Chapter 414: Time Warner's Additional Issuance Plan

On May 31, the second week of the summer season, the number of new films opened in North American theaters was reduced to two, namely "Soap Platter" produced by Paramount and "City Hillbilly" released by Columbia Pictures.

"Soap Platter" tells the story of a group of soap opera actors who have a series of intrigues around a soap opera called "The Sun Sinks Again".

As a group drama, the lineup of "Soap Platter" can be called luxurious.

Oscar-winning actress Sally Field leads, Oscar Best Supporting Actor Kevin Klein and Oscar Best Supporting Actress Whoopi Goldberg joined, as well as Robert Downey Jr., Kelly Fisher, Elizabeth Sue, Gary Marshall and a group of big and small coffees participated, and the director was Michael Hoffman, who won a good reputation with the two literary films "Dream State" and "Sisters".

Those who are slightly familiar with Hollywood will probably be able to see at a glance that this is another CAA packaged movie.

Therefore, although the super first-line superstars with a salary of tens of millions joined, the production cost of the film is still as high as 35 million US dollars.

"City Hillbilly" starring Billy Crystal is roughly the "Crocodile Dundee" series that followed the box office hit of the 80s, and the budget cost is also $27 million.

Three days after the opening of the film, "Soap Platter" grossed only $6.73 million in its first weekend, and is expected to grossed around $9 million in the first week, far below Paramount's expectations.

Although it is following the trend of "Crocodile Dundee", the word-of-mouth and box office of "City Hillbilly" are not bad, with $13.03 million in the first weekend, and the box office is expected to be between 18 million and 20 million in the first week.

Of the six new films that opened intensively last week, except for "Ice and Snow World", which increased to 816 screens, it achieved a reversal of about 10% in the three days of the next weekend, and the other five films all fell by more than 30%. Among them, Bruce Willis's new film "The Ultimate Condor", also produced by Samsung, a subsidiary of Columbia Pictures, fell by 47%.

Columbia originally made "The Ultimate Condor" the main hit of this summer file, and "City Hillbilly" is just a comedy that has to be stuck before next week's "Batman: The Dark Knight".

Unexpectedly, the market performance of the two films was completely opposite to the management's expectations.

The production cost of "Ultimate Condor" is $65 million, and the cumulative box office in 10 days of release is only $11.59 million, which is not as good as the box office of "City Hillbilly" in three days.

Entering June, the opening date of the second film in the DC Cinematic Universe "Batman: The Dark Knight" is getting closer and closer.

In addition to a more intensive publicity offensive, "Batman: The Dark Knight" also started the media and fan test screening half a month in advance, and the departmental media has released the film's film review reputation, and the North American media participating in the test screening basically gave a score of more than 8 points.

In the new week, Warner Bros., which is responsible for the global distribution of the film, also officially announced the global box office of the DC Cinematic Universe's opening film "Batman: Time to War".

Since the end of the previous year, after a year-and-a-half-long release, "Batman: Time to War" has been released in a total of 51 countries and regions around the world.

In the end, "Batman: Time to War" grossed $436 million in North America and $531 million overseas.

The total global box office figure eventually reached $967 million.

Although it unfortunately failed to break the $1 billion mark, it also left behind the $790 million global box office figure of 1982's "Alien ET", becoming the highest-grossing Hollywood film of all time until 1991.

This time, under the joint operation of Warner Bros. and Daenerys, "Batman: The Dark Knight" will be released simultaneously in 21 countries and regions around the world.

Large-scale simultaneous filming around the world, which has been very common more than a decade later, was still a rare feat in the early 90s, so it also shows the strong confidence of both companies in "Batman: The Dark Knight".

You must know that this DC Cinematic Universe sequel, from the beginning, the publicity budget was set at an unprecedented $80 million, which is comparable to the huge production cost of the film.

This also means that "Batman: The Dark Knight" needs to reach about $300 million at the North American box office for the two companies to recoup their costs by relying on the local box office.

Of course, anyone knows that although the box office figures of the "Batman" series are amazing, the peripheral revenue is actually even larger.

