Hollywood Art: System of sunnys

July 8, 1991.

After many considerations, Warner realized that Lux Comics' bold moves were aimed at gaining an upper hand on their new Cartoon Network channel. So, they began to craft a well-thought-out plan, but at the last minute, Disney withdrew from the negotiations, a move that took Warner's management by surprise. This left only the possibility of a temporary ceasefire for now. Disney's board of directors operates differently from Warner's and is composed of prominent entrepreneurs.

Lux Comics issued a statement citing California law, which stipulates that in case of payment delays exceeding six months, Warner would be required to calculate monthly accrued interest at a rate of 6% per annum for each month of delay. This move incited anger within Warner's management due to the audacity of the small company.

The contract mentioned annual payments, but Lux Comics requested a reevaluation of the interest.

-Are you certain, Terry? - asked Bill Lancroux, Warner Brother's attorney.

-We have to do it. The lawsuit will delay payments, and they will have to incur expenses. But we can handle it over the next five years when they least expect it. For now, I'll call a partner of mine who will have to take action that might cause some friction, - Terry Semel replied.

-What are you trying to do? I've read the contract you drafted, and the young man left some clauses open to interpretation. If you want to go to court, it's possible, but the father is an attorney with a major law firm, and he also has his law firm that is part of the company, - Lancroux said.

-Would you recommend suing? - Terry Semel asked.

-I wouldn't recommend it. Of course, if we were to sue, it would have to be in San Jose, where the contract was signed, and we'd make a lot of mistakes. It would be like playing on their home turf, especially with the father being an attorney with a significant law firm and having his firm connected to the company, - Lancroux explained.

-Adjust the numbers, but make it clear that they can't simply walk all over us so easily, - Terry Semel said.

-We've already thought of all that and more. But our next step is to build better relationships with the National Television Commission and impose certain conditions on the next channel that they might find unfair. In addition to the lawsuit against the buyback clause, we have some details that will bother them, -- Lancroux replied. -- Terry Semel smiled, settled into his chair, and dialed Mike Richardson's number to expedite the unilateral termination of the distribution contract with the comics company.

-Mike, this is Terry Semel. The situation with Lux Comics is becoming unbearable. I believe it's time for you to unilaterally terminate the contract, - Terry Semel said.

-Look, I don't care about damages and penalties. Just give them money. Warner will offer $3 million to halt Lux Comics' operations and leave them stranded. You can invest the rest. We have a deal, and you need to fulfill it, - Terry Semel continued.

-Yes, - Mike replied.

-Let's hope for news soon, and good luck. The money will be deposited into Lux Comics' account through a bank transfer once the parties reach an agreement, - Terry Semel concluded.

While it may seem like an ill-conceived move, they had been buying various distribution companies before Lux Comics could distribute its comics. So if they could disrupt operations for at least two months, it would be enough to carry out the blocking actions that Warner was seeking.

**********

Betty Cohen sent Paula Sullen to negotiate with Lux Comics regarding the Slam Dunk series and to initiate discussions about other series from Lux Comics. Little did she know that her actions were being closely watched by Billy Carson, who had received early information from Mike Richardson.

This time, Lux Comics had undergone a total transformation, a complete makeover. I could see many unfamiliar faces working at the company; the growth they had achieved in just a couple of years was astounding.

-Paula, Billy couldn't make it. He has an urgent deal to close, and I will lead the meeting. Billy was very clear about the concessions this time, - Anne said.

-A pleasure to meet you, Anne, - Paula Sullen replied as she entered the glass-walled meeting room.

There was only one other man in the room, Mr. Cloud, responsible for analyzing and managing the company and multiple companies in the market, serving as an advisor on potential economic risks.

-Warner is sending a $7.5 million check to me for the profits generated in 1990, - Paula Sullen stated.

Anne furrowed her brow but didn't mention anything further. Billy had already made it clear that they would fall into their trap. She didn't know what trap that was, but for Billy, it would be the last move Warner would make.

-Paula, I understand that you want to publish the Slam Dunk series for the next year, - Anne inquired.

-Exactly, we aim to release it next year. However, we'd like to make an offer for the Dexter show, - Paula Sullen said.

-Unfortunately, Billy has no interest in participating in that deal. Animatics was the last show Lux Comics would share with you, - Anne replied.

Paula Sullen sensed that something was amiss, but the confusion was evident. She didn't have much knowledge of the events that had transpired between the board and Lux Comics, but there was an uncomfortable atmosphere around her boss, Betty Cohen.

-I think we could discuss it in a better way. The company is very interested in the series created by Billy Carson, and if we could reach an agreement, we could all benefit from these negotiations, - Paula Sullen proposed.

-Paula, I'm sorry, but for now, we'll decide that the series you currently have is sufficient. In my view, there's no need to expand. However, Billy extends his gratitude. You're always welcome at Lux Comics, -- Anne said, handing her a business card.

-Thank you, and goodbye, - Paula Sullen said, feeling disheartened that the negotiations had gone so quickly, and this time it wasn't beneficial for the new television channel.

She left the Lux Comics factory and got into her car, driving to a small store. There, she found the payphone she had been so desperately seeking for this much-needed call.

-Good afternoon, Paula Sullen. Can you connect me to Betty? - Paula said into the phone.

-One moment, - a voice on the other end replied. Paula had to add more coins due to the delay in connecting to Betty.

-So, what's the situation at Lux Comics? - Betty asked when she answered.

-Well, they flatly rejected us, - Paula Sullen reported.

-It was to be expected. We won't be returning unless there's a willingness to negotiate. Recently, Warner decided to withdraw from negotiations with Lux Comics and focus on their own company. Initially, I proposed an alliance with Lux Comics due to their innovative designs and the basketball culture, - Betty Cohen explained.

-I'll head to the airport, but those are all the updates, - Paula Sullen said.

-Good job, - Betty replied before hanging up the phone.

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