In Hong Kong, we build a global business empire

Chapter 970 Lin, why are you suddenly interested in Hollywood?

Inside the office of the Citibank vice president.

Lin Haoran looked at John Reed and continued, "John, actually, there's something else I'd like to ask you for a favor."

Upon hearing this, John Reed laughed and said, "Given our relationship, feel free to ask me anything; there's no need to be so polite."

Lin Haoran nodded and said directly, "I want you to help me investigate which Hollywood giants have the potential to be acquired, such as MGM, Columbia, Universal, Disney, and so on."

John Reed was immediately surprised.

"Lin, why are you suddenly interested in Hollywood? This is quite different from your previous investment style. As far as I know, although you have a film company in Hong Kong, it wasn't because you wanted to run it yourself, but because your father acquired it!"

The acquisition of Shaw Brothers Studio was no secret in Hong Kong, and as an executive director and important ally of Citigroup, John Reed was naturally very familiar with many of Lin Haoran's activities in Hong Kong.

Lin Haoran smiled and said, "John, you're right. I'm not really interested in the Hong Kong film market. The reason is simple: the Hong Kong film market is too small. The highest-grossing film each year only makes ten or twenty million Hong Kong dollars, which is only two or three million US dollars. And that's the highest-grossing film. Not to mention the others."

But the US is different. Hollywood movies are distributed globally, and a single blockbuster can gross hundreds of millions of dollars. For example, this year's box office champion should be "E.T. the Extra-Terrestrial," right? As far as I know, its global box office reached $7.92 million, almost breaking $8 million. This figure is many times higher than the total annual box office of the Hong Kong film market.

The value of a film like *E.T. the Extra-Terrestrial*, along with revenue from merchandise, television broadcasting rights, home video sales, and other subsequent income streams, adds up to an astronomical sum. Therefore, while I may look down on the Hong Kong film market, I don't look down on the Hollywood film market!

He spoke frankly, saying there was no need to hide why he wanted to acquire the Hollywood giant.

After all, these are common sense truths.

Hollywood's biggest blockbuster of the year grossed a whopping $7.92 million, which is equivalent to HK$54 billion!

In contrast, the highest-grossing film in Hong Kong this year is "Aces Go Places," which only grossed HK$2604 million.

This also created a box office legend in Hong Kong cinema; before this, the highest figure was only a little over ten million Hong Kong dollars.

The film markets in the two regions are worlds apart.

Hong Kong has tried hard to develop overseas markets, but it only has some influence in Southeast Asia. As for Taiwan, which was originally another major market, it directly imposed restrictions on Hong Kong films this year. In Europe and America, it has almost no influence.

Hollywood movies rake in box office revenue globally, with markets in North America, Europe, Japan, South Korea, Australia, Latin America, and many other places.

This gap is simply impossible to bridge!

Therefore, Lin Haoran never expected to make money from the Hong Kong film market. His acquisition of Shaw Brothers was just because his father, Lin Wan'an, was interested in the film industry. He bought it for him to play around with and, incidentally, to maintain a certain cultural influence in Hong Kong.

But Hollywood is different; it's a truly global business.

John Reed nodded. Although Citigroup does not directly hold shares in Hollywood companies, it has collaborated with them before.

For example, in 1958, Citibank provided funding for the 20th Century Fox film "South Pacific" through a complex loan arrangement. This financing scheme innovatively tied together the cash flows of screenwriters, producers, exhibitors, and other parties, ultimately leading to the project's commercial success and early repayment of the loan.

Therefore, Citigroup pays close attention to Hollywood. For example, "E.T. the Extra-Terrestrial" was indeed a phenomenal film this year, with a global box office of nearly $8 million, breaking the box office record held by "Star Wars".

Universal Pictures made a fortune from this one film.

John Reed thought for a moment and said, "Lin, that's true, but Hollywood is a very complex place, and the studio owners are not to be underestimated."

Moreover, the film industry is indeed very risky. Blockbusters like "E.T. the Extra-Terrestrial" are rare and hard to come by. Most films don't even recoup their costs. Are you sure you want to enter this industry?

