While Disney was making a big fuss in Los Angeles, Simon was on the East Coast playing golf with GE boss Jack Welch, along with Daenerys and a number of GE executives.
After passing the merger review in March, General Electric began to implement the merger and adjustment of Time Warner. Within three months, the two companies were basically integrated into one. After several games, Terry Semel, the former CEO of Time Warner Group, successfully took over and became the general person in charge of the media and entertainment business of General Electric Group. He was in charge of Time Warner and NBC television network and other assets. He came from the original NBC, which was directly related to Welch. Network chief Bob White serves as Terry Semel's deputy.
Jack Welch, who was well aware of the many chronic problems within the Time Warner Group, was very determined to kick out senior executives such as Gerald Levin and Robert Daley this time to ensure that General Electric's media and entertainment business would not continue to grow. Development will be affected again due to infighting.
If a company wants to expand stably, it often needs a strong enough leader. In Simon's view, this time it was mainly Jack Welch who replaced Steve Ross. Otherwise, there would not be too much harmony between the newly appointed Terry Semel and Bob White.
This time, Welch also took the initiative to propose that the executives from both parties play ball together to connect with each other.
Different from the situation in recent years when General Electric suppressed Westinghouse in fields such as electric power and energy, Welch clearly knew that in the media and entertainment industry, all related assets under General Electric could not be integrated with the current Danielle Daenerys Entertainment can compete with Daenerys Entertainment. In fact, let alone media and entertainment assets, the current market value of the entire General Electric Group is not as high as Daenerys Entertainment.
It happened that Simon showed some tendency to hope that Daenerys and Time Warner would coexist. Welch, who knew that this pattern would be beneficial to both parties, was very active in promoting this situation, including this time choosing Daenerys and Time Warner. Terry Semel, who is close to Silk Entertainment, takes charge of GE Media and Entertainment assets out of this consideration.
At a golf course near a wealthy area in the northern suburbs of Greenwich.
While playing golf, everyone casually chatted about various current political and economic topics. Jack Welch was a senior golf enthusiast, almost reaching a professional level. Everyone present, Simon, who inherited the memories and skills of more than a dozen people, happened to be a golfer. The ball is a shortcoming. However, neither Welch nor the accompanying Terry Semel, Robert Egger and others expressed any opinions on Simon's skills. Instead, they deliberately accommodated Simon's rookie level.
This is actually very rare among professional golf enthusiasts.
In similar circles, people whose golf handicap indexes are too different cannot play together at all. If they try to force themselves together, they will only be ignored or laughed at. Therefore, many people want to enter some circles and spend huge sums of money to invite professional coaches and consume A lot of personal time is dedicated to practicing your golf abilities.
All in all, if the status disparity is less than a certain level, don't even think that others will accommodate you.
On the golf course, Jack Welch waited for Simon to swing a shot casually, looked at the golf ball that was slanting away from the hole not far away, smiled and walked over with Simon, saying at the same time: "I recently I carefully read the Foreign Corrupt Practices Act that you asked me to forward to me, and it was quite inspiring. However, if this method is used too much, it will inevitably cause backlash."
Simon held the club in his hand with both hands, subconsciously trying to test the feel. Unexpectedly, the expensive titanium alloy club bent directly in his hand. Seeing Welch's eyes slightly surprised, he just smiled and called someone not far away. The beautiful female caddy changed a club and said: "Actually, what I want to express is a concept, Jack. It's not just the bill. The next few decades will be an era of rapid globalization. The global economy is integrating We are one, but each country has different rules. If we want to be the winner as much as possible, we need to drag our competitors into our own rules as much as possible, and then use the advantages of the rules to defeat the opponent."
Jack Welch thought thoughtfully, then smiled self-deprecatingly and said: "I am 61 years old this year and have already begun to arrange my retirement schedule. I may not have the opportunity to participate in these games in the future."
Simon shook his head: "I feel very sorry for this too."
Jack Welch felt the strangeness in Simon's tone, his mind moved slightly, and asked: "Simon, what do you think of General Electric after I retire?"
Simon glanced at Welch: "Jack, do you want to hear the truth?"
"certainly."
Simon said: "I am very, very negative."
