Chapter 460: Funding Gap

At this time, Du Caige was sitting in the office and worried.

Worrying about money can be questioned.

Dream Entertainment is now facing a large funding gap.

Because Dream Chase Mutual Entertainment cautiously dispatched a large number of investigators, it discovered many questions hidden by Starlight Cinema in time.

Of course, it cannot be said that the other party is dishonest and deliberately buries the pit.

Because the valuation provided by the other party is not falsified, and the equipment is not falsified. Of course, there was no fraud in finances, and there was no fraud in the 120 million debts that were carried.

The key is that the management of Starlight Cinema has been rotten, in recent years, they have been working up and down, hiding from the world, selling peanuts and peripherals, etc., at least making the company lose more than 100 million yuan every year, making the two major shareholders suffer a lot of dumb losses.

And the contracts of these management are very pitiful, and it takes a lot of money to dismiss them.

It is not easy to buy the scattered shares in their hands, they inevitably take advantage of the fire to rob, and the lion opens his mouth.

Another issue that cannot be ignored is that the real estate leases of Starlight Cinema in many cities are pitted.

Of course, this can be solved, but it also requires a lot of manpower and material resources and a lot of costs.

Originally, Tianyi Entertainment and Oriental Culture Company were willing to sell 61% of their shares at a price of 400 million, and they also had to take on a debt of 120 million yuan for Dream Mutual Entertainment.

This price is actually quite favorable.

During the previous internal discussion, the senior executives of Dream Mutual Entertainment even felt that it was worth spending no more than 600 million yuan to buy the 61% shares.

However, now it seems that if the hidden costs are counted, 400 million to buy shares, 120 million debts, and at least 100 million to solve the hidden costs of the lease.

Then a total of about 14% of the shares will be recovered from the management, and together with the severance pay, the other party will open his mouth for almost 270 million.

In this way, to get 75% of the shares of Starlight Cinema, you need to spend 890 million.

It is also necessary to gradually withdraw all the shares in the future.

In addition, all the theaters will be updated and upgraded, if you want to get all the IMAX screens in one step, and half of them will be replaced with 3D IMAX, plus supporting playback equipment and audio, and then update the seats.

There are a total of 76 theaters in the country, and 310 million are needed.

Then in terms of Starlight Cinema, it is necessary to come up with almost 1.4 billion in cash.

However, this investment is really cost-effective.

When the renovation and upgrading are completed and replaced with excellent management, the annual income of this cinema chain will be quite high.

Even if the costs of equipment maintenance and depreciation, operation and management costs, labor costs and real estate rent are removed, the net profit will be estimated to reach 220 million to 280 million.

Net profit!220 million!

Compared to what dreams are paid for mutual entertainment, this return is already quite amazing.

It only takes 6 or 7 years to pay for yourself. The rest is pure earned.

With a return of more than 15% per year, this is really an investment project that will be broken and scrambled.

What's more, it can also allow the company to have a cinema in its hand, and it will not be embarrassed by people because of the cinema.

Why don't you do this business!

However, the funds on the books of Dream Chase Mutual Entertainment are now 530 million.

And then there are several film and television projects to invest in.

The company's top management also hopes to increase their stake in the "Sword and Shadow" special effects company.

In addition, Du Caige's proposal to acquire an animation company, although it has not yet been passed, Du Caige is confident that it will be passed.

And his target animation company ...... Even if you only acquire 51% of the shares, there is no 5-800 million, you don't even think about it.

So of course, you can't spend 1.4 billion at once to acquire Starlight Cinema at this time!

No money, it's as simple as that.

But it doesn't matter.

Whether it is Rouzhi Investment, or Dahua Zitian, Donglai Entertainment or Jiutian Media, they are happy to continue to make additional investments.

Just exchange the shares.

But neither Duan Xiaochen nor Du Caige agreed to continue to dilute their shares.

So the current situation makes Du Caige and Duan Xiaochen a little nerve-wracking.

Now is the time for the company to expand rapidly.

And Du Caige is also confident that through the movies he made, the scripts he provided to the company, and the high-quality songs he provided to the company, the company will blossom in film and television and music, and make many profitable works.

And not only to make money from works, but also to create well-known artists one after another at the same time, and make money through these artists.

If nothing else, let's just talk about "Love Apartment" that is preparing for filming, as long as Du Caige keeps an eye on the point and ensures the quality of production, how many artists can become popular!

Du Caige actually thought about writing the script of "Wulin Gaiden" at that time.

But when I actually wrote it, I found that many stalks were inconvenient to replace, such as those famous characters, the names of those martial arts, and the names of divine weapons.

You are talking about the white-clothed "Sword God Ximen Blowing Snow" in this Azure Star, he is not blowing snow, but blood, and talking about the "decisive battle at the top of the Forbidden City", Lu Xiaofeng with four eyebrows.

When it comes to how high the force value of the sweeping monk is, who is stronger between him and Dongfang Undefeated......

People here don't understand.

So for the time being, he did not carry the script of "Wulin Gaiden".

Anyway, there are quite a few excellent scripts he remembers.

When the time comes, there are plenty of options for each theme.

Military themes can learn from "Bright Sword", "My Regiment Commander, My Regiment", and "Soldier Assault", although the history of Azure Star and the earth is different, but it is always okay to learn from it.

Medical theme, "Mental Art" written by Liuliu is also very good, and it can also remake several medical films from Japan and beautiful countries, such as "Benevolent Doctor", "White Tower", "The Story of the Emergency Room", "Anatomy Gray" and "Doctor House", it is not difficult to adapt them into Chinese culture, these are enough to entertain each other for many years.