Lin Haoran laughed and said, "John, I'm not going to compete with those big studios to make movies. I'm going to acquire those studios that have huge film libraries and distribution channels."

"Let the experts handle the filmmaking. My job is to oversee the direction at the board level and ensure the financial health of the company. I don't need to get involved in the actual creative process!"

He paused, then continued, "Moreover, my target isn't those big studios with super-powerful operations. I know there are almost no acquisition opportunities for those. My target is those giant companies with poor financial conditions, shareholders who want to exit, or those experiencing management turmoil. These are the companies that are easiest to sell and the easiest to get a good price for."

John Reed laughed after hearing this and exclaimed, "Lin, you always see things differently from others."

When others look at Hollywood, they see stars, directors, box office, and Oscars; but you see messes, bargains, and opportunities to buy at rock-bottom prices.

Okay, I'll keep an eye on this for you. Citibank has business dealings with many Hollywood companies. I'll have someone compile a list for you, including each company's financial situation, shareholding structure, and any potential sale intentions. It's not difficult; it should be done in two hours at most.

Lin Haoran nodded and said, "Then I'll trouble you. By the way, pay close attention to companies with high-value film libraries. Some companies may not be well-managed, but they hold the copyrights to a large number of classic films."

For example, MGM, I heard that its business has been so-so in recent years, but its film library has "Tom and Jerry", "Tarzan", "Thin Man", "Gone with the Wind", "The Wizard of Oz" and so on.

After MGM acquired United Artists last year, it gained access to even more classics such as "James Bond," "Rocky," and the "Dollars Trilogy." The rights to these older films alone are worth a considerable sum.

John Reed laughed and said, "Don't worry, I know what I'm doing. But Lin, there's something I have to remind you. Although many Hollywood giants are in bad financial shape, those family-controlled companies, like Disney, may not be willing to sell. Even if you offer a high price, they may not budge. You should be prepared."

Lin Haoran waved his hand and said, "It's okay. If we can reach an agreement, we can continue. If we can't, there's no loss. I'm just looking into investing in Hollywood as a side project. If a suitable opportunity arises, I'll make a move; otherwise, I'll wait."

John Reed nodded and said, "Okay, it's settled then. I'll have the team compile the data as soon as possible. If you're free today, you can wait here, and I'll give you the compiled data within two hours."

Lin Haoran smiled and said, "I don't have anything important to do today, so I'll just wait at the company."

John Reed nodded, picked up the phone on the table, and instructed his men to compile information on the major Hollywood figures.

Lin Haoran also left John Reed's office and returned to Li Guowei's office.

Inside Li Guowei's office, He Shanheng was still chatting with Li Guowei. Perhaps because the purpose of this trip to the United States had been achieved, He Shanheng was clearly in a very good mood.

"Uncle He, what are you chatting about so happily?" Lin Haoran walked into the office, sat down on the sofa, and said to He Shanheng with a smile.

He Shanheng laughed heartily and said, "Of course I'm in a good mood now that the matter is settled. Haoran, how's your situation going?"

Lin Haoran said, "That's about it. I'll ask John to help investigate the situation of several Hollywood studios to see if there are any acquisition opportunities. He's having someone compile the data. I'll pick up the data later before I leave."

He Shanheng was slightly taken aback, then laughed and said, "Haoran, your business is getting bigger and bigger. Real estate, sports, luxury goods, and now you're going to enter Hollywood?"

Lin Haoran waved his hand and said, "I'm just taking a look first. I'm not sure if I'll make a move. Hollywood is a very complicated place. If the timing isn't right or the price isn't right, I won't rush in and become a sucker."

He Shanheng nodded and said, "That's the right way to think. Investing is not gambling. You can't just rush into anything that makes money at all costs. You have to be patient and wait for the right opportunity."

Lin Haoran smiled and said, "Uncle He, you are right. The most important thing in investing is not to seize every opportunity, but to seize those opportunities that are truly worth taking action on."

