Chapter 700: Chapter 700: Major Expansion
Since neither "Sinful Angel" nor "Dangerous Men and Women" reached exceptional levels, and their commercial potential was not high, the Highgate Films team did not make a significant effort to conduct public relations for the two films entered in the main competition.
The film festival concluded on September 19th, with predictable results. The Golden Lion Award was once again shared by the films "The Rain Will Fall" and "Vive L'Amour," just as Simon remembered. Daenerys Entertainment completely missed out this year, not winning any awards.
This outcome was actually welcomed by everyone. If Daenerys Entertainment were to sweep every year, the game would become uninteresting.
After the closing ceremony, the remaining stars and celebrities in Venice rushed from the Lido Island Film Palace to the closing night gala. A cocktail party had already begun on a private island about five kilometers north of the city center.
The island, another property under Simon's name, spans only three hectares and has an Italian-style castle in the center, covering over 6,000 square meters with more than 160 rooms.
Simon has always preferred modern architecture with a minimalist style. However, over the years, he realized that owning properties around the world couldn't always align with his personal tastes, like the Dume Point Manor. The castle on this Venetian island is a protected building listed by the Italian government, meaning that even though it is privately owned, it cannot be demolished or altered without permission.
Moreover, in a city as historically rich as Venice, the sudden appearance of a Beverly Hills-style glass-and-concrete modern villa would seem out of place, even to Simon himself. Trying different architectural styles globally over the years hasn't been so bad, after all.
The ongoing cocktail party was not for the dwindling guest list of the film festival but mainly aimed at collaborators and management within the Westeros system.
During the 12-day festival, Daenerys Entertainment and Melisandre Company, both part of the Westeros system, hosted seven different branded events. These included business promotions, film marketing, and industry networking, with the core goal being the promotion of films under Daenerys Entertainment and the various luxury brands affiliated with Melisandre.
Luxury brands aren't suitable for large-scale TV advertising, so they must seek exposure through other avenues. Pairing luxury brands with a film festival offers a perfect combination of matching styles.
As the film festival concluded, this cocktail party served as a small celebration.
"With the establishment of the World Trade Organization, globalization is an inevitable trend. For the luxury goods industry to adapt to this trend, consolidating into large, comprehensive luxury groups is also inevitable. After all, a single ship can't complete a global voyage; only a fleet has a chance of achieving such a goal. This is why Melisandre continues to acquire other brands."
In the castle's grand hall, Simon was conversing with Georges Bulgari, chairman of Bulgari. At the same time, Sofia Fissi, wearing a purple off-the-shoulder evening gown, affectionately clung to Simon's arm, showing no intention of hiding from the many guests.
Recently, Melisandre Company officially completed its acquisition of Bulgari shares. The finalized deal valued Melisandre at $7.3 billion and Bulgari at $1.3 billion, with both sides making some compromises. Melisandre successfully acquired 40% of Bulgari's shares in a transaction that involved $300 million in cash and 3% of Melisandre's stock.
Another target, Vacheron Constantin, also finally gave in after some negotiations. The deal was closed at $230 million. Compared to Bulgari, Melisandre was less intent on acquiring Vacheron Constantin. Sofia's experience with managing Van Cleef & Arpels made her realize that jewelry is the dominant sector in the jewelry and watch industry, while watches represent only a small portion.
Vacheron Constantin is currently purely a high-end watch brand. If acquired, its short-term status would be more akin to Melisandre's Latour Winery—mainly a status symbol.
For Melisandre, which values the growth potential of its target companies, acquiring Vacheron Constantin would naturally be great, adding a jewel to its luxury brand lineup. But not getting it wouldn't be a significant loss, so the initiative was entirely with Melisandre.
Amid Europe's ongoing economic downturn, other than Melisandre, Armani had no suitable buyers lined up for the short term. A price of $230 million wasn't high, but beyond a specialized luxury group like Melisandre, few others were interested. Even Melisandre's closest competitor, LVMH, had halted expansion due to the economic downturn. As a result, even if other buyers appeared, their offers would be lower than Melisandre's.
