Chapter 320 Financing Reached

When he left the Ginza business district, Robert Iger didn't have the ease he had when he came, and his face was full of thoughts, after all, it was related to his future career development.

Walt Disney is huge, but the internal strife is fierce, and in the next one to two years, Roy Disney and Michael Eisner will inevitably break out into fierce internal feuds, and he, the person promoted by Michael Eisner, will stay in the island country branch for a long time, even if he can avoid being involved in this vortex.

If you stay at Disney, you can only be one of the heads of a certain department or branch.

Relativity Entertainment is much smaller than Disney, but it is growing rapidly, already has a basic production and distribution industry chain, and if he promises, he will be the chief executive.

This is a coveted business manager position.

Walt Disney and Relativity Entertainment have their own advantages and disadvantages, how to choose? Robert Iger found that Ronan Anderson had a huge problem for him.

Despite all the complaints in his heart, without Ronan Anderson's invitation, he knew that he would continue to hold on at Disney.

The temptation of this position as CEO is really great.

Robert Iger returned to the company, sitting in his office with no intention of doing his work at all, thinking about the matter and weighing the pros and cons.

This is not an easy decision to make.

Robert Iger suddenly thought that Jerry Katzenberg seems to have a good relationship with Ronan Anderson, and Embassy Pictures, a subsidiary of Relativity Entertainment, also released "Shrek" by DreamWorks Animation Studios, maybe you can ask Jared Katzenberg about the specific situation of Relativity Entertainment.

Even Robert Iger himself didn't realize that he was already biased.

Ronan returned to the Peninsula Hotel where he was staying and met with the team at the end of the day, and Scott, as the leader, gave him an update on the progress of the negotiations.

Financing negotiations with the long-term credit bank of the island nation are in the final stages of their dealings, with only a few details remaining.

This is undoubtedly good news.

In the evening, the head of the Korean branch of Embassy Pictures called and once again told the urgency of several large entertainment companies in Seoul to invest in Hollywood.

It's a pity that these South Korean companies don't have huge financial funds like the Long-Term Credit Bank, and their own strength is not very strong, and the funds that can be invested in the foundation are limited, otherwise they can pull hundreds of millions of dollars of investment from them, and they don't have to continue to fight with the islanders here.

But tens of millions of dollars of money are also meat, and they are also the help of the development of relativistic entertainment.

The next day, negotiations between the Pacific Motion Picture Foundation and the Long-Term Credit Bank continued, and Ronan received a call from Jerry Katzenberg, who had just been in contact with Robert Egger.

Although Robert Iger did not say anything tendentious to Jared Katzenberg, he began to probe the situation of Relativity Entertainment from the side, indicating that he has moved closer to the position of CEO.

Ronan is well aware of his strengths and weaknesses, as the scale of Relativity Entertainment continues to expand, the company needs a professional manager with sufficient management ability, and Robert Iger is one of the more suitable candidates for his impression.

In his previous life, Robert Iger ended Disney's internal chaos, led Disney to re-emerge, and created a situation in which the Dibao family was dominant.

Maybe Robert Iger won't be as big as a few years from now, but Relativity Entertainment isn't a behemoth like Walt Disney either.

Moreover, in the company's development direction and strategic decisions, Ronan will personally control it.

The CEO of Future Relativity will not only be responsible for the company's internal and external operations, but will also be able to make a difference in terms of expansion.

In addition to the completion of ABC TV with Michael Eisner, other mergers and acquisitions such as Pixar Studios, Marvel Comics, Lucasfilm and Twentieth Century Fox were completed under the leadership of Robert Iger.

In particular, Pixar Studios, which is a key player in the resurgence of Disney animation studios, and Lucasfilm, which has the world's largest special effects company and the largest film IP, have played an extremely important role in the deal.

Whether it was the stubborn and terrible Steve Jobs, whom Michael Eisner completely offended during his tenure, or George Lucas, the richest man in the film industry, it was Robert Iger who personally came to the door to persuade him.

Relativity Entertainment will definitely merge some companies in the future, and if Robert Iger joins, I believe it will play a big role.

Three days later, Ronan and Robert Iger met again, and the conversation quickly advanced to the power of the position and the company's development plan.

Although Robert Iger is still saying that it takes time to think about it, his attitude has completely fallen to the side of the CEO of Relativity Entertainment.

Most people choose the latter between the head of a department in one of Hollywood's big six companies and the top executives of medium-sized companies.

On the other hand, the team led by Scott also concluded the financing negotiations with the long-term credit bank of the island country, and the two sides finally reached a financing agreement that was nearly 100 pages thick.