Li Guowei laughed from the side, "Boss, Uncle He has been in the banking industry for decades and has much more experience than us. What he says must make sense."

He Shanheng waved his hand and said, "Alright, stop flattering me. My experience is nothing compared to Haoran's. He's so young, yet he's already built such a successful business. And me? I've lived this long, and I'm still just working for him."

Lin Haoran laughed and said, "Uncle He, you're not right. You're not working for me. You're the chairman of Hengsheng Group and my elder. You're just continuing to strive for your dreams. Otherwise, with your billionaire assets, why would you need to manage Hengsheng Group for me?"

The three chatted and laughed for a while. Li Guowei looked at his watch and said, "Boss, Uncle He, I have a meeting to attend, so I'll head out first. You two can continue your conversation!"

"Go ahead, don't worry about us," Lin Haoran said with a smile.

He Shanheng waved to him, signaling him to leave.

The door closed, and Lin Haoran stood up, walked to the floor-to-ceiling window in his office, and looked at the scenery outside. Sometime earlier, the raging snow had quietly disappeared, leaving only the bustling metropolis of Manhattan gently covered by a pure, flawless silver veil.

Skyscrapers and streets are all outlined with soft, dreamlike silhouettes by the snow, a beauty that is breathtaking.

He Shanheng, holding a teacup, walked to Lin Haoran's side, and the two stood side by side by the window.

“Hong Kong has developed quite well, but compared with New York, the gap is still obvious to the naked eye!” He Shanheng sighed as he looked out the window at the towering skyscrapers of Manhattan’s core area.

He's right. Hong Kong has indeed developed rapidly in recent years. The skyline of Central is getting higher and higher every year. With Lin Haoran's investment, Central is about to become the world's tallest building.

However, compared to Manhattan in New York, it still lags far behind in both size and density.

Manhattan’s skyscrapers are like a steel forest growing out of the ground, dense and blocking out the sun.

While Central in Hong Kong is also spectacular, it feels more like the outer edge of this forest.

“Uncle He, Hong Kong has its advantages, and New York has its strengths.” Lin Haoran smiled and said, “Hong Kong is the gateway to the mainland, and this advantage will become more and more obvious in the coming decades.”

New York is a global hub for capital, a position that is difficult to replace; both cities have their own unique value.

He knew that although his presence brought a different development model to Hong Kong, it was impossible for Hong Kong to surpass New York by relying on him.

He alone doesn't have that much power.

Putting aside other factors, the very reality of Hong Kong's large population and limited land area means that it cannot expand indefinitely like New York.

New York has a vast hinterland, including New Jersey, Connecticut, and Long Island, and can continue to expand outwards.

Hong Kong, surrounded by mountains and the sea, has extremely limited land resources. These inherent limitations cannot be changed by the efforts of one person alone.

Most importantly, New York has the United States, the world's leading economic power, as its backing, while Hong Kong is ultimately just a city, a special colony.

Britain only thinks about how to leech off Hong Kong, wishing it could move all the wealth produced in Hong Kong to London, instead of providing Hong Kong with unlimited policies and resources.

The two are not even in the same league, so forcing a comparison is meaningless.

Speaking of this, Lin Haoran felt somewhat emotional.

The British attitude toward Hong Kong has always been one of "exploitation" rather than "construction".

They have amassed wealth here for over a century, yet they have never made any meaningful plans for the long-term development of this city.

Hong Kong's achievements today are due to the hard work and intelligence of its people, as well as its advantageous geographical location, not to the gifts of the British.

He Shanheng was silent for a moment, then sighed and said, "You're right, the British can't be relied on. The future of Hong Kong can only depend on the people of Hong Kong themselves!"

“No, Uncle He, Hong Kong still has a powerful backer!” Lin Haoran said with a smile.

"You mean the mainland? But given the current economic situation there, I'm afraid it won't be of much help." Ho Sin-hang had been working in the Hong Kong banking industry for decades and naturally had some understanding of the mainland's economic situation.

