Chapter 114: Competitors

"Okay, boss, just do what we've discussed. I'll be waiting for you tomorrow at our café. ”

John happily agreed, and then the two sides joked with each other, said goodnight to each other, and hung up. David, who was sitting in the boss's chair, began to think about what benefits he would give to those two old guys after they met tomorrow so that they could give up their acquisition of DreamWorks! And they would also have to be responsible for the distribution of their own company's films? Maybe they could adopt a cooperative approach, and the film adaptation rights of their novels were still in their own hands, and they could jointly develop this series of films with these two old guys, but they would only account for the majority of the investment, or they would be fully invested by themselves, and they would be responsible for the distribution.

As the queen said, it is now a win-win society, if you are a maverick, maybe you don't have to wait for the financial crisis of 08, your film company may be crushed by several other major film companies, then it will be a little more than worth the loss.

Anyway, I also need to find a distribution company to distribute my own films, so why not give this favor to these two old guys? There are only common interests, no common enemies, maybe this is the first step for me to step into Hollywood, I must go extremely steadily, I can't tear away and stride forward, so it is very easy to get the egg, then it will be a little more than worth the loss.

In 2005, Paramount made a groundbreaking acquisition of DreamWorks for $1.6 billion. In 2007, Spielberg's Dream Factory was faced with the embarrassing situation of not being good at people and choosing another talent. And the object of his affection this time is not a newcomer, but the old "lover" who was snatched away by Paramount and missed the opportunity - NBCUniversal Pictures. DreamWorks staged a tragicomedy for people in the form of this "lightning marriage" and "quickly breaking" love triangle.

In 2005, due to the company's overall unfavorable business, the company's founders, Stephen Spielberg, Jeffrey Katzenberg, and David Jaefen (who named the company after the first letter of each name) agreed to sell the latest and brightest name in Hollywood at the time, DreamWorks SKG Productions, which had been running for 11 years. The first and most likely buyer to close the deal at the time was NBCUniversal, not Paramount. NBCUniversal owns 80 percent of the shares of General Electric and the other 20 percent by Vivendi, a French media and telecommunications company.

For Universal Pictures, the acquisition of DreamWorks is uniquely advantaged. Yung Meyer, president of Universal Pictures Studios, and David Jayfen, president of DreamWorks, have been close friends since childhood. Spielberg spent 30 years at Universal Pictures Studios, where he still maintains a studio.

Since the founding of DreamWorks, the two studios have been in business with each other. Universal Pictures financed DreamWorks and was responsible for the overseas distribution of DreamWorks films, as well as the global distribution of DreamWorks films' DVDs. At that time, Hollywood insiders thought that it was expected that Universal Pictures would take DreamWorks under its command, but who knew that it would bite the gold halfway through - Paramount.

While Meyer, the president of Universal Studios at the time, tried to broker the deal, Jeff Immelt, the boss of its parent company, General Electric, was not so impatient. He calculated the acquisition with the logic and careful calculation of an industrial boss. On the one hand, he claimed that DreamWorks was worth $1.5 billion, and on the other hand, he organized a large team of accountants to fully account for DreamWorks' financial statements and assets and liabilities in previous years, and considered whether DreamWorks was really worth this amount, and as a result, Immelt said that DreamWorks was not worth $1.5 billion and hoped to close for $1 billion.

Spielberg's budget-conscious, procrastinating style of work and old-fashioned business tactics upset Spielberg, who decided to find another job. One midnight in early December 2005, Viacom Co-President Tom Foreston's private jet quietly flew into Los Angeles with its destination being Spielberg's California mansion.

A night of passion outweighed years of deliberate and emotional cultivation at Universal Pictures, and Viacom came out on top with a high price of $1.6 billion, merging DreamWorks into its subsidiary, Paramount Pictures. Of course, honeymoons are always sweet, and Viacom's chairman, Reiston, enthusiastically said to Spielberg: "I'm very, very looking forward to you being the head of Paramount Pictures." ”

However, this lightning love between DreamWorks and Paramount has not been more than two years before it begins to sour. It is rumored that the relationship between the two began to strain as early as the beginning of this year. Paramount and its parent company, Viacom, did not give enough understanding and support to many of the DreamWorks' views on the film's production.

In order to ease the relationship between the two parties, Paramount agreed to DreamWorks' request and changed the label of the film it produced from the original "Paramount" to "DreamWorks - Paramount". Relations didn't improve, however, and a lengthy article in Vanity Fair magazine in December revealed DreamWorks' David Jeffen's harsh criticism of Viacom chairman Reststone.

"Reiston likes to intimidate, but I'm not afraid of intimidation," David Jaefin said in the article, "I'm not afraid of arguments, I'm definitely not afraid of Reiston." My responsibility is to take care of Spielberg and Jeffrey Katzenberg, as well as the employees and customers in the company. We chose to sell the company to Paramount, and now it's proven to be the wrong choice. ”

Viacom also seems to have had enough of the unruly practices of the DreamWorks team. At a recent investment conference, Viacom's executive Philip Dawman said, "Viacom doesn't have the same fun as Spielberg. The economic impact of not having Spielberg would be irrelevant to Paramount, and to Viacom in particular, as opposed to the consequences of suddenly jumping out of someone to start our company from scratch. Dawman's comments deeply pierced the arrogant self-esteem of the DreamWorks heroes and deeply angered them.

In a separate session at the same conference, Jeffrey Katzenberg argued that Spielberg was a national treasure director and deserved more respect.

In 2007, DreamWorks produced several cash cow movies for Paramount, which can be said to be Paramount's number one contributor to the box office, with "My Wife is a Big Mac" and "Rear Cry" both doing well at the box office, with "Ice Blade Duo" and "Transformers" earning $144 million and $722 million, respectively. The discord between the two sides can also be manifested in another thing.