Hollywood Director 1992

Not long after the seven major film industry presidents held their meeting, Link also received related news stating that the seven major film companies were preparing to join forces again to deal with Guess Pictures, targeting Guess Pictures' films in every aspect from production to promotion.

The situation was intense.

Link called Gregg Davis, the chief investment officer of Vanguard Capital, and Paul Hankinson, a senior partner at Morgan Investments, to ask for their opinions on whether the entertainment capital behind the seven major film companies' actions would participate.

Both said they were unsure and suggested he proceed with a second round of financing in advance.

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As long as Wall Street capital occupies the majority of shares in Guess Pictures, then there will be no difference between Guess Pictures and the seven major film companies.

They are all one family, and the investment companies behind the seven major film companies will no longer target Guess Pictures, and will treat him equally.

Link understood.

This time, the meeting of the seven major film companies was ostensibly a competition between companies, but in reality, Wall Street capital saw Guess Pictures making big money and eagerly wanted to share the profits, not wanting to see Link, an outsider, taking all the profits for himself.

Wall Street capital is using this method to force Link to conduct a second round of financing in advance.

Link asked the two what Wall Street's current valuation of Guess Pictures was.

Hearing that he had relented, the two immediately became enthusiastic.

Gregg Davis told him that several Wall Street investment institutions had assessed the market value of Guess Pictures, and depending on the assessment perspective, the valuation was between $600 million and $800 million, making it the largest film company outside of the Hollywood Big Seven.

Gregg Davis told Link that if he agreed to financing, Vanguard Capital was willing to acquire shares of Guess Pictures at a market value of $800 million.

Paul Hankinson, representing Morgan Investments, made a commitment to him, also willing to acquire shares of Guess Pictures at $800 million, and asked him when to start the second round of financing.

Link continued to ask the two how many shares Wall Street hoped Guess Pictures would offer for financing.

Both said they hoped for more than 50%.

After financing more than 50%, Wall Street capital will occupy a dominant position on the board of directors of Guess Pictures.

The company's affairs will also be decided by the capital side.

The third round of financing will also be led by the capital side.

After several rounds of financing, Link's shares will be repeatedly diluted, and his say in the company will continue to decline.

By then, Guess Pictures will be completely dominated by Wall Street capital, and even if he is still the chairman of the board, he must follow the board's opinions on important matters.

New Line Cinema and Miramax after being acquired are in this situation.

This is also the purpose of Wall Street capital, to use capital to control all profitable companies and further control the United States and the world.

After considering it, Link told the two that Wall Street's valuation of Guess Pictures was too low, and he would not accept it.

His offer was $1.8 billion to $2 billion.

First of all, at the end of last year, the market value of Guess Pictures was less than $300 million. In just one year, the market value has multiplied. Even at Wall Street investment consulting firms, the market value of Guess Pictures has tripled.

This shows that Guess Pictures is developing rapidly and has great investment potential.

Secondly, Guess Pictures' performance this year is better than that of the Big Seven. Some of the Big Seven have market values of over 10 billion, and some have tens of billions, but they can't beat Guess Pictures in terms of box office revenue.

Guess Pictures makes money quickly, has low input costs, and has low investment risk, making it a stable and profitable investment.

Wall Street should consider raising Guess Pictures to the same height as the Big Seven.

From these two aspects, the offer of $1.8 billion to $2 billion is very conservative.

If the second round of financing is waited until next year, the offer for Guess Pictures will not be less than $2.5 billion.

Link advised the two to act in advance.

Gregg Davis and Paul Hankinson couldn't help but shout 'God, are you kidding me?' and 'This is too crazy!' when they heard his minimum offer of $1.8 billion.

Previously, when talking about the offer for Guess Pictures, they also guessed that Link was dissatisfied with the offer of $600 million to $800 million, because Guess Pictures' performance this year was too good.

This year, Guess Pictures released 9 films, with North American box office exceeding $800 million, and global box office expected to be over $1.8 billion.

Including the box office split of "Pulp Fiction."

Plus video tape sales splits, home theater copyright splits, GG sponsorship, and other peripheral copyright income.

Guess Pictures' turnover this year is expected to exceed $2 billion.

Deducting film production promotion and other costs, the net income is no less than $600 million.

The valuation of $800 million for such a company is indeed too low.

Their psychological price was $1 billion.

They also thought that Link would offer $1 billion.

It's just that Link's appetite is bigger and more arrogant than they expected.

Link ignored the assessment of Wall Street investment companies and directly increased the company's offer by two or three times.

Gregg Davis told Link that this offer was too high and they could not accept it.

