Chapter 554: The Lobbyist Arrives

The management structure of New Globe Group has been basically completed, and the specific business restructuring will be completed by February next year.

After Barry Diller and Robert Iger took office, Don also appointed several managers, such as Reed Hastings of Netflix, Dolby Laboratories Jr. Dolby Labs, Nina Jacobson of Marvel Studios, and Bob Chapek, who was in charge of travel and vacation, all of which could report directly to him by skipping the ranks.

This reflects the importance he attaches to these business segments.

Of course, he attaches the most importance to the film and television entertainment business, Bill McNick and Ron Meyer, can also report to him, and he has stipulated that every film and TV series with an investment of more than 100 million US dollars must be signed and reviewed by him before the project can be approved.

Seeing that the end of the year is approaching, in order to lower profits and pay less taxes, many companies will choose to spend a lot of money at the end of the year and make a lot of investments.

Donn has already approved four big-budget films in a row - "Spider-Man 3", "Pirate League 2", "Harry Potter 3", and "Enemy of the Machine".

It is worth mentioning "Mechanical Public Enemy".

In the previous life, this film was produced and distributed by Twentieth Century Fox.

But in this life, the appearance of Don changed the pattern.

Alex Proyas, the producer and director of "Enemy of the Machine," is an Australian who has made several low-budget films, and this is his first major production.

Because Don has a good relationship with the "Australian Gang", Alex Proas first thought of New Global when he was looking for investment.

There were also some arguments between Bill McNick and Ron Meyer about the project, with the latter believing that it was too risky to invest $120 million in an Australian director to make a sci-fi action movie!

In the end, it went directly to the chairman's office, and Tang En made a decision: "Vote!"

and personally called Will Smith and invited him to participate in the project of "Public Enemy of the Mechanic" as a starring role.

Will Smith fell out with Sony Pictures and was looking for a new partner, and when he heard Donn's call, he didn't even ask about the details of the project, so he directly agreed.

There's no way, Tang En has a strong reputation in the film field over the years!

The films he planned, directed, and produced did not have any bad films, and none of them failed at the box office!

In addition to these four confirmed films, Donn also used the "one-vote veto" to directly seal the monster movie "Van Helsing", which Universal Pictures has been working hard to prepare for two years.

This famous fiasco blockbuster, as long as Don is there, it is impossible to invest again.

However, Donn also didn't want to let the production department of Universal, which Ron Mayer has led for the past two years, go to waste, and has been informed that if other studios are interested in the "Van Helsing" project, New Universal can sell it.

After all, Stephen Sommers, the producer and director of the "Van Helsing" project, is also quite famous in the industry, creating the famous "Mummy" series.

On this day, Michael Ovitz of Legendary Pictures came to Donn's office, holding a report and looking proud.

"Got money?"

It's an old friend, and Don is very enthusiastic and casual.

Michael Ovitz laughed: "I can't hide anything from you, let's see!"

At the end of the year, many companies have a year-end summary report.

Tang En took a look, and his eyes couldn't help but light up, and he was very surprised, "Net profit...... $270 million?"

Legendary Pictures' financial statements are complex, involving too many projects from too many companies.

Don didn't look at them one by one, only looked at the results, and in the past year, Legendary Pictures has made a net profit of $270 million, with a return on investment of 21%!

"Haha!"

Michael Ovitz laughed.

Don En sincerely admired: "Amazing!"

Michael Ovitz said with a glow on his face: "As far as I know, the net profit of $270 million is even more than Paramount and Columbia Pictures, and MGM needless to say, they have been in deficit year after year." In terms of film revenue alone, even Disney is not as good as Legendary Pictures. ”

Last year, Legendary Pictures made a net profit of $90 million, with a return on investment of 12%, but that was the first natural year after all, and it was just getting started.

This year is the second natural year, and Legendary Pictures has almost completed a big turnaround!

Since leaving CAA, Michael Ovitz hasn't been this in a long time.

Looking at the whole of Hollywood, in terms of the income of the film industry alone, Legendary Pictures is second only to New Globe and Warner Bros.

At the beginning of last year, when Wall Street invested in Legendary Pictures, the valuation was as high as $1 billion, but now, the annual net profit is 270 million, and the valuation of Legendary Pictures has exceeded 3 billion!

In less than two years, Legendary Pictures has tripled its value.

Such brilliant achievements, looking at the whole of Hollywood, can only be competed by New Universal.

Of course, the biggest credit goes to Donn Walker!

Everyone knows that the biggest foundation for the success of Legendary Pictures is the "platter investment" proposed by Donn, as well as the initial $100 million he invested!

"The performance is beautiful, and it's time to go public. Tang En hesitated for a moment and said slowly, "When the economy is in a downturn, the entertainment industry is usually hot. Seeing that the bubble crisis of the Internet is almost over, it is difficult to get such a beautiful rate of return. ”

Michael Ovitz raised an eyebrow, "You want to quit?"

Tang En owns 15% of Legendary Pictures, and he thought that Tang En was in a hurry to let Legendary Pictures go public and wanted to cash out.

