Chapter 572: No Dead Heart
As Robert Iger and Emile Marin agreed on the most critical offer, the negotiations between Relativity Entertainment and Artisan Pictures quickly entered the fast lane, and after a tug-of-war negotiation, the two parties signed a formal acquisition agreement.
Relativity Entertainment acquired Artisan Pictures for $370 million, and the payment was made in three installments in two months!
In fact, Relativity Entertainment itself does not need much money, according to the agreement with DreamWorks, only 35 percent of it, or $129.5 million, will be paid.
The remaining $240.5 million was raised by DreamWorks.
After the completion of the acquisition, Relativity Entertainment quickly divested the rights of the film library and script library, and began to prepare to hand over other businesses to DreamWorks.
In this regard, Ronan and Relativity Entertainment have a good reputation in the industry.
Although it didn't take long for DreamWorks to get the global distribution business that Spielberg dreamed of, life was not easy, and the huge amount of money raised made DreamWorks have to tighten its belt to operate next.
Fortunately, DreamWorks is not very good, but Spielberg has an excellent personal credit, otherwise even a loan would be a problem.
In addition, DreamWorks voluntarily abandoned the North American distribution business of DreamWorks Animation Studios, and after the three-way talks between Embassy Pictures, DreamWorks and DreamWorks, Embassy Pictures officially became the North American distributor of DreamWorks Animation Studios.
Since Embassy Pictures has been doing overseas distribution for DreamWorks Animation Studios before, this means that Embassy Pictures will serve as the global distributor of DreamWorks Animation Studios for some time to come.
For example, the two animated feature films "Shark Gang" and "Shrek 2" released this year will also be distributed by Embassy Pictures in North America and overseas.
Relativity Entertainment successfully obtained the copyrights of nearly 7,000 films, and finally established a film library in the true sense.
With the same library resources, these nearly 7,000 films can only bring more than $12 million in revenue per year in the hands of Artisan Pictures, but on the platform of Relativity Entertainment, it is not too easy to double.
The operation of the film is not only related to quality, the platform is a more critical factor.
If nothing else, Netflix has nearly one-third more film licensing.
As for the distribution business of DreamWorks Animation Studios, "Shrek 2" needless to say, North America alone can make the distributor make a lot of money, and there are films such as "Madagascar" later.
The $400 million that Relativity Entertainment had prepared only cost a fraction of the money, and Ronan thought of the Death Star Building, where Shahai Entertainment's post-production studio was located, and asked people to contact the property owners to prepare for a one-time buyout of the building, which would serve as the headquarters of Relativity Entertainment, Embassy Pictures, and Shahai Entertainment.
The building isn't too big, but it's not smaller than the Fox Tower, also in Century City, and is expected to sell for more than $200 million.
As the scale of Relativity Entertainment grew, so did a corresponding headquarters building.
The just-completed Death Star Building can be said to be a good choice, and if you can get it, it will naturally be renamed the Relativity Building.
Relativity Entertainment took over Artisan Pictures, Lionsgate did not die down, and Frank Gusta's eyes immediately turned to Summit Entertainment.
Founded in 1993 and headquartered in Santa Monica, California, Summit Entertainment is also a medium-sized independent film production company in Hollywood, and its most famous film is the American Pie series.
But the copyright of this series is shared with Universal Pictures.
As soon as Lionsgate contacted Summit Entertainment, Ronan asked Robert Iger to follow up, not intending to compete with Lionsgate, but Summit Entertainment also has a film library, and if they are willing to sell, Relativity Entertainment will of course buy it.
As soon as Relativity Entertainment made a move, Frank Gusta came to visit in person.
Since Robert Iger was on a business trip, Ronan personally received Frank Gust.
"Congratulations, Ronan. Frank Gusta laughs and says, "The scale of relativistic entertainment has expanded again. ”
Ronan didn't have much friendship with him, and said calmly, "Thank you." ”
Frank Gusta glanced at Ronan, although the other party may not be half his age, he didn't dare to despise it at all, and faintly regretted it.
But he didn't regret it, and said: "Relativity Entertainment got Yijiang Pictures, it will take a while to digest it, right? Why did you suddenly set your sights on Summit Entertainment again." ”
Regarding Lionsgate, Ronan heard Robert Iger say it, and he didn't bother to go around in circles at this time, and said directly: "Relativity Entertainment needs to build a film library, and Summit Entertainment has thousands of movie copyrights in its hands, which is urgently needed by Relativity Entertainment." ”
Summit Entertainment's production and distribution business is currently far inferior to Artisan Pictures, and Relativity Entertainment is not interested at all, all it wants is a film library.
Without warning, Frank Gusta said, "We can join forces to acquire Summit Entertainment. ”
Ronan glanced at Frank Gusta and said, "You talk to Robert Iger about this." ”
Frank Gusta had rejected Robert Egger before, and now he took the initiative to come to the door, of course, to let Robert Iger have a good talk with him.