The $230 million was all-cash payment. Armani also wanted some stock, but neither Simon nor Sofia agreed. If this deal had fallen through, and the former Saudi oil minister held out for a few more years until the economy recovered, Vacheron Constantin could have sold for a higher price.
But in this world, except for Simon, few people can see the future. In the end, Armani chose to cash in on Vacheron Constantin.
With the acquisitions of Bulgari and Vacheron Constantin, and the addition of Versace, this year marked a major expansion for Melisandre.
Initially, acquiring Versace wasn't part of the plan. However, recent developments made Simon change his mind, and an agreement was reached with the Honor Society.
Simon had previously arranged for First Boston to engage with Versace to push for an IPO, intending to push Versace off a cliff. When plans changed, First Boston, under Simon's direction, ceased contact with Versace.
Without Simon's approval, Versace has no chance of going public in either Italy or the USA. Regardless, given the turmoil surrounding the company, Gianni Versace had no other options, and Simon wasn't going to give him any.
At the cocktail party, Georges Bulgari, in his forties and the fourth-generation head of the Bulgari family, remained concerned about Melisandre's expansion plans even after accepting the acquisition. He voiced his concerns to Simon, who then explained Melisandre's globalization strategy. Georges Bulgari asked, "But Simon, do you think it's necessary to expand our business to regions like Latin America, West Asia, or even Africa?"
"Of course it's necessary," Simon replied. "Wherever there are people, there's demand. And let's not forget, we may not open flagship stores in those regions, but we need to ensure that the wealthy in those areas are aware of our brands, so that when their wives or daughters go abroad to shop, the first names they think of are Gucci or Bulgari."
The young wife standing beside Georges, clearly younger by over a decade, gazed at Simon with bright eyes. She suddenly asked, "So, Simon, how do you think we can promote our brand in Africa?"
Simon glanced at her and smiled. "It's simple. Take films, for example. Hollywood blockbuster films have a very strong reach. Just by mentioning our brands or giving them some screen time in popular movies, we can achieve significant exposure. For instance, if you've seen 'Pretty Woman,' the car featured at the beginning saw its sales triple after the movie's success."
The young woman, who seemed to have a modeling background, casually held onto her husband while persistently questioning Simon. "But do Africans even watch movies?"
"Of course they do, and they have a high demand for them. Unfortunately, though, they typically don't watch legal versions," Simon patiently replied.
The woman laughed at the misfortune. "Oh, that's a shame."
Simon smiled but saw no need to explain the concept of cultural infiltration any further.
Seeing that Simon had nothing more to say, Georges Bulgari quickly raised his glass to them both and, dragging his somewhat reluctant wife, moved away.
Simon Westeros's reputation in certain areas was well-known, so he had to be cautious.
As the couple walked away, Sofia leaned closer to Simon, rubbing her body against his arm as she teased, "Should I get that woman's contact information for you?"
Simon waved over a waiter to get a new glass of red wine. He looked at Sofia, who appeared even more radiant under the crystal chandelier in the hall, and said, "Sure, or you can just send her straight to my bed."
Sofia teased back, "If I send her to your bed, would you dare to pounce?"
Simon honestly shook his head. "No."
Sofia laughed smugly. "As expected, the richer a man is, the more timid he becomes."
Simon reached over, tracing Sofia's smooth cheek with his fingertips. As Sofia shyly pulled away, he said, "Actually, I'm very bold; I'm just worried about hurting you all."
Sofia paused, then understood. Indeed, with Simon's current wealth and status, he didn't need to worry about much. Thinking about what he had done for her recently, Sofia suddenly felt emotional. She held onto his arm more tightly, her body pressing closer as she whispered in his ear, "Simon, let's go upstairs."
Simon looked around at the guests. "That wouldn't be appropriate, would it?"
