Chapter 229： Platter investment

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

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

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

Michael Ovitz nodded. "That said, but to get huge sums of money from hedge funds, private equity funds, or investment banks, you need better reasons."

Tang En said with a smile: "Of course, I'm ready."

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

"This morning, I consulted some friends, and I also contacted analysts from Merrill Lynch, and made a set of statistics, you can take a look. According to the Monte Carlo simulation method, when the number of film projects invested reaches 20-25 In other words, when investing in 20-25 films on a large scale, you can avoid risks.”

"In general, there is no essential difference between film investment and stock investment. Both are risk-averse through investment portfolios. Compared with stocks, even if the film market declines, there will be no sudden outbreak of stock market crashes, and the risk is smaller. . This type of investment, I named it, 'Platform Investment'."

Michael Ovitz took over the document and looked at the complex probability formulas and statistical charts above. His head was big, and he looked at Dunn in surprise, "This is what you sorted out in the morning?"

"Yup."

"This……"

Michael Ovitz took a breath.

He has been in Hollywood for decades, and his contacts range from the White House to the bottom. This is the first time I have met a person with such a comprehensive professional coverage like Dunn.

There are rumors in the media that Dunn is a "stock god" and an investment expert, but Michael Ovitz never believed it.

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

To compete with a guy like Dunn, Michael Eisner...I'm too confident!

Or rather, underestimate him too much!

The more you come into contact with Tang En, the more unfathomable you will feel.

It is impossible to predict when he will come up with a shocking, yet mind-blowing idea.

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

It's just that he didn't understand, "Dan En, how did you come up with it? It's too surprising."

Tang En said with a smile: "It's just standing on the shoulders of giants."

Michael Ovitz laughed, he thought Dunn was joking again, claiming to be Newton.

He didn't know that what Dunn said was completely true!

With the little ink in Dunn's stomach, he certainly didn't understand the esoteric Monte Carlo simulation, and couldn't possibly come up with the idea of ​​a movie platter investment.

He really stands on the shoulders of giants!

After all, this is what happened in 2003.

The corporate culture of Viacom Group is both conservative and rude, which is related to the character of the big boss Redstone, which can be seen from the refusal to cooperate with Dunn.

Paramount, as a film company under the Viacom Group, had problems with its capital chain until 2003, when Paramount's vice president of commercial operations, Isaac Palmer, came up with a great financing plan.

That is what Dunn is proposing now - the investment plan for the film assortment.

Paramount and Merrill Lynch have reached an agreement to establish a private equity fund that will invest in 25 Paramount films within the next two years, with an investment share of 20%.

Once the "investment platter" plan was proposed, it immediately caused a shock in Hollywood and Wall Street. In the following years, investment banks and private equity funds invested in movies in this way, and obtained a lot of returns.

This is definitely the most enjoyable collaboration between Hollywood and Wall Street ever, and it involves a huge amount of money, as many as billions of dollars.

The most famous ones are Relativity Media, Dune Entertainment and Legendary Pictures, which are equivalent to intermediaries between Wall Street and Hollywood, providing channels for Wall Street funds to enter Hollywood.

The most important point is that if hedge funds, private equity funds and Hollywood film companies cooperate directly, they cannot get the film rights and can only share the share.

However, by setting up a management company like Legendary Pictures, you can get due benefits in the negotiation with Hollywood film companies. After investing 20%, you can get 20% of the copyright.

Later, Legendary Pictures was poorly managed and on the verge of bankruptcy, and was acquired by a real estate group with huge sums of money, because they had enough intellectual property rights in their hands in the movie platter for more than ten years.

Although there is not much profit, in the era when content is king, copyright can sell for sky-high prices!

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

It's 2000, and it's far from the time when platter investing came along.

Dunn is willing to take the initiative to bring this benefit to Hollywood in advance, so that the entire Hollywood can thank him for his contribution to it.

This is the blessing of influence!

...

Dunn's idea helped Michael Ovitz solve the problem that has been haunting him.

In the past, he invested in a single movie through the star effect, but now, he has understood the investment model of the new era, and the investment in large-scale and large-scale movies is the core of attracting investors.

Of course, platter investment is not in line with his past "one-stop shopping" idea. This is a big business project, and his amg brokerage company alone is not capable of operating such a big business.

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

Amg can be a shareholder in this new company, and naturally can get more help.

Dunn glanced at Michael Ovitz and found that he couldn't hide the excitement on his face, half-jokingly said: "Michael, don't just consider your own interests, don't forget, I'm still being suppressed by Disney now. ."

Michael Ovitz was stunned for a moment, and then he laughed, "Dawn, now major film and television companies are struggling with capital problems. If you create a platter investment concept, it can help everyone get through the difficulties smoothly. Disney's this With a little action, can you still take it to the table?"

Tang En frowned and said, "I need immediate results!"

Michael Ovitz knows Dunn's mind.

Now, with regard to Disney's ban, Dunn expressed his position one day later, and the impression of him at the core of Hollywood would be reduced by one point, thinking that he was afraid of Disney.

Dunn must respond as soon as possible, preferably a sharp counterattack, to prove that he is not afraid of Michael Eisner, and Dunn 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 respond with confidence and boldness to Disney! Of course, it must be a small-scale response, and the impact should not be expanded."

"I understand that!" Tang En waved his hand and looked at him suspiciously, "Is one week enough? The theory of platter investment is just a model. To convince those investors, you need to make more detailed preparations~www.novelhall .com~ Michael Ovitz laughed: "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-term thing, but you can give those big film companies some air first, so that they will not suppress you during this period of time. "

Dunn nodded, too.

With Michael Ovitz's eloquence, he can easily draw a big pie for several film companies.

Now, except for Dunn Films, all film companies are dreaming of foreign investment. If Dunn can make a bridge, they will definitely not take the risk of offending him and suppress Dunn Films.

This matter was handed over to Michael Ovitz, Dunn was very relieved.

"The business of investing in platters has great potential for development, and now everyone does not understand this concept. If everyone figured it out, whether it is Wall Street or Hollywood, a bridge of communication will be quickly built. Confidentiality measures must be taken, and Once you shoot, you must hit it with one hit!"

Dunn is not alarmist.

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

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

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

Michael Ovitz knew Dunn's worries, he waved his hand and said with a smile: "Don't worry, I know. There are too many tricks in the film company, whoever dares to set foot in the film company? Entering Hollywood without any guarantees. Having a reliable intermediary as guarantee is the correct way to invest.”

(Sanqi Chinese)