According to public figures, in 1990 alone, the sales of peripheral derivatives of "Batman: Time to War" reached a huge $2 billion.

According to the profit margin of about 15% of peripheral derivatives, the sales of derivatives of 2 billion US dollars are equivalent to about 300 million US dollars of pre-tax profits.

Because of the original contract, most of it went into the hands of Daenerys Entertainment.

Therefore, it is not difficult to imagine why Daenerys Entertainment was able to achieve an astonishing annual net profit of $1.13 billion after a series of big moves in 1990.

In early May, a month before the opening of "Batman: The Dark Knight", the videotape of "Batman: Time to War" was officially released worldwide, and in the first week of its release, it sold 5.6 million boxes in North America alone.

As the release date of "Batman: The Dark Knight" is approaching, according to the latest statistics, in less than a month, the global sales of "Batman: Time to War" have exceeded 13 million boxes, with sales of nearly $400 million.

According to this sales trend, the total global sales of "Batman: Time to War" are expected to set a sales record of more than 30 million boxes, and sales are expected to exceed $900 million, and even hitting the $1 billion mark is not impossible.

In the agreements signed between Hollywood studios and major guilds, only 20% of the sales of videotapes will be divided into profits.

In fact, the gross profit margin of videotapes as high as $30 a box in this era is not much lower than the percentage of box office share.

"Batman: Time to War" is expected to sell more than 30 million videotapes, and in addition to Warner Bros.'s share of the distribution, most of the proceeds will still go to Daenerys Entertainment, and the profit scale can be conservatively estimated at $300 million.

The premiere of "Batman: The Dark Knight" is set for Wednesday, June 5.

Tomorrow is the premiere of Batman: The Dark Knight.

Simon spent the whole day at Warner Studios in Burbank.

Or was forcibly dragged by Terry Semel at Warner Studios, and these days, Semel calls Simon every day, asking him to take time to juggle the release of "Batman: The Dark Knight", the post-production of "The Flash" and other collaborative films between the two sides.

Just looking at the profits generated by "Batman: Time to War", the importance of the DC Cinematic Universe to Time Warner needs not be repeated.

There's another reason why Terry Semel is so stubborn.

After the completion of the merger between Time Inc. and Warner Bros. early last year, Time Warner failed to meet industry expectations in terms of performance and stock.

However, in order to stop Paramount Communications' sniper takeover of Time, the two parties changed the initial share exchange merger to a cash-and-stock acquisition, which suddenly increased the total debt of the two companies, which originally had only more than $2 billion in debt, to $10 billion.

After a year of trying to pay off, Time Warner's total liabilities still reach $10.6 billion.

Steve Ross is the kind of person who really doesn't like to sell company assets, so in order to pay off his debts, Ross has been preparing for an equity issue since last year, intending to issue an additional $3 billion in shares to pay off Time Warner's debts.

Time Warner shareholders are naturally unwilling to be arbitrarily diluted their shareholdings, and it is not like spending money to subscribe for additional shares, and the outside world is not very optimistic about Time Warner's prospects.

Therefore, this additional share issuance can be described as a lot of resistance both inside and outside Time Warner.

Coupled with the continued decline in the North American stock market in the second half of last year, things almost went away.

Fortunately, the United States won the Gulf War in the Middle East, which led to a sharp rise in North American stock markets in recent months, and Time Warner's stock price also benefited, and now the market value is finally back above $10 billion. Coupled with investors' optimism about Warner Bros.'s upcoming "Batman: The Dark Knight" and "The Flash", the matter of additional stock issuance has ushered in a turnaround.

The timing is roughly set for August.

So, even if he was confident in "Batman: The Dark Knight", the release of "The Flash" must have been after the stock issuance, Terry Semel still pulled Simon to Burbank's side as much as possible, just to create an impression of close cooperation between the two sides.

In order to achieve this goal, the two parties have also recently negotiated another cooperation project outside of the DC Cinematic Universe, which is one of the other two cooperation projects that Daenerys Entertainment owes Warner Bros.

All day today, Simon happened to be busy with these three things in Burbank.

