Chapter 306: Iron Mask Pride!
There are three new officials in office, especially the alternation of two governments with different parties.
After Bush Jr. took office, he finally signed a blockbuster national policy - tax cuts!
Because of partisan ideas, the Republican Party has always advocated the cowboy concept of "more work, less work, less pay", and believes that rich people are the fundamental reason for driving this social and economic development. Harsh on the rich with heavy taxes and transfer wealth to the poor may seem democratic and beautiful, but in fact, it is hurting the country's economy.
The reason why Europe's economy is deteriorating is because of the serious communist ideology of "equal wealth", which certainly makes the life of the lower classes superior, but seriously restricts the overall economic development.
The reason for Asia's rapid rise is not only that Asia lacks ultra-high taxes such as inheritance tax and rich tax, but instead puts heavy taxes on farmers and the masses at the bottom. Through this kind of macroeconomic regulation and control of tax policy, wealth is transferred to a small group of intelligent consortia, so that they can drive the overall economic development of the country.
Of course, this has caused great controversy in international public opinion, and the reputation is very poor.
But Asia...... Especially the big countries on the other side of the strait, the economic rise has become unstoppable.
When a tougher Republican administration comes to power, it will certainly adopt some-for-tat policies.
And as soon as it was launched, it was a big deal to reform the health insurance and social welfare systems, and in this administration, it is expected to cut taxes by 1.3 trillion US dollars!
Among them, the federal personal income tax for the wealthy has been reduced by one percentage point to 38%, which is not an exaggeration.
However, there are too many tax reduction policies for companies, especially Hollywood film companies, because they can promote the development of the overall peripheral industries, there are already various preferential policies, this time, the Bush administration has once again strengthened its efforts.
U.S. companies can get up to a 7% tax deduction on their investments in U.S. cultural assets, including film and television!
According to the original tax policy, Hollywood filmmaking is an investment industry, because of the long capital cycle, the profits obtained only need to pay 15% capital tax, which is much lower than the 35% federal corporate tax that ordinary companies need to pay, which is not counting the state corporate tax.
Once you get a tax deduction...... Investment in the film industry will have an unprecedented attraction to capital!
The country's tax policy can affect the rise and fall of an industry.
Hollywood will flourish in the first decade of the new century, leading the world in several dimensions, in addition to the development of special effects technology, the application of platter investment, the government's tax reduction policy, is also a big help.
In addition to the significant impact of the subprime mortgage crisis, the decline of Hollywood has a lot to do with the change of government and the resignation of the Republican Party.
As soon as the tax cut bill was signed, Hollywood immediately caused a shock!
Don also received the news as soon as possible, Michael Ovitz made an urgent appointment!
Because the reduction of the film tax rate will greatly increase the return on profit of film investment, such a bright prospect will immediately attract the attention of the entire Wall Street.
As an intermediary between Wall Street and Hollywood, Legendary Pictures has become the center of attention!
"The platter investment industry will grow rapidly!"
When it came to Donne, Michael Owatts hurriedly pulled him over, without even a word of nonsense, straight to the point, revealing excitement that could not be concealed.
Don looked at Michael Ovitz's humble office and sighed secretly.
Yesterday he had just made a trip to Apple, and Jobs was interested in pushing a competing Sony Alkman iPod, a strategic shift for the company that would require a decision from the board.
For such a proposal, Don unconditionally supports it!
What intrigued him more was Jobs's office...... Fresh and natural, elegant layout, huge floor-to-ceiling windows, sunlight slanting, sitting in this office, the whole person's mood is transparent.
In contrast, Hollywood's offices are too floating, too shabby, and too uncreative.
"In any case, when the Donn Building is built, my office must be beautifully decorated!"
Don's mind wandered a little.
Michael Ovitz slapped the sofa angrily and said loudly: "Donn, did you hear me? As soon as the tax cuts are introduced, Wall Street will go crazy for our platter investment!"
Donn smiled and made a downward gesture, "The federal government also has plans to alleviate the bubble crisis, so this is the tax cut, compared to Hollywood, the bigger profiteer is the high-tech industry in Silicon Valley." ”
Michael Ovitz frowned: "I know you have a lot of investment in Silicon Valley, but this is Hollywood! Don't forget, you are the founder and majority shareholder of Legendary Pictures!"
Don smiled: "Don't worry, platter investment has unlimited prospects, which will dominate Hollywood's financing channels in the future." Now...... We just need to pick the right and right partner. ”
Michael Ovitz nodded and lowered his voice, "Don, don't hide it, company...... So far, 37 invitations for cooperation have been received, and the funding involved is ...... No less than $800 million!"
"Huh?