Seeing Simon use two 'very' words in a row, Welch subconsciously slowed down a bit and said in a serious tone: "Why?"
"Because of what I just said, globalization," Simon said, slowing down: "Under the trend of globalization, many of GE's current businesses, such as electricity, lighting, transportation, water services, etc., will inevitably be replaced by relative cost changes. They will be replaced by companies from Asia, Latin America and even Eastern Europe with low prices. In the end, only a few cutting-edge aviation, nuclear power and other businesses will be retained. Oh, by the way, there is also the media. This is a relatively strong cultural industry in the Federation. As long as it is operated properly, it will always be It won’t go out of style.”
Jack Welch simply stopped and stood on the spacious lawn. He also attracted the attention of Robert Egger and others who were playing ball not far away, thinking that the two of them had encountered some problem. However, the two bosses did not summon them, and the others did not come over ignorantly.
After thinking for a moment, Welch said: "Simon, I think you are exaggerating. The global economy has already shown the characteristics of globalization at this stage, and General Electric has still maintained its strong position well."
Simon was really not interested in golf. Seeing Welch stop, he simply pointed to the outside of the field: "Jack, why don't we go and take a rest."
Eager to know the answer, Welch nodded.
The two summoned a battery car and quickly arrived at the reception villa outside the stadium. They sat in a cafe and waited for the waiter to bring coffee and desserts before leaving. Simon continued: "What I just said, globalization is just one of them." One reason. In addition, there is the issue of your successor, Jack. Without any exploration, I can be sure that no matter how carefully you select your successor, it is impossible for your successor to have what you have now within General Electric. Prestige and strong control over GE. This will inevitably lead to another result. Without strong control, GE's operations will inevitably be interfered with by external factors."
"external factors?"
Simon pointed to himself: "Like me."
Welch subconsciously became wary: "Simon, what do you want to do?"
Simon smiled and shook his head: "Jack, I am also one of the major shareholders of General Electric now. You should believe that my interests and those of General Electric are consistent."
The expression on Welch's face still didn't relax.
Simon could only shrug: "Okay, then there is the third reason after the trend of globalization and weak successors, and the most important one. The federal financial capital is becoming more and more powerful. In comparison, industrial capital because The industrial hollowing out of this country is increasing and has been declining for decades. With your control of GE, Jack, nothing will happen as long as you are in office. However, once you retire, financial capital will be driven by various factors. It will soon become a leading force in the development of GE. As for what financial capital will do, you can look at what Wall Street has been doing since the 1980s and you should understand. Well, in fact, AT-T has changed in recent years. It’s the most obvious reference.”
What are the changes to AT-T
Since it was split up in the 1980s, although the federal government has continued to deregulate telecommunications over the years, AT-T has been continuously divested and dismembered. The fundamental reason is that American financial capital controls AT-T. Use capital methods such as splitting and integration to obtain as much benefit as possible in the short term.
This trend will continue for AT-T in the next few years. Even Simon has secretly taken a liking to some of AT-T's businesses and is waiting for the right time to take action.
As for whether these actions will hurt AT-T's foundation and affect the long-term development of this telecommunications giant, who cares
In the post-Welch era that I remember, General Electric suffered the same fate.
The huge GE empire was continuously split and sold in just over a decade after Welch retired. At its lowest stage, GE's market value was less than one-tenth of its peak in 2000.
After hearing Simon's words, Jack Welch's expression changed several times. This legendary senior executive of General Electric was so smart. He quickly realized that what Simon said was true and was even an unstoppable industry trend. , couldn't help but feel a little depressed, but still asked: "Simon, why are you telling me this?"
Simon took a sip of coffee, leaned back on the chair, and said: "You can think of this as a kind of introspection, Jack. In fact, you don't have to lose anything. The birth, growth, prosperity, decline, and death of anything are all Inevitable, but standing in my current position, I can't help but think about many things, and it turns out that there is really very little we can change."
Jack Welch looked at the lazy young man across from him, and suddenly smiled again: "Simon, I didn't expect that your mentality is older than mine."
"It would be the same if you lived for hundreds of years and lived through many lives."
