America: My Time

Chapter 147 Morita Akio’s doubts

Chapter 147 Morita Akio’s doubts
At this moment, not only Akio Morita was shocked, but all the girls present were stunned; they all found it unbelievable. They all knew how popular Tokyo Disneyland was, and now someone was choosing to build a new park to compete with Disneyland in the same area—this decision was insane!

“John, now that I’ve made my decision, I won’t change it. I’m confident in that. Sony isn’t afraid to go up against Disney, and this is Tokyo, not Hollywood!”

"That's right, Mr. Morita is absolutely right. This is Tokyo, not Hollywood. Even in Hollywood, I'm not afraid of Disney, let alone here in Tokyo. Legendary Entertainment and Phoenix Media have everything Disney has, and we have what they don't. Although they currently hold the advantage and have the first-mover advantage, what we're doing is a seaside amusement park, which is fundamentally different from Disneyland. Moreover, being a latecomer has its advantages. We can leverage Disney's strength to directly confront them, which will inevitably attract more attention. Won't those who go to Disneyland also consider visiting our seaside amusement park?"

"That makes sense, it's definitely feasible. This way you not only deal a direct blow to Disney, but you can also use Disney's influence to boost the reputation of the Sea World. It's a win-win situation, a brilliant plan!"

John sighed and said, "To be honest, this was a forced move. Universal SeaWorld had been planned for a long time, but we just didn't have the time or energy to invest in it. With our frenzied expansion, Legendary Entertainment needed time to integrate and improve itself, and we didn't want to cause trouble. But then Disney insisted on jumping in and causing trouble, so we had no choice but to fight back, which led to the Tokyo SeaWorld plan. This is just the beginning. Universal Pictures and Phoenix Media have even bigger plans. If Legendary Entertainment hadn't been so heavily indebted, they wouldn't have given up so much profit so easily."

"Does Universal Pictures have other theme park plans? If there's a lack of funds, Sony is willing to invest. But I don't understand why, with your credit, you could easily obtain sufficient loans from Japanese banks, and it wouldn't put much pressure on Legendary Entertainment and Phoenix Group right now?" At this moment, Akio Morita asked the question that had been bothering him.

"To be honest, Mr. Morita, I had already planned to develop Universal Studios before acquiring Universal Pictures and NBC. I just didn't expect those Hollywood bastards to react so fiercely, forcing me to confront Warner Bros. You know about our previous confrontation with Warner Bros.; if it weren't for the strength of the gaming world and Morgan's help, Legendary Entertainment wouldn't have been able to so easily defeat Warner Bros. However, the victory over Warner Bros. wasn't achieved by Legendary Entertainment itself, but by the gaming world. Therefore, those Hollywood giants weren't truly afraid of Legendary Entertainment, and some continued to cause trouble. This naturally delayed Legendary Entertainment's development, and coupled with its own expansion, its energy was quite limited."

Phoenix Media has now expanded beyond Japan, successfully acquiring DC Comics. This was a collaboration between me and Warner Bros. With so many things happening at once, neither Legendary Entertainment nor Phoenix Media had the resources to invest in Universal SeaWorld, leaving them with no choice but to partner with a Japanese company. In this collaboration, Legendary Entertainment will not provide funding, only the plans, design, and Universal's IP. Phoenix Media will contribute a portion of the capital, along with the IP for Phoenix Comics and Animation. Essentially, the majority of the construction costs will be borne by the Japanese company!

John paused slightly, then sighed softly, and continued, "Mr. Morita, I can indeed obtain sufficient loans from the Japanese bank, and the pressure on Legendary Entertainment and Phoenix Group wouldn't be too great. However, as you know, I don't only own Legendary Entertainment and Phoenix Group; I have other businesses that are also expanding. We can't let Legendary Entertainment and Phoenix Group face too much financial pressure, otherwise there would be risks. Under these circumstances, we are making concessions to various Japanese companies, which also marks the beginning of our new round of cooperation."

Regarding funding and the company's development, John didn't hide anything, nor was there any need to. His cash flow absolutely could not be compromised; that was the bottom line. Even with an urgent need for expansion, he couldn't allow it to affect the cash flow of Legendary Entertainment and Phoenix Group. Neither Wall Street giants nor Japanese banks were benevolent; any unexpected event could trigger a crisis, which was not the outcome he wanted. Legendary Entertainment and Phoenix Group had to be able to withstand risks!
"I see. I understand your concerns. If there are no other issues, Sony is willing to invest, not only in Universal Studios Japan, but also in your Universal Studios project. But this time, it won't be in Urayasu City, Chiba Prefecture, where we'll continue to directly compete with Disney, will it?"

