Chapter 802： Conditions of lending

There is a myth in Hollywood-in every economic crisis, Hollywood is a place where the storm cannot spread.

During the Great Depression of the 1930s, a quarter of Americans were unemployed. People still counted steel to watch the latest movies. People hid in movie theaters because they escaped the reality. The movie industry thrived, and Hollywood didn’t. After being hit, they are thriving.

The 2008 financial crisis was the most serious financial crisis since 1930. The economic downturn triggered by it has lasted for more than ten weeks, and there is still no sign of ending. The houses of the poor were taken back by the banks, and the rich began to auction their valuables. From the wife's $4,000 handbag to the $500,000 private jet.

Can Hollywood really be a safe haven in the face of a real estate avalanche, a slump in the stock market, 64,000 companies declaring bankruptcy, and an unemployment rate of 7.2%?

Hollywood is no longer the Hollywood of the last century. Major production and distribution companies have become members of media groups, and media groups with complex industrial revenues must not escape this financial turmoil.

When Wall Street plummeted, the entertainment industry stocks were not spared. The overall US entertainment industry stocks fell by 41%, and the stocks of media groups belonging to every major movie studio suffered heavy losses.

The "Time Warner-AOL" affiliated to Warner Bros. is the world's largest media group. Its stock has fallen from a peak of about US$17 per share to a lowest of US$7 per share. The market value of the entire group has evaporated by US$25 billion.

Paramount’s owner Viacom Group is the biggest loser among the five major media groups in the United States. Its stock fell from its highest point of US$45 per share to US$12 per share. Some financial magazines speculated that Viacom’s Summer Ray. Shi Dong "may be embarrassed not to be a billionaire anymore."

Paramount Pictures itself suffered the double nightmare of the Wall Street Investment Company's divestment and the separation of its DreamWorks Spielberg, and it has become one of the most difficult movie studios other than MGM.

Another big loser is Sony Columbia. Sony’s stock has shrunk by 65 percent and has already reached the brink of bankruptcy.

In contrast. Walt Disney’s life is considered to be the best among the five major media groups. Although the fourth quarter revenue is expected to decrease by 13% compared to the same period last year, up to 2 billion U.S. dollars, it has already exceeded 43 billion U.S. dollars in revenue this year. That said, it will not have much impact.

Although the sudden decline in TV advertising and the sharp decline in theme park revenue have impacted Disney’s revenue, Disney’s stock price has gone through several fluctuations and its market value has fallen by less than 15%, compared with the half of other media group’s stock prices. Already the biggest winner.

of course. It is not that there has been a large-scale sell-off of Disney shares on the stock market, but Ryan has long allowed Scott to prepare a huge cash flow and use multiple foundations to spread it out, which has stabilized Disney's stock price to a certain extent.

Many of Disney's subsidiaries have experienced revenue declines, with the exception of two.

One is Netflix, which announced the end of the videotape rental business model with a unique DVD mailing leasing method-users only need to pay 16.99 US dollars a month to rent DVDs online for unlimited times-users sit at home and wait for the post office to deliver the video. After reading the disc, seal the envelope that came with it. Put it in the mailbox and mail it back.

This can be said to be a good way to avoid the pain of the financial crisis.

The other is Marvel Comics. The enthusiasm caused by "Iron Man 2" has not yet retreated, and their comics business has always had a stable income.

The biggest impact of this financial crisis is actually the massive withdrawal of Wall Street capital from Hollywood. The short honeymoon cooperation period between the two parties ended. Many banks no longer invest in the high-risk film industry. Many Hollywood companies have to cut down some projects one after another. These projects have decreased. It also means that underemployment will eventually be reflected in every class that makes up Hollywood.

Those big-name celebrities are no exception, there is not enough work. They cannot sustain huge expenditures.

However, the team behind Hollywood stars are smart people, and many people have embarked on the route of overseas gold.

For example, after the end of long-term madness and obesity, Britney Spears embarked on the road of world tour, so that fans from all over the world paid the bill; for example, Sylvester Stallone, who finished filming "The Expendables", ran to India, intending to temporarily Fishing for gold in Asan's Bollywood...

Compared with the stars who can go overseas to fish for gold, the life of major Hollywood labels is even more difficult. Wall Street has withdrawn funds, making their liquidity scarce, and they have announced production cuts.

Among the six major labels, the saddest one is Paramount Pictures. Deutsche Bank has shelved a US$450 million investment agreement with Paramount, making them lack sufficient funding for at least 30 films. On the other hand, After three years of unpleasant cooperation, Spielberg of DreamWorks has always wanted to separate from Paramount, and now it has reached the point where it has to be separated.

