Chapter 028 Investing in the Film and Television Industry

"From the appearance of the first bar in 1989 to the current scale, the development of Sanlitun has been disorderly and slow, lacking sufficient guidance and planning. Sanlitun has been prosperous for ten years, and it's time for the gas to turn around. In 1998, when our Houhai Bar Street was completed, we will be the new masters of Yandu's night market economy in the next decade. Therefore, this 5A scenic spot is the reason for fundraising. I will divide the entire scenic area into three phases for construction and renovation. The first phase is the west side of Qianhai, I named it Lotus Dock, there will be a water plank road built in the early stage, the bar on the west side of the plank road will be completed at the end of 97, 98 will be officially opened, and then built to the north in turn. Cang Yaozu opened the laptop he had brought and showed Melissa the renderings of Houhai Bar Street he had made.

"Okay, this selling point is good, China's current tourism industry is almost a desert, cultural tourism is indeed a selling point, I heard that the city of Yandu has a long history and unique cultural landscape, and then the combination of fashionable bar culture, will definitely attract a lot of capital inflow. The Citi side didn't know much about the history, but they knew about the bar. When I went back, I went to Sanlitun Bar Street and Houhai to take some photos and videos. Then you give me the renderings after completion, and it is best to have some business data of Sanlitun Bar Street, which is the best reference. The investment location of this project is in the fast-growing capital of China, and it is also a real estate investment, which I believe can be greatly recognized by many investors. Melissa approved of Cang Yaozu's idea.

"Well, yes. There is nothing wrong with investing in real estate in a fast-growing country, and the risk is extremely low, as can be seen from the precedent of RB Tokyo. We raise funds through private equity funds, and then transfer the money to my domestic enterprises, which not only circumvents the foreign investment restrictions on Yandu, but also achieves the purpose of large-scale and rapid development through massive funds. In this way, the profit of the investment is guaranteed. The fundraising scale of this fund is set at $500 million in the first phase, and the investment cycle is five to ten years, and the rate of return can be set higher. Cang Yaozu concluded.

"Okay, Mr. Cang, don't worry. I'll get this fundraising plan done as soon as possible. ”

"Well, Melissa, you can call me Ah Yao, be kind. I don't worry about you doing things, you are a professional, if the outstanding graduates of Harvard Business School can't trust it, I won't have anyone to trust, the situation over there in Sanlitun, I will let Xiaoyu and Xinyao cooperate with you. The second direction is the cinema line. James Cameron has been filming "Titanic" for more than a year, and the investment in this film has been increasing, and now the investment is 135 million US dollars, although James Cameron spends a lot of money, but I am optimistic that it can detonate the global film market, and this film project can make at least $5 billion. Cang Yaozu said his conclusion with certainty.

"No way. It's still 5 billion US dollars, Ah Yao, you're just kidding, the box office of "Jurassic Park", which has the highest box office record now, is only 900 million. The 20th Century Fox film project is now a Hollywood joke. Cameron went around looking for banks to borrow money, but none of the banks lent him money, and Fox made it clear that he would not invest a penny anymore, and the film would most likely be aborted. It seems that Melissa also knows the film "Titanic".

"Abortion?haha, Melissa, you're so naΓ―ve. If it is miscarried, the $135 million invested now will be wasted, and it is impossible for 20th Century Fox to stop filming, and they will pull people to take over. Cameron wants to finish filming this movie, I estimate that he will have to ask for at least 60 million US dollars, and the filming cost is estimated to be more than 200 million US dollars. Fox will definitely not invest, so they only have one way to pull people in to invest, if they don't shoot, someone has to be responsible, who can afford it. Cang Yaozu said his judgment.

"The 200 million dollar movie still wants to make money, my god, this world is really crazy. Now that TV and DVDs are so developed, how can so many people go to the cinema to watch movies. Melissa grumbled.