In the morning, Terry Semel personally accompanied him in the post-production center of Warner Studios, he was busy in the post-production center of Warner Studios for a long morning, and in the afternoon it was two consecutive meetings.

Because of his work, Simon hasn't been able to find time to greet Anthony Johnston, who will be coming over today.

These days, the Johnston family officially took over 30% of MGM's shares from other MGM Australian shareholders who had swapped their bonds for equity, becoming MGM's largest shareholder.

Although it did not achieve absolute control, as the largest shareholder, coupled with the support of other shareholders in Australia, MGM's control basically fell into the hands of the Johnston family, or rather, in the hands of Simon.

Anthony came over this time to discuss MGM's next development.

This side of Warner Studios.

From 2 o'clock to 4 o'clock, it was the launch meeting of "Batman: The Dark Knight".

From 4 to 5 o'clock, it was the production meeting of the film that the two sides had decided to work on.

The newly confirmed film is called "The Last of the Mohicans".

This is an American adaptation completed in 1826 by James Cooper.

The content tells the story of the last three warriors of an indigenous Indian tribe named the Mohican tribe during the colonial war between Britain and France for control of the Americas in the late 50s of the 18th century, who rescued the daughters of a pair of British colonels who were held hostage and escorted them back to the British army base.

Like Prince's Revenge, The Last of the Mohicans story mode is very similar to a knight saving a princess, it is a Hollywood favorite.

Since 1920, The Last of the Mohicans has been transformed into films, TV series, and even cartoons for the big and small screens, the last of which was in 1987.

This time, the reason why he chose to restart the filming of "The Last Mohican" is actually affected by the bumper harvest of "Dances with Wolves" at the box office and awards.

At the end of the day, it's a bandwagon.

In Simon's memory, "The Last of the Mohicans", released in 1992, was directed by Michael Mann and starred Oscar-winning actor Daniel Day Lewis.

Although he doesn't remember the box office very well, Simon can be sure that this is a very high-grossing work.

Michael Mann is the director of the famous "The Line of Fire", and previously collaborated with New World Entertainment on the police TV series "Ultimate Police Network", after confirming this project, Daenerys Entertainment contacted Michael Mann, and the other party quickly gave a positive response, and also hoped to complete the script himself.

In terms of the actor, the first thing that comes to Warner Bros.'s mind is still Mel Gibson.

No way, since the original "Mad Max", Mel Gibson has almost become the queen actor of Warner Bros. like Clint Eastwood.

Even in "Lethal Weapon 3", which will be released next year, Mel Gibson relies on a high pay-sharing clause to take most of the profits, but because of the box office guarantee, Warner is still used to using the other party.

Simon actually agreed with Warner's suggestion.

In my memory, Mel Gibson's "Braveheart", which also won a double box office award, is enough to prove that the other party is fully capable of supporting such a costume action movie.

Moreover, because it is not a sequel to a blockbuster film like "Lethal Weapon 3", as the first original film, Mel Gibson's salary will not be too high.

However, in addition to the filming of "Lethal Weapon 3", Mel Gibson has also received two other film contracts, and the schedule has been scheduled for 1993.

Simon doesn't lack the patience to wait until two years later, but Warner Bros. can't.

In the end, the original Daniel Day Lewis was contacted according to Simon's memory, and the two sides are still negotiating.

After a busy day, Simon returned to Cape Dumei Manor in the evening, and the Shell Villa was very lively.

Anthony Johnston also brought his family here this time.

Because Anthony's eldest son, Brandon Johnston, who is the same age as Simon, is actually a loyal fan of the "Batman" series, and last time he asked Simon for a Batmobile through his cousin. Since tomorrow is the premiere of "Batman: The Dark Knight," Brandon naturally wants to get a sneak peek.

In addition, there are Anthony's wife, Betty Johnston, and two daughters, 19-year-old Sylvia Johnston and 11-year-old Chloe Johnston.

Brandon had just started working in the family business, and both Sylvia and Chloe were studying in the UK, so it was summer vacation, so they were able to find time.

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