civilwarnovels Chapter 992: The forced abdication turns into a laughing stock, saving tens of thousands in breach o
Chapter 992: The forced abdication turns into a laughing stock, saving tens of thousands in breach o
Hollywood, MGM Studios headquarters.
Frank Rothman sat in his spacious office, but he wasn't in a good mood.
As the chairman and CEO of MGM, I've been very annoyed lately.
Kirk Cockerian sold the company too suddenly; he wasn't consulted at all.
He saw the news at a press conference, and for a moment he even doubted his own eyes.
He worked at MGM for almost two years, and how much effort did he put in to turn a near-bankrupt mess into a barely stable one?
As a result, Kirk Cockerian sold the company without saying a word, without even asking him a single question.
What is this? And what is he? A tool? Or a puppet? A pawn that can be discarded at any time?
As Frank Rothman thought about this, his resentment intensified.
He knew Kirk Cockerian didn't value MGM, but he never expected that the other party would abandon it so completely.
In 1981, MGM acquired UA not because Kirk Cockerian wanted to make a big splash in the film industry, but simply because MGM had a 10-year distribution partnership with UA since 1974.
MGM Studios can make a lot of money through its partnership with UA.
However, the contract was about to expire, and Cochran estimated that if MGM renewed the contract, it would have to pay UA a $3.5 million issuance fee, so he simply used that money to buy UA.
This deal seemed shrewd at the time, but the aftereffects were extremely serious.
While UA's film library is valuable, its production system and culture are incompatible with MGM's.
After the merger of the two companies, there was constant internal friction, serious loss of talent, slow project progress, and Kirk Cockerian's distrust of MGM President and CEO David Bergerman.
Ultimately, David Bergerman was fired by Kirk Cockerian, and Frank Rothman took over as the new head of MGM Studios.
Before joining MGM Studios, Frank Rothman was Kirk Cochrane's lawyer and confidant for many years, and was known for his legal expertise and M&A knowledge.
In less than a year, he streamlined MGM's legal and financial systems, resolved those complicated contract disputes one by one, and eliminated the hidden dangers left over from the acquisition of UA.
It's fair to say that Frank Rothman is absolutely capable.
Kirk Cockerian put him in this position not because he understood film, but because he needed someone knowledgeable in law, mergers and acquisitions, and risk control to help him protect MGM's assets and wait for the right time to sell them.
Now that the time was right, Kirk Cockerian sold the company without even saying goodbye.
He was like a used chess piece, casually tossed onto the chessboard.
Two weeks ago, Frank Rothman met with the six Hollywood moguls at a high-end private club in Los Angeles.
Their goal is to drive Lin Haoran, this Chinese-American, out of Hollywood!
The best way to drive them away is to let them know that Hollywood is a complex and murky place, so that they will eventually give up on their own. That would be the best outcome, and public opinion is just one factor.
They convinced Frank Rothman to cooperate with them by claiming that everyone was a "squid man" (a derogatory term for people of Chinese descent who are not good at film) and that Chinese Americans would interfere with the company in the future, thus hollowing out MGM's assets from within.
Frank Rothman was initially reluctant to agree, as he, as a seasoned lawyer, knew all too well that this was a violation of the law.
Unfortunately, the six major companies offered him too much, and promised that his future career would be well-secured, with other equivalent positions waiting for him even if he lost his position as head of MGM.
After all, Frank Rothman is indeed capable.
Moreover, he gave himself a reason: this was not betrayal, but for the good of MGM. MGM is the pride of America and should not fall into the hands of a Chinese!
Furthermore, after Lin Haoran acquired MGM Studios, he immediately sent a financial advisor and a legal advisor to the company to oversee everything, which made him feel that his control over the company had been greatly weakened, making him even more unhappy.
Since the other party has bought MGM, then it doesn't matter who develops those IPs.
Handing it over to Universal, Paramount, or Warner Bros. at least guarantees that it will be made into a good movie, instead of being ruined by a Chinese businessman who doesn't understand film.
Frank Rothman used this reasoning to convince himself and his conscience.
He wasn't betraying them; he was saving MGM's century-old legacy.
If those classic IPs had remained in Lin Haoran's hands, who knows how they would have been adapted into films?
Is it going to be a terrible remake?
Or should we just sell it and get some money?
What does Lin Haoran, a real estate developer, know about movies? What does he know about intellectual property? What does he know about art?
He doesn't deserve to own these IPs.
Handing it over to Universal, Paramount, or Warner would have been the best choice.
This is for MGM's good, not for his own sake.
So he had his legal department draft three contracts in an attempt to license the most important IPs in MGM’s film library to Universal, Warner, and Paramount.
He sent the contract to Citibank's legal and financial advisors for review, but it was rejected.
Unwilling to give up, he wrote another letter to Lin Haoran, trying to persuade him with phrases like "recovery" and "win-win".
As a result, Lin Haoran simply said, "I disagree, reject," and rejected all three contracts.
