the Getty Center, acquiring five paintings and sculptures chosen by Ivanka for $1.6 million.

Link couldn't quite grasp the artistic value of some pieces, but Ivanka assured him they would elevate the ambiance of the Bay Villa. Upon returning home and having the pieces installed by the designer, Link noticed a subtle shift – the villa seemed to have increased in overall value.

Shortly after, Ms. Cathie Wood called from Wall Street. She informed Link that Carl Icahn, a prominent Wall Street investor and the third-largest shareholder of Lionsgate, agreed to sell his 14.5% stake. However, he demanded a 20% premium, citing Lionsgate's previous peak market value of $700 million compared to the current $630 million.

Last year, Carl Icahn had intended to acquire Lionsgate for $350 million plus $180 million in debt, but the board rejected his offer, leading to friction and Icahn's decision to sell his shares.

Following Link's intent to acquire Lionsgate, Cathie, through Vanguard Asset Management, contacted Carl Icahn to secure his shares. After two days of negotiation, they reached an agreement for Link to purchase Icahn's 14.5% stake for $108 million.

However, during the acquisition, Cathie revealed that Golden Shell Investment lacked sufficient cash and needed to borrow a portion. Link realized his spending had outpaced his earnings this year and decided to focus on generating more income.

With the successful acquisition of the 14.5% stake, Golden Shell Investment became the third-largest shareholder in Lionsgate. To gain decision-making power on the board, Link extended acquisition offers to the top two shareholders.

The largest shareholder was Jon Feltheimer, a renowned producer known for works like "Rambo" and "The Expendables," who also served as Lionsgate's chairman and held 28.7% of the shares. The second-largest shareholder was media mogul John Malone, holding 22.4% and a friend of Harvey Weinstein.

Link also made offers to the fourth, fifth, and sixth largest shareholders, proposing a premium of over 15%. His goal was to become Lionsgate's largest shareholder and wield decision-making power within the company.

News of Link's acquisition intentions spurred John Malone to make offers to smaller shareholders, leading to a bidding war that drove Lionsgate's stock price up from $7.4 to $8.2 in a day, reaching a market value of $704 million.

The rising stock price presented a challenge to Link's acquisition plans. Undeterred, he used the media to declare his commitment to continue buying shares until he fully controlled Lionsgate, regardless of the price.

This news, reported by "The Hollywood Reporter," created a stir in Hollywood. Link was known as a rising billionaire and was recently involved in a conflict with Hollywood mogul Harvey Weinstein.

Rumors circulated that the feud stemmed from Harvey's attempt to exploit Jennifer, the lead actress of "Silver Linings Playbook," which was met with Link's rebuke. In retaliation, Harvey threatened to blacklist Link and his actors, causing Link to lose two film projects, "In Time" and "Friends with Benefits." Harvey also used his influence to remove Jennifer from the lead role in "The Hunger Games," Lionsgate's biggest investment that year.

Enraged, Link took out a loan of over $100 million to acquire 14.5% of Lionsgate's shares and vowed to take over the company entirely, aiming to secure the lead role in "The Hunger Games" for Jennifer Lawrence and settle the score.

These rumors sparked a flurry of discussions among Hollywood insiders. Some mocked Link's youthful ambition, predicting his downfall in the face of Hollywood's complexities. Others saw it as Harvey's misstep, having provoked a formidable opponent. Some admired Jennifer for finding a strong ally who was willing to challenge Hollywood's most powerful figure and acquire a major studio for her sake.

This move was reminiscent of Howard Hughes, a billionaire playboy in the 1940s, who invested millions to promote actress Jean Harlow. Unfortunately, the film flopped, nearly bankrupting Hughes. Many believed Link would meet a similar fate, perhaps worse, as he had a net worth of only $2 billion compared to Hughes's status as the richest man in America with an airline company.

In Hollywood, where billions were spent annually on film production and marketing, $2 billion was considered modest. Many predicted Link's imminent failure in this capital-driven game.

