Chapter 231: A $1 Billion Penalty
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"How on earth did you find out?"
Smollett and the other two racked their brains but couldn't figure out why so many corporate secrets had been uncovered by the Western Suburb Branch.
"I don't need to tell you that!"
"Then what do you want?"
"As I've already said, pay up the taxes you owe us, plus a penalty for late payment, and announce the outcome to the media, then we can call it even!"
Upon hearing this, all three frowned.
Paying the overdue taxes and even the penalty could be negotiated, but if they were to announce this to the media, it would be the equivalent of stabbing the seven major film companies in the back and making enemies of the entire Hollywood.
If they didn't do as Director David said, he would directly leak the information he held. Then, not only would the acquisition deal with Amazon collapse, but Migaomei (MGM) would likely face immediate bankruptcy.
What a dilemma!
After thinking for a while, with a troubled look, Smollett spoke, "Director David, may we go back and consider this carefully?"
"I know you three can't make this decision on your own. I can prepare a rest room for you. Call your shareholders, investors... explain the situation to them, and then come back immediately to make a decision with me!"
David didn't want to drag this out any longer. With the entire world watching, the Hollywood tax investigation needed results today; otherwise, the pressure he faced was not small.
The trio could certainly hear that David was pressing them to give an answer today, and their expressions darkened even more.
About a minute later, Smollett could only answer helplessly, "Alright." Enjoy new tales from empire
David picked up the landline phone on his desk, and a few minutes later, Nisen walked in. He led Smollett and the two others out of the office to a rest room not far away.
"I didn't expect that the Western Suburbs Branch not only found out about our $4.8 billion leverage in '05 but also discovered Amazon's acquisition of us. What should we do?"
Raymond touched his back, and realized that during the conversation his shirt had become soaked with sweat without him noticing.
"Fake, how did David find out about the Amazon acquisition? We kept it so secret; not more than ten people in the whole company knew about it."
"No matter how he found out, the deal is only about four months away from completion. We absolutely cannot let this blow up now, or Migaomei is really finished, and not a single one of us will get any money, and worse, we might end up in jail!"
"..."
The group discussed, each expressing their thoughts.
But the conclusion was the same.
Now, in the most critical period of the acquisition, they absolutely couldn't let this matter throw a wrench in the deal!
"Since we can't let this leak, we have no choice but to acquiesce to the penalties to keep David and the Western Suburb Branch's mouths shut. But in doing so, we'd be on the wrong side of all of Hollywood... we'd be isolated and targeted!"
"Indeed, we would be isolated and targeted, but I think under the current circumstances, after David is done with us, he will definitely go after the other seven major film companies. They must be too preoccupied to bother with us. And if David successfully takes down the other seven, everyone will be in the same boat; what isolation and targeting then?"
Board member Lucy's words made Smollett and Raymond look at each other. She continued, "And even if in the end David doesn't succeed against the seven majors, by that time our deal with Amazon will already be nearly complete. With Amazon backing us, do we really need to fear being targeted and isolated by the major film companies?"
"Mr. Smollett, I think Ms. Lucy has a point!"
Raymond expressed his agreement immediately.
And though Smollett didn't speak out right away, the gleam in his eyes showed that he too thought Lucy's words made a lot of sense.
If other major film companies ended up like them at David's hand, everyone would be in the same situation; what about isolation and targeting then?
And if the other companies managed to come out unscathed, by that time their deal with Amazon would be almost complete. With this giant corporation endorsing them, why fear being targeted and isolated?
With these thoughts in mind, Smollett nodded and said, "In that case, Lucy, call Dewey, Donahue... them. Raymond, you call Springholt, Quendun... them, and describe the stakes clearly to them!"
The two of them immediately took out their phones and called the other key members of Migaomei's board.
Almost an hour later, the three of them returned to the director's office, looking exhausted.
David was blowing on a steaming cup of tea. Not even their entry could make him lift his eyes.
"Director David, we can do as you ask, but I hope you will keep your promise and not reveal any of our secrets (scandals)!"
Smollett said.
"Should have done this sooner and saved me half a day's talk," David muttered to himself, then responded after setting down his teacup, "Frankly, our National Revenue Service is only interested in collecting taxes. We have no interest in your company's secrets or scandals. So, as long as you honestly pay the evaded taxes and the penalty, everyone will be happy!"
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