There are more emotional things in life.

For example, now, the housing prices of Azure Star have also become a pain point for many people, and "Snail House" written by the author of "Heart Art" is a good time for the world, is it okay to shoot "Snail House"?

There are also many spy war dramas, costume dramas, palace fighting dramas, and martial arts fairy dramas, Du Caige was a very hard student back then, and he watched all those hit dramas.

Excellent American dramas and British dramas, such as the top 50 American dramas on Renren Film and Television, and the top 20 British dramas, Japanese dramas, and Korean dramas...... Those excellent works that have been crossed countless times, I'm sorry, he has seen them all, and he can copy them.

I have watched no less than 700 movies from the three regions of the Taiwan Strait, South Korea, Japan, India, Europe and the United States combined, and some of them have been watched seriously and repeatedly.

He doesn't even have time for his girlfriend/wife, and he doesn't play games much, and every day in addition to reading books, he watches movies and dramas, and others find it boring, but he enjoys himself.

And the dedication at that time not only allowed him to successfully become an excellent young director, but now it can also provide him with sufficient ammunition.

"Latent", "Langya Bang", "Yanxi Raiders", "Ruyi Biography", "Three Lives and Three Worlds", ...... In short, Du Cai singers don't worry about script resources at all.

Not to mention, from now until 20 years from now, it is completely unquestionable to provide 5 high-quality TV drama scripts to Dream Mutual Entertainment every year, plus 5 excellent movie scripts.

Although he doesn't shoot the scripts he has brought in, and he is not interested in making TV series, it is enough to use these high-quality scripts to build Dream Chase Entertainment into a top entertainment company in the industry in the hearts of Azure Star people, "Dream Chase Production, it must be a high-quality product", and he made money standing and earning money.

But that's all for the future.

You said, in the past 20 years, I have made 5 high-quality TV series every year, and I can earn 300 million yuan a year.

But I can't shoot 100 high-quality TV series in 1 year and make 600 million, right?

Eat the rice one bite at a time.

Do you want to eat a year's worth at a time?

Hold on to death and pull down.

Therefore, the prospect of dream-chasing mutual entertainment in the future is very good, outsiders are optimistic, and Du Caige is naturally full of confidence.

But none of this can be monetized.

If someone lends a billion, two billion, to the company with the phrase "I, Hemingway, play money", it would be great.

There is no way, the money is not enough, and things have to be done, so you can only be careful with your budget.

After several meetings and discussions, the decision made so far is this.

According to the priority of the event, Starlight Cinema is to be acquired first.

First acquired 61% of the shares from Tianyi and Dongfang, and then repaid the principal and interest on a monthly basis with a debt of 120 million yuan.

The severance pay of the original management was paid immediately, and then the 14% stake in them had to be bought and the bank had to take out a loan.

With the current volume and assets of Dream Chasing Mutual Entertainment, there are not too many loans.

CFO Gong Liuru found several banks and finally determined that he could borrow 240 million.

Acquired 61% of the shares of Starlight Cinema, and the final negotiated price was 375 million.

Severance pay, plus the acquisition of a 14% stake, will cost a total of 268 million.

The upcoming "Crazy Stone" company will invest 4 million, and the "Detective Chinatown 1" company will invest 12 million, of which more than 6 million must be received in the initial stage.

These two films are small heads and can even be ignored.

Then those TV series, "Love Apartment", "Zhu Xian", etc., have a total budget of 140 million, and this money has to be set aside.

The highlight is Shu Yihuan's "Wudang", this movie has promised Shu Yihuan, and even signed a contract to invest 150 million, and at least 100 million will be received in advance to set up scenes, make props, and pay actors' salaries.

What's more, if you want to meet Shu Yihuan's requirements and build a palace complex of the Wudang faction, then you can't take another four or five hundred million.

Let's start with the number of "100 million".

Then the company has to keep about 20 million cash on its books to pay salaries.

Calculated this way: the company's cash of 530 million plus the loan of 240 million is 770 million.

minus the 645 million related expenses of Starlight Cinema, minus the upfront investment of 100 million for "Wudang", and minus the budget of 150 million for several TV series and movies......

Not to mention keeping 20 million cash flow, this whole is negative!

There is still a gap of more than 100 million!

Also, even if the 300 million yuan for upgrading the theater can wait until next year or even the year after next, the lease problem can be solved, and another 100 million must be invested immediately!

In fact, if the company conducts a round of capital increase and increases capital according to the proportion of shareholdings, Du Caige still has some money to invest, after all, in recent months, his various incomes have also been quite high.

, music, that's a steady stream of copyright income.

He can still afford tens of millions.

But the question is Duan Xiaochen, there is really no money.

It's a headache just thinking about it.

In fact, if he is cheeky and goes to Yan Yingzhen to borrow money, or if he doesn't look for Yan Yingzhen and goes to Cai Wei to borrow money, he can borrow it...... Zhizhen Culture has money.

But, you really can't be too cheeky.

So, where do you go to get the money?

He thought of Su Manqian's visit before, and said that he wanted to take out 100 million yuan to acquire a part of the equity of Dream Chase Entertainment, and then she pulled several famous artists to build a studio together, and the studio was attached to Dream Chase Entertainment, and a certain percentage of equity exchange was carried out with Dream Chase Entertainment.

Du Caige rejected the former proposal on the spot, but said that he would consider the latter proposal.