"Exit?" Don shook his head, "The market needs to decide supply and demand. Platter investment is so hot, Hollywood can no longer have only Legendary Pictures as a film company focusing on platter investment. ”

After hearing this, Michael Ovitz nodded again and again, "Indeed, I have also heard that there is a lot of movement on Wall Street. ”

Tang En said: "So, it is foreseeable that in the next few years, Hollywood will have mushrooms and many platter investment companies, and if Legendary Pictures wants to take the lead, it must use a lot of money to take the lead in seizing the market." Listing and financing is the best way. ”

Michael Ovitz muttered for a long time, "Well, I'll hold a board meeting when I go back and discuss it with everyone." But I'm here today, not mainly to talk about this matter, but to send you materials. ”

"Materials?"

"Aren't you fighting with Lei Shidong? I heard that he is going to use Pepsi, let me give you a reminder. ”

"Pepsi?

"Can't be careless!"

Michael Ovitz took out a new material, handed it to Donn, and said: "This is a confidential material that I personally organized, and the whole of Hollywood, only I can get it! Of course, it is also thanks to your platter investment plan that I can get the financial statements of so many film companies." ”

Don glanced at it, revealing a serious expression.

Sure enough, it's a very important material!

This is the details of the cash flow information of the global revenue of the major American studios -

1948 revenue distribution: cinemas: $6.9 billion, videotapes, DVDs: 0, pay TV: 0, public television: 0, total revenue $6.9 billion;

Distribution of revenues in 1980: cinemas: $4.4 billion, videotapes and DVDs: $200 million, pay television: $380 million, public television: $326 million, total revenue $8.2 billion;

Revenue distribution in 1990: cinemas: US$4.9 billion, videotapes and DVDs: US$5.87 billion, pay TV: US$1.62 billion, public television: US$7.41 billion, total revenue US$11.9 billion;

Income distribution in 2000: cinemas: US$5.87 billion, videotapes and DVDs: US$11.67 billion, pay television: US$3.12 billion, public television: US$10.75 billion, total revenue US$31.4 billion;

Revenue distribution in 2001: cinemas: $6.32 billion, videotapes and DVDs: $13.75 billion, pay television: $3.2 billion, public television: $10.98 billion, total revenue $34.25 billion.

Generally speaking, it is not difficult to get the old data from ten years ago with this kind of material, but it is too difficult to get the latest data.

Fortunately, Michael Ovitz is at the helm of Legendary Pictures, and he is able to deal with the major studios and get their true and accurate financial statements.

Seeing such a report, Donne's first feeling is that the proportion of the theater box office to the movie's revenue is getting smaller and smaller. This is not counting the peripheral sales of consumer goods such as dolls and commercial advertisements, and the income of the cinema chain has been reduced to less than 20% in these four traditional sectors alone.

Another point is that the income of public television is getting higher and higher, and the entire Hollywood was able to earn 10.75 billion US dollars last year through public television!

This greatly increased Donn's interest in public television networks.

It seems that the sooner you buy NBC, the better!

Only this combination of film companies and public television networks can better internal transactions, control income, and reduce taxes and accounts.

But Michael Owitz is concerned about the revenue from videotapes and DVDs, saying: "Last year, Hollywood received a total of $13.75 billion through the sale and rental of videotapes and DVDs. Of these, 35% was acquired in the rental market. And 80% of this 35% rental market revenue comes from Pepsi!"

Don laughed a few times, "Michael, you're not scaring me, are you? Do you really think I'm scared of Lei Shidong?"

Michael Ovitz said in a deep voice: "Starting next year, the platter investment cooperation between Legendary Pictures and Paramount will be canceled. But with three consecutive waves of strong suppression, you have to be careful of Lei Shidong's counterattack. ”

first "American Idol" switched to ABC, then cooperated with Disney to encircle Paramount's films, and ordered Legendary Pictures to cancel its platter investment cooperation with Paramount.

Lei Shidong can endure it!

In the current film market, the rental of video discs and videotapes is a major income!

Coincidentally, Passcard, controlled by Lei Shidong, is the boss of this industry.

Michael Ovitz's worries are not unreasonable.

There was an indifferent sneer on the corner of Donne's mouth, "When I was a small person, I dared to lead Donn Pictures and call Twentieth Century Fox and Disney." Now that I have New Universal, and partners like Legendary Pictures and Disney, how can I admit it to Viacom? Hmph, even if he monopolizes the rental market, what can he do?"

"Don ......"

Michael Ovitz was a little anxious, and as a Jew, he knew how powerful Lei Shidong was.

Tang En interrupted him with a wave of his hand, and said in a deep voice: "Okay, Michael, you don't need to say it! He is honest, if he really dares to demonstrate, then I will have a big battle with him!"

Michael Ovitz sighed, helpless.

He was entrusted by a friend to come here today to act as a lobbyist.

He knew that Don had a stubborn temper.

But he didn't expect Tang En to refuse so simply!

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