The average hedge fund has an internal rate of return of only 12%-18%, but in the past five years, Columbia Pictures, the worst of the six major Hollywood companies, has returned 14%-23% on its investment in movies!

This is far more convenient, concise, stable, durable and more efficient than the frequent operation of hedge funds in the stock market, futures market and bond market!

Seeing that Michael Ovitz was moved, Donn was in a good mood and said slowly: "In the past ten years, the box office in the United States has increased by 52%, and the overseas box office has increased by more than three times! And with the development of technology, the income sources of Hollywood movies will become more and more extensive, and the considerable return on investment will definitely impress many hedge funds and even investment banks!"

Michael Ovitz nodded, "That being said, there needs to be a better reason to get a lot of money from hedge funds, private equity funds, or investment banks." ”

Don smiled, "Of course, I'm ready." ”

He took out another document and handed it over, "In probability, there is a commonly used method of solving probabilities, called the Monte Carlo method. In recent years, the Monte Carlo method has begun to be widely adopted and used by investment institutions, to put it bluntly, it is to use this method to integrate multiple projects with unknown risks in various investment portfolios to achieve stable fluctuations in investment returns. ”

"This morning, I consulted some friends and also contacted analysts at Merrill Lynch to do a set of statistics, which you can look at. According to the Monte Carlo simulation method, when the investment in 20-25 film projects reaches 20-25, the volatility of investment income is relatively small. In other words, when investing in 20-25 films on a large scale, you can avoid risks. ”

"In general, film investment and stock investment are not fundamentally different, both are risk-averse through investment portfolios. Compared with stocks, even if the film market declines, there will be no sudden outbreak of the stock market crash, and the risk is smaller. I named this type of investment 'platter investment'. ”

Michael Ovitz took the file, looked at the complex probability formulas and statistical charts on it, his head was big, and he looked at Donn in surprise, "This is what you sorted out in the morning?"

"That's right. ”

"This ......"

Michael Ovitz took a cool breath.

He has been in Hollywood for decades, and his contacts have ranged from the White House to the bottom, and it is the first time I have seen someone as professional as Donn who is so comprehensive.

It is rumored in the media that Don is a "stock god" and an investment expert, but Michael Ovitz has never believed it.

But looking at the detailed investment probability analysis on the document, Michael Ovitz suddenly felt a touch of respect in his heart. At the same time, he also felt a little sad for his old rival Michael Eisner.

Against a guy like Donn, Michael Eisner...... It's too confident!

Or rather, underestimating him too much!

Don is a person, the more you come into contact with him, the more you will feel that he is unfathomable.

It was impossible to predict when he would come up with a shocking and shocking idea.

Although Michael Ovitz is only a top broker who often deals with people and is not proficient in investment, he can see that the concept of "platter investment" proposed by Donn is feasible!

But he didn't understand, "Donn, how the hell did you come up with that? ”

Don smiled and said, "Just standing on the shoulders of giants." ”

Michael Ovitz laughed dumbly, thinking that Donn was joking again, calling himself Newton.

He didn't know that Don was telling the truth!

With that little ink in Donn's belly, he certainly didn't understand the esoteric Monte Carlo simulation, and he couldn't have come up with the idea of a movie platter investment.

He really stands on the shoulders of giants!

Speaking of which, this happened in 2003.

Viacom's corporate culture is both conservative and abrasive, which is related to the personality of the big boss Lei Shidong, as can be seen from the refusal to cooperate with Don.

Paramount, as a film company owned by Viacom, had problems with its funding chain until 2003, when Paramount's vice president of commercial operations, Esak Pammer, came up with a great financing plan.

That is, what Donn is now proposing - a platter investment plan for films.

Paramount and Merrill Lynch have reached an agreement to establish a private equity fund that will invest 20 percent in Paramount's 25 films over the next two years.

The "investment platter" plan immediately caused a stir in Hollywood and Wall Street, and in the following years, investment banks and private equity funds invested in movies in this way, and reaped huge returns.

It's definitely the most enjoyable collaboration Hollywood and Wall Street have ever had, and it's a huge amount of money involved, billions of dollars.

The most famous are Relativity Media, Dune Entertainment and Legendary Pictures, which act as intermediaries between Wall Street and Hollywood, providing a channel for Wall Street money to enter Hollywood.