But Sofia was already pulling him toward the stairs. "Angela and the others can take care of the guests."
Many people in the hall noticed Simon and Sofia disappearing up the stairs, but no one objected. Simon's status was too high, his power too great, so whatever he did seemed perfectly natural to others. With Simon and Sofia gone, Angela Ahrendts, now CEO of Gucci, and Highgate Films president, Ella Deutschman, automatically took over the hosting duties.
When they woke up again, it was the next morning.
Sofia rarely acted spoiled, but this time she clung to Simon like a pillow
, refusing to let him get up. Simon decided to indulge and stay in bed, only getting up when the sunlight began to filter through the curtains.
Around nine o'clock, noticing Simon's intention to get up, Sofia was the first to rise. She walked to the window, drew back the curtains, and then returned to the bed. The bright sunlight flooded the room, bathing Sofia in its glow.
And then, they failed to get up again.
Near noon, with a flushed face, Sofia rested her head on Simon's chest, listening to his strong heartbeat. After hesitating for a long time, she finally said, "Simon, I suddenly want to have another child."
Simon wasn't surprised, having sensed a certain impulse from her since the night before. He said, "You need to think carefully about this. It could be very complicated—Janet and the twins, Daniel and Gemma, and most importantly, you."
Janet could accept a female assistant but wouldn't allow Sofia to reenter the Dume Point Manor.
Sofia's two children were no longer too young, and if they found out they were getting a new sibling, they might resist. Also, Sofia had just turned 40 last month on August 17th. Although she didn't hold a birthday party, Simon hadn't forgotten to prepare a gift for her.
While Sofia looked as young as 30 thanks to good genes and meticulous care, certain things were inevitable.
Sofia simply raised her head to meet Simon's eyes and asked, "I just want to know your opinion."
Simon adjusted her position and kissed her. "You want the truth?"
Sofia nodded.
Simon said, "If possible, I'd like to have lots and lots of children. Then the Westeros family could rule the world."
Sofia smiled. "Is this another one of those genetic instincts?"
Simon laughed. "Yes, Freud believed that all human behavior could be explained by 'sex.' But I think it's more about genetic instinct. Maybe when I'm older, I can write a book like 'The Interpretation of Dreams' to explain these phenomena."
Sofia didn't steer the conversation too far off track. "So, you're agreeing."
Simon nodded slightly but added, "But if we have another child, you'll have to raise it yourself. I'm too irresponsible a man to help, and there will be no child support. Plus, your work will definitely be affected."
Sofia rested her face on Simon's chest again. "I don't need you to do anything; just agree." Sensing Simon's hesitation, Sofia added, "I'll talk to Janet first. If they don't agree, the child can take my surname, Fissi."
Simon paused and said, "Actually, your surname isn't that nice."
Sofia playfully hit Simon on the shoulder. "Stop talking. I want to sleep a bit more; I'm exhausted."
Simon said no more.
It wasn't until one o'clock in the afternoon that they finally left the bedroom.
After lunch, they left Venice together to fly to New York.
New York Fashion Week was set to begin on September 23rd. This was the first fashion week of the autumn fashion season. It marked a significant shift for the four major fashion weeks.
Previously, the order of the four major fashion weeks was London, Paris, Milan, and New York, with New York Fashion Week being last.
As New York Fashion Week's status rose, many began expressing dissatisfaction with this order. After the spring fashion weeks earlier in the year, someone officially proposed a change, gaining widespread support from various brands, and the decision was announced in July.
Both CK, a brand under Melisandre, and LTD Group, part of the Westeros system, helped push this change. If New York had been competing with Paris or Milan for this ranking, it might have struggled. But with London Fashion Week, the least prominent of the four, as the opponent, there was no issue. New York Fashion Week seized the opportunity and made the announcement, and London, lacking the confidence to compete, had no choice but to compromise, pushing its dates back.
As a result, the Paris and Milan fashion weeks also had to be postponed accordingly.
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