"How much?" Xia Li Cooper's eyes widened, as if he hadn't heard clearly.
"Ten million, conservatively speaking!" Eric said, enunciating each word.
Ten million US dollars, especially in 2002, was enough to film two or three low-budget movies. Many directors and actors never even got to work on a ten-million-dollar film in their lifetime.
After a moment of stunned, Xia Li Cooper finally reacted, "Son, what exactly are you trying to do?"
Eric didn't intend to hide it from his father. After all, he was his blood relative, the closest person in this world, and if he really wanted to acquire MGM, he would definitely need his father's help.
"Dad, since we're entering the entertainment industry, what could be better than owning our own film company? You've worked for MGM for decades, haven't you ever thought about being independent?"
Xia Li Cooper nodded slightly, "Every employee wants to become a boss, but this industry is very complex. It's not something you can succeed at just by getting a sudden idea. There are too many companies going bankrupt in Hollywood every year."
"Son, I've been in this business for over thirty years and have seen too many ups and downs. In this era, it's almost impossible to successfully start a film company with individual effort."
Eric shook his finger, "No, Dad, I'm not going to start a company, because that's too much trouble. You'd have to deal with all the hassle of production, distribution, and a series of other things, and rebuild connections. What I'm thinking is acquiring a mature company, and what company could be more suitable than MGM?"
The air solidified for a moment. Xia Li Cooper reached out, wanting to touch his son's head to see if he had a fever.
"Dad, I'm perfectly clear-headed!" Eric frowned.
Suddenly, Xia Li Cooper burst out laughing, the fat on his chin jiggling. "Eric, you want me to pay to acquire MGM? Even God wouldn't dare to make such a joke. This is even less reliable than starting your own company."
"Although MGM's development hasn't been great these past few years, it still has decades of history and was once one of the Big Eight. Do you know how much this historical depth is worth?"
Eric picked up the remaining half of a pear, took a bite, and his mouth was full of juice. "Ever since it was acquired by Kirk Kerkorian, MGM has been on a road of no return. According to my estimate, its debt should be between 1 billion and 1.1 billion US dollars."
"As for assets, including studios, film library, and various props, I estimate their value to be between 1.8 billion and 2 billion US dollars, right?"
Xia Li Cooper couldn't help but frown. As the CEO of MGM, although he hadn't meticulously checked every account, especially after just finishing "windtalkers," it would certainly have a huge impact on the company's finances.
But hearing his son's speculation, his heart still skipped a beat, because the internal financial report for the first quarter was not far from this number. This kind of information is not something ordinary shareholders can find.
As of the first quarter, MGM's asset valuation was approximately 3.5 billion US dollars, while its debt was 3.1 billion US dollars.
And Eric Cooper had previously shown no interest in movies and had no reason to care about MGM's development. He certainly couldn't have found MGM's financial information in the hospital, but his ability to guess so accurately indicated he truly had a plan.
"Eric, even if what you say is correct, that's 3 billion US dollars, a full 300 times. What do you think 10 million US dollars can do?"
"It can do a lot. I will make money generate more money. Besides, if we're really going to acquire MGM, it actually won't take 3 billion; 1 billion should be enough."
"Oh? How do you plan to do that?"
"It's actually not difficult. Simply put, it's about taking out a loan based on the future. The first step is for me to raise 1 billion US dollars as much as possible, and then I'll need you, Dad, to step in."
"You'll need to apply for loans from various banks. Given MGM's financial situation, you often deal with these banks, don't you? Dad, you should be very familiar with this process."
"With your connections, using 1 billion US dollars as a base and MGM's assets as collateral, we can secure 2 billion in loans from various banks. This way, we'll have 3 billion US dollars, and I think the acquisition will not be a problem."
Eric's idea sounded bizarre. After all, MGM doesn't belong to you yet, so why would you use its assets as collateral?
But this is how the financial game works. Xia Li Cooper knew very well that those major banks had long been eyeing MGM, but they just hadn't found an opportunity to swallow this big cake.
And if someone really took the lead and presented the opportunity to them, even with only a 50% success rate, they would definitely be willing to lend money, because banks never lose.
If Eric really succeeded in his 'snake swallowing elephant' maneuver, a 2 billion loan would be a long-term process, and the bank could collect huge interest. If Eric couldn't manage MGM, the bank could then take over this big cake.
Even if the acquisition ultimately failed, the bank could still collect short-term interest, and with 1 billion US dollars as a base, there would be no fear of Eric defaulting.
Globally, ordinary people generally can't outsmart banks. Since they won't lose either way, the key question is, where will this 1 billion US dollars come from?
Xia Li Cooper pondered for a moment, his gaze becoming serious. "Eric, it seems you've learned finance quite well and have developed a comprehensive plan. But I have a question: where are you going to get 1 billion US dollars?"
Eric smiled mysteriously, "Dad, that's what I need to worry about. I guarantee you'll see the results within a month."
He dared not tell his father about making money through sports betting; his father would surely think he had gone mad.
Moreover, there were risks involved. Once the casino discovered any anomalies, it would inevitably lead to another big problem, so it was better not to involve his father.
The father and son sat on the hospital bed and talked for over three hours until late at night. Xia Li Cooper was finally convinced.
Of course, the main reason was that their family could afford 10 million US dollars. Xia Li Cooper had been in an executive position for so many years.
Compared to the tycoons on the Forbes list, he naturally couldn't compare, but his income was still much higher than many celebrities.
Giving his son 10 million US dollars to try his hand, although it pained him a little, he was his son after all. Moreover, he was also moved by the future scenario Eric described.
Acquiring MGM, becoming his own boss—he'd gamble on it. Isn't life just a gamble?
Two days later, Eric completed the discharge procedures accompanied by his mother. Doctor Charles still looked puzzled. Faced with something that defied medical common sense, he could only attribute it to a miracle.
The car slowly drove into Beverly Hills. In this city-within-a-city in Los Angeles, you can see movie stars, world-famous athletes, globally renowned artists, and countless luxury stores.
The moment Eric pushed open the door to his house, he heard several 'bang, bang, bang' sounds. Confetti rained down from above, landing on him, and a group of people rushed over to surround him.
"Welcome home!"