June 18th marks the start of a new box office week.
Following last week's four new releases, this week sees three more films debuting in North American theaters: Columbia Pictures' summer blockbuster *Last Action Hero*, the Danerys Entertainment and Disney co-production *Sleepless in Seattle*, and New World Pictures' crime thriller *Guilty as Sin*.
Among these, *Last Action Hero*, starring Arnold Schwarzenegger with a budget of $85 million, is the most anticipated. It opens on 2,306 screens, a full 1,000 fewer than *Superman*, highlighting Columbia Pictures' tempered confidence in the film.
*Sleepless in Seattle*, starring Tom Hanks and Meg Ryan, debuts on 2,369 screens. As a romantic film that relies on word-of-mouth for a longer run, it naturally doesn't open as widely as a blockbuster. However, the fact that its screen count slightly surpasses *Last Action Hero* is a strategic move by the distribution teams of both companies.
New World Pictures' *Guilty as Sin*, starring Don Johnson and Rebecca De Mornay, is Rebecca De Mornay's follow-up to her successful 1990 role in *The Hand That Rocks the Cradle*. This new film continues her portrayal of a femme fatale.
On June 15th, Simon and Janet arrived in Melbourne.
While Janet settled back into her relaxed pregnancy routine, Simon split his time between overseeing the filming of *The Dark Knight Rises* and managing a recent expansion initiative by the Johnston family.
With Japan's economy struggling due to the burst real estate and stock market bubbles, Australia, heavily reliant on Japanese imports, has faced its own economic downturn over the past few years. This has particularly affected the mining sector, where the Johnston family is deeply involved.
Simon is aware that Australia's economic slump will likely continue until around 2000. It is only with China's rise and its subsequent demand for imported resources that Australia will once again experience economic growth.
Periods of industry downturn, however, are often the best times for expansion and consolidation.
Without Simon's intervention, the mid-tier Johnston family would likely struggle to expand during this downturn due to a lack of funds and could even face the risk of being absorbed by larger competitors during industry consolidation.
This time, however, the Johnston family not only has significant funds accumulated from their financial ventures with Simon but also the full backing of the Westeros system. They are well-positioned to execute a "small fish eats big fish" expansion strategy during the inevitable wave of industry consolidation.
When Simon arrived in Melbourne, Johnston Holdings was already quietly preparing to acquire BHP, currently Australia's third-largest mining group.
In the original timeline, BHP Billiton, as it came to be known, became a name familiar to those with an interest in the mining sector.
It is now 1993, and many global industries are just beginning a period of consolidation. This is true not only for Hollywood media companies but also for the Australian mining sector, which has not yet reached the oligopolistic dominance of BHP Billiton, Rio Tinto, and Vale that characterized the iron ore market post-2000.
Currently, Australia has three major mining giants: BHP, Billiton, and North Limited. Notably, the headquarters of these companies, and most of Australia's mining groups, are located in Melbourne.
Each of these giants has a market value in the tens of billions of dollars. BHP, the smallest, is valued at around $13 billion.
This is Johnston Holdings' first target.
Acquiring BHP would transform Johnston Holdings from a predominantly mining-focused investment holding group into a major player in the mining sector.
Even during an economic downturn, acquiring a company with a market value of $13 billion would require paying a premium of 25% to 30%. Thus, the deal's final value is expected to be between $16 billion and $17 billion, equivalent to $23 billion to $25 billion AUD.
No single company can easily mobilize such a vast amount of capital.
In any industry, the transition from an ordinary enterprise to a sectoral behemoth represents a significant shift from quantity to quality.
Johnston Holdings cannot afford to pay entirely in cash. While an all-stock transaction would be the cheapest option, it would also dilute Johnston Holdings' stake in the new company, potentially to the point where they would no longer be the dominant party.
Instead, they will pursue a cash-plus-stock acquisition.
The preliminary plan involves spinning off and consolidating Johnston Holdings' mining assets into a subsidiary valued at approximately $3 billion. This subsidiary would then serve as the entity for a cash-plus-stock bid for BHP, with the deal structured as half cash and half stock. The cash component alone is estimated at $8 billion.
Of the $8 billion in cash required, Johnston Holdings will cover half. Including the $3 billion in assets from the subsidiary, Johnston Holdings aims to secure about 35% of the newly formed company. The remaining $4 billion in cash will come from associated capital partners.
For a publicly held mining giant, a 35% stake is equivalent to solid control.
Moreover, owning a third of the company aligns with what the Australian government is willing to tolerate.
As a pillar industry, the Australian government is unlikely to allow a single entity to completely control a mining giant, as this would be difficult to justify to the public. The Johnston family doesn't intend to do so either; having too large a stake would make them an obvious target and increase their risk exposure during industry volatility.
With a 35% stake, they can ensure near-absolute control while integrating with various capital partners, creating a bond of shared interests.
Of the $4 billion that Johnston Holdings needs to provide, the Johnston family can only supply $1.5 billion. Other shareholders of Johnston Holdings will cover $1 billion, leaving $1.5 billion for Simon to contribute. Additionally, the remaining $4 billion in cash will require the Westeros system's assistance in bringing in Wall Street and other capital partners.
Unknowingly, Simon spent a week in Melbourne.
During this period, he could only spend two to three hours a day on the set of *The Dark Knight Rises*. The rest of his time was taken up by meetings and social engagements arranged by Raymond Johnston or Anthony Johnston.
Raymond Johnston is gradually passing control of the company to Anthony Johnston. However, this expansion is significant for the Johnston family, requiring Raymond's direct involvement in many matters.