“One direct confrontation is enough, and I also know that Tokyo Disneyland is not entirely owned by Disney. There is no need to repeatedly slap them in the face like this. Differentiated competition is acceptable and rational, and everyone can accept it. If Universal Studios does the same, it will be too reckless. Such an investment cannot tolerate any mistakes.”

"That's for the best. I knew you wouldn't make an inappropriate decision because of a moment of anger. However, I'm not here today solely because of Universal SeaWorld. There's also the opportunity to collaborate on Nvidia's VCD."

"Regarding VCDs, whether Sony wants to manufacture for Nvidia or license them is fine. However, I must make one thing clear: VCDs are newly developed and intended to replace VCRs. This is just the beginning. Even with Universal Pictures, NBC, and the film and television rights from MGM and United Artists as a foundation, developing them won't be easy. You know Legendary Entertainment has conflicts with other Hollywood giants; they might not support my plan." John had initially thought that even if Nvidia released VCDs, it wouldn't attract much attention in a short time. However, Akio Morita's arrival made him realize that things weren't like that; Sony still had a strong responsiveness! "Impressive, John. I didn't expect you to act so quickly, securing the film and television rights from MGM and United Artists. How could they sell them to a competitor like Legendary Entertainment?" Akio Morita was quite surprised that John had managed to acquire the film and television rights from MGM and United Artists.

"Nothing much. Legendary Entertainment is indeed a competitor to MGM, but Phoenix Media is not. The film and television rights held by MGM and United Artists are not in Universal's hands, but in Phoenix Media's. Phoenix Media's focus in the US is on retail leasing, and acquiring the rights is simply to ensure they have sufficient resources. However, regarding VCD cooperation, perhaps we can go a step further. Sony Music can produce VCDs, whether it's concerts or remastered albums, which can expand the VCD market share and bring new profits to record companies!"

When Akio Morita heard John's suggestion, he was intrigued. It was indeed a good option and could open up new profit points. Moreover, if it was just producing concerts or old records, it would not impact existing record sales!

“Sony has no problem!” Bigwigs like John and Akio Morita don’t personally negotiate the terms of cooperation; that’s handled by professionals. They just decide the general direction.

"John, I have one last question. Is Universal Studios being built together with Universal SeaWorld? If so, where is Universal Studios located? I'd like to know so I can prepare in advance!"

"It depends on the decisions of other Japanese companies. If they are willing to start directly, I have no problem. Legendary Entertainment and Phoenix Group are also fine with me, on the same terms as the Seaview Resort. However, many people will have concerns and will choose to build the Seaview Resort first to observe the situation. Tomorrow I will contact Dai-Ichi Kangyo Bank and Mitsui Bank to hear their views on this issue. I also need their financial support. The Mandarin Oriental Hotel intends to build a new hotel each in Tokyo and New York!"

John brought up the Mandarin Oriental Hotel expansion plan in front of Akio Morita so that he could tell Mitsui Bank that Universal Studios and Universal Sea World were not major issues; the profits were there, and Mitsui Bank wouldn't refuse such projects unless they were foolish.

For Universal Studios and Universal Sea World, the goal is to benefit Mitsui Bank and Dai-Ichi Kangyo Bank, leveraging their funds to expand and accelerate development in the Neon Properties area, aiming to complete a comprehensive layout of the Neon Properties area before the Plaza Accord.

John attaches great importance to the Japanese real estate sector. It would be difficult to grow rapidly by relying solely on his own funds. With the help of the Bank of Japan, he can achieve all of this, although he will have to pay a certain amount of profit, which is an acceptable outcome for John! In the overall layout of the Japanese real estate sector, he owns more than just the Mandarin Oriental Hotel. There are other properties as well. There is no need to discuss this with Akio Morita, since Sony does not have much capability in real estate.

Having obtained the information he wanted from John, Akio Morita took his leave. Time was of the essence; Sony needed to prepare quickly and also inform Mitsui Bank of today's events so that the bank could prepare in advance, as both Universal SeaWorld and Universal Studios would benefit greatly.

Although John repeatedly tried to persuade him to stay, Akio Morita politely declined. Acting sooner rather than later would increase his chances of success and maximize his profits; why would he stay for a meal when such opportunities were at stake? Besides, if he knew John's itinerary, other Japanese companies would naturally know as well. To risk investment problems for a meal would be a foolish decision, and clearly, Akio Morita wasn't that kind of person!
(End of this chapter)