Chapter 32

Controlling the Big Seven in Hollywood is not difficult, especially when you have a seat at the Federal Reserve's annual meeting. Don't forget, American capitalism is much purer than Europe's.

In Europe, capital at least has a back-and-forth with power, and is occasionally suppressed. But from the early days of the United States, the founding fathers tried every means to suppress power.

Moreover, the timing is just right. Acting in the 1980s would undoubtedly be easy mode, the 1990s could be considered normal mode, and even entering the 21st century, it would be at most difficult mode.

Those who are reborn and run to Hollywood to make movies, then loudly proclaim that it's impossible to overthrow the Big Seven, are generally people with brain issues.

The route is wrong, the knowledge... wrong, the direction of advancement is wrong, and no matter how capable you are, it's all for nothing.

It's like someone declaring they want to become the most powerful person in America, so they start running for town mayor, city mayor, state governor, and U.S. President, then claim that it's impossible to have power without doing so... Isn't this just ridiculous?

You say you're climbing the ranks in a large family, but instead of aiming to be the patriarch or enter the patriarchal council, you go and become a grand steward with a term of only 8 years, who can be kicked out at any time if necessary? This way of thinking is truly baffling.

A grand steward can indeed form alliances, but do you know how long some people in the patriarchal council have been in their positions? Some have been there since the 1920s.

Similarly, how many of the Big Seven in Hollywood rose from the position of director? How many are producers? Even the founders of CAA, who seem to wield great power, when they jumped to the major studios in the early 1990s, only one, Lew Wasserman, managed to make it.

If you want to surpass the Big Seven, control them, or overthrow them, and don't use your golden finger to make money and build connections to enter Wall Street—the real Wall Street—instead, you go and become a director and make movies, and then have the nerve to say it's impossible?

You say you don't have a golden finger? Come on, we're all reborn, so why act like a big-tailed wolf? It's as if the aura of idiocy and the aura of world domination on you don't exist.

As long as you have a position, funds, and connections in Wall Street, playing with the Big Seven is not too difficult. How many financial activities in America can operate without Wall Street? How many are not controlled by Wall Street?

I guess some people will still say that Hollywood can even scam Wall Street, which is a foolish idea. This has been mentioned before. Those who believe this clearly don't understand how financial derivatives work.

Take the much-publicized Paramount's "Melrose" movie package investment plan, consisting of 25 films, including the hit "Mean Girls," "The Manchurian Candidate," and the poorly performing "The Stepford Wives," "The Matador," as well as the box office poison "Alfie" and "Elizabethtown." These good and bad box office performances are bundled together and sold to investors through four financial institutions.

Doesn't this sound familiar? Yes, the chefs mix the leftover cod with fresh cod in a pot to make a soup, and the fresh cod soup is ready.

Investors don't know which mortgages are good, but we have professionals.

Investors don't know which junk bonds are valuable, but we have professionals.

Investors don't know which movies might be profitable, but we have professionals.

If investors accuse us, we can only say that we have always implemented a low-risk strategy, investing client funds in AAA-rated products, so the client's loss is not our fault.

In other words, if you are dissatisfied, you can go to the credit rating agencies or the companies that launched the investment projects. We investment banks are just platforms. What responsibility do platforms have? It's the unscrupulous merchants on Taobao who are scamming people, not Taobao. Please understand the difference, OK?

This is how money is gradually scammed away. Wall Street has been playing this game since the 1980s, and Hollywood is just following suit.

In fact, strictly speaking, the movie package plan is a financial derivative that swaps concepts. Wall Street helps Hollywood scam money from investors, and Hollywood does the accounting for the investors.

So Wall Street can put on a show of suing, giving investors the impression that they are not in cahoots.

Only those who are naive and believe the news would think, "Wow, Hollywood is so powerful, they even dare to scam Wall Street."

To be honest, Li Xu really wants to know which Taobao merchants can scam Taobao itself.

It's hard to imagine how stupid a platform, especially one that acts as both a player and a referee, would have to be to be scammed by a group of amateurs.

Alright, let's get back to the topic. Although Hollywood is controlled by Wall Street, it is still not easy, or rather, very troublesome, to make the Big Seven bend to your will, requiring a lot of time and effort.

Li Xu, who has already developed a lazy habit in this life, has no interest in becoming a workaholic. So he recalled many pieces of information, had several half-covered discussions with his parents, and after much thought, finally decided on a strategy of leading by example.

