Chapter 257： Legendary Pictures

After more than a month of planning and negotiation, Legendary Pictures officially listed in Hollywood with the joint support of various forces.

It's a day to watch!

It is also an epoch-making day for the development of Hollywood!

The shareholders of Legendary Pictures have a total of 6 institutions, with a total investment of 360 million US dollars.

Among them, Dunn Capital invested 100 million US dollars and is the largest shareholder, accounting for 27.8% of the total share capital.

In addition to the capital injection by these shareholders, Michael Ovitz also successfully obtained a debt priority loan of US$140 million from Merrill Lynch, and the repayment interest is between 6% and 10%, which is very favorable.

So far, Legendary Pictures has a total of $500 million in funds on its books!

The investment plan for the platter must be that the producer's investment accounts for the bulk, and the investment of the platter is between 10% and 40%. This can ensure that the producers take most of the risks and strive for excellence, and at the same time, the platters can also share enough investment pressure.

The average investment in Hollywood films is about 30 million US dollars. A large film company produces about 15-20 films every year.

In other words, the total annual investment of a major film company in film production will be between 500 million and 600 million US dollars.

This number is really not much!

Just look at the production investment of Dunn Films this year?

"Unsinkable" $200 million, "Mrs. & Mrs. Smith" $100 million, "The Chronicles of Narnia" $70 million, "A Beautiful Mind" $40 million, and "Drug Web" $50 million.

Not counting TV dramas invested in, the film investment of Dunn Films this year has reached as high as 420 million US dollars!

That's just 5 movies!

If you count blockbusters such as the "Pirate Alliance" series and the sequel to "Spider-Man" that will be launched in the spring of next year, the investment amount will be very terrifying!

This shows the different business methods of Dunn Pictures and other Hollywood giants.

Tang En Pictures is Tang En's private property, and he has foresight, so he can invest in huge blockbusters with confidence and boldness!

There is simply no need for outside investment to share the risk.

On the other hand, some movie giants, even Disney, who spent 140 million US dollars to invest in a "Pearl Harbor", have to be very nervous. They can't wait to pay close attention to this project from Michael Eisner to Aunt Cleaning.

Legendary Pictures has a book capital of 500 million US dollars. According to Michael Ovitz, a working capital of 20 million US dollars is reserved, and the remaining 480 million US dollars can be invested in the platter investment plan.

Tang En is very concerned about this project, not only because he is the major shareholder of Legendary Pictures, but also because the model of "combination investment" will be a key move for him to dominate Hollywood in the future!

According to the anti-monopoly law of the United States, whether it is music or movies, the copyright share of such entertainment companies cannot occupy one-third of the market.

In other words, a total of 374 movies were released in the United States in 2000. If Dunn Pictures released more than 125 movies this year, it would trigger the antitrust clause!

Of course, from the current perspective, no company can release such a large number of films. Even giants such as Warner, Disney, and Paramount have an annual distribution of about 30 films.

But...what if?

Dunn has just entered Hollywood for 4 years, and he has already made a great career, even rivaling Disney.

In a few years, who can guarantee that Dunn Pictures will not rule Hollywood?

On the edge of issuing monopoly clauses, the platter investment model is the best weapon.

Through the investment of Legendary Pictures, Dunn can smoothly participate in the film production of other film companies.

With the more partners of Legendary Pictures, Dunn's sphere of influence will be wider.

If Legendary Pictures and the Big Six all got in touch...

That means, Dunn has the right to participate in more than 95% of Hollywood movies!

In this way, even if Dunn Pictures wants to limit the scale in the film field in the future, Dunn can also participate in most of the film productions, and he will become a veritable master of Hollywood!

Because movies are Hollywood!

Of course, all of this is still only in Dunn's paper vision. Legendary Pictures has just been established. Now, the first customer needs to be determined.

Dunn flew back to Los Angeles from Boston specifically to have a detailed talk with Michael Ovitz.

According to Michael Ovitz, Legendary Pictures has $500 million in existing funds and $480 million in available funds. The amount of capital is not small, but it should not involve too many partners.

Judging from the current situation, it is better to choose only two partners, sign each contract for two years, and invest 120 million US dollars in each film company each year, accounting for 20% of the share, which is more appropriate.

For Dunn, the more partners the better, if he can pull the six giants into his chariot, then his status in Hollywood will be solid.

However, the total available funds are only 480 million US dollars, and short-term contracts will greatly increase the investment risk of Legendary Pictures. It is necessary to find a balance between the number of cooperative allies and the period of investment efficiency.

