Chapter 554： Lobbyists come to the door

The management structure of the New Universal Group has been basically completed, and the specific business restructuring will be completed before February next year.

After Barry Diller and Robert Iger took office, Dunn also appointed several managers, including Reed Hastings from Netflix, Dolby Little from Dolby Laboratories, and Ni from Marvel Studios. Na Jacobson and Bob Chapek, who was in charge of the vacation, could all report directly to him by leaps and bounds.

This reflects the importance he attaches to these business segments.

Of course, his most important thing is the film and television entertainment business. Bill McNick and Ron Mayer can also report to him, and he has stipulated that every film and TV series with an investment of more than 100 million US dollars must be personally invested by him. Signature review to approve the project.

The end of the year is approaching. In order to reduce profits and pay less taxes, many companies will choose to spend a lot of money and make a lot of investments at the end of the year.

Dunn has successively approved the establishment of four major production films - "Spider-Man 3", "Pirates League 2", "Harry Potter 3", "Enemies Robot".

Worth mentioning is Public Enemy Mechanical.

In a previous life, this film was produced and distributed by Twentieth Century Fox.

But in this life, the appearance of Tang En changed the pattern.

Public Enemy producer and director Alex Proyas is an Australian who has made several low-budget films, and this is his first major production.

Because Dunn has a good relationship with the "Australian Gang", when Alex Proyas was looking for investment, he first thought of New Universal.

Bill McNick and Ron Mayer also had a bit of a feud about the project, the latter thought it would be too risky to invest $120 million in an Australian director to make a sci-fi action movie!

In the end, the trouble went directly to the chairman's office, and Tang En made a final decision: "Vote!"

And personally called Will Smith and invited him to participate in the project of "The Mechanical Enemy" as the starring role.

Will Smith fell out with Sony Pictures and was looking for a new partner. Hearing Dunn's call, he agreed directly without even asking about the specifics of the project.

No way, these years Dunn has the prestige in the film field!

None of the films he planned, directed, and produced were bad, and none of them failed at the box office!

In addition to these four confirmed films, Tang En also used the "one-vote veto" to directly seal the monster film "Van Helsing" that Universal Pictures had been working hard for two years.

This famous fiasco blockbuster, as long as Dunn is there, it is impossible to invest again.

However, Dunn doesn't want to let the production department of Universal Pictures led by Ron Meyer for the past two years be wasted, and has been notified-if other film companies are interested in the project of "Van Helsing", New Universal can be sold.

After all, the producer and director of the "Van Helsing" project, Stephen Sommers, is also quite well-known in the industry, creating the famous "Mummy" series.

On this day, Michael Ovitz of Legendary Pictures came to Dunn's office, holding a report and looking proud.

"Make money?"

This is an old friend. Dunn was very enthusiastic and casual.

Michael Ovitz laughed: "I can't hide anything from you, let's see!"

At the end of the year, many companies have year-end summary reports.

Tang En took a look, his eyes lit up, and he was very surprised, "Net profit... 270 million US dollars?"

Legendary's financial statements are complex, involving too many projects from too many companies.

Dunn didn't take a close look at each one, but only looked at the results. In the past year, Legendary Pictures has made a net profit of 270 million US dollars, and the return on investment is as high as 21%!

"Ha ha!"

Michael Ovitz laughed.

Tang En sincerely praised: "Amazing!"

Michael Ovitz's face was full of brilliance, and he said: "As far as I know, the net profit is 270 million US dollars, even more than Paramount and Columbia Pictures, not to mention MGM, they have deficits year after year. Movie revenue, even Disney is not as good as Legendary.”

Last year, Legendary Pictures had a net profit of US$90 million and a 12% return on investment, but after all, it was the first natural year and it was just getting started.

This year is the second natural year, and Legendary Pictures has almost completed its big turnaround!

Michael Ovitz hasn't been this good in a long time since he left caa.

Looking at the entire Hollywood, in terms of the income of the film industry, Legendary Pictures is already second only to New Universal and Warner Bros.

Early last year, when Wall Street invested in Legendary Pictures, it was valued at $1 billion, but now? The annual net profit is 270 million, and the valuation of Legendary Pictures has exceeded 3 billion!

In less than two years, Legendary Pictures has tripled its valuation.

Such brilliant achievements, looking at the whole of Hollywood, can only be compared by New Universal.

Of course, the biggest credit is still Dunn Walker!

Everyone knows that the biggest foundation for the success of Legendary Pictures is the "assortment investment" proposed by Dunn, as well as the 100 million US dollars he initially invested!

"The performance is very good, it's time to seek listing." Tang En hesitated and said slowly, "When the economy is down, the entertainment industry is usually more popular. Seeing that the bubble crisis of the Internet is about to pass, I want to get such a It's hard to get a nice rate of return."

Michael Ovitz raised his eyebrows, "You want to quit?"

Tang En owns 15% of the shares of Legendary Pictures. He thought that Tang En was in a hurry to get Legendary Pictures listed and wanted to cash out.

