Chasing Stars in Hollywood

After freshening up and reapplying her makeup, Kris Jenner stepped out of the bathroom, noticing that Simon had already returned to the round table on the terrace. She couldn't help but think to herself, "You don't have to bother with anything."

Of course, she didn't dare to show any of this on her face.

In the courtyard, the party music and chatter continued.

It seemed no one had noticed what had happened in the past half hour.

Adjusting the hem of her red low-cut dress, Kris cautiously walked over and, with Simon's permission, sat down beside him.

Having observed the angles earlier, she chose a spot farthest from the railing, ensuring she wouldn't be seen from below.

Even though she didn't mind, and perhaps even hoped to be seen, she was smart enough to know what could and couldn't be done.

"The crew is shooting a crossover episode of 'The Real Housewives of Beverly Hills' and 'The Real Housewives of New York' here in the next few days."

Explaining why she was here, Kris saw Simon just leaning back in his chair, quietly watching the scene below, not intending to chat with her. Sensing this, she wisely kept silent.

Having Simon's favor was enough.

At least Jonathan Friedman knew she had been invited up.

After a brief moment, when Simon instructed her to send up a drink, Kris obediently left the terrace.

Simon, thinking about this encounter, recalled the USA Network.

Since last year's merger, USA Network had successfully transitioned to a women-centric channel with the introduction of the 'Real Housewives' series from Beverly Hills and New York.

However, this alone wasn't sufficient.

Over the past year, with two large acquisitions and various other matters, Simon had expended much of his energy and hadn't had much time to oversee USA's development or even the highly valued MCA Records, leaving these to the company's senior management.

As the new year began, an array of continuous tasks still awaited.

Years of direct involvement had solidified Daenerys Entertainment's position in the film industry. Now seemed the right time to focus on other ventures.

Cable television would remain prosperous for at least the next thirty years, making it a crucial expansion area for Daenerys Entertainment.

In the music industry, despite the impending decline of physical album sales with the rise of the internet, the record industry would never disappear in the West with its robust copyright protection. It would merely transform.

The surviving major record companies, after several rounds of mergers and reorganizations, continually claimed tough times while consistently turning profits.

Additionally, the record industry was on the verge of a final boom in the 1990s.

Icons like Michael Jackson and Madonna still dominated, but the 1990s marked the rise of teen pop music.

During this time, acts like the Backstreet Boys, Britney Spears, and even the Spice Girls from the UK bolstered the record industry's performance, spreading this trend worldwide. Even years later, the Korean entertainment industry continued to emulate the group format that began in the 90s in the West.

To Simon, teen pop's most significant trait was the ability to mass-produce stars.

Traditional mega-stars like Michael Jackson and Madonna emerged from a blend of talent and luck. Teen pop stars, on the other hand, only needed good looks and decent performing skills. The rest was about packaging them through a set formula.

Moreover, there were quicker and more direct methods, like talent shows.

Of course, all this couldn't happen overnight and needed to be built step by step.

Simon decided to start with USA Network.

With vast experience from two lifetimes, Simon easily identified patterns. A television network or media platform often rose to prominence with a breakthrough show. HBO's rise in the late 90s with "The Sopranos" propelled it to new heights. Later, Netflix's ascent was similarly accelerated by "House of Cards."

Currently, the era of iconic TV dramas had yet to begin.

Cable networks hadn't invested as much in TV series as in movies.

This trend dated back to the 1970s when Barry Diller at ABC, noting the high costs of purchasing film broadcast rights from Hollywood, pioneered the TV movie format. TV movies had the advantages of lower budgets and shorter production cycles compared to Hollywood films. Plus, networks producing their own TV movies retained exclusive broadcast rights, drawing more viewers.

Hollywood, being highly conservative, quickly adopted this model once it proved successful.

With the rise of cable TV in recent years, TV movies became even more prevalent, and networks like USA produced several TV movies alongside the Housewives series last year.

However, Simon saw a significant drawback in TV movies: their fleeting popularity.

A TV movie, after a few broadcasts, lost its appeal, moving on to syndication and video channels before being forgotten. Their popularity cycle was very short.

Conversely, an iconic TV series had sustained appeal.

Shows like "The Sopranos" or "House of Cards" maintained viewer interest over multiple seasons, significantly boosting subscriber numbers for their respective networks.

These outcomes were unattainable with TV movies.

Simon inferred that the rise of excellent TV dramas like "The Sopranos" in the late 90s squeezed TV movies out, leading to the decline of this business model. In the new century, TV movies' screen time was replaced by a continuous stream of classic TV dramas.

At present, Hollywood and the broader American media industry hadn't realized this shift.

Hollywood had always been evolving.

The U.S. media industry in 1992 wasn't what many would see a decade or two later.

In Simon's view, before the era of blockbusters and CGI effects in the 90s, Hollywood's film industry, despite decades of development, wasn't solid and was often about 'luck.'

Whether it was "Jaws," "E.T. the Extra-Terrestrial," or older films like "Ben-Hur" and "Gone with the Wind," they were products of chance.

The advent of blockbusters and CGI heralded Hollywood's most prosperous era.