The most critical part of this agreement is undoubtedly the amount and method of financing for the Pacific Film Foundation, as well as the investment and income of long-term credit banking.

The Pacific Film Fund launched a total of three tranches of financing to the Pacific Film Foundation in the form of interest-bearing bonds, the first tranche of financing 200 million US dollars, and the two parties formally signed the contract within one month, and the long-term credit bank injected into the foundation in two installments within four months.

The first tranche of financing lasts for three years, starting with the arrival of the funds in the foundation's account, after which the Pacific Foundation is required to repay the principal of the island's long-term credit bank bonds plus 12 percent of the interest.

This investment interest rate is also the result of negotiations between the two sides, and both Ronan and the long-term credit bank are basically satisfied.

After the first tranche of financing is fully received, the Pacific Film Fund can initiate the second tranche of financing from the long-term credit bank according to actual needs, with the maximum amount of the second tranche of financing being US$500 million and the minimum of the first tranche of financing being not less than US$200 million.

The actual amount will be adjusted according to the long-term credit bank's own financial position.

After the second phase, the two sides will cooperate on the third phase.

The agreement clearly stipulates that all the financing initiated by the Pacific Fund to the long-term credit bank can only invest in the film projects of Shahai Entertainment, but the long-term credit bank has no right to interfere with the specific film to invest in, as well as the specific work of investing in and producing and distributing the film.

The long-term credit banks of the island countries have no intention of intervening, and they value the return on investment.

This is the main clause of investment and income, and there are too many clauses in terms of details, there are hundreds of clauses, and the formal contract is enough to be nearly 100 pages.

For example, in the event of a dispute between the two parties, Los Angeles will be used as the place of contract enforcement.

The islanders have invested in the United States for many years and are very familiar with the United States, and they are not afraid of a cross-border lawsuit with American companies.

In addition, if the Pacific Film Fund fails to complete the repayment of the first tranche of financing on time, the long-term credit bank has the right to unilaterally suspend subsequent investments.

The Pacific Film Foundation's financing agreement with the island's Long-Term Credit Bank addresses the budget most needed for Relativity Entertainment's film production program, and also allows Ronan to devote more money to Netflix.

This would be an effective way to drive Ronan's overall plan.

When the investment agreement was officially signed, Ronan was in a very good mood, but he also maintained enough vigilance without swelling.

In the final analysis, even he can't ignore the risks of film investment.

For a commercial film, there is a huge investment in production before the revenue stream is obtained, there are uncertainties in the production process and the delivery of the film, there are risks in the purchase and market in the distribution, and there are still risks in the final market performance.

In addition, considering the creative work required in the planning, production and distribution stages of films, as well as the extremely difficult and complex division of labor and cooperation among many filmmakers, there is also a great risk of conventions in films.

And most crucially, the film market is sometimes really hard to understand.

Even in Hollywood, there are only a handful of film projects that can move from planning to actual preparation, and not all of them can get the desired distribution scale, and even fewer of them can make money.

In order to achieve this financing, Shahai Entertainment has played a considerable role in the huge fame accumulated through the continuous success of the film.

Before 1998, financing of this scale was simply unimaginable for Shahai Entertainment.

It has to be said that, just like the previous Shahai Entertainment, the vast majority of companies in the Hollywood industry are small and unstable, with poor creditworthiness, resulting in extremely low financing capabilities.

This is a common problem in the industry.

The film industry lacks sufficient entry points and career channels, and most of the unconventional companies that pour in may be full of confidence and talent, but they are very unreliable in the actual operation of film projects.

The status quo in Hollywood, the more unconventional and talented people are, the faster they tend to die.

"Mr. Anderson, happy cooperation!"

In the business reception room of the long-term credit bank of the island country, Takuya Matsubara took the initiative to stand up and shake hands with Ronan after signing the contract: "I believe this is the successful beginning of our long-term cooperation!"

Ronan also signed the contract, stood up and shook hands with Takuya Matsubara, saying, "I am very happy to be able to enter into a strategic cooperation with Long-Term Credit Bank. ”

Both laughed at the same time, as if they were both very satisfied with the collaboration.

Takuya Matsubara shook hands with Ronan's team one by one, and Ronan courtesically shook hands with the executives of the long-term credit bank who participated in the signing ceremony.

"Mr. Anderson, we have a cocktail party for tonight. Takuya Matsubara said to Ronan, "In addition to our people, many people in the local entertainment industry also want to know Hollywood guests. ”

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