Guess Pictures was established for too short a time. Besides the production company, distribution company, and Marvel Entertainment, the company has no other industries.

Unlike the Big Seven, which also have film cities, production bases, film theme parks, and film library resources of up to tens of thousands of films.

From an investment perspective, Guess Pictures is not entirely a physical company.

Investing in this kind of company is too risky.

Wall Street investment companies cannot accept this offer.

Paul Hankinson persuaded Link to lower the price again.

In the past, the capital behind the Big Seven did not pay attention to Guess Pictures because Guess Pictures did not take much of the box office, which was not worth their attention.

Now the rise of Guess Pictures has seriously affected the interests of the groups behind the Big Seven.

They will no longer sit idly by and watch Guess Pictures grow, nor will they watch the profits in their hands being taken away by Guess Pictures.

Next, the Big Seven and the media entertainment groups behind them will take action against Guess Pictures.

No mistake, first release is here!

It will be difficult for Guess Pictures to make money as unscrupulously as it has in the past two years.

If the capital behind the Big Seven joins forces to deal with Guess Pictures, Guess Pictures' development next year will inevitably encounter setbacks, and its market value will also be greatly affected.

At that time, let alone $600 million, maybe no one will be willing to invest even $300 million.

Paul Hankinson persuaded Link to conduct a second round of financing when Guess Pictures' two consecutive films are selling well and the market is rising.

On the one hand, earn more capital.

On the one hand, actively transfer part of the benefits to Wall Street capital in order to reconcile with the interest groups behind the Big Seven.

A double win.

If Link does not agree, I am afraid he will miss the opportunity to avoid risks.

After considering it, Link is willing to reduce the price by $200 million and offer 30% of the shares for the second round of financing at a market value of $1.6 billion to $1.8 billion. The more you buy, the cheaper the price.

By the third round of financing, he will hand over more than 50% of the shares.

Currently, Link and Shining Capital jointly hold 73% of Guess Pictures' shares. Taking out 30% for financing will not affect his control of the company.

If the financing is successful, he will have several hundred million dollars more in his hands.

Gregg Davis and Paul Hankinson, hearing that he agreed to compromise, said that they would report to the company and let the company decide whether to invest.

Link also used the media to release news to the outside world that Guess Pictures was preparing for a second round of financing, offering $1.6 billion and expected to finance 30%.

After the news spread, authoritative media such as "The Wall Street Journal" and "Business Week" successively reported that Hollywood's Big Seven film companies were planning to take joint action to cope with the rapid rise of Hollywood's eighth largest Guess Pictures.

Faced with the joint pressure from industry giants, Guess Pictures founder Link was forced to launch the second round of financing plan in advance in order to enhance the company's market competitiveness and capital reserves.

However, according to assessments by several Wall Street investment institutions, the current market valuation of Guess Pictures is only $800 million at most, far lower than the $1.6 billion financing target.

Industry analysts believe that, from the offer, Link seems unwilling to conduct a second round of financing in advance, nor is he willing to give up benefits to entertainment capital, so he has proposed a very high price. If Link does not lower the offer, the second round of financing is very likely to encounter failure.

"$1.6 billion? Is this bastard crazy? A broken company that has been established for less than three years dares to offer $1.6 billion? Even if CAA was established for twenty years, I wouldn't dare to offer such a high price."

Michael Ovitz looked at the news in the newspaper with a very unhappy expression.

CAA's market value during its heyday was around $1 billion, and now it is about $600 million, which is similar to the valuation given to Guess Pictures by Wall Street investment institutions.

But Link offered $1.6 billion.

That is to say, the career that Link has created in three years is more brilliant than the career he has created in twenty years.

Michael Ovitz doesn't think much of this.

"It's indeed very high, but it's also a fact that Guess Pictures can make money."

CAA Vice President Ron Meyer said.

Michael Ovitz did not refute, he snorted coldly, "Link takes capital operation too simply. The purpose of Wall Street capital to suppress Guess Pictures is to make money and maximize profits, but Link wants to use this method to grab money from investment companies and use small capital to make big profits. I dare to bet that this round of financing will definitely fail."

Ron Meyer nodded in agreement. Wall Street capital wants to use this method to let Link share the cake, but Link wants to cut a knife from the capital itself.

Wall Street capital is very powerful and greedy, and will not let him succeed.

If no capital is willing to take over, then the Big Seven can unscrupulously suppress Guess Pictures.

"This bastard will definitely pay the price for his greed, and this is also the price he pays for offending me."

Michael Ovitz smiled triumphantly.