"Exit? No!" Tang En shook his head again and again, "The market needs to determine the relationship between supply and demand. Assortment investment is so popular, it is impossible for Hollywood to have only Legendary Pictures, a film company that focuses on assortment investment."

After Michael Ovitz heard it, he nodded again and again, "Indeed, I also heard that there is a lot of news on Wall Street."

Tang Endao: "So, it is foreseeable that in the next few years, Hollywood will sprout up a lot of investment companies. If Legendary Pictures wants to stand out, it must use a lot of funds to take the lead in seizing the market. Listing financing is the best way. ."

Michael Ovitz pondered for a long time, "Well, I will hold a board of directors when I go back to discuss it with everyone. But I came here today, and the main thing I said is not this matter, but to send you materials."

"Material?"

"Aren't you fighting with Lei Shidong? I heard that he is going to use a Pepsi, so let me warn you."

"Baishida? I still don't care about it!"

"Don't be careless!"

Michael Ovitz took out a new material, handed it to Dunn, and said: "This is a secret material that I have organized myself, and it is a confidential material. Only I can get it in Hollywood! Of course, it is also a loss. Your platter investment plan, I can get the financial details of so many movie companies."

Dunn glanced at it, showing a serious look.

Really important material!

This is the cash flow information details of the global revenue of the major US studios -

Income distribution in 1948: Cinema: $6.9 billion, VHS tapes, DVDs: 0, Pay TV: 0, Public TV: 0, total revenue of $6.9 billion;

Income distribution in 1980: Cinema: US$4.4 billion, VHS tapes and DVDs: US$200 million, Pay TV: US$380 million, Public TV: US$326 million, total revenue of US$8.2 billion;

Income distribution in 1990: Cinema: US$4.9 billion, VHS tapes and DVDs: US$5.87 billion, Pay TV: US$1.62 billion, Public TV: US$7.41 billion, total revenue of US$11.9 billion;

Income distribution in 2000: Cinema: US$5.87 billion, VHS tapes and DVDs: US$11.67 billion, Pay TV: US$3.12 billion, Public TV: US$10.75 billion, total revenue of US$31.4 billion;

Income distribution in 2001: Cinema: US$6.32 billion, VHS tapes and DVDs: US$13.75 billion, Pay TV: US$3.2 billion, Public TV: US$10.98 billion, with a total revenue of US$34.25 billion.

Generally speaking, for this kind of material, it is not difficult to obtain the old data ten years ago, but it is too difficult to obtain the latest data.

Fortunately, Michael Ovitz is in charge of Legendary Pictures, can deal with major film companies, and can get their true and accurate financial statements.

Seeing such a report, Tang En's first feeling was that the proportion of the movie's revenue from the theater box office was decreasing. This does not include the peripheral sales of consumer goods such as dolls and commercial advertisements. In these four traditional sectors alone, the revenue of the cinema chain has been reduced to less than 20%.

Another point is that the income of public television stations is getting higher and higher. The entire Hollywood, through public television stations, earned 10.75 billion US dollars last year!

This greatly increased Dunn's interest in public television networks.

It seems that the earlier the acquisition of nbc, the better!

Only this combination of film companies and public television networks can better manage internal transactions, control revenue, and reduce taxes.

But Michael Ovitz is concerned about the revenue of videotapes and video discs, he said: "Last year, Hollywood received a total of 13.75 billion US dollars through the sale and lease of videotapes and video discs Of which, 35% were in The rental market gets it. And 80% of the 35% of the rental market revenue comes from Blockbuster!”

Dunn laughed a few times, "Michael, aren't you trying to scare me? Do you really think I'm afraid of Redstone?"

Michael Ovitz said solemnly: "Starting from next year, the investment cooperation between Legendary Pictures and Paramount will be cancelled. But with three consecutive waves of strong suppression, you have to be careful of Redstone's counterattack. "

First, "American Idol" switched to ABC, and then it cooperated with Disney to suppress Paramount's film, and it was ordered Legendary Pictures to cancel the investment cooperation with Paramount.

Redstone can endure it is strange!

In the current movie market, the rental of video discs and video tapes is a major source of income!

Coincidentally, the Blockbuster controlled by Redstone is the leader of the industry.

Michael Ovitz's concerns are not unreasonable.

There was an indifferent sneer on the corner of Dunn's mouth, "When I was a small person, I dared to lead Dunn Pictures and challenge 20th Century Fox and Disney. Now, I have New Universal, and partners like Legendary Pictures and Disney. , in the face of Viacom, how can you admit it? Humph! Even if he has a monopoly on the rental market, what can he do?"

"Don..."

Michael Ovitz was a little anxious. As a Jew, he knew how powerful Redstone was.

Tang En waved his hand, interrupted him, and said solemnly: "Okay, Michael, you don't need to say anything! He's just being honest. If he really dares to demonstrate, then I'll come with him. A battle!"

Michael Ovitz sighed, helpless.

Today, at the request of a friend, he made a special trip here to act as a lobbyist.

He knew that Dunn's temper was very stubborn.

But I didn't expect that Tang En refused so simply!

(Sanqi Chinese)