"If we want Link to fall into the Lionsgate trap, we should find a way to facilitate his successful takeover," Bob suggested. "Let him lose hundreds of millions, instead of hindering his acquisition, which would actually be helping him."

Harvey paused, his cigar smoke swirling in the air. Bob's words resonated with him. If they wanted Link to suffer a minor loss, they could obstruct him now. But if they wanted him to suffer a major loss, they should lure him into the pit.

"Bob," Harvey said after a moment of silence, "you personally go see John Malone. Ask him about his intentions. If he's considering selling his Lionsgate shares, tell him to raise the price now and make a fortune off Link. In a few years, we can enjoy the spectacle of Link's defeat. If he has no intention of selling, Link's acquisition is doomed to fail, and we'll step in then, blocking Link and giving him a hard time."

Bob nodded. As long as The Weinstein Company wasn't spending money, he didn't care.

"Also, find out who spread this news and silence them," Harvey added, pointing to the entertainment section of the Los Angeles Times with a dark expression.

An article claimed that the conflict between Link and Harvey stemmed from Jennifer Lawrence's casting in "Silver Linings Playbook." Although the newspaper didn't explicitly mention Harvey's failed attempt to exploit Jennifer and his subsequent apology by giving 50% of the film's rights to Palm Beach Pictures, the combination of this news, online rumors, and the actual situation made it seem like the truth.

This kind of news could damage Harvey's reputation, and he wouldn't let it slide.

Bob hesitated. The rumor was gaining traction because it was close to the truth. Harvey was notorious in Hollywood for his misconduct with women, and it was plausible that he would try to exploit Jennifer Lawrence. Link, despite his playboy image, had a good reputation among actresses, and it was believable that he would defend Jennifer. Moreover, The Weinstein Company had indeed given half of the "Silver Linings Playbook" rights to Link, despite initially owning them entirely.

Given these circumstances, it would be difficult to dispel the rumors, even with media relations efforts. But knowing Harvey's volatile temper, Bob didn't argue and accepted the task.

Just as Bob was about to leave, Mickey Rourke, the head of production at The Weinstein Company, arrived to report to Harvey, mainly about money.

Mickey brought news that the main filming of "Silver Linings Playbook" had wrapped, and they were entering post-production. Director David O. Russell had sent someone to request the remaining production funds. Mickey asked for Harvey's decision on whether to release the money.

"Stall them," Harvey sneered. "This film isn't important to us, but it's crucial for Palm Beach Pictures. Their investment is tied up, and they're more anxious than us."

"Mr. Weinstein," Mickey said cautiously, "we've also invested $5 million in this film. Delaying further will affect our company too."

Bob glanced at Harvey and said, "I think we should give them the money. I heard that Link's investment isn't just from Palm Beach Pictures, but also Skydance Productions."

"Skydance? David Ellison's film company?" Harvey frowned.

"Yes, I heard Link has a good relationship with him. If we continue to delay and end up in court, our chances of winning against both of them are slim," Bob advised.

He admitted that he wasn't as good as Harvey at producing and distributing films, but Harvey tended to be emotional in his work, often jeopardizing the company's profits for the sake of appearances. Bob disliked this; he believed nothing was more important than making money.

"Sigh," Harvey sighed in resignation upon hearing Bob's words.

Ideally, David Ellison's family, also Jewish, should be on their side. However, American Jews weren't always united, with some supporting Democrats and others Republicans. They often became rivals in business.

If American Jews were united, with figures like Bill Gates, Warren Buffett, Larry Ellison, George Soros, Mark Zuckerberg, and Jeffrey Epstein in finance, and George Lucas, Steven Spielberg, Jeffrey Katzenberg, David Geffen, and Woody Allen in entertainment, not only Hollywood but the entire world would tremble.

After some thought, Harvey told Mickey to release the funds but to maintain firm control over the film's editing and distribution rights. He also asked Bob to invite David Ellison to the next screening to discuss potential collaboration.

"Alright," Bob and Mickey agreed.

As they left, Harvey smirked, clutching his cigar. "Link," he thought, "let's see how you win this time."

(End of Chapter)