Frank Rothman didn't know if Lin Haoran had truly understood the contract, or if someone from Citibank had reminded him.
All he knew was that his position as Chairman and CEO of MGM Studios was no longer a title.
Although Lin Haoran did not come in person, the legal advisor and the financial advisor made things difficult for him.
They are not involved in day-to-day operations, but every contract, every expenditure, and every decision must be reviewed by them.
Frank Rothman's signature is no longer a final decision; it requires the approval of two people to be valid.
What kind of CEO is this?
A CEO who is sidelined, a CEO in name only, a CEO who has to be mindful of others' opinions even when signing contracts.
His power was stripped away, his dignity was trampled upon, and his value was wiped out.
He was unwilling, but there was nothing he could do. Lin Haoran was the new boss, and the other party had the final say.
This is also one of the reasons why Frank Rothman was persuaded by the six giants.
"Henry, do you think Lin Haoran will fire our team?" Frank Rothman asked his trusted assistant in the office.
Upon hearing this, Henry said disdainfully, "Boss, who in Hollywood doesn't know that the six big names are squeezing out MGM? Whoever takes over will offend them. Who would dare to come?"
Lin Haoran doesn't understand movies. He has no roots, no connections, and no relationships in Hollywood. He can only rely on us, on people like us who understand movies, Hollywood, and intellectual property.
If he fires us, MGM will truly become an empty shell, without even a single person in charge.
No matter how rich he is, he can't be the CEO himself, can he? He doesn't understand movies, Hollywood, or intellectual property. His presence would be pointless.
So he won't fire us; he wouldn't dare.
Although Lin Haoran is the new boss, the entire management team is dissatisfied with him due to the influence of the Hollywood environment.
MGM was already struggling; last year, its market share in Hollywood ranked only sixth.
Now, with Lin Haoran taking over, things are even more difficult. If nothing unexpected happens, MGM's market share will only decrease, and it's quite possible that it will fall out of the top eight giants one day.
Therefore, almost the entire team harbored resentment towards Lin Haoran, even though he was the new boss.
Frank Rothman agreed with his assistant's words.
"Henry, you're right. Lin Haoran doesn't dare to fire us because he doesn't have suitable replacements, but he can sideline us, just like he is now."
Legal and financial advisors scrutinize every contract, every expenditure, and every decision. Our signatures are no longer final; they require the approval of both parties to be effective.
What kind of CEO is this? A CEO who's been sidelined, a CEO in name only, a CEO who has to be subservient to others even when signing contracts.
He didn't fire us, but he made sure we couldn't do anything. What's the point of us staying here?
"Boss, are you planning to resign with the team? But if we resign, the entire team's tens of millions of dollars in severance pay might be lost." Henry frowned.
"No, I don't really want to resign, and Lin Haoran would never agree to my resignation. Once we resign, MGM will have no one to use. Although there are many talented people in Hollywood, there are only so many top professional managers. No one would dare to risk offending the six giants to take over MGM."
"In this way, we can make demands on Lin Haoran and fight for our rights and dignity!" Frank Rothman said confidently.
Henry, still somewhat worried, said, "But what if Lin Haoran agrees to our resignations?"
"Do you think that's possible?" Frank Rothman countered. Henry thought for a moment, then shook his head and said, "It's definitely impossible in the short term. The other side simply cannot find a new management team without any preparation. Once they accept our resignations, and there's no new management team to take over, it will only bring greater losses to MGM!"
Therefore, Lin Haoran will not agree to our resignations. He has no choice but to keep us and make concessions!
Frank Rothman smiled with satisfaction and said, "That's settled then. Here's what we'll do: gather the team and hold a meeting in half an hour. We'll discuss this then."
"If this problem isn't resolved, our presence at MGM is meaningless. We can't delay any longer; we have to push this Chinese man!"
"Okay, Boss, I'll arrange it right away!" Henry said, and quickly left the office.
Frank Rothman's smile slowly faded.
Just half an hour ago, he received a call from Luwatherman, the chairman of Universal, asking him to change the approach and sign one by one instead of three at once, and to make the price of each one more reasonable so that Lin Haoran would not find it too outrageous.
Like boiling a frog in lukewarm water, this approach allows Lin Haoran to gradually accept the situation.
Frank Rothman believed the best solution was to reclaim the power that was rightfully his!
As the chairman and CEO of MGM Studios, what kind of chairman or CEO is he if he can't make major decisions for the company?
That's why he had the idea of pushing Lin Haoran.
After much thought, he felt that it was impossible for the other party to let him leave with his team.
This is a huge blow to MGM.
“Lin Haoran? I’ll show you what it’s like to have money. This is Hollywood, not your Hong Kong. In Hollywood, you have to follow our rules!” Frank Rothman muttered.
Half an hour later, Frank Rothman called a team meeting.
This management team, which he built from scratch, occupied all senior positions at MGM, from CFO to COO, from CSL to CMO, from COPY to CMO, from COPY to CMO, and from COPY to CMOY. Every key position was filled by his people.