Tang En no longer had the breezy breeze just now, and his face was surprised.
Just signed the tax cut yesterday, and today Legendary Pictures has received so many invitations from Wall Street?
Sure enough, he is a capitalist with a keen sense of smell!
Michael Ovitz said, "yes, but that's the amount...... There are too many, and more than $500 million in investment will be financed by a company. ”
"It's not a debt loan, it's a good thing!"
"But I'm a little worried. Michael Ovitz shook his head, "Once the financing agreement is reached, it will greatly dilute the shares in our hands, and we are afraid of ......."
Don understood what he meant, once the two of them were diluted, Wall Street got more voting rights for Legendary Pictures, and it was very likely that Michael Owitz would be eliminated!
Don't forget, this is Hollywood, and Wall Street, no matter how energetic it is, when it comes to Hollywood, it has to lie down. ”
Michael Ovitz shook his head and said: "In a short period of time, they will definitely rely on our relationships and connections, but don't forget, there are already five senior executives in the company from Wall Street, and they all have very good work ability." If they build up their connections and influence in Hollywood for a long time, Wall Street may not support their descendants and completely control Legendary Pictures. ”
"That's a big problem!"
Donn thought of the platter investment market in his previous life, the territory was in Hollywood, and the executors and managers were all talents from Wall Street.
It's literally carved up a colony in Hollywood and loaned to Wall Street!
In this life, because of Donn, the platter investment model appeared in advance, and it just happened to hit the new government's tax cut policy.
With such a strong combination, Legendary Pictures has become the big center of Wall Street and Hollywood!
It is conceivable that Legendary Pictures, which has a promising future, will become a battleground for Wall Street and Hollywood.
If Hollywood wins, Hollywood controls the platter investment, and if Wall Street wins, just like in previous lives, the platter investment falls into Wall Street's pocket.
Behind this $500 million financing, there is a big trap!
"What is the valuation they give to Legendary Pictures?"
"There are different accounts, but for $500 million in financing, they are asking for more than 50% of the equity. ”
Donne's face changed, and he turned cold in an instant, no wonder Michael Ovitz was so nervous, it seems that the capitalists on Wall Street are really harboring evil intentions!
Including the first round of financing, if this financing is completed, the shares controlled by Donn and Michael Ovitz will be diluted to 30%.
"Hmph, no matter what, Legendary Pictures is a Hollywood company, and it must be in our hands!"
Don's face was grim, unquestionable.
Michael Ovitz has been in the entertainment industry all his life, and his fate has been linked to Hollywood, and of course agrees with Donn's attitude, "It's just like this...... We're going to turn a lot of investors out. ”
Tang En thought for a while and asked, "Which institutions do the 500 million financing belong to?"
"In addition to Morgan Stanley Investment Bank, there are 11 private equity funds. Michael Ovitz paused for a moment and said slowly, "Their letter...... The content is very similar, and it seems that an internal unity has been reached. ”
Tang En sneered, "If you want to play tricks with me, I'd rather fight the Seven Wounds Fist than let them succeed!"
"Seven wounds?" Michael Ovitz was stunned.
Don waved his hand and said solemnly: "Michael, this matter is very important to the future development of Legendary Pictures and even Hollywood. We are Hollywood, we want to make money, but we can't ignore the pursuit of art, we can't be coerced by Wall Street capital. ”
In Hollywood in later generations, platter investment was controlled by capital, resulting in Hollywood film companies, in order to meet the profit requirements, all of which were commercial blockbusters, all of which were industrial sequels of IP. There is no chance of producing a riskier and more controversial original film.
As a result, the original production team ran to shoot TV series, thus giving birth to a large number of classic American dramas that have caused a sensation all over the world.
Of course, this is not a good phenomenon, if the film is only left with the pursuit of capital, how can it talk about the seventh largest art in the world?
Michael Ovitz took a deep breath and frowned.
This kind of thing is difficult for anyone to choose.
Accepting financing may lead to the danger of being peached out of the market in the future, refusing financing will hinder the development and scale of Legendary Pictures, and more importantly, this is $500 million in financing, and it also involves $300 million in senior debt!
This is real money, who can refuse?
Well, Don En can!
"Capitalists, just let them eat dog on Wall Street, if they want to come to Hollywood to make trouble, even if they have the opportunity to be moths!" Don said in a resolute tone, showing an unquestionable attitude, "Michael, we must not back down on this matter!"
"What do you mean......"
"Arrange people, talk to those 11 private equity funds! If you want to finance Legendary Pictures, you must sign a share contract, they only have equity, no voting rights! I will say again, Legendary Pictures must be in our hands!"
Don waved his hand, and his voice was loud, like thunder.