[Chapter 866: Tough Negotiations]
It was somewhat humorous, really. The 7-11 chain, once considered a nuisance by many, was now being eyed for acquisition.
"Mr. Ito, our boss is quite serious about this; don't you think?"
"Fujita, is this a warning?"
"Not at all. If it were just a hostile takeover, we wouldn't even need to negotiate. The shares held by you all are only half; the rest are on NASDAQ."
"So, what do you want, Fujita?"
"Collaboration. Don't you think collaboration is the true win-win model?"
"Cough, cough, Fujita, if I may be blunt, your boss has been secretly accumulating chips. Just because he's the richest man in the world doesn't guarantee victory."
Fujita felt at a loss for words. His boss was only interested in the American and Chinese markets; he had no interest in Japan.
"Mr. Ito, you've done quite well in Japan and Southeast Asia. My boss believes in the future of 7-11. But that's not what he's focused on. You see, the sales of newspapers and magazines at 7-11 have been climbing steadily year by year. While we won't emphasize exclusivity, we will require a certain share of the market."
"I see," the old man eventually grasped. Being a giant in both comics and media, such an important sales outlet was obviously not something he could afford to lose.
What was he thinking? Why hadn't he done this earlier?
William White, being from Texas, naturally knew the state of 7-11s. In the U.S., 7-11s mainly concentrated in gas stations. In fact, many of the gas stations were under that brand.
Diversification was the trend of the time; it increased horizontal profits and enriched the company's revenue streams. Eventually, the parent company of 7-11 even began operating oil refineries.
Unfortunately, their choice was misguided. Given the losses of Mobil Exxon, what chance did amateurs have?
As for why William White suddenly had a revelation?
He had just returned from Japan. Originally planning a gradual approach, he realized it wouldn't work; he needed to make statements in the short term. If that didn't happen, he wouldn't mind looking elsewhere.
William had found that the 7-11s there sold not only comics but also adult books. Most egregiously, they didn't even have Viking Comics comics!
Fujita found himself harshly criticized that night. If he hadn't been smart, he may have faced severe consequences. As things stood, the current state of 7-11 wasn't much, but fast forward a decade, and there would be 24-hour convenience stores everywhere.
William wasn't interested in large department stores; while those were good at the moment, they would likely flop once online shopping surged. However, convenience stores, especially those that operated 24 hours, would not only remain but would multiply.
"Fujita, we can talk about the books and magazines. You know, the Viking Comics comics are quite good. We won't give up a market as large as China's."
"No one is asking you to give up. Profits are consolidated in the reports. Mr. Ito, to be honest with you, we've already acquired 15% of the shares and are now the second-largest shareholder."
"Indeed, with such a large price tag, you could pursue other ventures. With so many 24-hour supermarkets in the U.S., why choose 7-11?"
"Mr. Ito, to speak frankly, William White doesn't have a good relationship with Southern Company. Otherwise, you wouldn't have had such an easy time."
Fujita felt frustrated; this old man was incredibly difficult to deal with. This was the third negotiation of the month. Thankfully, the complete rejection had turned into a willingness to collaborate, if even slightly.
William knew that dealing with the foreign chain was tough; otherwise, he wouldn't have stooped to nagging at it. A forced takeover wasn't impossible, but the repercussions would be too large. Moreover, he didn't think Japan would refuse; their development focus was now there and in Southeast Asia. They didn't care about the U.S., and as for China, they were quite hesitant.
The success of 7-11 came from its rigorous franchise system. Being beaten out by Lawson in China was, in part, due to this very system.
In a province, one agent; how could they play so well? Did they even understand how vast China was? While tier-one cities and provincial capitals were all well and good, he dared them to try in county-level cities--they'd surely flop there.
"Sir, I believe that's roughly the gist. You've frightened them; if you continue to increase your stakes, they'll need to modify their plans."
"Ha, are we to fend off the barbarian invasion? Fujita, the old man will agree; his focus is clearly in Japan."
"Yes, boss. I overlooked the fact that they suddenly opened many stores. I sent someone to investigate and found that most turned a profit."
"Ha, if most were losing money, I'd be crying. Damn Southern Company; they're just a bunch of spendthrifts.
With such a good hand, they played it terribly. Who would've thought 7-11 was an American company? Well, it used to be.
William believed people in America had lost their minds; they were completely lost in themselves. Outsourcing industries, capitalizing real estate, and financial virtualization--eventually, one would realize that such a colossus had no core left.
Unless another war comparable to World War II happened, there was little chance of reclaiming such losses. If not, it would be a long, dark road ahead.
Like an eagle turned into an overwrought monkey, constantly gnawing at the corn, throwing it away. Some took a few bites, while others merely tossed it aside.
If your technology and innovation were infinite, then you could continue playing this game. If not, rest assured; a massive pit awaited ahead.
Since everyone had their big weapons, why bother fighting? Regular warfare? You'd be at a disadvantage against even the Russians. At least the fighting spirit was still alive in the battle-loving nation; their fervor was unmatched.
"Shelly, is this the latest DVD?"
"Yes, boss. Currently, there aren't many sources; the primary are Universal and Disney."
"What do you think?"
"It's profitable, there's no need to turn it down. To be frank, our extensive film library hasn't even begun to exploit its potential."
"What's the deal with Sony's product?"
"Ahem, boss, I wouldn't recommend including it. The current MPEG format is dead, and Philips's standard is still a long way off. As for Sony, that's a licensed deal."
"Why in the world would they offer it for free? That makes no sense at all."
Shelly Lansing, a professional manager, didn't know. If they continued to refuse, it was bound to affect company performance.
William had duped her; his girlfriend even helped him make movies. That old man was still miserly as ever. It looked like a little push was necessary.
"Sir, it's not just the North American market; the place with the largest DVD sales is China."
"Ha! Those ten-cent licenses? That guy must have completely lost his mind."
"Ahem, they just made a net profit of 300,000 dollars."
The old man's eyes widened. Three hundred thousand dollars--over a year, that would mean millions. If marketing went well, it could increase even more.
"Shelly, you've worked hard. Please handle this matter."
"Sure thing, boss. I'll get right on it." Meanwhile, Murdoch made a similar decision. By this time, aside from Columbia, Hollywood had completely succumbed.
In fact, Columbia wouldn't last long either; if they weren't making money, it was time to crawl back to bed. As for other video formats, it seemed they would have to take their time with that discussion.
*****
https://www.patreon.com/Sayonara816.