"Ha, this is a joke, right?" Jack Welch smiled more and said: "Actually, everyone has been very curious about you these years, and so am I. However, Simon, I believe you are a miracle. But it’s definitely not a miracle.”
Simon just smiled.
Jack Welch paused, slightly picked up the coffee in front of him, put it down again, obviously hesitated for a moment, and said again: "Simon, actually, you want to control GE in the future, right?"
Simon was noncommittal: "Why do you say that?"
"Your intentions are too obvious," Welch simply let go of the coffee cup in his hand and said, "I have paid attention to the three companies you have recently established, FusionTimes, SolarCity and SpaceX, nuclear energy, solar energy and aviation. Speaking of which, GE has deep accumulation in these three major areas and can provide a lot of help to these three companies. Although you were very indifferent just now, I can understand that you still hope to change some things. If you want to change, Of course, the more resources that can be utilized, the better. Moreover, you judge that my successor cannot have the prestige I have now. It just so happens that you have this. In addition, you are also the major shareholder of GE. Finally, and the most important point, You are young enough."
Feeling Welch's bright gaze, Simon's smile remained unchanged, he paused slightly, and nodded slightly.
When Jack Welch saw the young man opposite admitting, he also relaxed and leaned back in his chair. He pondered for a moment, then looked up at the opposite person again and said seriously: "Simon, I will seriously consider this matter."
"I'm looking forward to your decision."
At this point, neither of them continued. Welch instead brought up another matter: "Regarding the negotiations between the DC Cinematic Universe team and Batman actor Adam Baldwin, Simon, I think, the base salary of 15 million US dollars, plus A 10% share of the global box office gross profit is not too much to ask for, what do you think?”
Rumors have been circulating in Hollywood for a long time that Daenerys and Time Warner are quietly negotiating an additional film deal with Batman star Adam Baldwin.
In fact, this is also an intention shared by both parties.
Compared to Brad Pitt, who has been tapped by Simon as the leading actor in "Face/Off", Adam Baldwin is more constrained by the role of Batman. Baldwin's attempts to play Bruce Wayne and other movies over the years have basically ended miserably. , coupled with the rise of Daenerys Entertainment in Hollywood, the actor gradually corrected his mentality and began to seek more practical benefits from the "Batman" series.
The basic maximum salary in Hollywood has been successfully locked at US$15 million by Simon over the years.
The focus of the negotiations between the two parties is still the division of income.
For such a long time, Adam Baldwin no longer seeks profits from peripheral channels, but insists on getting a share from the global box office rather than the local box office that the producer prefers.
Simon didn't expect Jack Welch to talk about it himself.
Not surprising.
The head of General Electric not only lacks the macro vision of running a business, but also often participates in various micro management.
In the original time and space, "Seinfeld", one of the pillars of the NBC television network, the creator Jerry Seinfeld really didn't want to continue the show until the end. Jack Welch personally came out to meet with Jerry Seinfeld, and finally offered 100 million The show was renewed for an additional season at a sky-high price of US dollars, and NBC did not suffer any loss. The finale of "Seinfeld" created a ratings miracle with 75 million people watching it at the same time.
Jack Welch spoke personally, and Simon also confessed: "I also think the price is not outrageous. The current dispute is about the contracts for several movies. We hope that Adam will sign three more movies, and then the DC movie universe can lay out the plans. When it comes to "Justice League 2", they want to sign one film at a time, and I don't want to see this kind of uncertainty."
Based on the global box office volume of Adam Baldwin's participation in the DC Movie Universe project of US$1 billion in the future, the studio will probably receive a box office share of US$400 million worldwide. The total future production and promotion cost of the DC Movie Universe series will be approximately US$200 million. The gross profit is about US$200 million, and a 10% share of the global box office gross profit is US$20 million.
For a movie worth $1 billion, Simon doesn’t think it’s too much for the leading actor to take home a total of $35 million.
When Jack Welch met Simon, he was not entangled in the price issue, but hoped to sign three movies at once. He also expressed his approval. I won’t say more. The DC movie universe continues to this day. Welch also understands that this series wants to be more To continue well, the stability of the creative team is crucial. In fact, that means long-term contracts are crucial.