"High investment leads to high returns. And the viewing effect of super blockbusters can only be guaranteed by theaters. Of course, the $5 billion revenue I am talking about is not just the box office, but also the benefits of free TV, cable TV, DVDs, videos and other peripherals. In terms of box office alone, I am optimistic that this film will get a box office of 2 billion. That's twice the box office record for Jurassic Park, which is now the highest. In addition, you know that the box office only accounts for 20%-30% of the film's revenue, and I think the DVD of this movie can break at least 100 million copies, do you still think that 5 billion US dollars is impossible?" asked Cang Yaozu rhetorically.

"The risk is too great, it's all your estimate, maybe you're too optimistic. Melissa shrugged her shoulders, and she did it very sassy.

"The risk is big, the return is big, otherwise, why wait for us to invest, everyone has already gone crazy. When you raise the fund, if Fox finds someone to invest in the film, you can get involved. If they don't look for it, we will also take the initiative to participate, and after returning to Citigroup, you will take the initiative to contact Cameron to express your investment intentions. The distribution of the film is still handed over to Fox, but we want 25% of Citigroup's box office and all rights and interests in the production and distribution of Huaxia's films. As long as Citigroup can have a box office of 200 million in this movie, we will not lose, and no matter how much it is, it will be earned. ”

"Are you sure? Nobody is interested in investing in things, you're going to do it, you're a madman. I still think it's too risky. ”

"I don't want you to think, I want me to feel. I'm greedy when others are fearful, and I'm afraid when others are greedy, so I don't care about what others are doing. I'll tell you a trick to success: in this world, success belongs only to paranoia, like Cameron, like Steve Jobs, and like me. ”

"Fear, greed, success, paranoia. Well, I think you seem to have a point, and although I still think it's very risky, I'll do what you ask, after all, you're the boss. Melissa spread her hands and compromised.

"Perfect. After a long time, you will understand me better, and our cooperation will be more tacit, I hope you can become my most trusted CFO, and become my most beautiful financial director. ”

"As you wish, dear Mr. Boss. I will hurry up and learn Chinese. ”

"Back to the theater. You just said that now that TV and DVDs are so developed, no one goes to the theater to watch movies. Yes, not only Citigroup, but also Huaxia. But the change comes from the blockbuster. "Titanic" is the first shot fired in the era of super blockbusters, and super blockbusters with more special effects will pull the audience back to the theater again. ”

"It's a little convincing, and I agree with some of your points. ”

"Well, then I'll tell you one more argument. IMAX is a Canadian company that designs and manufactures IMAX cameras and projection systems, and it went public on the NASDAQ in 1994. At present, it is working on a digital original reproduction technology called IMAX DMR, through which ordinary movies can be transcribed into IMAX format movies, the picture is clearer, and the viewing effect is significantly improved. As their technology becomes more mature and the cost becomes lower and lower, IMAX theaters, even giant screen theaters, and 3D theaters will appear one by one in the future. These technologies are the perfect weapon for cinemas to fight piracy, video tapes, and televisions. Therefore, the cinema chain is still promising, whether it is in Citigroup or Huaxia. If you master the theater chain, you will have the right to speak in the film and television industry. ”

"Now most of the theaters in China are state-run theaters, the movie-watching experience is extremely poor, and there are very few multiplex theaters like Citigroup, and the change is just around the corner. There are no theaters in Huaxia yet. The new film association film company, which was established in February this year, is a quasi-cinema chain. They mainly sign contracts with the existing theaters in Yandu, and they are all relatively old theaters, and the way to sign contracts and join is relatively loose. Our goal is to establish a new film company with Yan Film Studio to engage in theatrical distribution and film and television production. We will invest a huge amount of money to buy land or real estate in China's first-tier cities, build our own multiplex luxury cinemas, and at the same time jointly set up a company with Yanyou and Yanying universities to develop new technologies for filming and screening, purchase existing technology patent authorizations, and develop our own new technologies for filming and screening. At the right time, we can even invest in or acquire companies like IMAX to complete our company's technology chain. ”