[Chapter 555: Acquiring Marvel]
Daniel acted swiftly. By the third day, he came to Linton with Jimmy, the manager of the company's performance division, presenting a detailed concert proposal.
He suggested scheduling the Los Angeles concert for late December, ideally on the evening of December 24th -- Christmas Eve -- at the Hollywood Bowl, the largest concert venue in L.A., which could hold around 18,000 attendees.
For New York, he recommended January 12th, 1997, a Saturday night, at Madison Square Garden, the city's premier concert arena with a capacity of approximately 20,000.
Keeping audience experience in mind, Daniel advised a setlist of 20 to 25 songs per concert. Based on extensive concert experience, longer shows weren't necessarily better -- audiences tend to get sensory fatigue from prolonged exposure.
Typically, concerts lasted just over two hours, rarely exceeding two and a half hours. With an average song length of five minutes, the set wouldn't surpass 30 songs. Also, to allow time for guest performances, he recommended Linton perform about 20 songs per night.
Speaking of guests, Daniel presented a preliminary list. Besides Madonna, Shania Twain, Vivian Chow, Izumi Sakai, Akina Nakamori, and Noriko Sakai, he proposed adding the company's own rap heavyweight, Puff Daddy, along with newly signed talents from America's Got Talent: Britney Spears, Eminem, and Adam Levine.
It was a pity, Daniel noted, that despite scouting Beyonce and Fergie in America's Got Talent -- especially Beyonce, whom he believed had the potential to become the next pop queen -- her record label refused to budge due to steep contract penalties. Linton's refusal to resort to unconventional tactics led to a dead end.
Linton tallied the guests, noting nine performers. "That's a lot of guests -- if each sings a song, that's nine songs. Isn't that too many? And Britney, Eminem, and Adam Levine are all newcomers. Do you think it's appropriate for them to perform at my concert?"
Daniel replied, "The number of guests isn't excessive, and some can do duets with you. But yes, Britney, Eminem, and Adam Levine are a bit unproven. I'm hoping you'll give them a shot to ride your coattails and boost their popularity."
"Fair enough," Linton conceded. "Let Britney join both shows, and Eminem and Adam each participate in one."
"Got it. I'll adjust right away." Daniel thought to himself -- Britney was definitely something special.
"As for Puff Daddy, just have him perform at the New York show. No need for both."
"Understood, boss. Honestly, I'm more worried that once word gets out you're holding these concerts, other established stars will clamour to be guest performers."
"No worries. We'll politely decline, saying the slots are all filled."
"Alright, then about the setlist -- how about 23 songs per show? That way, over two concerts, 46 unique songs get performed, no repeats."
"Sounds good. Handle the song selection by category and album order. I trust you."
"For the live band, can we use our company's own group, the KIM Band?"
"Absolutely."
"Any special requests for choreography, backup dancers, or harmonies?"
"You decide. My only requirement is that nothing falls apart on stage."
"No problem -- we'll use in-house staff who have loads of stage experience."
"Perfect."
"Typically, at least two-thirds of the songs require dance routines. For 23 songs, that means 16 need choreography. You'll need to set aside time to rehearse with them at the studio. Can you manage that?"
"No problem. Have them practice and perfect it. I'll join in when I can."
"Boss, rehearsals take a long time. For your concerts, I recommend four separate dance teams -- each covering up to four songs. It's not a stamina issue but rather time constraints. Even though your dance demands are lighter, maintaining overall aesthetic is key. I suggest you start full-on rehearsals with them next week."
"Have you seen my first film, Step Up?"
"Of course. Shania debuted alongside you on the soundtrack for that movie."
"Do you know what my dance instructor said after a single afternoon of practice?"
"No, what?"
"She told me not to come back -- I had already mastered the essentials. Just practice at home as I had time."
"Wow, boss, your dance talent really is exceptional."
"So, no worries about me. Let them rehearse; I'll spend two days joining them."
"Alright. How about stage design, costumes, and lighting? Any directives?"
"Show me the detailed plans first -- don't hold back on the budget."
"Rest assured, boss. We'll deliver the coolest, flashiest concepts -- all top-tier with an unlimited budget."
---
By mid-November, the annual Christmas movie season was heating up. Charlize Theron's film Run Lola Run was set for release on November 29th. During this time, Charlize Theron was back in L.A., engaging in an intense promotional schedule arranged by the publicity team -- TV appearances, media interviews -- while staying at Linton's estate.
[T/N: Originally A Time to Kill was for Winona Ryder and Run Lola Run was for Charlize Theron. But considering the acting skills required, height, and characteristics, Linton swapped the roles. It seems author forgot this.]
The previous night had been another wild party shared by Linton, Winnie, and Charlize.
On a beautiful morning, the three of them -- still recovering from the night's exhilaration -- sat around the breakfast table, replenishing their energy.
Nearby, the butler Amy dutifully read the day's newspapers.
"The New York Times," she announced, "Marvel Comics has filed for bankruptcy...."
Linton's attention sharpened. "Marvel's filing for bankruptcy? Wait -- give me that paper."
...
Since last year, the American comic industry bubble had burst. Numerous comic shops shuttered, sales channels for Marvel dwindled, losses mounted, and stock prices plummeted.