Yes, as he previously told his grandfather, his father mainly controls Warner Bros., indirectly controls Fox, he mainly controls Disney, indirectly controls Paramount, and his mother mainly controls Columbia, indirectly controls Universal—Universal was bought by Panasonic in the mid-1980s, just like Columbia was bought by Sony.

Similarly, Panasonic was also scammed by Americans and eventually sold Universal. If he intervenes at the right time, he can prevent them from being scammed so badly, or even inject funds to keep them afloat, which might bring a spring like Sony did.

Of course, Hollywood is still wary of foreign investment, or rather, the U.S. government is wary of foreign investment in Hollywood. Columbia is always managed by Americans, and Sony is also quite Americanized internally.

So, his mother's role is mainly to provide a restraining influence, while Li Xu and his father are the focus.

As previously mentioned, Warner Bros. and Disney are the only two in Hollywood that have developed from major studios into media conglomerates. Warner Bros. has the Time Group's name, and Disney is the unique Disney. Such brands have a tremendous influence, especially in Hollywood, the base of the American film industry, which is beyond the imagination of ordinary people.

In fact, the reason the Big Seven are hard to overthrow is not because they are particularly good at cooking the books or fighting for interests, but because they have become living brands over decades of development.

If there were a major American entertainment mogul who was reborn in the early 1980s and wanted to control Hollywood, the first thing to do would not be to plan to acquire the Big Seven, but to prevent the merger of MGM and United Artists.

The Big Seven in Hollywood initially did not include Disney. It was only after the merger of United Artists and MGM that a spot opened up, and Disney, which rapidly developed in the late 1980s, filled it.

If United Artists still existed, Hollywood would be the Big Eight, not the Big Seven. The United Artists brand can do many things. Even though MGM was almost dead under Kirk Kerkorian, it was still easy to raise funds.

Similarly, Morgan Stanley, even though it is currently in a low point, as long as the brand exists, a brand that has been around since the 1930s and can be traced back to the 19th century, it will not go out of business.

So, Li Xu must get Disney, and Roy Disney must be removed.

"But even if you help Ray Miller get rid of Roy Disney, he won't be grateful to you," his father said, looking at him. "Especially since his management skills are mediocre, and he will definitely be replaced."

Li Xu was silent for a moment. Although he was somewhat unwilling, he had to admit that his father was right. No matter what, Miller is still part of the Disney family, even though Danny Disney took Miller's last name.

"This is a real headache," he muttered.

"I want to ask you, Second Generation," his father continued, "why are you so obsessed with Disney and Warner Bros.?"

Before he could answer, his father chuckled, "You're not interested in some girl, are you?"

Li Xu rolled his eyes, "Am I not planning for your and Grandfather's ideals?"

"First, those are your grandfather's ideals; second, I know controlling the media has its benefits, but you obviously have your own plans, don't you?" his father spread his hands, "You've talked to me about more than just these, like controlling the fashion industry to promote interaction between fashion and media, thereby increasing our influence."

"What's wrong with that? Interaction between fashion and media can indeed increase our influence, and most women in the world are very passionate about fashion," Li Xu shrugged.

"But it doesn't have much to do with your grandfather's ideals," his father reminded him.

"How can it not be related? As long as our influence is strong enough, doing things will be easier," Li Xu countered.

But his father didn't say anything, just looked at him. After a while, Li Xu had to raise his hands in frustration, "Alright, many times, too much influence is not entirely a good thing."

The Morgan Group has been split for decades. If the three institutions really wanted to merge, they should have decided at the negotiation in the Bermuda Bay's Rock Hotel. However, that negotiation only established their business territories and mutual support, with no other progress.

Perhaps some people want to see the Morgan Group reformed, but more people do not—especially not now.

Moreover, the Glass-Steagall Act is still in place, though it has been eroded by capital, with some commercial banks secretly engaging in investment activities. As long as it is not formally repealed, the government has the legal basis to prevent mergers.

So, in this situation, more influence is not always better.

"Besides, I've also talked to Rupert Murdoch. Even if, as you predict, the market is left with only seven or eight influential media groups, indirectly controlling them and making them speak for us is not too difficult," his father added, "Tell me, what is your plan, Second Generation?"

"I want to earn enough respect in the entertainment industry," Li Xu said after a few minutes of thought, looking at his father.

"I think that's not difficult..."

"No, no, no, you didn't understand me. I mean the entertainment industry, not just Hollywood!"