Dunn agreed with Michael Ovitz's point of view, "You can first find a movie giant and complete the signing. You can find a second partner slowly. Whoever gives favorable conditions will cooperate with whomever!"

This of course also contains Dunn's selfishness. As long as the second partner of Legendary Pictures has not been confirmed, those Hollywood giants who want to get capital investment will definitely revolve around him and keep trying to please him.

"Who are you going to give this first business?" Michael Ovitz looked at Dunn with a half-smile.

To Michael Ovitz, as long as he successfully pulls money from Wall Street, he equals success!

Don't look at Legendary Pictures' investment of $100 million from Dunn Capital and $80 million from Michael Ovitz himself, but don't forget, this is Hollywood!

The power of Legendary Pictures is in their hands!

Even if the platter investment really fails and the losses are serious, with Michael Ovitz's status and means in Hollywood, it is enough to operate easily, allowing Dunn Capital and his personal funds to successfully cash out, and the losses of Legendary Pictures are all on Wall Street. bear.

There are too many tricks in Hollywood!

Especially for foreign investors, there will be absolutely no politeness!

Wall Street is still relatively good, after all, they are all American compatriots. In the future, large sums of money from Asia and the Middle East will enter Hollywood... Hehe, that will be called a real open door slaughter!

Therefore, the smooth opening of Legendary Pictures is a profitable business for Michael Ovitz. Of course, he has enough respect for this little friend Dunn.

Tang En smiled, "Recently... there are a lot of film companies in contact with us, right?"

"What else?" Michael Ovitz showed a proud brilliance on his face, as if returning to the domineering he had when he dominated Hollywood, "Except Disney, the other five studios have all shown goodwill. Are you not? You know, my banquet invitations during this time are so scary!"

Tang En sat in his office with Erlang's legs crossed, looking very comfortable, "Assortment investment is a new concept, I didn't expect those old guys to be quite enthusiastic."

Michael Ovitz waved his hand, "Hey, how many people really understand the concept of platter investment? Rich is the uncle!"

Tang En glanced at him with a half-smile but not a smile, "Our first partner, you already knew it, right?"

"Oh?" Michael Ovitz blinked, "It's okay, I can respect your decision."

Tang En smiled a little strangely, "Michael, you are not honest, I don't believe you can't guess my thoughts!"

Michael Ovitz froze for a moment, then burst out laughing.

"Don't look at the six giants in Hollywood, there is only one company that is really suitable for us to cooperate with now." Tang En said lightly.

Michael Ovitz nodded, "Yes, this partner must meet the investment potential of Legendary Pictures, and at the same time provide sufficient back-up support for Dunn Pictures."

Then he took a deep look at Dunn and said, "It just so happens that Warner Bros. has not been having a good time recently."

Tang En said with a smile: "Hollywood used to fool other fields. I didn't expect that Time Warner was deceived by an Internet company! I heard... In order to make up for the loss, UU Kanshu Time Warner intends to sell its Warner Publishing. group?"

Michael Ovitz said: "The merger of aol and Time Warner was a failure. Aol is an asset-light Internet company. If you want to sell assets to make up for the shortfall, you must sell Warner's related businesses, maybe Warner Publishing Group, maybe Warner Music Group. In short... Warner Bros. is unlikely to get a penny from the parent company in the next few years."

Tang En nodded happily, picked up the fragrant coffee, took a sip, and said with satisfaction: "So, Warner is the first partner of Legendary Pictures!"

"Right on my mind!"

Michael Ovitz was immediately amazed.

The merger of America Online and Time Warner has already lost $40 billion, but the skinny camel is bigger than horses, and Warner Bros. is still the largest movie studio in Hollywood.

In terms of strength, heritage, and influence, Warner has a pivotal position in Hollywood.

If Dunn Pictures has Warner's **** behind it, and encounters such unreasonable sanctions from Disney in the future, they will have basic guarantees, and they don't have to work as hard as in the past few months.

Moreover, since Dunn came up with the "plattery investment plan" and issued a block order to Disney, Warner has also shown enough sincerity.

In the face of Disney's attack, Warner Films not only did not fall into the trap, but also safeguarded the rights and interests of Dunn Films everywhere. This is human affection.

So in any respect, Warner Bros. is the best choice for Legendary Pictures' first major customer!

"In that case, Michael, please arrange it. We and the person in charge of Warner will discuss some details of the cooperation."

When Tang En stood up, he felt that the Hollywood land under his feet was thicker and more stable.

(Sanqi Chinese)