Crossing this threshold would elevate the Johnston family from being wealthy in Australia to becoming a world-class family. This transformation isn't just about increasing wealth in the short term but significantly enhancing the family's influence and their voice in the energy and mining sectors.
This process itself is akin to a transformation from quantity to quality.
Moreover, this is only the first step. The plan includes eventually merging with Australia's largest mining company, Billiton, to recreate the billion-dollar BHP Billiton conglomerate. If possible, they might even absorb North Limited, further monopolizing the Australian mining sector.
North Limited was acquired by Rio Tinto in the original timeline, making Rio Tinto one of the world's top three iron ore producers.
Of course, these goals can't be achieved overnight.
Even the current expansion, if everything goes smoothly, will take at least a year to complete. Post-acquisition, integrating and adjusting the new company will take another one to two years.
Thus, the earliest possible further expansion would be three years from now. If they successfully merge with Billiton in three years, the process of acquisition and integration would take another three years, leading up to the new millennium.
Building a billion-dollar mining giant within a decade is not a long timeframe.
On June 22nd, Tuesday, in the Johnston family's estate by the Yarra River in Melbourne's northern suburbs.
It's lunchtime, and the entire extended family is gathered in the dining room, more than twenty people, creating a lively atmosphere.
Not only is Janet pregnant, but David Johnston's wife, Leslie, recently confirmed her pregnancy, about a month along. Consequently, the women's conversation centers on pregnancy care and baby-related topics.
A small child is contentedly perched on the grandfather's lap, showing signs of becoming a little spoiled but remarkably well-behaved today, even offering bites of food to his grandfather.
Simon sits between Anthony Johnston and Norman Johnston, discussing the details of the BHP acquisition amid the din.
"Our ranch in Queensland—if you're interested, Simon, you can take it all. There's no need to keep buying land in Tasmania. You've already got enough, and that land doesn't produce anything. Continuing there is a waste."
"You know, Norman, I just want to own an island."
"…"
Anthony joins in with a laugh, "Tasmania is so large, with so many cities and towns. You can't possibly turn the entire island into your private domain."
"Everything is possible," Simon counters. "There are only 30,000 people. If necessary, I could easily support them all."
Norman shakes his head with a grin, "I see it now; Simon must be a Southern gentleman, probably descended from slave owners."
Norman Johnston doesn't lower his voice, prompting laughter from everyone. Only Veronica looks up from the far end of the table, then returns to her meal as if nothing happened.
Simon shrugs, smiling, "Maybe."
After a lively lunch, it's already 1 PM.
The brothers leave the dining room, planning to continue their discussion in the study. Ken Dixon approaches, nods to Anthony and Norman, then, hesitating slightly, addresses Simon directly, "Mr. Hearst has called three times from New York."
Anthony watches Ken's expression and then looks at Simon, "Is there a problem with the Hearst family?"
"Just a small matter," Simon dismisses. "I'll step out for a moment."
Though they sense something unusual from Ken's demeanor, Anthony and Norman don't press further. Ken Dixon and
Neal Bennett were once the Johnston family's most loyal bodyguards. Before Simon and Janet's marriage, the Johnston family would use them to gather information. After the marriage, the two were effectively transferred to Simon and Janet, and even Raymond no longer pried into their private matters. Anthony and Norman naturally follow suit.
In a small living room, Simon picks up a landline phone, dials the number Ken provided, and waits.
When the call connects, a distinctly agitated voice comes through: "Westeros, what are you doing?"
Simon moves the receiver slightly away from his ear, sits down on a nearby sofa, and replies nonchalantly, "William, I think that's a question I should be asking you."
"You had someone break into my bedroom!"
"I'm sorry, but you must be mistaken. I'm a civilized person and wouldn't do anything so uncouth. If you don't believe me, I suggest you call the police. Oh, and I hope no one left a horse head in your bed. That would be too Hollywood, wouldn't it?"
The voice on the other end grows more furious, "You little bastard, you're breaking the rules."
Simon loses patience with the banter and retorts coldly, "Rules? William, if I were breaking the rules, certain things would be all over the papers."
"So you admit it?"
"I don't admit anything."
"You, son of a—"
"Shut up, or I really will send you a horse's head."
"Is that a threat?"
"I've already told you. I'm a civilized man, and I hope everyone else is too," Simon says icily. "But if someone decides to act uncivilized, I think you know what I'm capable of when I get rough."
With that, Simon ends the call.
Back in New York, it's late at night.
The Hearst family mansion in Greenwich is brightly lit, with security conducting thorough checks inside and out. Half an hour ago, William Randolph Hearst III and his wife, ready for bed, entered their bedroom to find it dramatically altered. The room, recently tidied, was now filled with various items—photos and recordings revealing the family's private moments. The TV played some explicit footage.
Clearly, the Hearst home had been breached.
Upon discovering this scene and seeing the footage on the TV, Hearst's wife fainted, recalling the family's traumatic history with the kidnapping of Patty Hearst.
William Hearst III, though trembling with rage, quickly pieced together the situation.
After a frantic period, he called Australia, intending to confront the young man behind this. Instead, he was met with a cold dismissal.
But the ordeal wasn't over.
As they finally settled down to rest, the bedroom phone rang again. Frustrated, Hearst picked up the receiver to hear a weak, tearful plea for help. The two hapless individuals had woken up after seven days to find themselves thousands of miles away in Tierra del Fuego, Argentina, with only a phone number to call for help.
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