In Hong Kong, we build a global business empire

The MGM Grand Hotel, with its 26-story main building, is a complex combining a casino and a hotel. Although not a skyscraper, it still stands out impressively on the Las Vegas Strip.

Lin Haoran got out of the car, straightened his suit and tie, and looked up to carefully examine the building that might soon belong to him.

A close-up view is even more breathtaking than from the air. A huge golden lion statue stands at the entrance, its entire body gilded and gleaming in the sunlight, like a giant beast guarding the palace.

The base of the statue is engraved with the words "MGM GRAND" in large characters, which are strong and powerful, exuding an aura of dominance.

The lobby's glass doors are tall and spacious, allowing glimpses of the crystal chandelier and the bustling crowds inside.

Staff members were already waiting at the entrance, and they immediately came to greet Kerkorian when he got out of the car.

Kerkorian waved his hand, signaling them to step back, and personally led Lin Haoran and John Reed into the lobby.

The lobby of the MGM Grand Hotel is spacious and luxurious, with a high ceiling that makes you feel no sense of oppression.

Crystal chandeliers hung from the dome, emitting a soft yet dazzling light that illuminated the entire lobby as if it were daytime.

The floor was covered with a thick, dark carpet that was soft and smooth to the touch, making no sound at all.

The walls are adorned with valuable oil paintings, and every few steps there is an exquisite sculpture, perfectly blending artistic flair with a commercial atmosphere.

When the staff saw Kekorian, they all bowed deeply, their eyes filled with awe.

This old man is not only their boss, but also a legendary figure in Las Vegas and one of the city's founders.

The group walked and talked.

"The MGM Grand Hotel is not only the world's largest hotel, but also the world's largest casino. The casino alone is about the size of three standard football fields."

We pioneered the concept of "movie-themed casino hotels" in Las Vegas, raising the bar for luxury and allowing guests to "dress up" for the casino.

"Our hotel is also one of the most famous landmarks in Las Vegas, attracting a constant stream of tourists every day. Even in the off-season, the occupancy rate remains above 80%." Kirk Koccorian's tone was full of pride. This was the empire he had built with decades of hard work, a miracle he had erected in the desert.

As Lin Haoran listened, he looked around at his surroundings and secretly made plans in his mind.

The location, scale, and brand influence of the MGM Grand Hotel far exceeded his expectations.

If he can actually acquire this hotel, it will not only give him a significant foothold in Hollywood, but also plant a flag in the world's top tourism and gaming market.

This game is much bigger than he initially imagined.

Judging from the number of visitors in the lobby alone, he knew that Kirk Kocorian was not exaggerating and that what he said was true.

These tourists come from all over the world, dressed in different ways, but they all have a similar excitement and anticipation on their faces. That is the unique magic of Las Vegas, which allows people to let go of the constraints of daily life and immerse themselves in a decadent atmosphere.

This world will never lack gamblers.

In this era, the MGM Grand Hotel was a holy grail for gamblers!
In his previous life, Lin Haoran had actually entered the MGM Hotel in Macau, but he only took a quick look around, riding in a free shuttle bus. After arriving at the hotel, he managed to get a lot of freebies, such as the popular "Lucky Pearl Milk Tea," various free desserts, and Häagen-Dazs.

Of course, for Lin Haoran, that was all. He wasn't interested in gambling and only saw the MGM Grand Macau as a tourist attraction to visit.

In contrast, the current MGM Grand Hotel in Las Vegas is the true original, the ancestor of the "copy" in Macau.

Looking at everything before him, Lin Haoran felt a strange sensation. Scenes he had only seen in travel guides and on television in his previous life were now unfolding before him in reality, and were about to become part of his business empire.

As the group headed towards the elevator, Kirk Kocorian continued to proudly recount MGM's illustrious history.

Lin Haoran nodded in response from time to time, but his mind was racing.

If the acquisition of MGM is successful, he will not only own a top-tier hotel and casino, but also a global brand platform.

This platform can generate huge synergies with his film business. Scenes from movies can be brought into hotels, and hotel guests can be converted into moviegoers. Brand collaboration and resource sharing create a synergy greater than the sum of its parts.

Arriving at the elevator, Kirk Kocorian pressed the elevator button, the elevator doors opened, and the group went inside.

As the elevator ascended rapidly, Lin Haoran felt a slight swelling in his eardrums.

The elevator doors opened again, revealing a carpeted corridor with a dark wooden door at the end.

A waiter pushed open the door and stepped aside to let Lin Haoran and John Reed in.

The presidential suite's living room is spacious and luxurious, with floor-to-ceiling windows covering an entire wall, offering panoramic views of the Las Vegas Strip.

The distant desert gleamed golden in the sunlight, while nearby casinos and hotels stood side by side, all within sight.

A sumptuous lunch has been laid out on the long table in the center of the living room.

Exquisite silver tableware, vibrant fresh flowers, and crystal-clear glasses—every detail exudes sophistication.

“Mr. Lin, Mr. Reed, please have a seat, don’t be shy.” Kirk Kocorian sat down in the main seat and gestured to the seats on either side.

