America: Starting with the acquisition of MGM

Chapter 159 How to leverage 1 trillion?

“That guy Eric, Anthony Ferrante still refused to compromise and insisted on a 5% share of gross profits.

"Me and Bema, we have talked to him several times, but it seems that the box office of "Human Purge" and the invitations from outside have given him full confidence. In short, his attitude is very tough."

"Even if his remuneration is increased to 700,000 US dollars, it will not be enough. What Ferrante means is that the contracts offered to me by other companies all have dividends."

"As a veteran who has opened up new territories for the company, his treatment is not as good as outsiders. He is very dissatisfied and sad."

In the office, Warren reported on the recent progress of AK Film and Television.

Eric sneered, he had seen too many wolves that were not well-raised.

Some people just don’t understand how big their butt is and what size pants they wear, otherwise their crotch will fall off when they walk.

"It seems that he really thinks that the success of the movie is his own credit. Since we can't cooperate, stop fighting for it and tell him to get out!"

Since Warren came to report this matter today, it means that the two of them have given up on Anthony Ferrante.

He immediately nodded in agreement: "Bema and I agree the same way, so we are going to look for a new director."

"Well, has anyone chosen?"

"Yes, it's the director Kieron Everly Wayans who was originally planning to invite the first part of "Sharknado". As you said, the director who can make "Scary" can also make it. Bring greater breakthroughs and ideas to "Sharknado"."

"Waynes? Didn't he look down on Sharknado?"

"People change. At the time, I looked down on it because no one thought that such a bad movie could really become a hit. Now when the recruitment information is publicized, many people will squeeze their heads."

"In addition, excluding "Human Purge", the company shot a total of 15 movies in the first half of the year. When we are busy, we can have up to four crews working at the same time. Eric, I think there is a shortage of manpower here at AK Film and Television. 50 people are not enough. "

Eric remembers that the original goal set for AK Film and Television was to produce 20 copycat movies a year, but he did not expect that three-quarters of it was completed in half a year.

However, it will definitely not work if we allocate manpower from MGM. There will be more and more projects here, and the landlords will have no surplus food.

"If we don't have enough manpower, we can recruit externally. You can come up with actual needs and give me a report."

Warren took a sip of coffee: "Okay, then there is the issue of profit. The total cost of shooting 15 movies is US$12.37 million. Currently, 13 have been successfully sold, and the other two are being promoted."

"The gross profit is US$34.99 million. After deducting shooting costs, taxes and operating costs, the current net profit is US$18.65 million."

"If these two films are sold, the net profit will definitely exceed 20 million US dollars."

Hearing the figure of 20 million, Eric couldn't help but smile. A bunch of shoddy junk could actually bring him a profit of 20 million in half a year.

Although it cannot compare with excellent movies, it has already made a lot of money.

Especially for MGM, which now has to spend money on everything, he wouldn't mind a little more.

After one year, assuming the workload remains unchanged in the second half of the year, the net profit of almost 40 million US dollars will be comparable to that of "Sharknado".

This money can be used to support the development and research of Facebook, YouTube and Lionheart, at least until the end of this year.

What's more important is that you can make a profit without losing money, and there is no risk of losing money at all. There are so many good businesses like this in the world, no wonder other companies are also interested in taking this path.

"Warren, you have been working in the industry for almost a year. How does it feel to be in charge of a company?"

Warren hesitated for a moment: "I feel like I understand a lot. At least I have a good understanding of the production process and promotion of a movie, and I also have some own views on the market."

"Anyway, I'm more mature. At least I won't be as panicked as when I first took office. Everything has its own process."

Eric looked at him with a smile: "Maturity is a good thing. Maturity means you can take on more responsibilities. Have you ever thought about taking on a bigger burden?"

"A bigger burden? Eric, you mean?" Warren's eyes slowly opened wide.

"I plan to set up another film and television company, which will be operated independently. It will not be affiliated with MGM in name, but in fact it will be the same as AK Film and Television."

"This company does not make copycat films, but independent films. Its main focus is on religion, cult, gender identity, horror and other niche themes or literary films. Anyway, if the big studios don't make it, the new company will make it."