Paramount Pictures wanted to seek help from the parent company Viacom, but Viacom can only protect itself. Unfortunately, one after another, Paramount was sued jointly by Allianz Risk Transfer and Marathon Structure Financial Fund. Past projects involving Paramount Pictures were misleading and fraudulent, and suffered a credit freeze.

Spielberg’s new DreamWorks is not having a good life. Although he escaped the credit freeze because of the separation of his family, he was also severely short of funds. He had to shelve several film projects and waited for the illusory and illusory rewards from an entertainment company in India I don't know if the loan of 350 million US dollars will be honored.

Want to raise funds, now major banks and financial institutions are overwhelmed by themselves, and they are all escaping away from Hollywood at the speed of fleeing. How easy is it?

But Ryan is different. He and Scott's team have been well prepared for a long time. This is the moment he has been looking forward to. Only by seizing the present opportunity can he ensure the smooth implementation of future plans.

"Steven..."

Before walking to the golf ball, Ryan tried to swing the club, hit the white ball hard, and then turned around, "I heard that DreamWorks did not want to participate in the release?"

"I think the energy of DreamWorks should be more concentrated on the production."

Hearing Spielberg's words, Ryan nodded, jumped into the battery car, and patted Tyler's back in the driver's seat. She immediately started the car and drove towards the recreation area by the sea.

Spielberg continued, "You should know that we are better at producing films."

"How about handing over the distribution to Disney?" Ryan threw the cue behind. "I promise to charge only 10% of the distribution fee."

"It's not up to me to decide." Spielberg helped his glasses. "Besides, DreamWorks couldn't even find the funds to make the film..."

"Your agreement with India's Reliance Group has not been reached yet?" Ryan asked timely.

"Not yet." The old man shook his head, "The Indians are not having a good life."

"Alison, concentrate on driving."

Warned Taylor, Ryan looked at Spielberg and didn't go around in circles, "I still have funds in my hand. If DreamWorks needs it urgently, I can lend you."

Hearing Ryan's words, Spielberg's eyes immediately brightened. Even if he gets the money at a higher interest rate than the bank, he is willing. After all, without funds, DreamWorks can't even start work.

But Spielberg is a man who has been in Hollywood for many years. He understands that there is no free lunch in the world, even if the two sides are very good friends.

"Speak up straight, Ryan." Spielberg was very direct. "What are the conditions?"

"How much do you need?" Ryan asked.

"One hundred million U.S. dollars, at least." Spielberg seemed to speak loudly at the Lion. "Of course the more the better."

"I can personally lend DreamWorks US$300 million to US$400 million at bank interest rates."

Watching Taylor tacitly drive the battery car onto the road with no one, Ryan looked back, "One Oscar for Best Actress and an Oscar for Best Actress."

"I cannot guarantee such conditions."

No one can guarantee the award, Spielberg shook his head directly.

"Stephen, I just borrowed your connections." Ryan knew this too. "Then you will be responsible for helping me lobby the conservatives among the Jewish people this year and next."

Although he knows many people, age is a problem. Spielberg, as a representative of Jewish origin who has been rooted in Hollywood for more than 40 years, is definitely the most suitable candidate.

This public relations work is not excessive, and in fact, there are not many things in charge.

"Anything else?" Spielberg asked again.

"Of course." Ryan said deliberately very solemnly, "If possible, I hope you quit DreamWorks and join Disney."

"Okay, Ryan." Spielberg knew he was joking. "Seriously, I can agree, but I don't guarantee that I will get the two statuettes."

"It's okay Ryan never puts hope in a single aspect," I will call Scott later, and his people will contact you. "

Then, the two changed the subject and talked about the production world that is more miserable than the major labels.

Compared with the major companies with guaranteed income, movies are more dependent on foreign investment, and their current situation can no longer be described as difficult.

Of course, if you have the right movie, the right actors and production team, and the right budget, you can still get investment.

Opposing movies refer to comedies, action movies, horror movies, or thrillers; if it’s a serious drama, there must be a big star; and the other themes that the producer loves, death, suicide, schizophrenia, or discussing women’s rights, this At that time, no one cares.

It wasn't until the evening that Ryan and Taylor separated from Spielberg and left the club, and then rushed to the next business meeting. The target of the meeting was Paramount Pictures, which has more crises and troubles than DreamWorks. (To be continued...)

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