Chapter 335: Suspension of negotiations
After Warner Pictures finished watching the film, it unanimously passed the review of "Forrest Gump" and started negotiations with Crown on overseas distribution.
John did not participate in the negotiations, but told Nancy the bottom line, leaving Nancy solely responsible.
And Warner Pictures sent Vice President Hobert Harris.
Hobert Harris and the Crown are old acquaintances, and he also led the team to the Crown during the screening.
But familiar to familiar, the two sides will not be merciful because they are familiar, every penny negotiated in business negotiations is net profit, businessmen get up early and greedy, buy low and sell high not just for profit, no one will pity the opponent at this time.
At the beginning of the negotiation, the conference room was filled with the smell of gunpowder, and the two sides fought fiercely, lined up, and fought as soon as they came into contact, regardless of their identity, like an aunt in the vegetable field, you come and go.
"Our negotiations are based on buying out overseas copyrights, otherwise there would be no need to continue talks. "Hobart Harris set the tone from the start.
Among the seven major film and television companies, only Warner is willing to take over, which is Warner's advantage and its confidence, so Warner, who has the initiative, naturally wants to take advantage of the fire to rob and eat the overseas copyright of "Forrest Gump".
"We agreed to sell overseas rights to Warner. It's just that how much is Warner willing to pay?" There is no way to sell overseas rights to Warner, Nancy did not dwell on this issue, but asked the core question, price.
"We're willing to pay $60 million. ”
"What! 60 million dollars, why don't you Warners go to rob the bank? This amount has just been offset by the investment money, do you think this amount is possible?" Nancy patted the table and said, "160 million dollars is about the same." ”
"This can't be! Are you dreaming?" Hobert Harris looked at Nancy viciously and said: "President Josephson, you must know that "Forrest Gump" is not an A-level blockbuster, nor is it an action movie or science fiction film that the audience likes to see, it is just a literary and artistic romance film, how much box office do you think this type of movie will have? Will there be 300 million? In Hollywood, the box office of this type of movie does not exceed 200 million US dollars, and we will pay 60 million US dollars to buy it, which is a great risk. ”
"Don't tease President Harris, the box office of a movie only accounts for 30% of the total revenue, why don't you count the surrounding and licensing? The soundtrack record alone is a lot of income, the soundtrack record of "Stealing Love" has earned 40 million US dollars so far, the soundtrack record of the movie "Forrest Gump" is even better than "Stealing Love", plus the influence of Michael Jackson, the income is definitely more than 40 million, and this is permanent, and there is a video market, "Forrest Gump" I can't guarantee that I will participate in the Oscars, but a Best Picture nomination will definitely not be able to run away, and I don't need to say how much benefit this is for videotape sales, you should also understand. So 60 million dollars is absolutely impossible. ”
The two sides will fight for every minute, and no one is willing to make too many concessions, so it has lasted for 2 months and no preliminary opinion has been reached, mainly because the bidding gap between the two sides is too large, Warner Film and Television relies on the initiative, mainly no one fights with it, so it desperately lowers the price, and after shouting to 80 million US dollars, it refuses to add.
For this price, John definitely can't agree, the overseas box office of "Forrest Gump" in the previous life was 360 million US dollars, and 80 million US dollars will be sold unless the head is caught by the door.
"Boss, what do we do now? Warner has no opponent, has the initiative, and looks like it's going to eat us. ”
Nancy sat on the couch rubbing her temples, tired from negotiating with Warner. The main reason is that no one competes with Warner now, so Warner does not give in to his exclusive status, and looks like he loves to sell or not, which makes Nancy very aggrieved and passive in the negotiations.
"Since we can't talk about it, we will stop talking about it for the time being, and we must not do loss-making business anyway. After the North American box office results come out, I will talk to Warner. John originally wanted to release it globally, but now he can't negotiate with Warner, he can only release it in North America first, and when the box office results come out, he will take the initiative in his hands, and then he will not be afraid that Warner will not increase the price.
"But it's very risky?" Nancy was a little worried, waiting for the North American box office results to come out, although she could take the initiative, but the risk was very large, and the box office results were good, but if the box office results were not satisfactory, it would be even more passive.
This is like gambling on a stone, no one knows what is going on inside before it is cut, whether there is green or not, so everyone is shouting with experience, and who loses is competing for personal eyesight. But once it is cut, it is clear what is going on inside, if there is green, the seller will naturally make a lot of money, but if there is no green, then it will have to be smashed in the hand, so although the cut and sell is more profitable for the seller, it may also lose a lot.
"Rest assured, I have confidence in Forrest Gump. John swore by it. For a person who knows the future, it is like having an unlimited cheat, and it is natural to dare to gamble.
"Well, I'll tell Warner Pictures to suspend negotiations. Nancy didn't say much, she would definitely persuade a few more words before, but now that she knows John's identity, she feels that there is no need, the Morgan family is not short of these money, and it doesn't matter if you earn or lose, the main thing is to save face, Warner Film and Television with no one to compete with it, and actually take advantage of the fire to rob, if you agree, the overseas distribution will not be eaten by the seven major film and television companies in the future, so if you can't let it, you will naturally not let it.
After Nancy returned to ICM, she immediately called Warner Pictures and suspended the negotiations, and the people at Warner also knew that John did this just to wait for the North American box office to come out and take the initiative to negotiate, for John's move, Warner also raised his hands in agreement, mainly because they couldn't eat "Forrest Gump", this type of film did not exceed $200 million at the box office in previous years, so they also wanted to see how the box office in North America was, and then make a price, so that although they earned less, at least the risk was low.
"How much do you think Forrest Gump will do at the North American box office?" asked Jeff Robinoff, sitting behind his desk in Warner Pictures President's Office, looking at Hobert Harris, who came to report. The main thing is that John's actions surprised him, he didn't understand where John got the confidence, and he dared to wait until the North American box office results came out to talk about it, films of this type like "Forrest Gump" generally do not have a high box office, this kind of film is only suitable for the awards season, but even if it wins the Oscar for Best Picture, it will not help much at the box office.
"I don't expect it to be more than $150 million. Hobert Harris replied that this is also the figure given by Warner Market Analysis, so in the negotiation with Nancy, Hobert Harris said that he would not raise the price after shouting 80 million dollars.
The division of overseas theaters into each country is different, but on average, it is basically about 60%, so if the box office of "Forrest Gump" is 150 million US dollars, then Warner can only get about 60 million US dollars, excluding the distribution of 30 million US dollars and miscellaneous costs, Warner only gets 30 million US dollars at most, and if you want to make money, you mainly rely on the periphery, according to the surrounding area accounting for 70% of the total revenue, Warner can get about 100 million US dollars at most on the periphery, so "Forrest Gump" The film Warner is expected to earn $130 million, and after deducting the 80 million in royalties, it is expected to make a net profit of $50 million.
"If Forrest Gump grosses more than $150 million at the North American box office, raise the bid by $20 million. Jeff Robinoff made the final offer, of course, he must have made this price with bad intentions, you must know that as long as the copyright of "Forrest Gump" is in Warner, the surrounding income is permanent, and it will eventually become a huge number over time. But the premise is that Warner wants to win the copyright, so if "Forrest Gump" has 150 million at the North American box office, then Jeff Robinov doesn't mind paying an extra 20 million to win this cash cow.
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