If this team were to resign en masse, MGM's top management would be left in a vacuum, with no one able or willing to take over.
This is his bottom line.
After heated discussion, the meeting reached a consensus to force Lin Haoran to concede by having his team resign.
This was not an impulsive decision, but a collective decision made after careful consideration.
They weren't really leaving, but rather trying to show Lin Haoran that they weren't pawns to be manipulated at will.
If Lin Haoran cannot give them basic respect, they will leave.
Hollywood doesn't only have Lin Haoran as its boss, and MGM isn't its only option.
Resignation is a pretense; his real intention is to seize power!
So, the senior executives of MGM Studios began writing their resignation letters, preparing to submit them all to Lin Haoran.
Each letter was well-written, reasonable, and respectful, but it hinted that "the boss, Lin Haoran, interfered too much, making the team unnecessary."
Instead of directly accusing Lin Haoran, they told him in a dignified way that if he didn't trust them and didn't give them power, then there was no point in them staying.
Frank Rothman read through all the letters and nodded in satisfaction.
“Very good. Everyone’s letters are very well written. There is not a single extreme word, but every sentence conveys a message: we will not accept being sidelined. In this way, even if Lin Haoran gets the letters, he will not be able to find fault with us.”
We are not threatening him; we are telling him that we have our own dignity and bottom line. Because he cannot give us basic respect, we choose to leave. This is our right and our choice.
"Henry, fax all these dozen or so resignation letters to Lin Haoran later. This matter can't be delayed."
"Okay, boss, I'll take care of it right away!" Henry said, then hurriedly left the conference room with more than a dozen resignation letters in hand.
……
Las Vegas, MGM Grand Hotel, Chairman's Office.
Lin Haoran is currently writing a termination letter.
He didn't want to stay with MGM's professional management team for even a second longer.
Keeping a professional manager like Frank Rothman, who has already betrayed the company's interests, will only make him a cancer to MGM.
He already knew that if he terminated Frank Rothman's team before the contract expired, he would have to pay more than ten million dollars in breach of contract penalties.
But so what?
For someone as wealthy and powerful as he is now, ten million dollars is nothing. He can afford to lose it, but keeping this cancer in MGM would result in losses of far more than ten million dollars.
After finishing writing, Lin Haoran looked at it, found no problems, and put it away.
He planned to send out the termination letter as soon as Citibank confirmed a suitable temporary management team.
However, just then, the fax machine on the desk rang.
"Hello, this is Lin Haoran."
"Mr. Lin, this is Henry, the executive director of MGM Studios. I have some important documents to fax you. Please receive them!" The person on the other end of the phone was Henry, Frank Rothman's right-hand man and the current executive director of MGM Studios.
Lin Haoran had already spoken to the other party on the phone before, so he recognized his voice.
Important information? Lin Haoran was somewhat puzzled.
However, he didn't ask anything, but simply said, "Okay, send it over!"
The fax machine started operating, and sheets of paper were ejected from the machine.
Lin Haoran picked up the first one, which was Frank Rothman's resignation letter.
The second document is Henry's resignation letter.
The third, the fourth, the fifth... more than a dozen sheets of paper, more than a dozen resignation letters, covering all the senior positions at MGM Studios.
"Mr. Lin, have you received all the documents?" Henry asked.
He awaited Lin Haoran's disbelief, his shock.
In his mind, Lin Haoran would be panicked, questioning why they had resigned en masse, and begging them to stay.
In the end, in order to keep them, Lin Haoran had no choice but to agree to all their conditions.
After all, if the entire management team leaves, MGM will be paralyzed, with no one able or willing to take over.
This isn't Hong Kong, and it's not a place where he can call the shots.
Henry believed that Lin Haoran would ultimately have no choice but to agree to their demands.
During the meeting, the team members unanimously agreed on this point.
Little did they know, Lin Haoran was indeed surprised at that moment, but he was mostly smiling.
He even wanted to burst out laughing.
These guys are hilarious.
Originally, he wanted to fire these people directly, even if it meant paying tens of millions in breach of contract fees.
But now, these people have actually offered to resign!
what does this mean?
This means he doesn't have to pay the tens of millions of dollars in breach of contract penalties.
They want to leave, what business is it of his?
Compensation? According to the contract, for employees who resign voluntarily, the company only needs to pay the remaining unpaid wages for the period of employment. As for compensation, there is not a single penny!
"Mr. Lin, have you received them all?" Seeing that Lin Haoran had not replied for a long time, Henry thought that the other party was panicking and asked again.
"Received it." Lin Haoran came back to his senses and chuckled softly.
Henry paused for a moment.
He thought Lin Haoran would be shocked, angry, or at a loss.
But reality did not unfold as expected.
"Then, Mr. Lin, do you agree?" Henry's voice trembled slightly, and a bad feeling arose in his heart.
"Agreed, I've approved all your resignation letters. Within two days, I'll arrange for someone to hand over your work. Be prepared to do so!" Lin Haoran said confidently. (End of Chapter)