Lin Haoran and John Reed took their seats, and the waiter brought them aperitifs.

The pale golden champagne bubbled gently in the glass, releasing a refreshing fruity aroma.

Kirk Koccorian raised his glass and said, "Mr. Lin, Mr. Reed, welcome to MGM."

Lin Haoran raised his glass, lightly clinked it against Kirk Koccorian's, and said with a smile, "Thank you for your hospitality, Mr. Koccorian."

The three of them drank it all in one gulp, and the atmosphere immediately became much more relaxed.

Lunch was served in a pleasant atmosphere.

The dishes were exquisite; the appetizer was Ossetia caviar, which tasted excellent with champagne.

The main course is slow-roasted Wagyu beef short ribs, which are tender, juicy, and melt in your mouth;
The dessert was a freshly made soufflé, crispy on the outside and soft on the inside, sweet but not cloying.

Each dish is carefully designed to reflect MGM's culinary standards without being overly complicated and interfering with conversation.

Kirk Kocorian already had a general idea of ​​why Lin Haoran and John Reed had come.

However, he wasn't in a hurry to start talking business. Instead, he talked about the history of Las Vegas, the development of MGM, and his personal entrepreneurial experience.

He recalled that when he arrived in Las Vegas in the early 1940s, it was just a small town in the desert with only a few rudimentary casinos and motels.

How he started as a lowly mechanic, how he gradually entered the hotel industry, how he fought his way through the competition, and how he ultimately built the MGM empire.

Lin Haoran listened with great interest as the legendary tycoon in front of him recounted his business experiences; such an opportunity was rare indeed.

In the 40s, Kirk Kocorian, a pilot, began flying private charter planes to transport high-end gamblers from Los Angeles to Las Vegas, becoming deeply attracted to this neon-lit city in the desert.

Through his involvement in the aviation business, he gradually became familiar with the business environment of Las Vegas and gained insight into its development potential, which laid an important foundation for his future investments.

In 1962, Kirk Kocorian purchased 80 acres of land on the Las Vegas Strip for $96. He first leased it to the developers of Caesars Palace, and then sold it for $900 million in 1968, making a net profit of about $800 million.

This investment was described by Fortune magazine as "one of the most successful land speculations in Las Vegas history," accumulating seed money for subsequent large-scale projects.

In 1967, Kirk Kocorian purchased 82 acres of land on Paradise Road for $500 million to begin construction of the International Hotel.

When it opened in 1969, it became the world's largest hotel at the time, and invited superstars such as Elvis Presley to perform, pioneering the model of large-scale resorts in Las Vegas.

In the same year, Kirk Kocorian acquired MGM Studios, combining Hollywood intellectual property with casino hotels.

By 1973, the MGM Grand opened, boasting 26 floors and 2084 rooms, once again breaking the record for "world's largest hotel" and propelling Las Vegas from a small, mafia-controlled casino into a family-friendly entertainment destination.

They were standing in the MGM Grand Hotel, built in 1973, one of Kirk Koccorian's proudest works. When talking about the fire in 1980, Kirk Koccorian's tone became noticeably somber.

"That was MGM's darkest day. I stood outside the hotel, watching flames leap out of the windows and hearing screams coming from inside. I'll never forget that feeling."

He picked up his whiskey glass, took a sip, and his gaze drifted into the distance.

"After that fire, many people advised me to sell the hotel, saying that the MGM brand was already tarnished and the cost of rebuilding was too high, so it was better to get rid of it as soon as possible."

But I'm not willing to give in.

MGM is my life's work; I can't let it just end like this.

Lin Haoran listened quietly without interrupting.

He knew that at this moment, he didn't need to say anything; he just needed to listen.

“I spent over a year rebuilding it and nearly $200 million. The new MGM uses the most advanced fire protection system available today. Every guest room is equipped with smoke detectors and automatic sprinklers. There are evacuation indicator lights every few meters in the corridors. I have made MGM the safest hotel in all of Las Vegas.”

"In July 1981, the hotel reopened. On the opening day, I stood at the door and watched the first guests walk in. I was filled with mixed emotions. I knew that MGM had survived."

John Reed raised his glass and said, “Mr. Kirkkorian, your resilience is admirable. Not everyone can get back up from such a blow, let alone rebuild what has been lost.”

Kirk Kocorian smiled, clinked glasses with John Reed, and said, "Mr. Reed, you flatter me. I'm just an old man who refuses to admit defeat."

Upon hearing this, Lin Haoran felt even more respect for the old man.

A person who can persevere and not give up in the face of great setbacks will succeed in whatever they do.

This legendary experience is truly admirable.

From pilot to land speculator, from hotel tycoon to film mogul, Kirk Kocorian's life trajectory is a textbook example of the American Dream.

He was sitting opposite Lin Haoran, dressed in a meticulously tailored dark blue suit, with sharp and shrewd eyes, making him look nothing like a 66-year-old man.

After lunch, the waiter cleared away the tableware and brought coffee and tea.

The exquisite silver coffee pot holds hand-drip Blue Mountain coffee, with a rich aroma and a lingering aftertaste.