Moreover, Lin Haoran's current large-scale investments in the mainland have given him a deeper understanding of the mainland's economic environment.

In his memory, the mainland had just emerged from a turbulent decade, and everything was in need of rebuilding. The economy was still in its early stages, and now it was constantly attracting investment from Hong Kong. Lin Haoran was even the largest foreign businessman in the mainland at present.

Can this economic situation really serve as a reliable backer for Hong Kong?

Ho Sin-hang shook his head, clearly not believing that the mainland could become Hong Kong's backer.

In his view, the mainland's economic foundation was too weak, everything was in need of rebuilding, and he was still figuring things out as he went along. How could he possibly have the resources to support Hong Kong?

Lin Haoran smiled and didn't rush to refute. He knew that He Shanheng's concerns were common to many Hong Kong people: a lack of understanding and trust in the mainland, and even some contempt for it.

This mindset cannot be changed in just a few words.

If he weren't a time traveler from decades in the future, and were living in the present-day environment, seeing the economic conditions in mainland China, he would find it hard to imagine that the mainland could have developed.

“Uncle He, don’t limit your vision to the present.” Lin Haoran glanced at He Shanheng, then turned to look at the Manhattan skyline outside the window, and continued, “The mainland has a billion people, a vast market, abundant resources, and cheap labor.”

With all these factors combined, provided the policies are right, economic takeoff is only a matter of time. At that point, Hong Kong's position as the gateway to the world will be irreplaceable!

He paused, then continued, "Moreover, the British are unreliable, and the Americans are even less so. If Hong Kong doesn't find its own way out, is it going to wait for others to give it to it? The mainland market is Hong Kong's only way out."

Moreover, isn't Hong Kong's current market economy status due to the influx of capital and talent from the civil war, as well as the unique political environment of the mainland, which made Hong Kong the only window for the mainland to connect with the world?

These are all benefits that Hong Kong gained from the turmoil and isolation of the mainland; otherwise, how could Hong Kong have achieved such success today?

"How many of Britain's current colonies around the world could possibly develop into an economy like Hong Kong?" Lin Haoran turned around and looked at He Shanheng, saying, "Uncle He, think about it, how many colonies does Britain have in Africa, Asia, and the Caribbean?"

Why didn't those places become a second Hong Kong? Because Hong Kong's success wasn't due to the British, but rather because the mainland needed a window—a window that, wherever placed, brought prosperity.

He Shanheng remained silent.

He stood by the window, holding his teacup, gazing at the Manhattan skyline, and remained silent for a long time.

Lin Haoran's words were like a key, unlocking a door in his mind that had never been opened before.

He had never considered the Hong Kong issue from this perspective.

“Haoran, your point of view is quite novel,” He Shanheng said slowly. “However, what you said makes sense; Hong Kong’s prosperity was indeed due to the mainland’s isolation.”

If the mainland opens up, Hong Kong's status as a transshipment hub will decline. At that time, how will Hong Kong make a living?

Lin Haoran smiled and said, "Uncle He, this is why I insist on expanding into the US, Europe, and even the global market. Hong Kong's territory is limited and its scope is too small. If we keep confining ourselves to the local area, we will eventually hit the ceiling of development."

Only by proactively venturing out and expanding business globally can a company break free from the constraints of a single market and secure a stable and invincible position.

He paused briefly, then slowly said, "Furthermore, the opening up of the mainland to the outside world is an inevitable trend, but the road ahead is long, at least ten or twenty years, or even longer."

During this transition period, Hong Kong's unique value is irreplaceable: a sound legal environment, a free business atmosphere, a mature and efficient financial system, and business rules that are fully aligned with international standards.

These core advantages are difficult for the mainland to replicate in a short period of time, so I am quite certain that Hong Kong will not decline, but will only prosper.

Hearing this, He Shanheng was filled with emotion and sighed softly, "Haoran, compared to you, I feel like I've lived in a daze for the past eighty years. I never thought I'd have to think about these long-term perspectives so deeply before. I never imagined that in the end, I would be enlightened and guided by a young person like you." (End of this chapter)