Frank Gusta said: "I'll get in touch with Bob when he comes back. ”
Relativity Entertainment stepped in, and Lionsgate wanted to buy Summit Entertainment at a low price, and there may not be anything at all.
Ronan had already stood far higher than Lionsgate, smiled, and said, "I guess Bob will be back in Los Angeles next week." ”
Frank Gusta also smiled back and turned the conversation to something else: "Ronan, I remember Bob saying that the reason why Relativity Entertainment bought Artisan Pictures was because of the library rights, but Artisan Pictures is not only the library rights, but also other businesses. ”
Although it is a little embarrassing to say now, this small face problem will not be a problem at all in front of the company's future: "Can I take the liberty of asking, how do you plan to deal with the other businesses of Artisan Pictures?"
The agreement signed by Relativity Entertainment with DreamWorks has not been publicized, and the related asset divestitures and business handovers have just begun, which is not very clear to most people outside.
Ronan understood what Frank Gusta meant, and asked, "Lionsgate is interested in this part of the business?"
Frank Gusta smiled, there was no embarrassment in his smile, and there was no embarrassment: "This part of the business seems to coincide with the existing business of Relativity Entertainment, if Relativity Entertainment does not need it, can it be transferred to Lionsgate? Of course, Lionsgate will definitely give a satisfactory price, so that Relativity Entertainment can not only get the film library, but also convert the excess business into funds, Lionsgate and Relativity win-win." ”
It's a beautiful thing to say, as if the rejection of Robert Iger's collaboration had never happened.
Ronan said lightly: "Actually, Relativity Entertainment is also planned like this, and we are divesting people and business ...... outside the copyright of the film library."
Frank Gust's heart was so moved that he felt like he had arrived in heaven, and without waiting for Ronan to finish speaking, he rushed to say: "Lionsgate is willing to pay $200 million to buy this part of the business." ”
"Listen to me?" Ronan continued, "Relativity Entertainment has reached an agreement with DreamWorks to sell it as a package. ”
Frank Gusta fell from heaven to hell in an instant, and couldn't help but say, "Sold to DreamWorks?"
Ronan smiled and said, "The agreement has been signed. ”
Frank Gusta's heart was cold, this trip to give up face and run away in vain?
But how long has it been since Relativity Entertainment reached a transfer agreement with Artisan Pictures?
Frank Gusta didn't give up, and tried his best to fight: "Ronan, how much does DreamWorks bid? Lionsgate can offer a higher price than DreamWorks! 10 percent more! No, 15 percent!"
Ronan shook his head and emphasized, "Relativity Entertainment has signed a formal agreement with DreamWorks. ”
Frank Gusta followed suit and said, "Lionsgate can bear the liquidated damages. ”
Ronan said slowly but firmly: "Relativity Entertainment pays attention to credibility, and we will not lose our trust to others. ”
Frank Gusta was about to say something, but Ronan raised his hand to interrupt him: "That's it, Mr. Gusta, there's no need to talk about this matter, if you want to talk to Relativity Entertainment about cooperating with Summit Entertainment, please contact Bob when he returns." ”
Seeing that Ronan was so resolute, Frank Gusta didn't say much, and after a few polite words, he took his leave and left Relativity Entertainment.
On the way back to the car, he was a little remorseful, he had known that he had cooperated with Robert Iger!
The film library is very important, and the distribution channel is also very important! At that time, I wanted to take it all, but I got nothing.
Lionsgate simply can't grow because of its lack of distribution capabilities, just look at Spielberg's Dream Works.
Frank Gusta suddenly had a feeling that he might have missed one last chance for Lionsgate because of his greed.
But regret is useless.
Frank Gusta took out his phone, found Robert Iger's number, dialed it, and when it was connected, he said with an unusually hearty smile: "Bob, it's me, Frank." When are you going back to Los Angeles? I invite you to play golf......"
Hanging up the phone, Frank Gusta realized that Lionsgate would have a hard time catching up with Relativity Entertainment.
The business handover between DreamWorks and Relativity Entertainment has begun, and although it is quite troublesome to inventory and evaluate assets, sort out distribution channels, and appease the original staff, Spielberg seems to be twenty years younger, and he is full of energy every day, and he doesn't have the feeling of back pain and leg cramps.
Artisan Pictures was originally a normal company, and Spielberg was confident that the resources of Artisan would be initially digested within half a year, and then DreamWorks would be able to release films in most of the world's film markets.
The most important thing is that DreamWorks has the confidence to face Paramount Pictures.
Spielberg's quick communication with the South Korean side about the imminent establishment of a global issuance business also reassured the Korean shareholders.
Then, there is Shirley Lansing, who comes to the door.