Chapter 306： Iron face pride!

There are three fires for new officials to take office, especially the alternation of two governments of different parties.

After Bush took office, he finally signed a heavy national policy - tax cuts!

Because of partisan ideas, the Republican Party has always advocated the cowboy concept of "more work, more pay, less work, less pay", and believes that the rich are the fundamental reasons for driving this social and economic development. Harsh the rich with heavy taxes and transfer wealth to the poor, which looks very democratic and beautiful, in fact, it is hurting the country's economy.

The reason why Europe's economy is going from bad to worse is because of the serious communist ideology of "equal wealth and wealth", which makes the life of the lower classes better, but seriously restricts the overall economic development.

The rapid rise of Asia is not only because Asia lacks super-high taxes such as inheritance tax and wealth tax, but instead places heavy taxes on farmers and the bottom people. Through this kind of tax policy macro-control, the wealth is transferred to a small number of wise consortiums, so that they can drive the overall economic development of the country.

Of course, this has caused great controversy in international public opinion, and the reputation is very poor.

But Asia...especially the big countries on the other side, the economic rise has been unstoppable.

A tougher Republican government comes to power and will certainly adopt some tit-for-tat policies.

And the first shot is a big one, and the reform of the medical insurance and social welfare system is implemented. In this government, it is expected to reduce taxes by 1.3 trillion US dollars!

Among them, the federal personal income tax for the rich has been reduced by one percentage point to 38%, which is not an exaggeration.

However, there are too many tax reduction policies for companies, especially Hollywood film companies, because they can drive the overall development of surrounding industries, they already have various preferential policies. This time, the Bush administration has strengthened its efforts again.

U.S. companies can get up to 7% tax deduction for their investment in U.S. cultural assets (including film and television)!

According to the original tax policy, Hollywood filmmaking is an investment industry. Because of the long capital cycle, the profits obtained only need to pay 15% of the capital tax, which is much lower than the 35% federal corporate tax that ordinary companies need to pay. Not counting state corporate taxes.

Once the tax cut is obtained... the investment in the film industry will be unprecedentedly attractive to capital!

A country's tax policy can affect the rise and fall of an industry.

Hollywood will flourish in the first ten years of the new century, leading the world in several dimensions. In addition to the development of special effects technology and the application of platter investment, the government's tax reduction policy is also a big boost.

Later, the decline of Hollywood, in addition to the major impact of the subprime mortgage crisis, has a lot to do with the change of government and the resignation of the Republican Party.

As soon as the tax cut bill was signed, Hollywood immediately caused a shock!

Dunn also received the news immediately, and Michael Ovitz made an urgent appointment!

Because the reduction of the film tax rate will greatly increase the profit rate of film investment, such a bright prospect will immediately attract the attention of the entire Wall Street.

As an intermediary between Wall Street and Hollywood, Legendary Pictures has become the center of attention!

"Platform investment industry will grow rapidly!"

When Dunn arrived, Michael Owarts quickly pulled him over, without even a word of nonsense, straight to the point, revealing his excitement that could not be concealed.

Dunn looked at the humble office of Michael Ovitz and sighed secretly.

He just went to Apple yesterday. Jobs intends to promote a product ipod that competes with Sony's Walkman. This is the company's strategic transformation and requires the decision of the board of directors.

For such a proposal, Dunn of course unconditionally supports it!

What made him more interested was Jobs' office... Fresh and natural, elegant layout, huge floor-to-ceiling windows, slanting sunlight, sitting in this office, the whole person's mood is transparent.

By contrast, the Hollywood office is too ups and downs, too rudimentary, and too uncreative.

"In any case, when the Tangen Building is completed, my office must be beautifully decorated!"

Dunn's thoughts are a little loose.

Michael Ovitz slapped the sofa angrily and said loudly, "Dawn, did you hear me? As soon as the tax cut policy is introduced, Wall Street will go crazy for our assortment of investments!"

Tang En smiled and made a downward gesture, "The federal government also has plans to ease the bubble crisis, and this is the tax cut. Compared to Hollywood, the higher-tech industries in Silicon Valley are the bigger beneficiaries."

Michael Ovitz frowned and said: "I know you have a lot of investments in Silicon Valley, but this is Hollywood! Don, don't forget, you are the founder and major shareholder of Legendary Pictures!"

Tang En said with a smile: "Don't worry, assortment investment has unlimited prospects, which will be the master of Hollywood's financing channels in the future. Now... We just need to choose the right and suitable partners."

Michael Ovitz nodded and lowered his voice, "Dawn, to be honest, the company... has now received 37 invitations for cooperation, and the funds involved... no less than 800 million US dollars!"

"Huh? So much?"

Tang En was no longer the light and cloudy situation he had just now, and he looked surprised.

