Chapter 673: DreamWorks (Part II)

As DreamWorks' overall operation went unfavorable, the internal relationship between the initial partners became strained, and everyone's entrepreneurial pride was gradually replaced by a strong desire to cash out. At the beginning of the business www.biquge.info the three partners gave up their salaries and bonuses in order to give DreamWorks a starting point to fly, and now 11 years have passed, everyone has become practical and decided to sell some of the company's assets for cash.

Paul Allen, the anonymous partner at the time, wanted to get out of the way without delay, and he repeatedly asked Spielberg when he would see the return on the $600 million he had invested. In 2004, when "Shrek" became popular, DreamWorks split its animation division and went public, making $812 million. Later, DreamWorks Animation's second public offering of $500 million in shares was unsuccessful, and Wall Street management accused the company of inflating the earnings potential of the Shrek 2 DVD release.

The release of the Shrek 2 DVD proved to be a disaster, and although hordes of people were willing to pay to go to the cinema to watch the movie, few people went to buy a disc of "Shrek". As a result, millions of DVDs were piled up in DreamWorks warehouses and could not be sold, and the plan to issue additional shares went bankrupt.

David Geffen, who started his career with low-budget record production, has always been wary of high-cost, high-risk filmmaking.

The music mogul has never been much optimistic about the film industry, and a year ago he approached his longtime friend, Ron Meyer, the president of Universal Pictures, about selling DreamWorks' live-action film division. In addition, the box office fiasco of DreamWorks' blockbuster "Mystery" this summer has added a key piece to the sale of DreamWorks. The $130 million film grossed just over $12 million in its first weekend of release. According to industry estimates, "Mystery" will cost DreamWorks and Warner Bros. $50 million each.

Finally, and most crucially, Spielberg himself seems to have embraced the idea of abandoning DreamWorks.

After all, he already has a fortune of $2.7 billion and no longer needs to rack his brains for money. Excluding his directorial compensation — he received $250 million for "Jurassic Park" and $72 million for "Jurassic Park 3," and Spielberg also owns 2 percent of Universal's Jurassic theme park ticket revenue.

Just like a person's spiritual fetish that he pursues without worrying about food and clothing, he can easily say that he likes it or can easily say that he gives it up, Spielberg is a genius director, but not a business strongman, and he can generously accept the little regret of DreamWorks marrying someone else.

Perhaps being a studio owner is more challenging and exciting than being a film director, but the 11-year real-life history of DreamWorks has changed Spielberg's original intentions and ideas, and not everyone can become a figure like Irving Salberg in the MGM era.

So, in 2005, due to the overall unfavorable operation of the company, the company's promoter, Stephen? Spielberg, Jeffrey? Katzenberg, David? Jaiffen (named after the first letter of everyone's name) agreed to sell the latest and brightest name in Hollywood at the time, DreamWorks SKG Productions, which had been in business for 11 years.

At that time, the first and most likely buyer to close the deal 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.

Because the president of Universal Pictures Studios? Meyer and DreamWorks President David? Jaiffen has been a close friend since he was a child and has always been very close. 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 be a halfway way to bite the gold - Paramount.

Although Meyer, the president of Universal Studios at the time, tried to broker the deal, the boss of its parent company, General Electric, Jeff? Immelt, on the other hand, is 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. On the other hand, a large team of accountants was organized to fully account for DreamWorks' financial statements and assets and liabilities in previous years, and to consider 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 it 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 Brown? Freston's private jet quietly flew into Los Angeles with its destination being a headline for Spielberg's mansion in California.

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.

Although $1.6 billion is high, Lu Deshuang may not be able to take it out, don't forget, Renren will also be listed next year, and he will not be short of money by then.

But what really made Lu Deshuang embarrassed was that he was worried that DreamWorks would not look down on him.

In the final analysis, it is still Lu Deshuang's poor background!

Don't look at the multinational group-level entertainment and cultural company that has spanned the east and west, but its own family knows its own affairs, in China, or in Asia, it can be said to be an influential entertainment media company, but in Western countries, except for the United States, it has little influence in other European countries.

Compared with those old entertainment media groups, Lu Deshuang's Dessing Media Group really has no advantages.

Of course, nothing is absolute!

Since Viacom was able to quickly take away DreamWorks from Universal at a high price of $1.6 billion, it means that Lu Deshuang may not be able to snatch DreamWorks from the hands of the two giants at a high price.

However, in this way, it is obvious that it is necessary to spend more money in vain.

Lu Deshuang is not really wronged, and he also wants to try it to see if he can get in touch with the people in DreamWorks, especially Steven Spielberg, who is not a very good businessman, to see if he can bring some help to his acquisition of DreamWorks through Steven Spielberg!

PS: Speechless, the doctor also said that I didn't bleed after the tooth extraction, and now I drink a sip of water, it's all bloody, spit, and it is also blood, people who don't know, think I have internal injuries.