"If you were asked to leave AK Film and Television to manage this new company, would you have the confidence?"

When Warren heard that he was asked to manage a new company, a big bell rang in his mind.

He is no longer the simple rookie he was a year ago, and he can see many things more clearly and clearly.

Especially after getting together with Bemahadi, the other party often conveyed his workplace experience to him.

Last time at the cinema, he and Bema met Eric and Nicole. Bema Hardy was worried that Eric would be suspicious of their union.

Although Eric seemed very generous and didn't give any hint, it affected Warren's judgment to some extent.

Now suddenly a big burden or a piece of cake hits his head. It is false to say that there is no doubt.

Was Eric testing himself? Is Eric going to split the two of them up? Or do you really trust yourself?

But with his qualifications and abilities, there are obviously more suitable candidates in the company, not to mention that the benefits always fall on his head. What do Judy, Billy and Bordeaux who came out together think?

"What are you thinking about? Why don't you speak?"

Eric asked, seeing Warren in a daze.

"Eric, even though I have one year of experience, I feel that my abilities are still insufficient. I am afraid it will be difficult for me to be in charge of a company alone now."

Taking a deep breath, Warren still refused the big pie.

"What? You don't have confidence in yourself? In the company, you four are the ones I trust the most, but Billy has such a jumpy personality that he can't sit still at all. Maybe in a few years, he will be stable and can share larger tasks. Work."

"Judy can't move for the time being. I have other arrangements for her. Bordeaux's performance in the marketing department is not very good. I need to change his position to tap his potential."

"I can see your work achievements this year. If you don't have the confidence to take over a new company, you can continue to stay at AK Film and Television."

"But the burden still has to be added to you. You have to carry AK alone. I plan to transfer Beima to the new company. Her ability to support a new company on her own will not be a problem."

After Eric finished speaking, Warren's serious expression disappeared and he suddenly laughed.

It seems that Eric is not suspicious of the couple, but really trusts them. Otherwise, he would definitely continue to test and then let himself leave.

The two chatted for a while and asked Warren to tell Bema the news and be mentally prepared in advance.

After sending the fat man away, Eric leaned on the sofa and thought about the new company. It must be established.

Why do major Hollywood studios establish their own independent production and distribution companies? The reason is that business and independence are naturally contradictory.

If you want to make money, you must lower the movie rating to G as much as possible, which means that everyone can watch it. There will be basically no swearing, gore, violence, abuse, etc. in such movies.

G-rated movies are given the green light all over the world, even in the Middle East, without even deletions.

Independent films or art films are often all R-rated, let alone those conservative countries in the Middle East.

Even in the United States, some that were too extreme could not be shown, and in the end they had to be released on video tapes.

As for a large film and television company, if it produces and releases too many R-rated movies.

It is very likely that you will be on the blacklist of some countries because of a certain taboo, such as blasphemy and lesbianism, and then be completely banned.

The consequence of being blocked is that even G-rated movies produced by your company will not be able to be released in the country. The consequences are unbearable for many film and television companies.

For example, Marvel's "Shang-Chi", Disney's arrogance caused all Marvel movies to be implicated and banned by China. It was not until a new president was replaced that the relationship was eased.

That's why big factories need a branch to serve as a fig leaf, even though everyone knows that you two were born from the same mother.

But if the younger brother is banned, the older brother will generally not be affected. This is the main reason why many large companies set up independent branches.

In addition, the new company established by Eric is an independent operation, not a subsidiary, so that it can be more easily controlled after the company goes public.

You know, after listing, the company does not belong to you alone. Even the largest shareholder will have his equity significantly diluted.

And as the group develops, the equity will be diluted less and less.

For example, in the Samsung Group, Lee Jae-yong actually only holds less than 2% of Samsung's shares, but the huge Samsung Group is under his command. Why?

Because Lee Jae-yong plays with nested shareholdings, which is also the way many wealthy people control companies.

For example, company A has a market value of 1 trillion, and company A’s largest shareholder is company B, so if you control company B, you can control company A.

But the market value of Company B is 500 billion, which is still too high for ordinary people, so Company C appeared.

Company C is the largest shareholder of Company B, and its market value is only 100 billion, which has shrunk 10 times.

