Chapter 379: T-Pix Inc

When Yang Jie saw this material, he couldn't help but sigh a little, no wonder Lionsgate can become the most successful independent production company in the future, no wonder Lionsgate's sense of smell is always so good, and he can always succeed in making a small profit, this Jon who was poached by Natasha from Lionsgate Film Company is indeed very capable.

Lionsgate always pays attention to these small film companies and small-budget films, they pay attention to and analyze the success and failure of small-budget films, and their understanding of the market is very high, forming a set of mature rules and standards for their own film selection.

Yang Jie also advised Natasha not to choose those small companies with debts, filtered out a lot of companies, filtered out, these companies don't know how much money they owe to the bank, Natasha wants to buy a company There is no need to pick up this kind of mess.

There are more than a dozen financially healthy companies left, some of which only have a production system and do not have a distribution system; some companies have their own distribution systems and distribution channels, which can produce films independently and then negotiate with the theater chain for screening, but they often can't compete with the company, and the theater chain is not willing to show their small-budget films, and will only arrange some dilapidated movie theaters for test screenings first, and most of the time they will end up in box office failure.

It's not difficult for a company to build its own distribution system, but having more of this system means that the company has a lot more parts and a lot more employees. It includes the part responsible for the copy business, they have to do a good job in the copy processing, storage, transportation and other work of a movie, and the screening business part, they have to deal with the theater company, and also do a good job in various means of transportation, and various occasions and other non-cinema screenings, as well as administration, system and sales operations and so on.

With more distribution systems comes a lot of overhead, which can be fatal for small studios at any time. Therefore, many small companies only produce films, and when the film is made, they will look for distribution companies to cooperate with when it is released, and they do not need to pay publicity fees, and they do not need to pay for copying, transportation, and other distribution costs.

When the movie makes money, they make less money, but if the movie loses money, they will lose less.

Natasha Blue didn't want these companies with distribution systems, but Yang Jie still hoped that she could buy a company with distribution capabilities, anyway, he was not short of money, and he didn't want Natasha to be verbose with those distribution companies in the future, so as to persuade them to help with the distribution.

In the end, Yang Jie also took a fancy to a limited company called "T-PIX Entertainment".

Founded in 1993, the company has no debt, has produced several small-budget films, and has also had a distribution business, so far it has released dozens of small-budget films, but these films are some non-influential works, some are launched in cooperation with video tape and DVD distribution companies, and a few have been shown in movie theaters, but on the basis of test screenings, they have failed to draw pictures after a week of test screening, and these films obviously did not bring much profit to T-Pix.

The company's current means of making profits is to purchase some low-cost R-rated movies, such as "Sisters of Love", "Seeking Sex" and other films, and then release videotapes and DVDs to earn a very small profit to keep expenses, so there is no debt so far.

This year, the company also launched a self-made R-rated movie "Once Upon a Time in the West Side", but this movie, which they pinned on to watch it, was tested in 23 theaters in the first week, and only received 61,500 box office, and only 147,700 in two weeks of screening, which was a heavy loss.

Chris Lynch, the chairman of T-PIX, was suddenly depressed and had the idea of selling the company.

This company's finances are very healthy, relying on the existing copyright income, Weiqu can maintain a balance of payments, has production experience, and has the ability to distribute DVDs and contact theater screenings, which really makes Yang Jie and Natasha a little moved.

In Yang Jie's memories of his previous life, he had never heard of this company producing famous movies, but he was not worried about it, he still had the copyright of Tom Clancy in hand, and after acquiring this film company, putting these on the screen was enough for the company to make a lot of good works.

Jon was then approached by T-Pix, and the board of directors did have an interest in selling the company.

Chris Lynch, the founder of the company, is in his fifties, made some fortune as a furniture retailer, and a few years ago enthusiastically founded T-PIX, which began to devote himself to the film industry, and the results continued to suffer, and he also had the idea of quitting after the recent box office failure of "Once Upon a Time on the West Side" with a $2 million investment.

When Jon approached him, he made it clear that he would sell 85% of his stake in the company as long as the price was right, and that 15% would be scattered to some of the smaller partners, and he could help convince those partners if Natasha wanted to buy it out.

As a result, the acquisition team obtained the financial statements of T-PIX, which clarified the company's income and expenditure, all claims, debts and assets.

Natasha also asked a professional accountant to make an audit report on the statement, and after concluding that there was no problem, the asset appraiser began to conduct a comprehensive valuation of T-Pix.

The things to be valued include office chairs, desks, televisions, etc., and some camera equipment that is not new, and T-Pix does not have precious film cameras and the like, and when making movies, those precious things are rented out.

The company only has cheap things like camera rails in its arsenal, but it still has valuable intangible assets — copyrights to hundreds of films, business relationships, etc.

The appraiser made the whole T-PIX a few days ago, and only made an appraisal report yesterday, and the approximate value of the T-PIX is about 2.5 million.

This company is a high-quality company, although it can only maintain a balance every year, and the profit is only a few hundred thousand, but they have at least no debt, but this year's "Once Upon a Time in the West City" caused the company to lose nearly one million, and the hundreds of thousands of profits are not worth the number, if there is no new capital injection this year, this company will either go bankrupt or be in debt.

After reading the evaluation report, after Yang Jie and Natasha discussed with the acquisition team, they officially made the first offer to T-PIX, 1 million, a wholly-owned acquisition. This starting price is not very low, nor is it high, T-PIX's valuation of 2.5 million deducts its loss of about 700,000 this year, and the market value should be around 1.5 million to 1.8 million.

Yang Jie and Natasha both have the money on hand, but business is business.

"No, if you want to buy it wholly, you have to pay 3 million!" Chris Lynch said.

"Mr. Lynch, do you think we're countrymen who have just left the city and haven't walked into the cinema yet?please!3 million?!" Jon, who was in charge of the negotiations, spread his hands angrily, "If we want 3 million, why don't we set up a new company?" Look at these copyrights of yours, Mr. Lynch, please tell me, is it really worth three million?"

Chris Lynch put down his glasses, his lips moved, but he couldn't speak.

Jon was also quiet at this time, and his tone was sincere: "Mr. Lynch, you know, there are too many film companies in Los Angeles, we can even find a random company that is going to fail, and then stand at the door of their company to recruit people, but we didn't do this, presumably Mr. Lynch also saw our sincerity." We're not buying your movie rights, we're buying the experience of this company, and you don't want to see these people fall into unemployment with your staff, do you?"

He stared at Chris Lynch and said, "Mr. Lynch, everyone be honest, 1.5 million." ”

"I'll think about it......" Chris Lynch frowned firmly, a look of struggle on his face.

Jon quietly gave Yang Jie and Natasha next to him a look, signaling "It's done."

In fact, Natasha also communicated with Jon and others before negotiating, and the maximum acquisition amount this time is 2 million, if it exceeds this number, then they might as well establish a new company.

After almost half a day of tug-of-war, the two sides agreed on the purchase price in the afternoon, Chris Lynch and the partners got 1.8 million, and Yang Jie and Natasha got 100% of the shares of T-Pix.

As for the T-Pix blueprint video library, Yang Jie and Natasha also decided to register a shell company as a subsidiary, silently continuing to earn the copyright fees of those R-rated films.

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