Just signed the tax cut policy yesterday, and today Legendary Pictures received so many invitations from Wall Street?

Sure enough, he is a capitalist, with a keen sense of smell!

Michael Ovitz said: "Yeah, but this amount... is too much, and more than $500 million in investment will use the corporate financing model."

"Not a debt loan? That's a good thing!"

"But I'm a little worried." Michael Ovitz shook his head. "Once the financing agreement is reached, it will greatly dilute our shares. I'm afraid..."

Dunn understands what he means, once the shares of the two are diluted, Wall Street will get more voting rights of Legendary Pictures, and it is very likely that Michael Ovitz will be eliminated!

Dunn pondered for a long time, "Will you be too worried? Don't forget, this is Hollywood, no matter how powerful Wall Street is, if you come to Hollywood, you have to lie down."

Michael Ovitz shook his head and said: "In a short period of time, they will definitely rely on our relationships and contacts, but don't forget, there are already five high-level executives in the company from Wall Street, and they all have very good working ability. If After a long time, they have also established contacts and influence in Hollywood, and Wall Street may not be able to support the direct line and completely control Legendary Pictures."

"That's a big trouble!"

Dunn thought of the platter investment market in his previous life. The site was in Hollywood, and the executives and managers were all talents from Wall Street.

This is literally carving up a colony in Hollywood and renting it out to Wall Street!

In this life, because of Dunn's reasons, the platter investment model appeared in advance, and it just happened to hit the tax cut policy of the new government.

With such a powerful alliance, Legendary Pictures has become the center of Wall Street and Hollywood!

It is conceivable that the promising Legendary Pictures will become a battleground for Wall Street and Hollywood.

If Hollywood wins, then Hollywood controls the dominance of platter investment; Wall Street wins, just like in previous lives, platter investment falls into Wall Street's pocket.

Behind the $500 million financing is a big trap!

"What's the valuation they gave Legendary Pictures?"

"There are different opinions, but for $500 million in financing, they asked for more than 50% of the equity."

Tang En's face changed and turned cold in an instant. No wonder Michael Ovitz is so nervous. It seems that these Wall Street capitalists are really harboring evil intentions!

Counting the first round of financing, if this financing is completed, the shares controlled by Dunn and Michael Ovitz will be diluted to 30%.

"Hmph, no matter what, Legendary Pictures is a Hollywood company and must be in our hands!"

Tang En's face was grim, no doubt about it.

Michael Ovitz has been in the entertainment industry all his life, and his fate has been linked with Hollywood. Of course, he recognizes Dunn's attitude, "It's just this... We will shut out many investors."

Tang En thought about it and asked, "Which institutions do these 500 million financing belong to?"

"In addition to Morgan Stanley Investment Bank, there are 11 private equity funds." Michael Ovitz paused and said slowly: "Their letters... The content is very similar, and it seems that they have reached an internal unity."

Tang En sneered, "If you want to play a dirty trick with me, I'd rather hit the Seven Hurts than let them succeed!"

"Seven wounded fist?" Michael Ovitz was startled Tang En waved his hand and said solemnly: "Michael, this matter is very important to the future development of Legendary Pictures and even Hollywood. We are Hollywood, we want to make money, but we can't ignore the pursuit of art, and we can't be coerced by the capital of Wall Street."

In Hollywood in later generations, investment in platters is controlled by capital, which leads to Hollywood film companies, in order to meet profit requirements, they shoot commercial blockbusters, all of which are sequels to the IP industry. There is no chance of production for the riskier, more controversial original films.

As a result, the original production team went to shoot TV series one after another, resulting in the birth of a large number of classic American TV series that caused a sensation around the world.

Of course, this is not a good phenomenon. If there is only capital pursuit left in the film, how can we talk about the seventh largest art in the world?

Michael Ovitz took a deep breath and frowned.

This kind of thing is difficult for anyone to decide.

If you accept financing, you may face the danger of being eliminated by picking peaches in the future; refusing financing will hinder the development and industrial scale of Legendary Pictures. More importantly, this is a financing of 500 million US dollars, and it also involves a priority of 300 million US dollars. debt!

This is real money, who can refuse?

Well, Dunn can!

"Capitalists, let them bite the dog on Wall Street. If you want to come to Hollywood to make trouble, you won't even have the chance to be a moth!" Dunn's tone was firm, showing an unquestionable attitude, "Michael, we must not back down on this matter! "

"what do you mean……"

"Arrangers, talk to those 11 private equity funds! If you want to raise funds for Legendary Pictures, you must sign a share contract. They only have equity and no voting rights! Let me say again, Legendary Pictures must be in our hands!"

Tang En waved his hand, and his voice was loud, like thunder.

(Sanqi Chinese)