But 100 billion is still too much, so the nesting continues, and companies D, E, F, and G appear.

Until the emergence of company H, the largest shareholder of company G, and the market value of company H is only 1 billion.

1 billion is affordable for a rich man, so he became the largest shareholder of Company H.

Finally, he can control the large group company A by controlling company H, leveraging 1 trillion with less than 1 billion.

When MGM, Facebook, YouTube, and Lionheart go public in the future, their market value may have exceeded one trillion in ten years.

If Eric wants to still control these companies, he needs to take this path.

Establish some branches in advance to nest equity, and set up camp step by step, so that the enemy cannot take advantage of the loopholes.

Time flies, and it’s early July in a blink of an eye.

The Purge is in its final week of massive release, with fewer than 800 theaters currently showing it.

Japan, the last overseas big ticket store, also opened a few days ago.

Surprisingly, "Purge" was well received in Japan, with a rating of 9 on Yahoo Movies, which is much higher than the 60 or 70 ratings in other countries.

Many comments are saying that it draws inspiration from battle royale, but it is shot with American characteristics.

Awesome, the owner finally accepted my thoughts and ideas, I must support it!

This is a gift from a father to his son, a great gift!

Although it has not yet completed a week of screening, it is expected to exceed 20 million US dollars.

Currently, "The Purge" has a North American box office of US$93 million, an overseas box office of US$37 million, and a global box office of US$300 million.

Auditions for "House of Cards" at the MGM building.

Eric, Andrea, Julio and two people from the audition company are sitting here.

Today is a comprehensive audition, and we have to choose several important roles, but the most important thing is the choice of the heroine Claire Underwood.

He needs to be about the same age as Kevin Spacey, and his acting skills must be online.

Eric had wanted to invite Julianne Moore, and she fit the bill in every way.

Later I thought about it and let it go. It would be difficult to deal with an Oscar-winning actor, and it might be even more troublesome in the future to have an Oscar-winning actress.

Later, the auditions were made public, and anyone who had the skills and wanted a role could come and have a go.

However, Eric heard that many actresses who were interested in the role backed down when they knew they would be starring opposite Kevin Spacey. Today, all the actresses who dared to show up had a bad temper.

"Thank you Hatcher."

As Teri Hatcher left, Andrea looked at Eric: "I think Hatcher is capable of doing the job both in terms of image and acting skills."

Eric shook his head slightly: "To be determined, her short hair style is too cold and severe, and she is more like a killer than a politician."

"Next person!"

The door opened, and another mature woman with short hair walked in. Like Teri Hatcher, Felicity Huffman would become Desperate Housewives in the future.

After trying on a few looks and performing a scene, Hoffman walked out.

Everyone else looked at Eric.

"The acting is okay, but the style still doesn't fit the image in my mind. It's too soft. Hatcher is too murderous, but she lacks murderousness."

"Next person!"

The 15th short-haired mature woman came to the interviewer, Cynthia Nickerson from Sex and the City.

Luo Luo walked through a scene generously and talked about her understanding of the characters, which was recognized by everyone, and the scope of the pending decision was expanded by one more.

Soon the audition went on for another hour, and as the 26th actress walked in, the one Eric was most looking forward to appeared.

Robin White from Forrest Gump, 37-year-old Robin White and Kevin Spacey look good together, but I don't know how their acting skills are.

"Robin, what do you think Claire is?"

"Independent, smart, calm and full of ambition, she and her husband are more like partners. This is more obvious than the attributes of a couple."

Eric nodded: "Do you usually like to watch the news? Do you pay attention to politics?"

Robin White smiled and asked: "Director, don't you know that Hollywood is the stronghold of the Democratic Party?"

Everyone couldn't help but smile, this was indeed a long-standing tradition.

"Okay, you are very confident. I like confidence. Politicians are all confident. Let's give it a try."

Julio read the lines in unison, and Robin White instantly entered the character. His expression changed and his whole style changed.

Five minutes later, the short scene ended. She immediately switched states, grinned and asked, "How was it? I practiced very seriously at home."

Eric stood up and walked over, stretched out his hand and said: "Welcome to "House of Cards"!"