The TV industry paralleled this development.

Before the 90s, the established TV movie model and the networks' strong platform monopoly meant they didn't need to invest heavily in programming to attract viewers, resulting in complacency.

With the rise of cable TV in the 90s, competition intensified. The internet also posed a threat, pushing networks to value content creation more, with TV productions reaching cinematic standards.

To rapidly develop USA Network, Simon planned to disrupt traditional models.

He had already disrupted the American TV industry once with reality TV shows.

This would be the second time.

A women-centric channel needed matching women's programming.

When thinking of women-related TV shows, Simon first thought of the phenomenal "Desperate Housewives."

"Desperate Housewives" on ABC had such a massive impact that it even earned the network a reputation as a women's channel, highlighting the show's significant influence.

The success of "Desperate Housewives" stemmed from its relatable yet extraordinary plotlines.

Set in a typical American middle-class neighborhood, the housewives' characters were emblematic, representing various traditional American housewife archetypes. Yet, the plot's twists and turns were experiences that many traditional housewives would never encounter.

With vivid memories of the show's major plotlines, thanks to his dual-life experiences, Simon planned to recreate "Desperate Housewives."

As for the finer details, Hollywood never lacked writers.

It was still 1992, and Marc Cherry, the original creator of "Desperate Housewives," was still an unknown figure. Simon had no intention of seeking him out.

Instead, he decided to pen it himself.

In the following days, Simon spent his evenings writing, chatting with Janet and the baby while typing on his laptop.

After a week, with occasional input from Janet, the first season's outline and scripts were complete.

"This is a fun story, but it seems it could be more exciting," Janet remarked while gently rocking Melbourne's cradle in their Malibu home.

Sending the electronic script to Robert Iger in New York, Simon said, "I do have more thrilling stories, but I'm not sure housewives today can handle it."

Janet's interest piqued, "Tell me! I'm a housewife now too."

Simon briefly outlined, "It's another woman's story, but unlike the housewives of Wisteria Lane, this woman's life is a mess. She's a drug dealer."

Janet clapped her hands excitedly, "I love it! We must produce it."

Seeing his son startled and on the verge of tears from Janet's clap, Simon quickly picked him up, soothing him.

Janet, noticing this, pouted, "I'll send this little nuisance to Australia in a few days."

Simon continued to gently rock his son, smiling.

Having Veronica care for Melbourne was his decision, so he couldn't contradict himself now.

Sensing Simon's thoughts, Janet didn't press further or ask about the new story. Instead, she retrieved a document from the coffee table, "Another case just came from New York. Leon Black and his team are planning a big move."

With the baby resting against his shoulder, Simon paced gently beside the cradle, casually asking, "What is it?"

"A comprehensive apparel company named Limited Brands Inc., focusing on sportswear and lingerie for teens and women. It's a publicly traded company currently valued at $1.31 billion. Due to extensive expansion in the 80s and the recent economic downturn, LTD's operations have faltered. However, Leon and his team are very optimistic about the Victoria's Secret brand and plan to initiate a privatization buyout."

It took Simon a moment to recall, but hearing Victoria's Secret, he remembered.

Victoria's Secret.

Years later, the annual Victoria's Secret Fashion Show would become a fashion world event akin to the Super Bowl, elevating the top supermodels of the early 21st century.

After the initial surprise, Simon wasn't too shocked by Apollo Management's interest in Victoria's Secret's parent company.

Private equity firms like Apollo had their specialties.

Given

 its connections with Melisandre and Daenerys Entertainment, Apollo Management focused heavily on real estate and sectors like clothing and cosmetics, exemplified by their acquisitions of Simmons and stakes in Estée Lauder.

Targeting Victoria's Secret's parent company was logical.

Companies with valuable brand assets, facing cash flow issues and low stock prices, were prime private equity targets.

Thinking this over, Simon asked, "At $1.31 billion, how much premium would a full acquisition require?"

Janet, lounging on the sofa like a cat, casually flipped through the document, "Leon's team is negotiating with LTD's management. If a friendly takeover is possible, the premium would be under 30%. The apparel industry is highly competitive, unlike the burgeoning tech sector, so even a public offer wouldn't require a high premium. If it's too high, Leon's team would walk away."

LTD clearly stood for Limited Brands Inc.

Simon did the math. A 30% premium would bring the total to around $1.7 billion, a sum Apollo Management could handle, albeit with significant risk: "What's the plan post-acquisition?"

"Similar to Simmons, they plan to operate it for a few years, then either relist it or engage in another private equity deal, selling it to another firm."

Simon nodded, "The economy is at a low point now. If Leon's team confirms the company's valuable assets, holding it for a few years will indeed increase its value."

Janet, sensing a different implication in Simon's words, sprang up and leaned over the sofa's armrest, "You're not planning something else, are you?"

Simon smiled, "Let's buy the company first."

Currently, Victoria's Secret shows were still part of fashion weeks. According to the original timeline, it wasn't until the late 90s that Victoria's Secret began transforming their shows into a highly watchable commercial event.

If Cersei Capital acquired LTD, they could potentially start producing this visually appealing fashion show earlier.

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