After trying every recovery plan with no success, Marvel's financial abyss became impossible to cover up. The company had no choice but to file for bankruptcy restructuring.
Winnie, a lifelong comic fan, leaned against Linton as they read the news together, lamenting, "Ah, Marvel going bankrupt -- that's a shame. Spider-Man, the X-Men, the Fantastic Four were my favorite superheroes growing up."
Linton chimed in, "What if I acquired Marvel? What do you think?"
Though not American herself, Charlize was enchanted by Marvel's heroes and dreamed of being a superhero herself. She jumped in eagerly, "That sounds great, babe. If you bought Marvel, maybe we could bring those superheroes to the big screen -- and I could finally play my dream role as Susan Storm from the Fantastic Four."
Winnie, from a financial perspective, also agreed. "Marvel's filing means its price will be low. With advances in CGI, turning those superheroes into movies is totally feasible. Acquiring Marvel would be a valuable investment."
"Alright, since you both like the idea, I'll have people start a thorough review."
Finished with breakfast, Linton picked up the phone and called Goodman, instructing him to drop all other work and focus entirely on digging into Marvel's situation.
...
Three days later, Goodman arrived with a thick dossier at Linton's office.
"Boss, though we couldn't get highly detailed inside info, the data we collected paints a clear picture: Marvel's fall from its peak began in the mid-1980s, spanning the past decade."
In 1986, Marvel faced a financial crisis and was acquired by billionaire Ron Perelman's New World Pictures for under $100 million. In 1989, due to debts, Perelman took personal control.
Ron Perelman was a financial wizard who took Marvel public in 1991. But he was merely a speculator, aiming for quick profits rather than long-term growth. During his decade, he focused on selling off lucrative character licensing rights.
Classics like the Fantastic Four, X-Men, Spider-Man, and the Hulk were sold for film adaptations. For example, X-Men film rights went to 20th Century Fox, Spider-Man to Sony Columbia.
Perelman also orchestrated a comic card collector market, heavily hyping up comic collectibles. For instance, a 1992 Avengers issue originally priced at $2.50 was manipulated through market control and promotion to soar to $40 within a year, then flooded back to market at high prices. This manufactured a speculative collectible bubble, attracting even non-comic fans hoping to cash in.
These tactics boosted Marvel's financials and stock price, peaking at a valuation over $4 billion. Perelman cashed out heavily at this peak, swelling his wealth significantly.
Yet Marvel's success was built on shaky ground. To maintain appearances, Marvel took on massive debts, diversifying into toy companies and card manufacturers, loading itself with liabilities.
By 1994, most iconic character rights had been sold off. That year, a major labor strike in American baseball led to the collapse of the high-value baseball card market, triggering a cascading crash in related collectibles like football and basketball cards.
This "butterfly effect" of the strike also triggered a collapse in the Marvel comics and collectibles market. Prices for comics, toys, and memorabilia plummeted by over 90%, dropping to less than a tenth of their peak values.
As the industry bubble burst, countless comic stores closed, and Marvel's sales channels suffered heavily. With hot character licenses exhausted, Marvel plunged into a dire financial state. By 1995, it reported losses of $80 million and stock prices nosedived.
Through the first three quarters of 1996, the situation worsened, nearing $200 million in losses, with market capitalization falling from over $4 billion to under $300 million.
Marvel tried numerous rescue attempts but failed, inevitably filing for bankruptcy.
A decade-long cycle: Marvel went from crisis, acquisition, peak, to bankruptcy -- a somber story.
Yet, Ron Perelman, Marvel's chairman and largest shareholder, profited immensely. Through capital maneuvers, license sales, speculative bubbles, and debt-fueled expansion, he extracted over $2 billion, though his stake had fallen below 30%.
Marvel's bankruptcy was also fueled by internal power struggles at the top. Perelman's high-handed control initially quelled opposition, but as he cashed out and lost controlling interest, conflicts erupted among shareholders and management over strategies and profits.
The chaos led to erratic policies, mismanagement, and neglect of core operations. According to a minor shareholder, Perelman was like a cunning robber disguised as a plumber -- destroying your house without paying a dime while taking it all.
Worse still, Marvel's top artists -- fans turned disillusioned stars like Jim Lee and McFarlane -- walked away, joining Dark Horse Comics, the third-largest American comic publisher.
...
After the full briefing, Goodman shared his skeptical view: "Boss, I honestly don't see much acquisition value in Marvel as it stands."
"No, you don't get it. You can't just look at the surface. Marvel still holds great value for me. Call Henry over," Linton ordered.
He soon called Winnie up as well.
Together, Linton assigned Winnie, Goodman, and Henry to form an acquisition team gearing up to bid on Marvel.
Fortunately, Marvel had just filed bankruptcy and the court was processing their case. The stock was still trading but plunged again.
Under Winnie's direction, multiple accounts began discreetly buying Marvel shares on the secondary market, each keeping purchases under 5%.
Meanwhile, Goodman and Henry started negotiating with smaller shareholders, quietly purchasing their stakes.
Once they amassed enough shares, they planned to approach Ron Perelman directly.
*****
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