It is particularly important that if hedge funds, private equity funds and Hollywood studios work directly together, they will not get the film rights, but can only share the share.

However, by setting up a management company like Legendary Pictures, you can get due benefits in negotiations with Hollywood studios, and you can get 20% of the copyright after investing 20%.

Later, Legendary Pictures was not well managed and was on the verge of bankruptcy, and was acquired by a real estate group with a huge amount of money, because they had enough intellectual property rights in their hands in more than ten years of film platter.

Although the profit is not much, in the era when content is king, copyright can be sold at a sky-high price!

The global economic crisis in 2008 had too much impact, resulting in a series of hedge funds and private equity funds needing to withdraw funds and tighten monetary policy. Wall Street withdrew, and emerging capital markets such as Asia and the Middle East took over the plate of platter investment projects.

It's the year 2000, and it's far from the time for platter investment.

Donn is willing to take the initiative to bring this benefit to Hollywood in advance, so that the whole Hollywood will thank him for his contribution.

That's the blessing of influence!

……

Donn's idea helped Michael Ovitz solve a puzzle that had been bothering him.

In the past, he used to attract investment in a single film through star effect, but now, he has understood the investment model of the new era, and the platter investment of large-scale and large-scale films is the core of attracting investors.

Of course, the platter investment is not in line with his previous "one-stop buying" thinking, which is a large business project, and his AMG brokerage company alone is not capable of running such a large business.

This requires more partners to join and set up a new company.

AMG can be a shareholder in this new company, so naturally more help can be obtained.

Don glanced at Michael Ovitz and found that there was excitement on his face that couldn't be concealed, and said half-jokingly: "Michael, don't just think about your own interests, don't forget, I'm still being suppressed by Disney." ”

Michael Ovitz was stunned, and then laughed, "Donne, now the major film and television companies are worried about the problem of funds. If the platter investment concept you created can help everyone get through the difficulties, can Disney's little action still be put on the table?"

Don frowned and said, "I need immediate results!"

Michael Ovitz knows Donn's mind.

Now, for Disney's banning order, Don En will express his stance one day later, and the core of Hollywood will have a lower impression of him, thinking that he is afraid of Disney.

Don must respond as soon as possible, preferably with a sharp counterattack, to prove that he is not afraid of Michael Eisner, and Donn Pictures also has the capital to compete with Disney!

Michael Ovitz pondered for a while, "Give me a week to operate, and after a week, you can rest assured that you can respond boldly to Disney! Of course, it must be a small response, and the impact should not be expanded." ”

"I understand!" Don waved his hand and looked at him in disbelief, "Is a week enough?" The theory of platter investment is just a model, and in order to convince those investors, you need to make more detailed preparations. ”

Michael Ovitz smiled: "You don't have to worry about it, I'll be responsible for dealing with people." However, if you want to attract a large amount of investment, it is not a short time, but you can ventilate those big film companies first, so that they will not suppress you during this time. ”

Don nodded, too.

With Michael Ovitz's eloquence, it is easy to draw a big pie for several film companies.

Now, except for Down Pictures, all film companies are dreaming of foreign investment, and if Don can match the bridge, they will definitely not risk offending him and suppress Don Pictures.

The matter was left to Michael Ovitz, and Don was relieved.

"The business of investment platter has great potential for development, and now everyone does not understand this concept. If everyone figured it out, whether it was Wall Street or Hollywood, they would definitely quickly build a bridge of communication. You have to keep it secret, and once you make a move, you have to hit it right away!"

Don this is not alarmist.

In 2003, Paramount first cooperated with Merrill Lynch to build a film investment platter model. Subsequently, Columbia, Warner, Universal, Twentieth Century Fox, Disney and other companies followed suit, looking for hedge funds to share the risk.

Now, this idea is Donn's patent, and he certainly doesn't want others to "steal it".

Even if he steals learning, he will have to wait until he has obtained enough benefits through this idea.

Michael Ovitz knew Donn's concern, waved his hand, and said with a smile: "Don't worry, I have a number." There are too many tricks in the film studio, and whoever dares to get involved in the layman will get involved? Even Wall Street, with its deep pockets, does not dare to enter Hollywood without any guarantees. Having a reliable intermediary as a guarantee is the right way to invest. ”