Duke picked up the receiver of his private telephone and dialed the direct number for Arthur Spear, the Acting Chief Executive over at Mattel headquarters.
Spear picked up the line on the second ring, his voice sounding stressed, but professional.
The past grueling months had been an absolute nightmare for the iconic toy company.
Aggressive shareholder lawsuits were still dragging slowly through the federal courts, constantly draining capital from them.
Surprisingly Paramount through so Shell companies was a part of so of these lawsuits, intentionally applying pressure to drive the valuation down.
Spear delivered the positive news that Duke had been waiting to hear.
"The SEC investigation has finally closed," Spear stated, letting out a sigh of profound of relief. "We were hit with corporate fines, obviously, but there are no criminal charges being filed against the company itself."
Spear paused for a mont before continuing. "Ruth Handler is entirely out. The corporate board officially forced her imdiate resignation last week. Elliot Handler is gone as well. The founders now have to deal with personal charges."
Sitting alone in his office, Duke quietly nodded to himself, smiling as he rembered how Ruth Handler had rejected his offer as a white Knight.
Mattel was a wounded giant, but finally free from the destructive leadership that had nearly driven it into bankruptcy, now it was ti for Paramount's move.
Spear, clearly exhausted but still fighting to save the company, cut straight to the chase.
"I will support Paramount's acquisition of this company, Duke, Quid pro quo." Spear said, his voice devoid of any corporate posturing.
"I will personally champion the deal to the board, but I need your word that Paramount will fully support remaining in the CEO chair. I need your backing to run this place and rebuild the brand without interference."
Duke respected the directness. He also knew exactly how to leverage it.
"You have my word, Arthur, we want you running Mattel," Duke assured him, before firmly laying out the stark reality of the situation. "But you need to make sure the rest of your board understands that Paramount is the only viable lifeline right now."
"If we don't invest this capital, you will only last in that chair until Ruth and the remaining Handler loyalists manage to legally regroup and orchestrate a counter-coup. We are the shield that keeps them locked out of the building."
Spear let out a breath, acknowledging the truth of the power dynamic.
With the boundaries established, Duke smoothly laid out the financial structure he and his executive team had been ticulously modeling.
"We actively looked into securing bridge loans to help you comfortably float the legal fines," Duke explained, "But with the lingering public stain of the SEC investigation, no major bank is willing to offer Paramount terms for Mattel under a 17% interest rate."
"That kind of debt could choke your manufacturing pipeline. So, we are going to bypass the banks and work directly with what we have right now, liquid cash for equity."
Duke outlined the offer. "Paramount will inject 30 million dollars in pure cash directly into Mattel. In exchange, we take roughly 40% of the company's common stock, and we secure two seats on Mattel's executive board."
He paused, letting the number sink in. "Furthermore," Duke added, actively pushing his entertainnt synergy, "Paramount gets the exclusive rights to develop and produce major theatrical motion pictures based on Mattel properties."
Before Spear could even begin to calculate the scope of the dia rights, Duke pushed the sweetener across the taphorical table.
"And in return, Paramount will grant Mattel a favorable rate to beco the exclusive toy licensee for our entire portfolio," Duke offered.
"You get the exclusive rights to manufacture toys for DC Comics, the Looney Tunes catalog, and the breakout characters from PULSE magazine. On top of that, you can have the global manufacturing agent rights to 'The Cube.'
Spear let out a 'hmm' over the phone line.
"The Cube", the complex, addictive puzzle block that Duke had invented, was currently a local sensation in California.
Giving Mattel the exclusive rights to mass-produce The Cube was a guaranteed money maker.
Duke smiled, making a strategic ntal note to himself that the toy rights for the Star Wars release would be held back and negotiated separately upon the film's release to guarantee an even better rate.
Sitting in his office, Spear went silent as he ran the numbers directly in his head.
Thirty million dollars in pure cash was an undeniable lifeline. It prevented a bankruptcy filing and secured his position against the Handlers on the eyes of the board.
The addition of DC, Looney Tunes, and The Cube gave Mattel a solid product line to restart once again in the competitive global toy industry.
"I will recomnd this directly to the board in the morning," Spear finally said.
After hanging up the phone, Duke feel a sense of accomplishnt, and called Barry Diller into his office.
Diller arrived, carrying his ever-present suitcare.
Duke explained the terms of the 30 million-dollar equity acquisition and the toy license agreents.
Diller smiled as he nodded, the Mattel play had been actively in motion for months, and locking down the structure was a early victory.
Diller finished scribbling the financial details and asked about the timing of the final legal execution.
"Late spring," Duke answered. "Right after the shareholder lawsuits finally reach a financial settlent. The negative news will drive the stock down further. Keep monitoring the daily stock price, Barry. We want to execute the purchase at the bottom of the market."
Diller nodded, and rushed out to mobilize the legal team.
After this, Dukesettled back into his large chair and carefully pulled up the confidential 1975 theatrical release schedule for Columbia Pictures.
He currently held a 10% ownership stake in the rival studio, making him their single largest individual shareholder.
He scanned the upcoming slate with a smile, their partnership with Creative Managent Associates was working, despite CMA going through a managent change.
The schedule included.
Shampoo, a cody starring Warren Beatty and Julie Christie, which was already performing incredibly well in early February theaters.
It also featured Tommy, the rock opera by The Who, directed by Ken Russell, slated for a sumr release.
Finally, it included Funny Lady, the anticipated Barbra Streisand sequel to Funny Girl, scheduled for a spring rollout.
Drawing upon his knowledge of his past life, Duke knew for a fact that all three of these films were going to succeed.
He didnt have a lot of knowledge on a lot of things, but when it ca to entertaint he was at the top of his field.
These financial successes would raise Columbia's overall stock price to new heights, allowing him to easily flip his stake at a profit. He didn't want to actually own Columbia, he simply wanted to successfully sell it to a sucker.
'If the only major studio available to buy would have been Columbia instead of Paramount, I would have not bought any studio.' Duke though in his mind as he recalled the Columbia Logo.
Just as he was finishing his thoughs, Diller returned to the office, carrying a thin manila file.
"I have been thinkin about who should run the Studio 13 division," Diller said, sliding a photograph across the desk. "The horror label needs soone who lives and breathes the genre."
Duke picked up the photo, looking at a young man in his thirties wearing thick glasses.
"His na is Robert Shaye," Diller explained. "He founded New Line Cinema, they distribute foreign films and low-budget horror. He knows the midnight circuit."
Duke instantly rembered the legendary na.
In his past life, Shaye built New Line into a horror powerhouse, entirely responsible for Nightmare on Elm Street, The Conjuring Universe, Final Destination, IT, Evil Dead, etc.
Not to ntion Rush Hour and Lord of the Rings. He was perfect. "Bring him in for a eting this week," Duke said, "I want to talk to him."
___
animation will be the focus of tomorrorw chapter(will try to publish early)
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