Kirk Kocorian leaned back in his chair, picked up his coffee cup, took a sip, then put it down and looked at Lin Haoran with a serious expression.

“Mr. Lin, now we can get down to business.”

Lin Haoran put down his coffee cup, nodded and smiled, "Mr. Kerkorian, please go ahead."

John Reed also set his sights on Kirkkorian.

Kirk Kocorian paused for a moment, tapped his fingers lightly on the table twice, and then said, "Mr. Lin, I understand your purpose. You want to acquire MGM Studios and MGM Grand Hotel."

To be honest, I can sell the film business. I have no interest in movies, and it's been barely surviving all these years. Keeping it is just a burden. If you want to acquire it, I can offer you a very favorable price.

But this hotel is my life's work, the foundation of my business in Las Vegas. I have no intention of selling it, and if you want to buy it, it won't be so easy.

Lin Haoran nodded and said, "Mr. Kecorian, I understand your thoughts. MGM Grand Hotel is a brand you created from scratch, embodying your decades of hard work. It's only natural that you're reluctant to sell it."

However, all good things must come to an end, and no asset is unsellable; it all depends on whether the price is right.

Moreover, I know that you recently bought a large plot of land north of Las Vegas to build a new, bigger, and more luxurious casino hotel.

This project requires a lot of capital. If you can cash out a large sum of money before the new project starts, your financial pressure will be much less, and the new project can be promoted more quickly.

With your influence in Las Vegas, rebuilding a casino hotel that is even larger and more luxurious than MGM would definitely attract more tourists.

Instead of clinging to this aging hotel that's been operating for ten years, why not cash out and build a brand new landmark? This would be an optimal asset allocation for you, not a loss.

Kirk Kocorian picked up his coffee cup, took a sip, and neither replied nor denied anything.

Lin Haoran's words truly resonated with him. He had bought that piece of land almost a year ago, and the design drawings had been revised again and again, but construction had been delayed for a long time, mainly due to funding issues.

MGM Studios has been losing money year after year, and not only can it not provide cash flow, it also has to keep losing money.
Although the MGM Grand Hotel is profitable and has indeed had ample cash flow after separating from the film studio, the large amount of money spent on reconstruction and compensation due to the fire has meant that most of the hotel's actual profits in the past two years have been used to fill these gaps, leaving little spare money for investment.

If he can sell the film business and cash out some of his hotel shares, his new project can be launched smoothly.

Lin Haoran knew he had hit the nail on the head and continued, "Mr. Kecorian, I am a businessman, and I value MGM's long-term worth."

Although the film and hotel businesses are different, the brands are integrated. If they are separated, the value of MGM's big IP will be diluted. Therefore, I insisted on acquiring them as a package, because only by combining the two can the greatest synergy be achieved.

I can promise that after the acquisition, I will preserve the MGM brand and will not change it beyond recognition.

Furthermore, I will continue to invest in improving the hotel's quality and service, further enhancing the MGM brand value. This brand you built will not be tarnished in my hands.

John Reed then added with a smile, "Yes, Mr. Kirk Corian, I know Mr. Lin. He's a straightforward man. As long as a deal can be reached, he'll pay in cash directly instead of in installments."

This is undoubtedly the ideal funding solution for your new project, and Citibank can act as a guarantor for Mr. Lin, so there is absolutely no risk in your transaction with him.

Kirk Kocorian placed the coffee cup on the saucer with a crisp, light sound.

He didn't respond immediately, but leaned back in his chair and began to think.

Lin Haoran's words were not without reason.

As long as he has cash on hand, he can build whatever he wants.
Why cling to this tiny piece of land?

In the marketplace, everything is just a matter of price; nothing is off-limits.

However, deciding on the price to offer for the entire MGM stock package to Lin Haoran is a problem.

He definitely wanted more, but Lin Haoran was, after all, a Citibank employee, and with Citibank Vice President John Reed sitting there in person, he couldn't ask for an exorbitant price.

Kirk Kocorian pondered for a moment, then slowly said, "Mr. Lin, it's not impossible to sell MGM to you as a whole, but business is business, and I still want to hear your price from you personally."

"How much would you offer for the film studio and hotel as a package deal?"

Lin Haoran and John Reed exchanged a quick glance.

It seems that the MGM Grand Hotel is not something they consider non-saleable!
He thought the other party would be very tough, which would make negotiations difficult.

But now it seems that it's much simpler than I imagined.

The real bargaining has now begun.

“Mr. Kerkorian, Citigroup’s analysts have conducted very detailed due diligence and valuation of MGM Studios and the hotel.”

Lin Haoran picked up his coffee cup, took a sip, and said calmly, "According to Citibank's professional assessment, you hold 47% of MGM Studios and 52% of MGM Grand Hotels.com. Considering the debt situation and actual circumstances of the two companies, I am willing to acquire all the shares you hold in the two companies for $6 million."

His offer was actually quite reasonable, slightly higher than the market price.

"6 million dollars?"

Kirk Kocorian raised an eyebrow slightly and tapped his fingers lightly twice on the table.

Then, he slowly shook his head and said, "Mr. Lin, this price is too low." (End of Chapter)